Ontario Hansard — 12 April 1976 (30th Parliament, 3rd Session)

1976-04-12

Ontario — Debates (Hansard)

Ontario Hansard — 12 April 1976 (30th Parliament, 3rd Session)

1976-04-12

Ontario — Debates (Hansard)

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April 12, 1976

30th Parliament, 3rd Session

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Hansard Transcripts

UNITED ASBESTOS PLANT

HOSPITAL CLOSINGS

POINT OF PRIVILEGE

POINT OF PRIVILEGE

HOSPITAL CLOSINGS

UNITED ASBESTOS PLANT

LAND FREEZE APPEALS

DISPENSING FEES

SALE OF FIREARMS

ERC CHAIRMAN’S APPOINTMENT

STATEMENTS BY FORMER TREASURER

RENT INCREASES

HIRING OF CANADIAN PERSONNEL BY UNIVERSITIES

NON-RETURNABLE CONTAINERS

KIRKLAND LAKE AREA BUILDING FREEZE

LAND USE

COMMERCIAL FISHING REGULATIONS

HOSPITAL CLOSINGS

TOWNSHIP OF BOSANQUET ACT

CITY OF HAMILTON ACT

CITY OF HAMILTON ACT

CITY OF NIAGARA FALLS ACT

TOWNSHIP OF WEST CARLETON ACT

WELLAND-PORT COLBORNE AIRPORT ACT

INSTITUTE OF PROFESSIONAL LIBRARIANS OF ONTARIO ACT

CITY OF TORONTO ACT

DOVERCOURT BAPTIST FOUNDATION ACT

CITY OF WINDSOR ACT

SUCCESSION DUTY AMENDMENT ACT

RETAIL SALES TAX AMENDMENT ACT

ONTARIO GUARANTEED ANNUAL INCOME AMENDMENT ACT

CENTRAL ALGOMA BOARD OF EDUCATION AND TEACHERS DISPUTE ACT

PRIVATE MEMBERS’ HOUR: ABORTION REFERRAL REGISTRATION ACT

The House met at 2 p.m.

Prayers.

Mr. Speaker: Statements by the ministry.

UNITED ASBESTOS PLANT

Hon. Mr. Bernier: Mr. Speaker, members of the Legislature will recall that about two weeks ago, accompanied by my deputy minister and a number of senior civil servants from the Ministry of Health, the Ministry of Labour and the Ministry of Natural Resources, I made a surprise visit to the United Asbestos plant at Matachewan. At that time, we did a very careful examination of the plant itself. Surveys were taken of the air quality.

We had indications from previous samples that the levels of asbestos in the air were at an unacceptable level. We gave instructions to the plant at that particular time that the 50-odd men who were working in the mill there, must wear masks and that smoking was prohibited as of that moment on. Since that time and that particular moment, you’ll recall, Mr. Speaker, I indicated that a regular surveillance would be undertaken by the Ministry of Health and my own ministry.

You are aware, sir, as other members of the Legislature are, that there are 180-odd jobs there and that the economic base for the town of Matachewan is closely connected to this particular asbestos development. However, the health of the miners and the workers in our mines and in the industries of this province are far more important to this government.

The tests reported to me this morning following a sample survey taken last week indicate things are getting progressively worse. In fact, the report reaching me just about two hours ago indicates the levels are unacceptable. There is an increase in the amount of fibre in the air.

Therefore, an instruction has gone out as of about an hour ago, on the instruction of my deputy minister and staff and in consultation with the Ministry of Health, that the mine cease operations immediately -- that the operators close up, they clean up, and they seal up before starting up. I also indicated to the mine and will be indicating to the mine officials that the mining division of my particular ministry will be available to assist and to advise the company in its technical problems to resolve the situation and, of course, to meet the health standards that have been set by the Ministry of Health.

HOSPITAL CLOSINGS

Hon. Mr. Davis: Mr. Speaker, as mentioned in this House a few days ago by the acting Minister of Health (B. Stephenson), and concurrent with a commitment made by the Minister of Health, the hon. member for Muskoka (Mr. F. S. Miller), I was pleased to have an opportunity to review most carefully the appeal briefs submitted with respect to the scheduled closure of Clinton Public Hospital, Durham Memorial Hospital, Willett Hospital in Paris and Doctors Hospital in Toronto.

In terms of local community interest and convenience, the briefs made what must be considered meaningful cases for a careful consideration both by the Ministry of Health and the government as a whole.

The role of the local provincial members of the Legislature, of all political affiliations, is, I believe, also worthy of note with respect to the re-evaluation. In most cases, the local member worked diligently with the local hospital board and concerned groups in the development of the brief and the appeal.

The decision to reduce duplicated active treatment hospital beds and orient our system of health service delivery toward both an improvement of quality and a more appropriate allocation of health resources, is a policy decision which remains in the best long-term interest of the people of Ontario. The degree of dedication which the hon. Minister of Health applied to implementing this commitment in a fair, humane and frank fashion, is a tribute not only to his skill and ongoing capacity as an elected public servant, but to his humanity and sense of concern as an individual.

The decisions which I am announcing now have, of course, been reviewed most carefully by the acting Minister of Health and by the Minister of Health himself.

With respect to Willett Hospital in Paris, it will cease operating as an acute general hospital on June 1. It will, however, remain open as an ambulatory care centre, with full primary care capacity, accommodating physicians’ offices, laboratory and minor surgical facilities, and radiological facilities. The Willett Hospital will also be permitted to provide chronic care service at its present chronic care capacity, awaiting the report of the local committee looking into the long-term-care needs of the community.

Clinton Public Hospital will also close as an acute treatment facility on June 1. In recognition of the specific local concerns made clear during the appeal procedure, Clinton Public Hospital will be allowed to maintain the status of an ambulatory primary care facility after June 1, with x-ray, lab, and minor surgical capacity -- along with physicians’ offices on the premises.

At Durham Memorial, the full ambulatory care status will also apply after June 1, when it too will cease operation as an acute treatment facility.

Similarly, here in Toronto, Mr. Speaker, Doctors Hospital will also move from being an acute treatment hospital on June 1. It will, however, be allowed to provide its particular service to the ethnic and core community of the city as an ambulatory care facility with laboratory, minor surgery and x-ray capacity. Doctors’ offices will also continue to be located in the hospital, as is the case in the other institutions I have mentioned.

In all cases, these community ambulatory facilities will be linked by ambulance to hospitals nearby. The important role played within the communities by each of these facilities will continue in every sense, excepting the acute active treatment function. In all cases the commitment of this government to find opportunities for those personnel who may be displaced will manifest itself in three concrete ways.

The government will negotiate transfer costs for those who find opportunity elsewhere in this province. The government continues to seek new opportunities through working groups, such as the Evans committee now working on the placement of staff members of Doctors Hospital. The government will expect neighbouring hospitals to be responsive with respect to clinic and admitting rights for physicians displaced by a hospital closing.

Similarly, officials of the Ministry of Health will begin to work immediately to organize each of the four institutions for the transition to primary care and emergency services during the wind-down period. The ministry will ensure the full transfer of any and all caseloads before the June 1 date.

The government heard the appeals in good faith. The decisions announced today are consistent with both the broad policy goals of the government with respect to health service improvements and the need for government to remain sensitive to local concerns and needs which are very often very particular indeed. I am pleased, as Premier, to be associated with these decisions and to associate my government with the fundamental sensitivity and fairness I believe they represent.

POINT OF PRIVILEGE

Ms. Sandeman: A point of privilege, Mr. Speaker: On March 18 I brought to your attention an incident during which several of my constituents and those of other members were unable to gain access to us and you promised to check into that. Would you be able to give us any reason for what happened on that day?

Mr. Speaker: I did inquire and I found nothing particularly irregular. There was a large crowd outside, if the hon. member will recall. There were two or three groups and, as quickly as possible, the people were accommodated. I am not sure whether your people were with the larger group or came individually. It was the larger group which was dealt with. They were taken into each of the caucus offices, because that was the arrangement under which they were to meet.

I am sorry if your people were individuals rather than part of the group, but I can tell you the staff was busy getting the larger group either directly to the members or to the caucus offices respectively. If they weren’t part of the group, your people should have been allowed in without any question and that instruction, of course, is very clear to the security staff. There is no question about that.

Mr. Renwick: Mr. Speaker, on a point of order: Without in any way questioning what you have said, surely when a member of the assembly raises an important point of privilege with respect to the access to him or her of his or her constituents, it is important that the Speaker consult with the member as to what exactly did take place in the circumstances and submit a formal report to the assembly, rather than the Speaker’s having to ho asked just what the situation was and then giving a totally inadequate reply, with great respect.

Mr. Speaker: Thank you very much for your advice. I probably was negligent in that. It was my understanding, though, that the group was a part of the larger group and I have just determined now that that was not true. If I transgressed, I am sorry and I will not let that happen again.

POINT OF PRIVILEGE

Mr. Lewis: On a point of privilege -- rather unrelated and very brief, Mr. Speaker, if I may: As one of the people who was in the lockup for the budget through until 8 o’clock, when only with difficulty were we allowed to escape at all, I would like the Speaker to take a look at the behaviour that was accorded the manager of the media studio, Mr.

Andrew StuParick, who was in the lockup, left at 7:30 p.m. -- a privilege given to no one else; media representatives or politicians in that lockup -- and wandered about freely for fully half an hour prior to the budget with all of the information which had been shared through the course of the day. In no sense did he use it inappropriately, but clearly it called into question the very special status accorded this one person in comparison or contrast with all those who otherwise participated.

Since this is the second time that members of the media and the Legislature have been concerned about the privileged position of those who run the media studio, I would ask the Speaker to take a good look at it and report to the House.

Mr. Speaker: Oral questions.

[2:15]

Hon. Mrs. Scrivener: Mr. Speaker, on a point of privilege, may I please reply to the statement or request just made by the Leader of the Opposition? It is just this, that Mr. StuParick is sworn.

Mr. Lewis: Whether Mr. StuParick swears or not is irrelevant, but I must say, Mr. Speaker --

Mr. Singer: Four-letter words or longer?

Mr. Lewis: -- to the point of privilege I raised, the members of the media are also forced to sign a statement saying they will not reveal the information until 8 o’clock. The assumption, therefore, is that somehow Mr. Andrew StuParick is more honourable in his behaviour. He may be as honourable. He is certainly not more so.

Mr. Norton: The member for Scarborough West has already established how he can be trusted with confidential information.

Mr. Lewis: Can I ask a question now? Now is a bad time to feel unhappy about it, Keith.

Mr. Speaker: The hon. Leader of the Opposition with his questions please.

HOSPITAL CLOSINGS

Mr. Lewis: A question first, if I may, of the Premier: Can he indicate, in relation to the hospital announcement which he made, (

a) how many employees these ambulatory care units at Willet, Clinton and Durham are likely to involve; (

b) will Willett be allowed to extend beyond -- I guess it must have had chronic care beds for around 25 or 26 when it was closed down -- will it be able to extend beyond that if the Brant county study suggests it should; and (

c) since the Premier is allowing Doctors Hospital to do minor surgery, will he allow it a small acute patient unit as part of the redefinition?

Hon. Mr. Davis: Mr. Speaker, while I have met personally with all of these groups and have some degree of technical knowledge, apart from the general principles that have been established, I would suggest that perhaps the more specific information would be handled by the acting Minister of Health who, I think, could answer more precisely, if that would be appropriate.

Mr. Lewis: Can I refer that, Mr. Speaker?

Mr. Speaker: Yes.

Mr. Lewis: Did the minister recall -- I am sorry that I didn’t do that --

Hon. B. Stephenson: Mr. Speaker, I remember all but the first question.

On the second question regarding Willett Hospital, we must await the long-term-care study for the Brant-Haldimand-Norfolk area and when that study is available to us, which I imagine will be late summer or early fall, we shall know what the bed requirement is for chronic beds in that area. If there is an increased requirement in that area, it will most certainly be considered but at the moment it will be the same number of chronic care beds which it has at the present time.

The answer to the third question, regarding the minor surgical units at Doctors Hospital, is no.

Mr. Lewis: The first part was about employment; how many people will be involved?

