Ontario Hansard — 13 November 1979 (31st Parliament, 3rd Session)
1979-11-13
Ontario — Debates (Hansard)
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November 13, 1979
31st Parliament, 3rd Session
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Hansard Transcripts
Hansard Transcripts
L106 - Tue 13 Nov 1979 / Mar 13 nov 1979
STATEMENTS BY THE MINISTRY
ENERGY CONFERENCE
MISSISSAUGA TRAIN FIRE
TRANSPORTATION OF DANGEROUS GOODS
MAPLEHURST CORRECTIONAL COMPLEX
ESL PROGRAMS
ORAL QUESTIONS
GAS AND OIL PRICES
MISSISSAUGA TRAIN FIRE
GAS AND OIL PRICES
CLEANUP OF SPILLS
MAPLEHURST CORRECTIONAL COMPLEX
J. D. CARRIER LAYOFFS
EXPLOSION SUPPRESSION
MARGARINE PRODUCTS
TRANSPORTATION OF DANGEROUS GOODS
MISSISSAUGA TRAIN FIRE
WATER POLLUTION
MINISTER’S COMMENT
PETITION
MINISTRY OF NATURAL RESOURCES REPORT
MOTION
COMMITTEE MEETING
ANSWERS TO QUESTIONS ON NOTICE PAPER
ORDERS OF THE DAY
COUNTY OF NORTHUMBERLAND ACT
CITY OF HAMILTON ACT
CITY OF HAMILTON ACT
DINORWIC METIS CORPORATION ACT
CITY OF CORNWALL ACT
COUNTY OF SIMCOE ACT
HONING CORPORATION LIMITED ACT
CO-OPERATORS LIFE INSURANCE ASSOCIATION ACT
SMITH BROTHERS JEWELLERS, LIMITED ACT
ASSUMPTION CHURCH CEMETERY ACT
CITY OF TORONTO ACT
CROWN TIMBER AMENDMENT ACT (CONTINUED)
ROYAL ASSENT
CROWN TIMBER AMENDMENT ACT
The House met at 2 p.m.
Prayers.
STATEMENTS BY THE MINISTRY
ENERGY CONFERENCE
Hon. Mr. Davis: Mr. Speaker, I want to report on the meetings yesterday, and then I have another brief statement related to the situation in Mississauga.
With respect to the discussions in Ottawa, I am sure most members spent their day off glued to the television sets. I can’t really add too much to what was discussed in public, in that the discussions at the Prime Minister’s residence during and after lunch were really quite consistent with what was said during the public part of the meeting.
From the Ontario standpoint, the question of price, as is obvious from the press reports, is not settled; there is no agreement, with points of view varying from one end of the spectrum to the other. In terms of some of the areas where I think there was some consensus -- the general objective of energy self-sufficiency, the question of some form of consumer protection, the potential of the proposed energy bank, and the whole question of conservation -- on these matters I think it’s fair to state that in terms of principle there was fairly genuine agreement.
MISSISSAUGA TRAIN FIRE
Hon. Mr. Davis: Mr. Speaker, with respect to the situation in Mississauga, I had hoped the Attorney General (Mr. McMurtry) would be here to make a report but he is at present on the site. I was speaking to him just before entering the House, which is why I’m just a little out of breath.
I would like to tell the House as much as I can in general terms and at the same time suggest to the members opposite that if they have questions on some aspects they might be directed to the Minister of the Environment (Mr. Parrott) and some to the Minister of Health (Mr. Timbrell). The Provincial Secretary for Resources Development (Mr. Brunelle) has a statement to make with respect to the transportation aspect.
As of just a few moments ago, the decision was made to alter the areas where people have been evacuated, to come now roughly to the lines of Cawthra Road on the east, Burnhamthorpe Road on the north, and Erin Mills Parkway on the west, with Lake Ontario being the southern boundary. There is some expectation, but it has not been determined yet, that perhaps later on this afternoon it will be the area from the QEW on the south, probably with the same perimeters on the east and west, and certainly Burnhamthorpe Road on the north, but this may be -altered later on today.