Mr. Speaker: Order, please, I believe --

Hon. B. Stephenson: I am sorry, Mr. Speaker --

Mr. Speaker: -- the member for Brantford --

Mr. Lewis: Can the minister answer the first part of the question?

Mr. Speaker: Is there any further answer?

Hon. B. Stephenson: I am sorry but I cannot give definitive figures at the moment. This is one of the areas we are working on.

Mr. Riddell: A supplementary: As Clinton Hospital is the only one outside of London which has a dialysis unit, will it be allowed to continue the use of that dialysis unit?

Hon. B. Stephenson: Mr. Speaker, since an inpatient dialysis unit requires inpatient beds, the dialysis unit for inpatients will have to be moved. It is to be hoped that we will be able to develop an outpatient dialysis capability as well; at least, I should say, a home capability.

Mr. Makarchuk: A supplementary, Mr. Speaker, to the same minister: Is the minister aware that the chronic care study committee has indicated to the Ministry of Health that at this time there is a need for something between 55 and 57 chronic beds which could be utilized and which could be put into the Willett Hospital?

Hon. B. Stephenson: At the moment I gather that although this figure has been stated, this is not exact. The long-term study which is being done, I think will be reporting within a reasonable period of time. Certainly if there is emergency need for chronic care beds, some beds might be utilized for that, but I think the future of that hospital depends upon the results of that long-term study.

Mr. Makarchuk: One additional supplementary.

Mr. Speaker: Final supplementary.

Mr. Makarchuk: If a definite need is demonstrated immediately, is the minister prepared to relent and allow the extra beds which may become available in the Paris hospital to be used for chronic care?

Hon. B. Stephenson: Mr. Speaker, we are always prepared to be reasonable and to assess the situation as it arises

Mr. Lewis: A related but perhaps separate question: Now that the minister has worked this out with such care and precision, I assume she can give to the Legislature today the changed estimates of cost saving which are involved for Willett, Durham, Clinton and Doctors hospitals, given the inclusion of ambulatory and other facilities?

Hon. B. Stephenson: Mr. Speaker, as the Leader of the Opposition knows very specifically, that is impossible --

Mr. Lewis: Why?

Hon. B. Stephenson: -- because the decisions regarding the eventual status of the four hospitals mentioned have not been totally decided. It will depend upon the input from the local people first before we can, in fact, establish what the savings will be. We can certainly, within a short period of time, give the members the wind-down costs for the institutions as active treatment hospitals. The cost of providing the services which are being suggested and have been suggested to the people in the area is something which we cannot estimate until they tell us what they hope to do with our cooperation.

Mr. Lewis: By way of supplementary, could I try it again; take another run at it? How can, specifically, a system of ambulatory care services be provided in these hospitals without having made an estimate, service by service, of the costs to the government if these things should proceed, as the minister surely knows they will? And why won’t the minister share those figures with us, now that she has made the announcement?

Hon. B. Stephenson: Mr. Speaker, since the funding mechanism is different, for one thing, since we do not as yet know the scope of the services which will be provided in each of the places --

Mr. Lewis: She is just too embarrassed to show how little money the government is saving.

Hon. B. Stephenson: Oh, that is not the answer at all, Mr. Speaker. There will be, in fact, a shift from active treatment care -- which is what we have been hoping to achieve -- to ambulatory care, which will provide more services for more people more economically than can be provided through the active treatment mechanism.

Mr. S. Smith: Supplementary: This ambulatory care which will be operated at these hospitals, is this intended to be in the form of physicians’ private practices, who will now locate within the hospitals, or is it to be billed on a yearly budget as part of a hospital service? How will the billing actually take place? Will OHIP be billing this through private physicians, or is this a service to be organized centrally?

Hon. B. Stephenson: Mr. Speaker, that is a decision which will be made when, in fact, the local group and the group from the Ministry of Health --

Mr. Lewis: This is too much. Just too much.

Mr. Reid: Did you make this up on your way here? What do all those planners do?

Mr. Speaker: Order, please. We will allow a supplementary. The member for Bellwoods.

Mr. Yakabuski: Mr. Speaker, how many supplementaries? Is this a debate?

Mr. McClellan: Since the minister is obviously waiting to finalize plans until she has had input from the local communities, is she prepared in the case of Doctors Hospital to pursue the suggestion that was made, I believe in the brief, that a community task force be established to consist of hospital, community, ministry and city representatives to have a look at the overall health needs in the community service by Doctors Hospital?

Hon. B. Stephenson: Yes, Mr. Speaker, that is our intention.

Mr. Speaker: Final supplementary; the member for Huron-Bruce.

Mr. Gaunt: Supplementary, Mr. Speaker, to the minister: In addition to the role outlined for Clinton Public Hospital, has the ministry done any study with respect to a possible role for that hospital insofar as a chronic hospital is concerned?

Hon. B. Stephenson: Not at the moment, Mr. Speaker.

UNITED ASBESTOS PLANT

Mr. Lewis: A question, if I may, to the Minister of Natural Resources, applauding the decision that was made and that he announced today: Can he indicate to the House whether he will attempt to waive the waiting period for unemployment insurance to which the workers at Matachewan would normally be entitled; and whether, if that period can’t be waived, he will negotiate, with the company, continued payment for the workers during what one hopes will be the cleanup rather than permanent close-down, or, alternatively, the difference in income between unemployment insurance and what their wages would otherwise have been had the company conformed to government directives in the first place?

Hon. Mr. Bernier: Mr. Speaker, as I’m sure the hon. member is aware, the unemployment insurance aspect, of course, is of a federal nature; it is something that we don’t get involved in. I’ve asked my staff, when they do meet with the company itself, that the aspect of continued wages is one area that they look at very carefully.

Mr. Lewis: By way of supplementary: Might the minister use the exceptional powers of a provincial government to speak to the Unemployment Insurance Commission about this exceptional situation, and might he also report to the House the results of his discussions over wages?

Hon. Mr. Bernier: On behalf of the workers in Matachewan, I would be glad to assist in every way possible. I will certainly follow up the Leader of the Opposition’s suggestion.

LAND FREEZE APPEALS

Mr. Lewis: A question of the hon. Minister of Housing, if I may: What exactly does he have in mind by way of amending legislation to deal with the court’s decision on the various land freezes around Ontario, apparently having had the provincial legislation declared illegal or inapplicable as it involved the Orangeville decision? Where does the retroactivity enter, if it does, or does the minister intend to apply new freezes or new orders across the province to the areas that might now be subject to litigation?

Hon. Mr. Rhodes: The intention is that an amendment will be introduced that would strengthen that particular

section of the Act so that the situation we have experienced, as the result of the court case involving the Orangeville property, would not recur, and that existing orders would, in fact, be valid as they now exist on the various parts of the province.

Mr. Lewis: By way of supplementary, can the minister explain how he makes the previous orders valid retroactively, and what he might do with the many, many applications which, I gather, are now pending to challenge the law, in light of the amendment which he wants to bring in? I just don’t understand the process. When is the minister bringing it in?

Hon. Mr. Rhodes: First of all, I don’t know that we can say there are a number of applications pending.

Mr. Lewis: I have heard of a number of cases that are coming up.

Hon. Mr. Rhodes: The member has a distinct advantage. I have not heard of those particular pending applications.

Mr. MacDonald: Did you read the morning Sun?

Mr. Makarchuk: We will put you on the mailing list for the brown paper bags.

Hon. Mr. Davis: You people don’t even support it.

Mr. Lewis: It is the procedure that you use.

Hon. Mr. Rhodes: With the greatest respect, the member for Brantford receives an awful lot of material in brown paper bags.

Mr. Martel: Answer the question.

Hon. Mr. Davis: I read the Sun but --

Mr. Godfrey: Supplementary: In view of the fact that the land use in the area surrounding the Pickering airport was frozen in 1972 without the appropriate hearing, will the minister no lift the order and allow natural justice for the property holders in that area?

Hon. Mt. Davis: And you people talk about agricultural land going out of production.

Mr. Martel: You call it rough justice.

Hon. Mr. Rhodes: As far as I am concerned, the decision that was made concerning the property at Orangeville was an isolated decision. I do not intend to lift any of the orders at this time, including those on the area the hon. member is referring to. The matter that was before the court was one case. It dealt with the matters that were before the court as they involved that particular application, and I do not consider that particular decision to apply universally across the province in all areas where there are ministerial orders.

Mr. Godfrey: A further supplementary, Mr. Speaker.

Mr. Speaker: One final supplementary.

Mr. Godfrey: I would like to ask the minister why he imposed the freeze in the first place, inasmuch as all of the things he wanted to do could have been done by regulation under the Aeronautics Act,

part I, clause 6. I would like to ask if he realized that he was pulling federal chestnuts out of the fire by his freezing order.

Hon. Mr. Rhodes: I’m not going to debate the merits of the particular federal Act to which the hon. member is referring. But I do believe that particular Act covers only the heights of buildings and does not indeed cover the other areas within the noise cone that would have been developed had the airport continued to be constructed.

Mr. Godfrey: I would be happy to send the minister a copy of the Act.

Mr. Speaker: I announced this as a final supplementary, but we haven’t had one from that section, so we’ll allow this one from the member for York Centre.

Mr. Stong: In light of the reasoning that applied to the Orangeville decision and its applicability toward the province, whether the minister regards it as being applicable or not, what does he intend to do with respect to the Langstaff area, which has been under a freeze and where people have been unable to move because of that freeze? Is the minister considering compensation or lifting the freeze in that area?

[2:30]

Hon. Mr. Rhodes: No, Mr. Speaker.

DISPENSING FEES

Mr. S. Smith: A question to the acting Minister of Health: What steps is she taking to ensure that the 30-day limit on the supply of free drugs to senior citizens will be extended and that pharmacists will be stopped from multiplying their dispensing fees?

Hon. B. Stephenson: Mr. Speaker, as a matter of fact, if a physician writes a prescription for a period longer than 30 days, the pharmacist is supposed to fill that prescription. It depends on the way in which the prescription is written. We shall most certainly inform physicians of their responsibilities in this area, and pharmacists of their responsibility as well.

Mr. S. Smith: A supplementary: Is the minister aware of the contract the government enters into with the pharmacies, paragraph 5 of it, which points out that in special circumstances, when more than a month’s supply of a drug is to be dispensed for eligible persons -- such as when a person is travelling outside the province -- the pharmacist is entitled to reimbursement of an increased amount of that paid to the pharmacy? In other words, if he dispenses six months’ supply of drugs to a person who is leaving, he is entitled to charge six times the dispensing fee. If that is not the case, would the minister kindly explain what paragraph 5 means?

Hon. B. Stephenson: Mr. Speaker, to my knowledge he is entitled to an increase in the dispensing fee, but not to the level of six times or three times or four times.

Mr. S. Smith: A supplementary: Precisely what is the increase and on what criterion is that to be based?

Hon. B. Stephenson: Mr. Speaker, I would have to look up the regulation they’re under to know the exact amount which is permitted.

Mr. Ziemba: A supplementary of the acting Minister of Health: Now that the minister has discovered the invoice in triplicate when it comes to private labs billing OHIP, would the minister perhaps consider using the same type of invoice in triplicate for pharmacies billing OHIP, to get away from delayed billings which the customer doesn’t find out about in the event they leave the country? There have been cases in which billings have been submitted in a customer’s name. Why involve those people in the OHIP billing?

Mr. Speaker: Order. The question has been placed, I believe.

Hon. B. Stephenson: Mr. Speaker, there is a method of checking prescriptions and the dispensing of prescriptions now which I think is reasonably accurate and reasonably good. It does involve some accurate information which is given to the subscriber as well.

SALE OF FIREARMS

Mr. S. Smith: A question to the Minister of Natural Resources: In view of the general feelings which have been expressed by the government with regard to gun control, how does the minister condone the auction of seized firearms run by his ministry, including the sale to a 12-year-old -- or to the father of a 12-year-old -- of a pellet gun? Surely he has some views about this which we would like to hear, on whether the government should be condoning this and be a purveyor of firearms in this day and age and in this particular method?

Hon. Mr. Bernier: Mr. Speaker, under the Fish and Game Act,

section 87 I believe, as I’m sure the member is aware, we have discretionary authority either to return or to dispose of the guns or the seized items in question after they have been used for evidence in the courts. This is done, in many cases, through an auction sale. I certainly wasn’t aware that a 12-year-old or his father had been at an auction sale and purchased one of these guns. It certainly is something this government does not condone. I’ll certainly check into it and follow it up further.

Mr. Lewis: No, he didn’t say that.

Mr. Reid: I wonder if the minister could explain the comments attributed to him in the papers some two weeks ago, that he used his discretion to return some firearms which his officers had seized, to some people. I gather it was on the basis that it would cause them hardship? Can he explain how he arrived at those decisions? A lot of people I know are a little upset about this.

Mr. Yakabuski: That’s not supplementary, Mr. Speaker.

Hon. Mr. Bernier: Mr. Speaker, as I pointed out, under subsection 2 of

section 87 of the Fish and Game Act, this is a discretionary power given to the ministry. In many cases it is a hardship and in this case it was.

Mr. Reid: Are they all in the Kenora area?

Hon. Mr. Bernier: I would say that the return of firearms is done right across this province. As I look around this Legislature, I can tell the member there are members sitting in this Legislature today who have personally called me on behalf of their constituents --

Mr. Singer: What has that got to do with it?

Hon. Mr. Bernier: -- asking that this discretionary power be used and I have used it.

Mr. McNeil: Most of them sit on the other side.

Hon. Mr. Bernier: Some who have called me are smiling at me right now.

Mr. Reid: I am not.

Hon. Mr. Bernier: Mr. Speaker, I just want to point out that in many cases when the conservation officers do make an arrest and confiscate equipment such as aircraft and cars, these are all returned so that there is no hardship imposed on those individuals once they have paid their penalty in the courts.

Mr. MacDonald: Supplementary, Mr. Speaker: If the minister finds the exercise of discretionary ministerial power abhorrent, why doesn’t he remove it?

Hon. Mr. Bernier: Mr. Speaker, I have already indicated publicly that this is one area we are looking at very carefully.

Mr. Deans: You don’t have to use it.

An hon. member: It is not that abhorrent.

Hon. Mr. Bernier: I certainly think it is something that is worth looking at.

Mr. Speaker: Order, please. The supplementary got away from the original question and we allowed it. I think we should get on with new questions. If you wish to ask new questions later, that will be line. The member for Hamilton West.

ERC CHAIRMAN’S APPOINTMENT

Mr. S. Smith: A question of the Premier, in the absence of the Minister of Education (Mr. Wells): In view of the heavy burden on the Education Relations Commission and the important job that it has to perform now, with many of the disputes in existence, can the Premier in fact condone the appointment of its chairman as the chairman of an arbitration board in British Columbia?

Hon. Mr. Davis: Mr. Speaker, I would be quite delighted to discuss this with the Minister of Education to see just exactly what time is involved with respect to the chairman of the Education Relations Commission. I acknowledge that they are busy, and I am delighted to hear the leader of the Liberal Party acknowledge that they are busy, and by and large have solved the majority of the problems in negotiations across the province --

Mr. S. Smith: We have nothing against them; we just want to be sure they can do their job.

Hon. Mr. Davis: -- even though we are left with three or four rather contentious ones. I would be relatively sure, but I will check this with the minister, that whatever other undertakings the chairman has taken on would not affect his responsibilities here, but I will confirm that with the minister.

Mr. Shore: Will it affect his salary at all?

STATEMENTS BY FORMER TREASURER

Mr. S. Smith: A further question of the Premier: Does the Premier endorse the opinions of the former Treasurer, Mr. White, the former member for London South, that there will be no action by the government to preserve farmland until there is broader support for such policy, and this broader support must be forthcoming from churches and similar organizations? Does the Premier endorse that particular point of view?

Hon. Mr. Davis: Mr. Speaker, I think what the former Treasurer was saying, and I didn’t have the pleasure of listening to the --

Mr. Reid: You used to have to interpret when he was here too.

Hon. Mr. Davis: -- very excellent discussion that took place -- in fact, just thinking about those discussions Saturday, I understand the leader of the Liberal Party nearly entered those discussions himself; he came in the wrong door or something. I told some people who told me about this that he would have been very welcome and might have learned something about the matter if he had stayed.

Mr. Breithaupt: Just before they disbanded.

Hon. Mr. Davis: I think what the former Treasurer was pointing out is one of the difficulties facing government with respect to land use. The former Treasurer was himself involved in the discussions over a period of years. However, I don’t think he really said the government wasn’t doing anything, because the fact is government is doing a great deal.

Mr. Good: You are watering it down.

Hon. Mr. Davis: I think the fact, in spite of what I read editorially in one of Toronto’s foremost newspapers, is that in terms of the preservation of farmland and in terms of land-use control, if anything there are members of the general public who have made it very clear to some of hon. member’s colleagues that this government has been doing too much. While I think we have to weigh this in the balance -- and I look at the member for London North (Mr. Shore) as being one of those members --

Mr. MacDonald: You are backing off.

Hon. Mr. Rhodes: So is your friend, the member for Durham West (Mr. Godfrey).

Hon. Mr. Davis: -- in terms of land-use control we intend to move ahead with the proper planning programme for this province. If the leader of the Liberal Party is suggesting an overall freeze on all agricultural land, I wish he would get up and say so.

We think we can find a solution. We are in the process, and it has been working, of preserving by and large the prime agricultural land in this province. What the former Treasurer was pointing out is the area of contradiction. There is no question about it, when we get into some municipalities -- and I can refer to my own -- there are still some farmers in the great riding of the city of Brampton, where the official plan considerations are suggesting that that land be frozen in perpetuity as agricultural land, who are saying, “We are opposed to that.

Why should we undergo economic disadvantage for the benefit of the urban dwellers if they are not prepared to pay the proper price for food?” and so on.

Interjection.

Hon. Mr. Davis: There is a contradiction, Mr. Speaker. I think one needs only to look at some of the determinations made in the past two or three years to recognize that this government not only is conscious of the problem, but we are dealing with it and will continue to do so,

Mr. Cassidy: He really didn’t say much.

Mrs. Campbell: It is a convoluted answer.

Hon. Mr. Davis: The member should just say the is going to freeze it and --

Mr. S. Smith: Supplementary: Would the Premier, in view of the statement he has made about unwillingness to put financial hardship on people who now own agricultural land, and in view of his position -- and the former Treasurer apparently is expressing the same view that the Premier holds about this -- would the Premier please tell us precisely what possible options this government is thinking of adopting with regard to compensating people whose land might be frozen?

Furthermore, could he tell us by what means we are going to be able to measure when sufficient public demand has come through via the churches and via the other organizations that the government will finally feel compelled to move? How shall we measure this precise response from the population?

Interjections.

Hon. Mr. Davis: Mr. Speaker, I don’t like to appear to be in disagreement with my former colleague -- because, as I say, I wasn’t there when he offered his observations -- but I know we have discussed this issue, many of us, for a period of time. I think we have found ways and means of dealing relatively well with the problem.

Mr. Reid: When are you going to tell the rest of us?

Hon. Mr. Davis: If the leader of the Liberal Party is saying simply this, that everybody whose land is zoned for agricultural purposes or recreational purposes, or for something other than future development, is to be compensated out of the public purse --

Mr. Ruston: Are you asking a question?

Hon. Mr. Davis: -- then I would suggest he talk to the member for London North (Mr. Shore) or the member for London Centre (Mr. Peterson) -- anybody who knows anything about the economic factors concerned -- and then he would know there wouldn’t be enough money, even if he were to establish his own mint, which may be one of his policies, to undertake a programme of that kind.

Mr. S. Smith: No compensation, eh?

Hon. Mr. Davis: I would also make it abundantly clear, in my brief answer to his question, that this government is prepared to protect and is protecting agricultural land; but we also are not going to prejudice the farmers of this province in the process, because we think we can work it out over a period of time in a way satisfactory to both.

Mr. Singer: You don’t believe it.

Mr. Reid: You think you can have it both ways.

Hon. Mr. Davis: If he is saying to us, as part of his policy, that he is going to freeze all agricultural land in the Province of Ontario, he’s lost 20 seats right here and now.

Mr. Ruston: The Premier lost more than that last time.

Mr. Reid: Now we know what motivates you.

Interjections.

Mr. Speaker: Order, please. I think the hon. member has had a couple of supplementaries. Does the hon. Leader of the Opposition have a supplementary?

Mr. S. Smith: Is this what his policy consists of -- neither freeze, nor compensation, nor planning?

Mr. Speaker: Order, please. The Leader of the Opposition with a supplementary question.

Mr. Lewis: As one who has something fewer than 20 agricultural seats to lose, I thought I might ask a supplementary.

Mr. S. Smith: Pure words.

An hon. member: Got lots to gain, though.

Mr. Lewis: Leaving aside the compensation argument, which I concede is a difficult one, does the Premier have any specific legislative undertaking which he expects to introduce this session that will flow from the tabling of the document last Thursday; any Act of the Legislature pertaining to agricultural land and its protection? Or will it simply be left to the outlines of that farm land document?

Hon. Mr. Davis: Mr. Speaker, I don’t think we are contemplating any further legislation which would in fact, as the Leader of the Opposition I think is suggesting --

Mr. Lewis: That’s what you should have called it.

Mr. S. Smith: Eight pounds of paper; pure words.

Hon. Mr. Davis: They’re suggesting that there be a form of legislative freeze on farm land --

Mr. Singer: That’s what John White said.

Hon. Mr. Davis: -- and I have to say the government is not contemplating a legislative freeze. What the government is doing and will continue to do is in terms of official plan amendments, in terms of the planning documentation on the parkway belt and the Escarpment. I should point out that both the parkway belt and the Escarpment contain several thousands of acres of agricultural land which are now under control, a move which members of the Liberal Party campaigned actively against in their great desire to maintain agricultural land. Of course, they wanted the Escarpment totally eliminated in the process.

Mr. S. Smith: Why don’t you say something truthful during one part of your speech?

Interjections.

[2:45]

Hon. Mr. Davis: I look at one or two members across there --

Interjections.

Hon. Mr. Davis: Listen, you guys did it and you know it and you can’t have it both ways.

Interjections.

Hon. Mr. Davis: You can’t have it both ways; it is one of the very difficult issues.

An hon. member: Got to get a little high.

Mr. Lewis: That’s what you should have called it.

Mr. Speaker: Order, please.

Interjections.

Hon. Mr. Davis: Mr. Speaker, we do not contemplate legislation. We contemplate working through the existing zoning regulations, through official plans, through the planning documents that are there. I can only say to the Leader of the Opposition that in terms of planning. In terms of urban growth, in terms of controlling in a reasonable way the great pressures that have existed in this province --

Mr. S. Smith: We just sit back and watch.

Hon. Mr. Davis: -- compared to any other jurisdiction in North America, this province has done a much better job than any other single area he can mention to me.

Interjections.

Hon. Mr. Davis: Anywhere on this continent, they don’t compare to us here; and you know it.

Mr. S. Smith: Let the megalopolis come.

Mr. Speaker: Does the hon. member for Hamilton West have further questions? All right.

The hon. Minister of Consumer and Commercial Relations has the answer to a question asked earlier.

Mr. Lewis: It won’t fly, Orville, it won’t fly; but it sounds good.

Interjections.

Hon. Mr. Davis: That’s what they said to Orville, but it flew.

Interjections.

Mr. Speaker: Look -- order, please.

Interjections.

Mr. Speaker: This is becoming a general debate and we’ve taken up 80 minutes --

Mr. Singer: Because you let the answers go on forever.

Mr. Speaker: Order. The supplementaries got far away from the original question, as I recall it. Order.

Mr. S. Smith: That was a speech; it was not an answer. It was a bad speech, but it was a speech.

Mr. Kerrio: They haven’t got an answer.

Mr. Speaker: Order, please.

Interjections.

Mr. Speaker: In view of the fact that 30 minutes have gone past, we’ll give the hon. member a chance to come back at a new question in a few moments. The hon. minister.