I think the likelihood is very high that the people on the scene will be suggesting the area contained within those boundaries be maintained over this coming evening, with the expectation this can be altered tomorrow. The concerns that still exist relate to the amount of chlorine still in the one tanker. They are in the process now of sealing the tank itself.
I think the feeling by the experts there -- and I certainly support any decision they make -- which some might say is just a little more cautious than it needs to be although I think in situations of this nature that’s the intelligent thing to do, is that they are in the process of sealing this and they don’t want to alter the boundaries, other than the ones I’ve mentioned, until that is completed.
Apparently, on investigation this morning they discovered that a percentage -- and no one can accurately define what the percentage is -- of the contents of the chlorine tanker has gone. The best estimate is it went at the same time as the explosion itself. The advice of the scientists and others who were there is this would create no potential health hazards; it would be dissipated. They are left with a tanker with perhaps a third or 40 per cent, no one is exactly sure of the contents, and they won’t be able to judge this until the seal is on.
I would like to take this opportunity, because I was there last evening, to make one or two general observations about the people of Mississauga, their fire department, their police forces, the Red Cross, their municipal officials, together with the OPP. I think the people, all of them, were singularly successful in dealing with a potentially hazardous situation in a way that brings credit to all of those who were concerned.
I met some of the news media from south of the border, who are here in some numbers and we had some discussion. People were literally amazed that we could have an evacuation of a city of this size with the efficiency and the lack of confusion or difficulty that was experienced in that community on Sunday.
It speaks very well, as well, of the community generally. While it’s too early to make any guesses, it is unlike situations, without naming jurisdictions, where incidents of this kind have happened on occasion in some other parts of the world -- areas of flooding or evacuations from potential hurricane areas -- in that so far perhaps only one or two incidents of burglary or breaking and entering have occurred. While it’s still too early to tell, because people haven’t returned to their homes, I really think this is an extremely encouraging aspect of this particular incident.
This is the most up-to-date information I can share with the members of the Legislature. I would like to repeat that the decision has been made in the last hour that the evacuation area is to be shrunk, for the time being, to Cawthra Road, the Lakeshore, Erin Mills on the west and Burnhamthorpe on the north.
The Attorney General may be here later on. He has spent a great deal of his time at the site. He is at present there co-ordinating the Ontario government’s involvement in this particular situation. The Minister of the Environment, the Minister of Health and their officials have also been very deeply involved. It is a tremendous example of how things can work efficiently and with sensitivity when one gets these various groups working together with a stated objective. I say, once again, I wish to extend my appreciation to all of those citizens who have made this particular situation tolerable in terms of the general public.
Mr. S. Smith: I wonder if I might just add a few words of commendation to those of the Premier with regard to the Mississauga situation. I have been very impressed, as I’m sure all members have been, by the behaviour of the citizens of the area, the government of the area, the police, the hospital, and ambulance workers, the firefighters and the scientists. I want to pay tribute to everybody who cooperated in this singularly successful venture. Fortunately, it looks as though it will go without serious incidents in terms of human health. And that’s wonderful news.
I also feel I would like to pay some degree of tribute to the Solicitor General who, as far as I could make out, was on the scene helping to co-ordinate matters. Since it went well and since we would be likely to criticize him if it had not gone well, I think he deserves some commendation for the fact that it did go well.
I pay tribute to the people as well.
Mr. Cassidy: I was in Mississauga for some time yesterday and had the chance to observe at first hand the way with which the emergency was being handled by the police, the firefighters of Mississauga and of Peel county, as well as the OPP, the RCMP and almost every other governmental authority involved.
I too want to say that the foresight with which the Peel regional police had prepared for an unknown emergency like this one, the speed with which Chief Burroughs and the rest of the force were able to put that into force, the manner in which the various authorities, including the firefighters, maintained their calm and discipline over the course of a very difficult situation, and the sheer feat of evacuating 240,000 people in the course of 24 hours from Mississauga were quite extraordinary.
I think that tribute should be given both to the people who carried it out and also to all of the citizens of Mississauga who cheerfully endured the difficulties that were involved, who did what they had to do, who moved out quickly and in an orderly fashion and who put up with the hardships in the last couple of days. It says something about this province and the people of this province, both the forces of the authorities and also the citizens, that we could have succeeded in doing this. I hope this kind of emergency doesn’t have to be responded to again. I hope we can avoid it in the future.