RENT INCREASES

Hon. Mr. Handleman: Mr. Speaker, I have the answer to a question asked by the Leader of the Opposition on April 5, 1976, concerning the rent dilemma at 118 Overbrook Place where notices of rent increases were not given 90 days in advance as required under the Landlord and Tenant Act and the rent review officer claimed jurisdiction in those hearings.

A notice of application for judicial review has been served on my ministry as well as on the Ministry of the Attorney General as a result of another case, not unlike the case referred to by the Leader of the Opposition. I expect the question will be settled in the Supreme Court of Ontario. The hearing of this application should establish whether the rent review officer does have jurisdiction to hold a hearing and to make an order under such circumstances.

I further understand that the rent review officer’s position was taken because of the provision in the Landlord and Tenant Act which suggests the 90-day notice is subject to the provisions of the Rent Review Act, which does not contain that provision.

Mr. Speaker: The hon. member for -- all right, the member for Ottawa Centre; was this your question?

Mr. Singer: Make up your own mind.

Mr. Cassidy: Supplementary to this answer by the Minister of Consumer and Commercial Relations: In the meantime, is the minister prepared to give instructions to the rent review administration that when comparable cases come before it the rent decisions will take effect at the legal time under the Landlord and Tenant Act, rather than at an earlier date?

Hon. Mr. Handleman: Mr. Speaker, there is no such discretion given to us in the Act. The only time this would arise is in those cases where the applications were filed before Feb. 29, which is the date specified in the Rent Review Act. So anything after that, we would have to assume, will have the normal 90 days.

Mr. Singer: Provided you get a rent review officer who does what the Act says, which is too much to expect.

Mr. Speaker: Order, please.

HIRING OF CANADIAN PERSONNEL BY UNIVERSITIES

Mr. Martel: A question of the Minister of Colleges and Universities: In a letter which I received from the president of Trent University, he makes the following statement:

“In closing, may I emphasize that these moves are made necessary by all-party political pressure and are being taken in an attempt to ward off a legislated quota system or something very close to it.”

This is to his faculty.

“If in fact the universities make some improvement in the number of Canadians they’re hiring, is it the government’s intention to not introduce legislation to guarantee adequate hiring of Canadian personnel?”

Hon. Mr. Parrott: I believe some time ago I made a commitment to the hon member, specifically on this item, that I would reply in detail during the session of the Legislature and I fully intend to complete that commitment. I’m wondering if the member might share with me a copy of that letter so I could share those thoughts with him?

NON-RETURNABLE CONTAINERS

Mr. Peterson: To the Minister of the Environment: Could he tell us what his official ministry position is with respect to municipal bylaws pertaining to non-returnable containers?

Hon. Mr. Kerr: We have no objection to any municipal bylaw being implemented that is valid and upheld in the event it is contested in any way.

Mr. Singer: There is no bylaw that is upheld.

Mr. Bullbrook: The minister can’t be doing this. I don’t believe this.

Hon. Mr. Kerr: They are a great testing ground; they really are. But we would hope --

Mr. Bullbrook: Well it has not been upheld; read the paper.

Hon. Mr. Kerr: I know that. He didn’t ask me about London. He just asked a general question.

Mr. Singer: It is like the Minister of Consumer and Commercial Relations (Mr. Handleman) then. When the Supreme Court tells a rent review officer he is wrong, he is wrong.

Hon. Mr. Kerr: As I was saying, in the case of any municipality that passes a bylaw that is valid in dealing with that subject, we have no objections to it. However, we would hope that it would be more effective if it was done on a province-wide basis under our own legislation.

Interjections.

Mr. Peterson: Supplementary: Could the minister tell me why a lawyer, Julian Polika, from the Attorney General’s ministry, appeared before Mr. Justice Sam Hughes in chambers last week representing the ministry and said the ministry’s position was against the bylaw? Can the minister tell me why that happened?

Mr. Singer: Oh that’s those fellows. We don’t believe that, that is the Attorney General’s office. Who pays any attention to them?

Hon. Mr. Kerr: The hon. member will have to ask that gentleman. He didn’t represent my ministry.

Mr. Peterson: Who did he represent?

Mr. Singer: They don’t talk to each other anymore.

Mr. Speaker: Order, please. I can’t hear the hon. member.

Mr. Peterson: If he doesn’t represent the Ministry of the Environment, why is the Ministry of the Attorney General, that is the government, against the municipal bylaws?

Hon. Mr. Kerr: As far as I am aware, government is not against such a municipal bylaw.

Mr. Bullbrook: Supplementary: Does the hon. minister not realize that the courts have now said there is no power under that municipal bylaw? If the government is true to its purpose as a government, will it bring in general legislation or won’t it?

Hon. Mr. Kerr: I realize that Mr. Speaker. I wasn’t unaware of the decision in London.

Mr. Bullbrook: What are you going to do about it?

Hon. Mr. Kerr: All I am saying is if a municipality through its powers passed such a bylaw that is valid and upheld, we have no objection to it.

Mr. Singer: If another court were to decide differently you will like that one too. Is that what you mean?

Mr. Speaker: Order, please.

Hon. Mr. Kerr: We also agree with the suggestion that it would be better on a province-wide basis; we agree with that.

Mr. Bullbrook: Why don’t you do it?

Mrs. Campbell: Do it.

Mr. Speaker: The Minister of Natural Resources has the answer to a question asked previously.

KIRKLAND LAKE AREA BUILDING FREEZE

Hon. Mr. Bernier: Mr. Speaker, on April 6, the member for Timiskaming (Mr. Bain) asked the Provincial Secretary for Resources Development (Mr. Irvine), in my absence, a question regarding a building freeze in the Kirkland Lake area.

For the information of the member: On Nov. 27, 1975, an interministerial meeting was held to discuss the purpose and objectives for maintaining the Swastika restricted area order. It was attended by representatives from the Ministries of the Environment, Agriculture and Food, Transportation and Communications, and Treasury, Economics and Intergovernmental affairs. Ontario Hydro and the Timiskaming health unit were also represented.

Among other things discussed at the meeting, such as province-wide policies, guidelines and regulations being appropriate, it was concluded from various inputs that the growth rate in the townships of Lebel, Marquis, McElroy, Boston, Marter, Otto and Pacaud was no greater than in other similar areas that were not under a restricted area order. Since this was the case, it was recommended that the restricted area order he rescinded.

My ministry does not wish to take steps to rescind the order until such time as other ministries, such as Housing, and Treasury, Economics and Intergovernmental Affairs, have had the opportunity to develop rural development control policies for the area. It is proposed that a study team be established involving the three ministries concerned.

The municipality of Kirkland Lake is applying to the Ministry of Treasury, Economics and Interprovincial Affairs for assistance to expand its planning area, which would take in the townships now under the Swastika restricted area order.

Mr. Speaker: We will allow the member for Timiskaming a supplementary since he asked the question.

Mr. Bain: Is the minister contemplating setting up a committee that would involve citizens from these separate townships? They are perfectly happy to work in conjunction with officials from his ministry and others: is the minister going to involve them in coming up with a plan to replace the freeze?

Hon. Mr. Bernier: Yes, it has been policy to involve the public to as great an extent as possible. I might say we hope this policy would not take longer than six months.

Mr. Speaker: The member for York South.

Mrs. Campbell: He asked a question.

Mr. Speaker: Order, please. The member for York South.

LAND USE

Mr. MacDonald: I have a question of the Premier: In view of the Premier’s earlier statement this afternoon on agricultural land use, how does he reconcile that with the following statement:

“Ontario is moving towards tough controls on southern Ontario land that will prevent farmers from using their property for anything but agricultural uses ... Farmers are demanding that areas must be designated for the preservation of agricultural industry just to ensure the basic food supply.”

Since those are quotes from the Premier in a speech in Maxwell under the sponsorship of the Grey County Federation of Agriculture, how does he reconcile that with his complete reversal in the statement earlier this day?

Mr. S. Smith: Same with the mortgage subsidies; very easy.

Hon. Mr. Davis: Mr. Speaker, I recall that speech very well.

Mr. MacDonald: I’ll bet you do.

Mr. Speaker: Order, please. We are wasting valuable time.

Hon. Mr. Davis: As I recall the question this afternoon, and I think my recollection is reasonably accurate, I was asked by the hon. member’s leader a question as to whether or not we plan legislation -- and the answer to that is no. In terms of existing policy, in terms of existing legislation, there is no question we can maintain the vast majority of agricultural land in this province and we intend to do so.

Mr. MacDonald: All the parties say no.

Mr. Speaker: The member for Haldimand-Norfolk.

Hon. Mr. Davis: Well, they are wrong. The legislation is there.

Mr. Speaker: Order, please. The member for Haldimand-Norfolk.

COMMERCIAL FISHING REGULATIONS

Mr. G. I. Miller: I have a question of the Minister of Natural Resources: In view of the fact his ministry is enforcing the regulations on fishing in Lake Erie, is be aware it could create a hardship for some of the small fishing operators who have been fishing for many years on the lake?

Hon. Mr. Bernier: Mr. Speaker, I am sure the hon. member is aware of, I suppose the laxity maybe, in some of the controls we should have been applying on Lake Erie. I am sure he is well aware of the situation of the fish population in that particular lake. In fact, there is a real concern regarding the perch population and the pickerel population in Lake Erie, and the fishermen are concerned as we are. The restrictive measures we have taken will have some economic impact on a short term, but I can assure the hon. member if we get the co-operation of the commercial fishermen in that particular lake they can be assured long-term activity with regard to commercial fishing.

Mr. G. I. Miller: Supplementary, Mr. Speaker: Is the ministry prepared to support these fishermen, who could be forced out of business?

Hon. Mr. Bernier: Mr. Speaker, we don’t think anybody will be forced out of the commercial fishing industry. There may be certain cutbacks and there may be a short period of readjustment, but we don’t expect anybody will be put out of work.

Mr. Reid: Is John Smith not writing your speeches?

Mr. Makarchuk: Supplementary?

Mr. Speaker: Final supplementary. The member for Brantford.

Mr. Makarchuk: To the same minister: In view of the fact the fishermen will have to acquire different mesh nets, which would take some time and certainly would involve an outlay of money, would the minister be prepared to adjust the July 1 date in order to give the fishermen time to acquire the necessary equipment so they would not catch the smaller-sized perch?

Hon. Mr. Bernier: Mr. Speaker, in our discussions with the commercial fishing industry, we arrived at this July 1 date. It was an extension of the normal time given. I have to say to the hon. member that if it’s brought to my attention there is hardship being imposed upon these commercial fishermen, then I would be prepared to reconsider a longer period of time.

HOSPITAL CLOSINGS

Mr. Grossman: A question for the acting Minister of Health -- to return to Doctors Hospital for a moment: I wonder what arrangements might be anticipated for those doctors who, say, have surgery scheduled for the middle of June or middle of July? What can they tell their patients in the next two or three clays?

Hon. B. Stephenson: Mr. Speaker, any physician who has not, within the next few days, had an application to other hospitals in the area accepted should, I think, apply immediately to the Evans committee, which is patiently awaiting applications from the physicians of Doctors Hospital, or any other hospital in the Province of Ontario where there is a closure of beds. The committee is prepared to deal with applications of those who wish to be transferred to other institutions.

Mr. Shore: Are they eligible for unemployment insurance?

Hon. B. Stephenson: No.

Mr. Speaker: Petitions.

Presenting reports.

Hon. Mrs. Scrivener presented the report of the Public Service Superannuation Board for the year ending March 31, 1975.

[3:00]

Mr. Speaker: Motions.

Introduction of bills.

TOWNSHIP OF BOSANQUET ACT

Mr. Eaton moved first reading of bill intituled,

An Act respecting the Township of Bosanquet.

Motion agreed to; first reading of the bill.

CITY OF HAMILTON ACT

Mr. Deans moved first reading of bill intituled,

An Act respecting the City of Hamilton.

Motion agreed to; first reading of the bill.

CITY OF HAMILTON ACT

Mr. Deans moved first reading of bill intituled,

An Act respecting the City of Hamilton.

Motion agreed to; first reading of the bill.

CITY OF NIAGARA FALLS ACT

Mr. Kerrio moved first reading of bill intituled,

An Act respecting the City of Niagara Falls.

Motion agreed to; first reading of the bill.

TOWNSHIP OF WEST CARLETON ACT

Mr. Yakabuski moved first reading of bill intituled,

An Act respecting the Township of West Carleton.

Motion agreed to; first reading of the bill.

WELLAND-PORT COLBORNE AIRPORT ACT

Mr. Swart moved first reading of bill intituled,

An Act respecting the Welland-Port Colborne Airport.

Motion agreed to; first reading of the bill.

INSTITUTE OF PROFESSIONAL LIBRARIANS OF ONTARIO ACT

Mrs. Campbell moved first reading of bill intituled,

An Act respecting the Institute of Professional Librarians of Ontario.

Motion agreed to; first reading of the bill.

CITY OF TORONTO ACT

Mr. Grossman moved first reading of bill intituled,

An Act respecting the City of Toronto.

Motion agreed to; first reading of the bill.

DOVERCOURT BAPTIST FOUNDATION ACT

Mr. Lupusella moved first reading of bill intituled,

An Act respecting the Dovercourt Baptist Foundation.

Motion agreed to; first reading of the bill.

CITY OF WINDSOR ACT

Mr. B. Newman moved first reading of bill intituled,

An Act respecting the City of Windsor.

Motion agreed to; first reading of the bill.

Mr. Speaker: Orders of the day.

SUCCESSION DUTY AMENDMENT ACT

Hon. Mr. Meen moved second reading of Bill 26,

An Act to amend the Succession Duty Act.

Mr. Renwick: Mr. Speaker, my comments on second reading of this bill will be quite brief, and I will ask that when second reading has been given that the bill be put into committee of the whole House so we can discuss certain of the provisions at somewhat greater length.

I need not repeat the position of this party with respect to the need for an adequate taxing statute dealing with the taxation of wealth in order that the wealth of the province may be properly distributed on a realistic social and economic basis. I spoke about a year ago in the assembly and set forth the position which this party takes, which we had hoped each of the other parties would take, with respect to the need to evaluate the taxation of wealth in the province by means of a green paper, by means of public discussion, by means of obtaining the kind of information which we require in order that an equitable tax system may be constructed for the province in the area of wealth taxation.

On that occasion we voted against the amendments to the Gift Tax Act and the Succession Duty Act in order to bring our position before the assembly. I will not repeat those remarks; they were made on April 24, 1975, and reflect the position of the New Democratic Party in this particular field.

The major provision of the bill which is now before us basically deals with a significant change -- but a somewhat less than full change -- in the taxation by the Province of Ontario of land passing from a person domiciled in Ontario on the death of that person to another person domiciled in the Province of Ontario. Little did I think I would be in the assembly when a Minister of Revenue of the Crown reintroduced the principle of Lord Baltimore and Penn which was decided in 1750 and which from that time on, eliminated the taxation of foreign real estate.

I’m pleased to see that the minister has accepted the proposition that foreign real estate should be included in the definition of a transmission for the purpose of succession duties in the Province of Ontario. I am at a loss to understand why the minister did not see fit to accept the proposal made by the advisory committee on the Succession Duty Act that we should move from the transmissions concept to the accessions context and tax a recipient domiciled in Ontario on any property coming to that person, regardless of the domicile of the person upon whose death the property is to pans.

There is an extensive statement in the advisory committee’s report on the Succession Duty Act with respect to the need for the concept of accessions to take the place of the concept of transmissions. I would, at some time when we are in committee, choose to deal briefly with the minister as to why he will not move to accept that principle as recommended by the committee which was established for the very purpose of making recommendations respecting the Succession Duty Act.

We will support the bill on second reading. We will deal with some of the other matters when the bill is in committee and I think we can have a useful but brief exchange at that time.

Mr. Edighoffer: Mr. Speaker, I will just say a word or two about Bill 26. This bill appears to make a number of changes and, of course, also includes a number of changes which were suggested and introduced in the 1975 budget.

I believe most of the questions really should be raised during the discussions of committee of the whole House because, as I say, most of these were in the budget and, as I understand, agreed by members of the Legislature. However, not being a lawyer, I do have trouble with some of these sections and I had hoped that the minister could, some time during the discussion, refer to

section 8 which is part of the regulations

section and which I’m afraid I really don’t understand. I think the explanatory note is sort of a legal -- I don’t really know what to call it, but if I may just put it on record. It’s something I really can’t understand and I hope the minister could explain this. This is the explanatory note:

“The new clause (

f) will permit the making of rules for valuing bequests of income that are expressed as a percentage of the deceased’s estate. The actuarial value of such bequests computed under the present rule’s under the Act is frequently greater than the capital producing the income because the income currently produced by such capital is more than double the income assumed by the present rules for the actuarial valuation of the income interest.”

I would be very happy to have an explanation of that.

[3:15]

Hon. Mr. Meen: Mr. Speaker, I must confess I am surprised that this debate has gone so quickly but certainly we will have an opportunity in committee of the whole to discuss the various sections,

section by section.

The member for Riverdale raises a question with respect to the recommendation of the committee and I must say that I don’t know exactly why we did not go that total route. I have asked the staff to get me some material on that point. My recollection, vague though it is, is that it hinges on the constitutionality of whether it is or is not a direct tax and therefore within the competence of the provincial taxing jurisdiction. I will get some further details and perhaps be able to elaborate on those when we get into committee debate on the bill.

The amendment itself is intended to block a couple of loopholes which have developed recently by which competent and very capable estates planners could arrange to have assets of otherwise taxable or dutiable estates in the form of real estate in another jurisdiction which, on the death of the testator, might then in the one case pass to the beneficiaries here in Ontario or, in another and perhaps more sophisticated case, pass to a company the shares of which were held by beneficiaries here in Ontario. In either of them two instances, those being covered in subsections (

i) and (ii) of the amending section, there now would be tax attributable end collected bore with respect to, the beneficiaries here in Ontario.

My staff have sent me a note which hon. members might find useful if I were to read it. It helps, I think, to clarify the point raised by the member for Riverdale, if he cared to listen or perhaps he would simply prefer to read it in Hansard. “The accession principle, that is the beneficiary in Ontario, would be taxed by Ontario regardless of where the -- “if I can read the writing --

Mr. Foulds: It would help to have a typewriter.

Hon. Mr. Meen: Yes, it would have helped if we had had a typewriter. It says, “the deceased died in the world was recommended, as indicated by the member, by the Langford committee. It hasn’t been adopted by us at this time as it is part of the general review of the Act and it is still under review.”

I am advised also that it is not necessarily a constitutional question.

Mr. Renwick: Thank you.

Hon. Mr. Meen: I would just observe that there are a number of extensive items on the whole question of succession duty which are under review in my ministry. In particular, I hope to achieve a dramatic simplification in the structure of succession duty taxing. All of this is an ongoing process which may take some months yet before we can reach a conclusion.

The member for Perth (Mr. Edighoffer) has raised what is probably one of the most difficult things to understand in this particular bill. I think perhaps the best way to describe it to him -- I could reserve this, I suppose, for committee but I think I might as well outline it now -- would be to give him an example.

Mr. Martel: You don’t have to read it.

Hon. Mr. Meen: I will certainly read the example because I, too, had spent some time reviewing this

section in order to understand what the actuarial types were saying in pointing nest what is really a tax avoidance technique which has recently come to our attention. This technique takes advantage of the methods prescribed by the Succession Duty Act to value income interest as is indicated in the explanatory note.

Briefly, the technique involves providing for the income produced by the estate to be paid to the surviving spouse but for it to be an amount not less than, say, eight per cent of the value of the estate in any year. The surviving spouse is, of course, wholly exempt from succession duty on any amount received; and this is why this becomes a loophole -- because of the fact that the surviving spouse, under recent amendments to the Act, is totally exempt.

Section 3(4) of the Succession Duty Act prescribes the method to be used to value income end annuity interest, and it’s based on a notional four per cent yield factor. In other words, the assumption is that there will be a yield of four per cent in the estate. As an example, an estate of $1 million would therefore be deemed to yield $40,000 per annum for the purpose of determining the interest of a life tenant. However, where the terms of the will provide that the income paid is to be au amount of not less than, say, eight per cent, as in the illustration I just gave, the Act requires that a yield of eight per cent be used.

The actuarial value of the income interest passing to the non-taxable spouse, when the spouse is non-taxable, using an eight per cent income factor, would work out to be greater than the capital producing the income if the spouse were 57 years of age or younger in this illustration. By raising the percentage where the spouse would be older at the date of death of the deceased or by providing escalator clauses in the will, then the same result can be achieved.

I might just point out that if, for example, the spouse were expected to be 59 or 60 instead of 57, the testator could then draw the will to make a provision that it be nine per cent, 9½ per cent or something of that sort, so that the entire amount of the capitol, for actuarial purposes, was represented by the life estate of the surviving spouse.

The direct result is that the whole of the aggregate value of the estate is attributed to the non-taxable income of the beneficiary. The beneficiary, the spouse, has a complete exemption under the Succession Duty Act, leaving no amount to be taxed to the remainder men, who fall into possession of their interests on the death of the spouse.

Mr. Good: It’s a good idea.

Hon. Mr. Meen: Yes, it was a smart lawyer who thought it up. Clearly, where the estate is invested to yield a rate of income greater than the percentage provided for in the will, no encroachment on capital will be required to be made for the life tenant, and the whole of the estate, plus any capital appreciation, will pass tax-free to the remainder men on the deaths of the life tenant.

I did a few calculations recently on this particular illustration to see what the present value of that particular life estate would be to a 57-year-old spouse. Let us assume, for example, that the $1 million in the estate could be invested at roughly 10 per cent -- and that wouldn’t be hard to do; it would be it would be very easy to right now -- let us assume it was invested at 10 per cent but was payable at eight per cent out of the estate, or $80,000 a year to the life tenant, whose age is 57; she has a life expectancy, by the tables, of 19.6 years.

If we put that into our pocket computer for interest at 10 per cent -- 19.6 payments at $80,000 each -- the present value comes out to $676,464, which is a whale of a lot smaller than the $1 million in the estate. But if we use the figures that are presently provided for in the Act, which take into account the same life expectancy -- because it’s worked out for various life expectancies -- but a rate of four per cent, it wipes out that figure.

My people tell me that that table, at $80,000 times 12.6, comes out to $976,000 or so -- very close to the $1 million in the estate -- and the estate therefore would be free of succession duty in that particular case. That’s the situation we’re seeking to remedy by this amendment.

Mr. Speaker, I appreciate the support from both sides of the House.

Motion agreed to; second reading of the bill.

Mr. Speaker: I understand the minister wants it to go to committee.

Hon. Mr. Meen: Yes, committee of the whole House.

Mr. Speaker: The bill is ordered to committee of the whole House.

Clerk of the House: The 11th order.

Mr. Speaker: Would the minister like to move?

Hon. Mr. Meen: Yes, just a moment please, Mr. Speaker. I’m prepared to go with the Retail Sales Tax Act, and I am in two minds as to whether we might want to go into committee with the Succession Duty Act. But there are other bills standing, as I recall it now, on the order paper, for the committee of the whole House, so perhaps it would be more appropriate if we followed the 11th order as called.

RETAIL SALES TAX AMENDMENT ACT

Hon. Mr. Moon moved second reading of Bill 40,

An Act to amend the Retail Sales Tax Act.

Mr. Renwick: Mr. Speaker, I rise to speak again briefly on Bill 46, being the Act to amend the Retail Sales Tax Act. Again, we will support the passage of the bill, but we will ask that the bill go into committee of the whole House, because again a taxing statute with specific changes in specific sections of a technical and intricate bill is not properly the subject of a debate on principle on second reading.

I do have two or three comments which may be helpful to the minister when he’s considering the matters which we will be raising in committee.

I’m extremely concerned -- and I’m going to try to put my concerns in order -- about the tough penalty which the minister is imposing under

section 4 of the bill, amending as it does the accounting by vendors under

section 10 of the Act for the tax which they must collect. It does seem to me that that penalty, coupled with the provision with respect to regulations contained in

section 13 of the bill, seems to me to be somewhat Draconian in nature, and there must have been some obvious reason for the minister to move in this way in a drastic sense against vendors who have failed to account. He must feel that there’s been a substantial loss of revenue or a substantial problem about collection which would lead him to impose such penalties.

The second matter, which is one, of course, of immense concern to us -- we’ll not oppose the back on second reading because of it, but we’ll deal with it in committee -- is the whole procedure which occupies a substantial part of the bill relating to the point in time when machinery and equipment for production purposes will be subject to tax in an endeavour to have that tax imposed at the time it becomes affixed to the realty and paid by the person who owns the real property to which the production property is affixed.

We can deal with the technical amendments, all of which will not come into force until Jan. 1, 1977, but of course that points up what has been a major concern to this party and that is why there should be a continuation in the budget and a continuation in this bill of the provision which was enacted last year under the Retail Sales Tax Act granting what, in our judgment, is an exorbitant exemption with respect to the imposition of sales tax on machinery and equipment used in production.

We are, obviously, in favour of the reduction in the sales tax which applies with respect to the definition of fair value in connection with a specific defined type of mobile home, and we’re also obviously in favour of those homes being subject to tax on only one occasion -- that is, in the first instance and then only at the lower rate -- and not on any subsequent transfers.

My last point, on second reading of the bill, is this whole question of the extent to which people coming into Canada and bringing tangible personal property into Canada are, in fact, declaring it to the Treasurer or to the Minister of Revenue so that the tax which is imposed on property brought into the Province of Ontario by persons returning to Ontario is subject to tax. I must say, my impression is that it’s probably more honoured in the breach than in the observance in many cases, and there must be a significant loss of revenue to the province in its endeavour to tax that kind of tangible personal property when brought into Ontario, having been purchased abroad.

Perhaps those points and a number of other points can more usefully be dealt with in some greater depth when we deal with the bill in committee of the whole House. We will therefore support the bill and ask that it go to the committee of the whole House.

[3:30]

Mr. Edighoffer: In reference to Bill 46: In the brief time we have had to review this bill, I have to say firstly that we in this party strongly support the amendment regarding the reduction in tax for mobile homes. I know this has been brought up with the Treasurer (Mr. McKeough) on a number of occasions and we were certainly pleased to see that this was forthcoming.

Again, the majority of this bill is set out in the budget. We will have ample time to discuss the changes that are taking place and I can say we are in agreement with most of the changes.

I wonder sometimes when I look at a bill such as this. I know there are exemptions for thermal insulation materials and I just wonder why some of these things aren’t set out a little more clearly in legislation. However, I suppose many of these things are done in a hurry.

But we will support the second reading of this bill and, as the previous member said, look forward to the discussion in committee.

Mr. Cassidy: I want to make a couple of comments on the bill. One is that I don’t think the bill should be passed without remarking on the fact that without a stroke of the pen and without

an Act of this Legislature the Ontario sales tax was increased from five per cent to seven per cent at the end of December and --

Hon. Mr. Meen: With respect, Mr. Speaker, that isn’t so, because it was provided in the amendment made about this time last year that the tax would be reduced from seven per cent to five per cent for a specific period of time. And so it was by

an Act of the Legislature that it went back up to seven.

Mr. Deans: He said “without a stroke of the pen.”

Mr. Warner: An election gimmick.

Mr. Cassidy: Without one stroke of the pen. The electoral situation had changed very substantially. I hope the minister is aware of it and if he isn’t aware of it then something is wrong with his perception and he has delusions of grandeur.

Mr. Martel: The minister has been around here long enough.

Mr. Cassidy: He still sees the rump over on this side, Mr. Speaker.

I don’t think it should be allowed to pass unnoticed that the Ontario government did, in effect, allow that enactment to go forward without coming to consult the Legislature. That is a habit that you have had more and more, Mr. Speaker -- not you personally, Mr. Speaker, but --

Mr. Warner: A bad habit.

Mr. Speaker: That’s not a part of this bill, though.

Mr. Cassidy: No, of course it isn’t.

Interjection.

Mr. Cassidy: The point I want to make in relation to the bill is a point of principle and that’s why I raise it right now. The deputy minister is looking at it to give some more elucidation and maybe having output of the minister. It is proposed in here that a retail tax on newspapers be levied by the Province of Ontario and the restrictions of that tax be laid down by legislation. I think that is a very dangerous provision and I would like the minister to consider very seriously redrafting that particular amendment or taking it out completely,

As I understand, in the past, newspapers, books and other such articles have quite properly been excluded from the sales tax. The government of the Province of Ontario lies hesitated to tax them because the tax on newspapers is a tax on information and is a form of censorship. The government has now breached that particular barrier and it appears to be coming to deciding that it will, in fact, tax newspapers.

If the minister intends that certain kinds of advertising circulars, which do not contain news or comment of any variety, that are flow being exempted because they are falsely classified as newspapers, should be taxed, it might be possible to find the necessary language to carry out such an intent in the legislation. But I would submit, Mr. Speaker, that this language is quite unacceptably broad.

It means that if the minister or the government saw fit they could by regulation deem that one of the classes of newspapers to be taxed was newspapers with a circulation of over 400,000 published in the afternoons in the city of Toronto, thereby picking out only the Toronto Star; or tabloid-sized newspapers appearing in the morning in the city of Toronto; or all weeklies published within 100 miles of the Manitoba-Ontario border which would take in the Kenora and Fort Frances newspapers and none other.

It would be quite possible to discriminate against particular newspapers by use of this particular device. The minister is aware that the regulations committee has no power to govern the use of this particular power which he proposes to give unto himself. There is no provision for reference back to the Legislature apart from the minister’s estimates and there is therefore no effective legislative control. I would ask the minister to agree that, whatever the intent here, it has been inadequately caned out and it should be reconsidered in committee this day.

Mr. Haggerty: Mr. Speaker, I want to ask the minister a few questions concerning the bill as it relates to the matter of

section 24(

b) section 3, which relates to “thermal insulation materials, as defined by the minister, that are purchased exclusively to insulate a building the construction of which has been completed and that is occupied permanently or seasonally for residential purposes…”

The question I want to ask the minister is, is not having that paragraph or that phrase put in the bill encouraging a number of cottagers in certain areas to live in these places year round, perhaps in violation of local bylaws? I can cite a couple of instances in the Erie riding where municipalities do not encourage the year-round use of certain cottages. Perhaps by allowing them to insulate, the next question to lead into it would be that they are permanent residences and lack of sewers and other services in the area will cause, perhaps, further difficulties to the municipality.

The other matter concerning the matter of insulation is that hopefully when the regulations do apply to this particular paragraph, consideration will be given to the type of insulation and, perhaps, some protection to the property owner who may feel that he’s doing a service to the Province of Ontario by reducing energy costs by applying insulation. Some of the construction materials used today in new homes such as the 2x4s, -- if we call them 2x4s -- may only be in some cases 3 inches in width and perhaps about 1½ in. deep.

In some cases, in our discussions in the Ontario Hydra committee, dealing with the hydro rates, it has been suggested that insulation should be increased to 6 in., 4 in. and so forth. If we are going to encourage property owners to apply this type of insulation I think we are going to have to change the provincial building code so that persons are going to be protected.

If not, what they call a wet rot or condensed rot will occur in the building materials in a home and perhaps in five years’ time, if there isn’t breathing space in there, the person could lose his home or perhaps it will cost him more money. These are the points I want to bring to the attention of the minister.

The other one concerns subsection 3,

section 3, I guess it is -- no; it deals with the tangible personal property in Ontario as it becomes liable to tax. Hopefully, this will cover one of the overgenerous conditions which exist along the Lake Erie shoreline where we have our American friends who may come in with a boat and all the equipment necessary for it and they pay no taxes on it. I think at one time under Canadian customs regulations they could bring a piece of equipment in, such as a boat, and it would be valued at $5,000 or $6,000.

They would have the use of our Canadian waters over here, then take it back to the United States and pay no tax on it. I understand that now they can bring a boat into Canada as long as they file a report that it’s here for, we might say, the life of the equipment. Again, I feel that persons in Ontario who have to go out and purchase a boat and motor are being penalized when we allow oth.er infractions under over-generosity of the present laws that they can come into Canada and get off scot-free without contributing any taxes at all, and I think this should be corrected.

Those are the points that I wanted to bring to the attention of the minister and, hopefully, he will give consideration to my suggestions.

Hon. Mr. Meen: Mr. Speaker, taking last things first, I guess, on insulation we’re proposing that the exemption apply where the dwelling is complete and isn’t just in the course of being constructed. If that were the case, then the new provincial Building Code would apply to require certain levels of insulation. It has to be a residence; it can’t be a commercial property. The principle doesn’t extend to commercial and industrial enterprises or undertakings, it’s strictly residential and it’s intended really as an incentive to upgrade existing residences that may have little or no insulation in them.

It doesn’t really matter whether it’s a permanent residence or a temporary residence. A seasonally occupied premises is just as much a qualified building as a permanent townhouse, we might say. So I want to make that point clear.

I’m not too clear myself on what the hon. member is referring to with respect to boats.

Mr. Haggerty: Summer residents.

Hon. Mr. Meen: Summer residents coming in here with their boating equipment -- that is not much different from winter vacationers from Ontario going to Florida with their cars. Florida doesn’t apply a Florida retail sales tax or some part thereof to any of us who are lucky enough to be able to spend some time there at any time of the year. I don’t think we’ve ever extended the principle, where someone was coming in as a visitor rather than as a resident, that tax would be applied. That’s a principle that I think would be counterproductive in the long run.

The member for Ottawa Centre (Mr. Cassidy) touches on a point which has concerned me; there’s no intention in the bill to tax newspaper. The intention is to try to apply the taxing statute to advertising material put out under the guise of newspapers. The

section presently reads, “newspapers however purchased,” and under that we have had a regulation attempting to interpret newspapers meaning publications, usually daily or weekly, containing news, advertising and literary matter. This includes trade show newspapers, but doesn’t include credit or business reports or similar printed matter.

The difficulty with this is that we cannot get a definition which is sufficiently sharp that it homes in on the true newspaper and exempts the true newspaper, be it daily, weekly or whatever, without getting into some difficulties with advertising flyers that may contain some item of news -- and it doesn’t matter how old it is; there’s no requirement that news be current.

Some have gone so far as to public excerpts from CF bulletins that might be six weeks old just for the purpose of including in their advertising material some element of news, a masthead, an address and so on, and they would appear, under the definition under the Act and under the definition by the regulations, to be a newspaper and, therefore, free of retail sales tax, in, one might say, unfair competition with those who are legitimately putting out advertising material of one form or another and not trying to get it up under the guise of newspapers.

I think the last thing in the world that would ever happen, I guess, would be if newspapers were dragged in under the Act and taxed the way advertising material is intended to be taxed. But what we’re trying to find is a definition that will distinguish the one from the other.

[3:45]

What does concern me, though, as I said in my remarks, was the concern expressed by the member for Ottawa Centre that this is broad. It does appear to me to be broad and I have expressed this concern to my staff. I had wondered whether it needed to be this broad in order to accomplish what we’re seeking to accomplish. If I can come up with anything when we are in committee on this, any way in which to modify this in some fashion, or if the hon. members opposite can help me in coming up with something that will accomplish what I think is accepted as a desirable goal, then I certainly would be happy to entertain and see introduced an amendment to that section; but we do need something.

The member for Riverdale (Mr. Renwick) referred to

section 4 in his comments, and yet I think he was speaking about the imprisonment provision in

section 11 as being rather Draconian. When we get into the details of the bill, I think I can explain to him and to boo, members just what was intended and why we have proposed these particular amendments.

Motion agreed to; second reading of the bill.

Mr. Speaker: Shall the bill be ordered for committee of the whole House?

Agreed.

ONTARIO GUARANTEED ANNUAL INCOME AMENDMENT ACT

Hon. Mr. Meen moved second reading of Bill 47,

An Act to amend the Ontario Guaranteed Annual Income Act, 1974.

Mr. McClellan: I want to rise to oppose Bill 47 on behalf of this party. I want to inform you, Mr. Speaker, that we are opposed to it in principle, that we will divide on it and that in the unfortunate eventuality that it passes, we will move that the bill be sent to committee of the whole House for amendment.

I want to say that we think this bill in principle constitutes an attack on the rights of new Canadians in this province in no uncertain terms. What the minister is proposing to do is to change the residency requirement for the GAINS pension from five years to 10 years in

section 1(2)(3).

We are well aware of the justification for these proposed changes. It’s an exercise in Hendersonian restraint, pure and simple. The government will probably save some $3 million or $4 million, by our calculations, by virtue of the changes in residency requirements. But what is at stake is not simply a matter of dollars. What is at stake ass the fundamental political rights of a group of people in this province, and the government has absolutely no right to take those rights away.

The pettiness of the measure also needs speaking to. At the present time, we are aware that the Ontario government pays the whole cost of GAINS pensions for people who do not meet the eligibility requirements for old-age security. I understand that some two per cent of GAINS clientele are in the category of people who do not meet the old-age security requirement. I am also aware that they constitute something in the order of 17 per cent of the total cost of the GAINS programme. But the very fact that there are inequities in the federal legislation is no excuse for introducing those inequities into Ontario law.

This government’s obsession with the kind of Hendersonian sleight-of-hand politics of switching costs from one level of government to another has gone utterly too far this time. The government has got itself into a tack on fundamental rights of people that is abhorrent to us in this caucus. What the government is doing is establishing two classes of citizenship in this province -- those who are here 10 years and those who ace here five years. It is utterly inappropriate to base the eligibility for government pensions on some kind of a distinction or discrimination as between classes of citizens.

The government will be depriving Canadian citizens who happen to be new Canadians of entitlement for GAINS programming, and it is utterly inexcusable to be proposing these kinds of measures to this Legislature at this time, regardless of the sleight-of-hand cost savings.

I might mention, finally, that the net consequence to new Canadian citizens who are now put into a second class status by the changes proposed, is that rather than be eligible for GAINS pension they will be eligible for family benefits under a needs test and an assets test at substantially reduced rates of payment -- the difference between something in the order of $269 for a single person on GAINS, as opposed to $190 a month for a single person on family benefits. Again, the government is simply establishing two classes of Canadian citizens by virtue of the length of their residency in this country.

It is absolutely unacceptable to this caucus, and we will oppose the government on it when the matter comes to a vote.

Mr. Foulds: Shameful piece of legislation.

Mr. Edighoffer: Mr. Speaker, I would just like again to make a few comments on Bill 47,

an Act to amend the Ontario Guaranteed Annual Income Act This proposal, of course, was made by the Treasurer in the budget. It would appear to me that this, of course, would eventually -- or at the present time -- bring citizens together in receiving their benefits. I think, however, that we will support the legislation, but feel --

Mr. Moffatt: Bring citizens together?

Mr. Edighoffer: -- that it should go to committee to make certain that this is hopefully phased in over a period of time.

Mr. McClellan: You’ll phase it into the legislation, but you may phase people out

Mr. Speaker: Order please. The hon. member for Sudbury East.

Mr. Martel: That’s the first time I’ve heard of phasing-in discrimination. You can cut it anyway you want. In fact, what you are going to have is people now --

Mr. Speaker: Would the hon. member address his remarks to the Chair?

Mr. Martel: Mr. Speaker, what they now have are people who have been here six years who are in receipt of GAINS, who will be here seven years in receipt of GAINS -- and other people who will have been here nine years and not be eligible for GAINS.

Hon. Mr. Meen: Not now.

Mr. Martel: It certainly will -- when the government introduces this. They have to have a 10-year residency requirement. If they don’t get it now; if they haven’t got it now -- they’ve been here eight years.

Hon. Mr. Meen: They have a year to apply.

Mr. Martel: They have a year to apply. Be that as it may. What happens when they have been here eight years?

Hon. Mr. Meen: They can apply.

Mr. Deans: They may not be eligible.

Mr. Martel: Sure, and they may not be eligible because they may not have been here 10 years. What is even more sinister is the point I want to talk to, because the government can phase in discrimination and the Liberals will accept what they adopt. If you look in the explanatory note and you try to hang your hat on something, it says it is to coincide with what the federal government is doing -- right. Why don’t they do what the federal government does and introduce an escalator clause?

In the GAINS portion -- in all the pensions in Ontario -- the beggars over there went to Ottawa a number of years ago and decried the fact that the federal government did not have an escalator clause in the Canada Pension and the old age pension, and they screamed blue murder that they should put in escalator clauses. When it came time for them to come back to Ontario and to put these escalator clauses into such things as the Workmen’s Compensation Board pension benefits or in the mother’s allowance under family benefits, of course, the Tories backed off -- and here they go again. They nibble.

They take what is convenient. Because it coincides with what Ottawa is doing, therefore they will introduce it.

Well, why don’t they put an escalator clause in the pension in Ontario, as Ottawa does? Now, that would be taking it too far. It brings in the discriminatory aspect of it, and that’s all well and good. And because the Liberals in Ottawa believe in discrimination, of course, so too should the Tories. Why be any different? You’ve always been the same. There is not much sense in changing now.

One wonders why they introduced it the way they did a couple of years ago, though. I was involved in those debates, and I guess it was because on the eve of an election a year away, we could bring in that thing. Barrett looked good doing it. Ontario had to, because there was sufficient pressure from the senior citizens in Ontario, and in the face of an election, what in God’s name do they do but introduce the clause in the bill which says five years. That’s what Barrett was doing. But it cost us money. The difference between the Tories and Barrett is, he understood the legislation. He understood the handout game in Ottawa better than anyone else and when he --

Mr. Reid: They caught on to him after one term, I can tell you.

Mr. Martel: Well, we will talk about Barrett, if you want.

Hon. Mr. Meen: It was not a long term --

Mr. Mattel: It’s an indication, I think, of what I said earlier.

Mr. Reid: They are suffering for it now.

Mr. Martel: It’s funny when drowning rats can all get on the same boat, Pat. All the right wing finks could get together in a hurry in BC, and it is obvious they are doing it here this afternoon in the Legislature as well.

But Barrett knew the Ottawa legislation better than anyone in Canada. He went down to Ottawa long before this government did to see if he could get a crack at the Canada Assistance Plan funding, and he got some and so Ontario followed suit. I suppose Wacky Bennett Jr. will now move legislation which will, in fact, bring in discrimination in its rankest form. But we oppose it. We oppose it on that and, as I say, we oppose it because it only goes half way.

If they are going to talk about following the Liberal example in Ottawa, the least the Liberals could have done is insisted on an escalator clause, because there is an escalator clause in Ottawa. The only thing that they accept readily over there is discrimination, but not an escalator clause that this government asked for. The Liberals stand condemned, as the Tories stand condemned, for even introducing the bloody thing.

It is not costing the province that much and I simply abhor the fact that if a person has been here for only six years, despite the fact that he is a Canadian, despite the fact he has residency and citizenship, because he hasn’t quite made it he is not going to be eligible. That is rank discrimination.

I would encourage the Liberals -- seated to our left but philosophically to our right -- to change their position on the two grounds. It is discriminatory. I really can’t understand the Liberals supporting that garbage, I really can’t, and I would encourage anyone who is in control over there to have the caucus reconsider the decision and oppose that amendment, and in particular that clause. Thank you, Mr. Speaker.

Mr. Speaker: Does any other member wish to participate? The hon. member for Riverdale.

Mr. Renwick: Mr. Speaker, there are occasions on some bills where another voice repeating, perhaps in a different way, the same arguments that have been made is important and essential, and I intend to do that. The minister knows that his colleague, the Treasurer, in a laconic statement, introduced in the budget the full implications of which are now reflected in what appears on its face to be nothing but a technical bill, referred to this problem, and I quote what the Treasurer said:

“It would be appropriate at this point, however, to state that legislation will be introduced changing the GAINS residency criteria, which is presently five years in Canada. Effective April 7, 1976, new applicants for GAINS must meet the same 10-year residency criterion that is required for federal OAS and GIS benefits.”

[4:00]

What the minister is doing -- for the sake of conformity and for no other reason that we can tell, although we have tried to find out the quantified number of dollars that the government will be saving by this kind of measure -- what the minister is saying is that if you come here as a landed immigrant and obtain your Canadian citizenship or if you have fulfilled the residency requirement that would permit you to apply for your Canadian citizenship, in this particular respect you must wait another five years before you can get the additional few dollars that this government provides to bring a person’s income up to what we call a guaranteed annual income.

I can’t understand how this government could say that there can be Canadian citizens in this country, some of whom are eligible to apply and some of whom are not eligible to apply.

We have spent a good deal of time over the last 20 or 30 years abolishing the distinction between citizens who become citizens by application after five years landed immigrant status and citizens who are native-born. A native-born citizen is a person who will have been here for the residency requirement long before the point in time when he has to meet the requirement to be eligible for GAINS, and the minister knows that. The only people who can be hurt are non-native born Canadians who are either citizens or eligible for citizenship. That’s what the minister has done.

Why the federal government ever adopted 10 years is beyond me, but it certainly should not be a relevant argument in this assembly as to what this government should be doing with respect to the kinds of discrimination which have been pointed out by my colleagues.

I noticed that the minister interjected and said that of course as of April 6, 1976, if anybody considers himself to be an eligible person, he has a full year in which he can make his application. Therefore, in the so-called technical language of taxing statutes, a notch provision is providing some kind of opportunity for persons who are presently eligible but haven’t as yet made the application. The government is giving them one year to apply. One year isn’t adequate because there’s no arbitrary period of time which will remove the inequities, even for those persons who may now be eligible.

I don’t pretend to have followed all the intricacies of the debate that took place about it, but I know the broad substance of it.

One of the major problems we in this caucus face is to endeavour to get persons who are disabled, unemployable and in receipt of family benefits assistance or general welfare assistance transferred to the guaranteed annual income programme, so that those persons will be designated as unemployables and will be eligible for the additional numbers of dollars which are paid under the GAINS programme which are not available when one takes simply into account the funds which are available under family benefits assistance or general welfare assistance on a monthly basis.

So, if my assumption is correct, the government one year from now will be denying persons who may very well meet the present residency requirement hut, who through the arbitrary decisions of this government, are not eligible for GAINS because the government will not admit that they’re unemployable. Then, at some point in the future, if they become in the eyes of the government unemployable, the government will be able to say: “You must still remain at the reduced amount because, where you used to fall within the five-year residency requirement, you now fall within the 10-year residency requirement and you’re not going to be eligible.”

What we think the government is saying is that it wants to take a large number of people out of the GAINS programme, not because they’re unemployable, but because they haven’t been here for the additional five vars. That is another reason why we oppose the bill.

I assume that the statements I have made are specifically accurate because the question of who qualifies is not a decision which is made on some objective test of residency. There are other criteria which are involved to determine whether a person becomes eligible for the GAINS programme.

If the minister insists on extending the five-year provision to 10 years on April 6 or April 5, 1977, there will come a cut-off point for persons who would otherwise have been eligible, in the minds of most persons, and who would be unemployable. If they become unemployable rafter that date, the minister will say, “You may be unemployable now but you’re not eligible for GAINS because we’ve changed the rules and it’s a 10-year period.”

I can’t conceive that the government could justify a saving in the expenditure of funds at the expense of persons who must be, in most cases, 65 years of rage or over; and to do so at the expense not of native-born Canadians but at the expense of Canadians who may be Canadian citizens or eligible for Canadian citizenship after their five years in Canada. They will be told that in order to get this additional supplement they must be here for another five years.

Mr. Martel: Scrooge.

Mr. Renwick: Now in those two gradations of classes of people this government which, in many cases, prides itself on the non-discriminatory nature of its legislation is in fact discriminating in a most reprehensible way. It is disguised as a mere amendment in order to make it conform with decisions or rules which are established by the federal government for old age security and guaranteed income supplements.

We say to the minister, “You’re wrong. Will you reconsider? Would you stand the bill down? Will you withdraw the bill?”

Mr. Bounsall: Withdraw it.

Mr. Renwick: He can simply say, “We have made a mistake. We didn’t understand the implications of it.”

Mr. Martel: The Liberals will support them.

Mr.

Renwick: I say to my colleagues on the left, in the Liberal Party, that I don’t understand how it is possible for members of a party which, over the years, has insisted upon the Canadian citizenship requirement for eligibility for a large number of other more remunerative matters, at this point in time to say, “You can be a Canadian citizen or be in the country as a landed immigrant; have been here for five years and become a Canadian citizen; but you are not eligible for the GAINS programme without waiting for another five years.” We can’t possibly conceive that with proper consideration, the Liberal Party would not support us in our opposition to this bill.

We ask their members to support us if the minister and the government will not withdraw the bill.

Mr. Speaker: Does any other hon. member wish to speak to this bill? The hon. member for Kitchener.

Mr. Breithaupt: Mr. Speaker, I was going to ask if this might be an opportune time for the minister to deal at least with the points raised by the member for Riverdale (Mr. Renwick) so that we can have an explanation to see if the bill, as has been suggested, is one which will not deny benefits to persons who are receiving benefits at the present time but will deal to some degree with persons who are here for more than five but less than 10 years and their presumed ineligibility of benefits. Perhaps if the minister could respond to those particular matters, we would have more information which would be of me.

Mr. Good: Mr. Speaker, in order to have the other details answered, would the minister in his reply give us an indication of how the GAINS benefits are calculated for those people who are not now in receipt of guaranteed income supplements? My understanding ha’s always been that the GAINS benefits are directly related to the amount of old age pension and guaranteed income supplements.

Mr. Martel: About $40 a month.

Mr. Good: If the minister is paying now, could he tell us how those benefits are calculated for persons who are not in receipt of guaranteed income supplement or old age security?

Hon. Mr. Meen: Mr. Speaker, the rate established for GAINS is presently $269.30 for an individual or twice that for a couple. That’s predicated on the basis of OAS/GIS art that figure, less $38.88, whatever that comes out to. And, as the hon. members know, every time the OAS/GIS has been adjusted for the cost-of-living index -- the last figure being a $4.30 increase at the beginning of this month -- the government has reflected art least that amount forward through to the beneficiaries under OAS/GIS and GAINS; in this case, bringing it up to $269.30.

The other side of this programme, and a very expensive side of the programme, is that to which the members have been directing their observations in this debate. It concerns at present -- that is, as of the end of March; it will likely be somewhat lower this month because of the requirement for requalification -- some 6,200 GAINS recipients with the five-year residency qualification but lacking the 10-year qualification, which therefore would qualify them for OAS/GIS.

That part of the programme, as one hon. member mentioned -- I think it was the member for Bellwoods -- represents two per cent of the total clientele under GAINS and yet roughly 17 per cent of the total budget money set aside for GAINS. It’s an extremely expensive part of the programme, in other words.

I honestly don’t know why we extended the programme to the five-to-10-year group in the first place. I think it would have been a lot wiser to have limited it to the same clientele qualification area as that under OAS/GIS; in other words, the 10-year residency rules, where a very substantial part of the GAINS total figure of $269.30 -- which, I should emphasize, has to take into account any income from any other sources as well; but that is the figure we presently look at as the minimum. This part of the programme tends to be open-ended, because every last cent whereby OAS/GIS is increased therefore is also passed along to those GAINS recipients in the five-to-10-year category.

It is a budget matter which the Treasurer (Mr. McKeough) had to weigh very carefully. The expense is about $23 million on a total-year basis and is anticipated to rise to well over $30 million a year in the next two, three or four years, with indexing and the like. These individuals, if they are not on OAS/GIS and GAINS -- some because of their own income or lack thereof -- might well qualify for assistance under the Family Benefits Act or the General Welfare Assistance Act.

Mr. Martel: There is a lot less.

Hon. Mr. Meen: In the case of -- I am not familiar with these because they are under another ministry, but my recollection is that general welfare assistance receives an 80 per cent contribution from the federal government and the Family Benefits Act assistance is 50 per cent. The member for Sudbury East --

Mr. Martel: Both get 50 per cent.

Hon. Mr. Meen: Both get 50? Well, there is some assistance under those Acts from the federal government; and although, admittedly, they do take a look at the means -- they have a means test -- and their payments are not quite as generous as ours have become under OASJGIS -- they are something around $190 or so where it is needed -- it was felt by the government, and it was felt by us, that for this period of five to 10 years --

Mr. Martel: They got as hungry as everybody else, though.

[4:15]

Hon. Mr. Meen: If they are getting as hungry then they can get assistance, and assistance is available to them. There has been some suggestion that we are takin something away. At the very most, one could concede, and I guess one would concede, that one is taking away an expectation held by those who may be approaching the five-year residency qualification date; that come that magical five-year date under the Act as it has existed, they would then qualify for GAINS.

All of those who have qualified, and we think there will be a number who are qualified but have never applied to us, for whatever reason -- they have not applied to us but they are qualified -- they have a year in which to make that application. If they qualify, then they are qualified and they will remain qualified right through until the time when a substantial part of the GAINS programme is picked up by OAS and GIS.

I suggest to hon. members that we are not taking away anything in terms of dollars. We are not taking away anything except possible expectation that someone was going to be able to get on the GAINS programme after five years, and there may well be some in that category.

There is other assistance available to them where they need it, and we feel that in bringing this into line with the federal government, not only will the savings be there, which are of the order of $3.5 million to $4 million in the first year, increasing in the next year; of course, they double up, so that over a period of five years the total cost of $23 million is saved even at today’s dollars -- $23 million even at today’s dollars -- and by four or five years from now that saving will be substantially greater, but that kind of saving can then be passed forward to the GAINS clientele in the 10-year category and we will then have the additional moneys available for that purpose.

Mr. McClellan: There are still two classes of citizens.

Mr. Martel: Arthur, that is convoluted.

Hon. Mr. Meen: Mr. Speaker, I just repeat that there is the phasing in -- I am not repeating this point, I suppose -- there is the phasing in, in effect, over the next year. No GAINS recipient will lose. Any present GAINS recipient and anyone who qualifies within the next year up to April 6, 1976, will be in the GAINS programme through the five-year period right up to the point where he comes into the final system under OAS and GIS.

I think that concludes my observations, Mr. Speaker.

Hon. Mr. Meen moved the adjournment of the debate.

Motion agreed to.

CENTRAL ALGOMA BOARD OF EDUCATION AND TEACHERS DISPUTE ACT

Hon. Mr. Wells moved second reading of Bill 51,

An Act respecting the Central Algoma Board of Education and Teachers Dispute.

Mr. Speaker: Does the hon. minister wish to make opening remarks?

Hon. Mr. Wells: Yes, Mr. Speaker, I would like to make a few remarks that follow along on the very short remarks I made when I introduced the bill on Friday morning. I might just say, first, that I am in receipt of a copy of a letter written to Mr. W. R. Wilson, the director of the Central Algoma Board of Education. It reads:

“Dear Sir:

“In view of the public meetings held this week by the teachers and the concern our teachers have regarding further delay in getting students back to school, the teachers of Central Algoma Secondary School have spoken to the Minister of Education and officially notified him that they are voluntarily returning to school on Monday, April 12, 1976. The teachers have been assured by the Minister of Education that there will be legislation requiring final offer selection. We hereby notify the Central Algoma Board of Education that the teachers are ending their strike and will be in school April 12, 1976.”

(Signed)

“Peter Barrett,

“President,

“Central Algoma Division,

“OSSTF, District 30.”

That was a letter, as I say, written to Mr. W. R. Wilson, the director of education for the Central Algoma Board of Education. Subsequent to that letter, the Central Algoma high school opened today and pupils are back in their classrooms and teachers are back teaching in that particular school.

The only thing that remains unresolved is the resolution of the problem, the settlement of the contract which ended Aug. 31 and which has been under negotiation for some time, since April 15, 1975. This bill provides a method for solving that particular part of the problem. It puts the matters in dispute to final offer selection.

Final offer selection was chosen in this particular case because there are actually relatively few matters still in dispute; basically monetary matters plus, as I understand it, one or maybe two other conditions of work.

It is a situation in which final offer selection can work very easily and I hope and I think very well.

It is for a one-year contract because that is what the people in this particular area, the teachers and the school board, have been negotiating about since, as I say, last April. They’ve been negotiating for a one-year contract.

Because of the actions which, as I have indicated, have taken place so that the schools are now open, I propose in committee -- again, this is as I indicated in this House on Friday morning -- to move an amendment which will change the

preamble to outline the situations which now apply and which are historically correct as of today and as of when this bill receives royal assent. I will also move an amendment which would remove subsections 1, 2 and 4 of

section 2 because they are not necessary because the teachers are back in the schools and the board has not locked anyone out.

As of this bill receiving royal assent, everyone will be deemed to have agreed to final offer selection under Bill 100. Of course, once that happens under Bill 100, for the term of this contract and until the new contract which finally comes about because of final offer selection has expired, there can be no further strike or lockout.

I really see no need for a long debate in the House over this particular bill. It’s a situation which I would hope and had hoped we wouldn’t have to debate further today. I spoke to the board over the weekend and indicated that all it had to do was agree to go to voluntary final offer selection and we could have let this bill die on the order paper. Such was not the case; therefore we need this bill in its amended form in order to put the final piece in the puzzle of that dispute and bring it to a finality.

I see that my friends across the House have moved their usual reasoned amendment on this particular bill. I would suggest to them that there is no real place for that reasoned amendment on this bill. I would hope that they would just forget about it and withdraw it.

We’re doing exactly what the parties want in the Central Algoma situation; exactly what they want. I see some shaking their heads. They want to open those schools and they want the matter put to final offer selection. That is what the parties want; that is what the teachers want; and that’s what we’re doing with this bill. I think we could pass it in the next 20 minutes and the whole situation would be taken care of.

Of course, if they’re going to continue to obstruct the bill in their usual way by placing a reasoned amendment --

Interjections.

Hon. Mr. Wells: The interesting thing is, those members kept saying to us during the last two debates that all we did was bring in the same type of bill -- that we had come back and brought in the same type of bill in these disputes. I said then and I say again we will deal with each situation individually on its own merits, with a piece of legislation if necessary. I hope it’s not necessary but it seems to be in certain cases. We’ll bring in a piece of legislation tailored to the particular situation.

Having a bill which is entirely different from the last two bills we brought in, my friends opposite now drag out their same reasoned amendment and bring it back in -- the same reasoned amendment -- with no consideration for what the teachers particularly up there want. The teachers have asked for exactly what we’ve done.

Mr. Foulds: We are not opposed to it. It’s a matter of principle.

Mr. Speaker: Order, please.

Hon. Mr. Wells: It’s not just a case of a matter of principle.

Mr. Foulds: You don’t understand the difference between principle and expediency.

Mr. Bounsall: We have the principled position in this matter!

Mr. Foulds: The schools are open today.

Hon. Mr. Wells: It’s a case of whether you are concerned about the students up there and about the morale situation. The schools are open today, the teachers are back there today. So why take the time of this House with a long, convoluted argument repeating all the same things? Let’s just get down to business. We have got a few other disputes to worry about.

Mr. Foulds: That’s exactly what happened last time, Mr. Speaker.

Hon. Mr. Wells: I submit, Mr. Speaker, that the creative people are on this side of the House, and the non-creative people, of course, sit over there on that side.

Mr. Foulds: The theory is that this is a democracy.

Mr. Bounsall: We’ve proposed the only creative solution that looks to the future for long-term peace.

Hon. Mr. Wells: They sit on that side of the House -- right from that aisle down -- and the blinkers are right on them.

Mr. Wildman: I welcome the comments of the minister and I do admit his attempt to be innovative in this particular dispute -- and I mean that sincerely. However, the bill as introduced, even with the amendments which he has suggested and which will come after second reading in committee, still involves compulsion.

Hon. Mr. Wells: On whose part?

Mr. Wildman: On the part of the government toward the board, in this case.

Hon. Mr. Wells: Toward the board, not the teachers.

Mr. Wildman: I agree with the minister. I had hoped that we wouldn’t have had to debate this bill today, either. I would have agreed again with the minister that I would have hoped the board would have a

Document details

CollectionOntario — Debates (Hansard)
Citation1976-04-12
Typehansard
Volume / chapterp30 s3 1976-04-12 hansard html
Languageen
Formathtml
SourcePROVINCIAL
Identifier89d8c97c64437014fe23eb87173bf90f77b549d2

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