[2:15]
Mr. Kennedy: Perhaps, Mr. Speaker, I might be permitted to endorse the comments we have heard from the Premier and the leaders of the opposition parties. Certainly, it would be remiss not to join in their accolades to the agencies involved: the police, the firemen and those who moved the patients and the elderly from their accommodation with such tenderness and care that it touched everyone. It was done in a manner unprecedented in a civilian evacuation. I do indeed wish to add my commendation and to pay tribute to the care and to the patience and cheerfulness which the people exhibited who were put through this great inconvenience.
There are times in which I wish question period could be developed into a discussion period or a policy period, but that is the way the rules are here. Perhaps I will have a question or two with respect to the current situation later in the question period. Again I add my commendation to those people in the area of Mississauga who were affected by this disaster and to the ministries involved who were there in force in a calm, orderly display of efficiency that was matched by those who responded locally.
We do look forward to these inquiries, both federally and provincially, which I hope will ensure that such an incident never occurs anywhere again in this Dominion of Canada.
Hon. Mr. Gregory: I too would like to associate myself with the remarks of the Premier, and the leaders of the opposition parties and my colleague from Mississauga South.
As a person who was displaced during this crisis and had to move away from my home, I can appreciate the concern of the many people from Mississauga who find themselves in these circumstances. When one visits, as I did, some of the centres that were set aside for them -- for example, the International Centre, where some 1,500 people are acting in a very responsible fashion, recognizing that everything that was being done was done for their benefit -- one finds we have had little or no disturbance from the people while this was happening.
I would like to commend, as the Leader of the Opposition has done, those bodies associated with Mississauga and, in particular, Peel region, that have handled this crisis in a very responsible way. It makes me, as I am sure it does my brother member for Mississauga South, very proud to represent that area.
TRANSPORTATION OF DANGEROUS GOODS
Hon. Mr. Brunelle: Mr. Speaker, on behalf of the Minister of Transportation and Communications (Mr. Snow), I would like to advise the House of the status of the federal legislation proposed for the regulation of the transportation of dangerous goods.
Since 1976, the transportation of dangerous goods secretariat of Transport Canada has had under development a federal act and code of regulations to govern the transportation of dangerous goods by rail, air, water and highway modes of transportation.
The secretariat’s efforts were undertaken at the request and with the continuing cooperation of both industry and the provincial ministries of transportation for the purpose of ensuring the uniform application of dangerous goods regulations to movements across the country, to movements between Canada and other countries and the interchange of freight between the modes of transportation.
The proposed federal system would regulate the packaging and container standards, labelling, storage and transportation of dangerous goods; prescribe documentation requirements for the movement of such goods; provide emergency information, procedures and authority regarding dangerous goods transportation incidents, and prescribe penalties and liabilities for the contravention of the proposed regulatory provisions.
As part of this comprehensive approach, the secretariat, as of July 3 of this year, put into operation an around-the-clock emergency information centre to provide technical advice and assistance and help co-ordinate the notification of emergency agencies and authorities in the event of emergency situations.
As members of this House may already be aware, the draft federal act was introduced in Parliament in May 1978 as Bill C-53 and reintroduced in November 1978 as Bill C-17. However, it died on the federal Order Paper at dissolution last spring.
In this connection, I have been advised by the Ministry of Transportation and Communications that the new federal Minister of Transport, the Honourable Don Mazankowski, speaking to the ministers responsible for transportation and highway safety in Regina on September 20 last, said Bill C-17 will be reintroduced in Parliament in the current session.
I further understand that Mr. Mazankowski, in response to questions raised in Parliament yesterday, said he would reintroduce the bill with amendments within the next week or 10 days. With this in mind, I might therefore advise the House of the status of three other elements critical to the full implementation of this proposed federal system of regulation.
First, I would note that the proposed federal act and code of regulations are being developed as separate and distinct instruments. The aim, among other things, is to provide the capability to implement the code under federal administrative procedures with provincial co-operation. In this regard, I believe it is most important to tell you the code of regulations is currently in a third draft state of revision, awaiting industry comment prior to finalization.
In Regina, the dangerous goods secretariat forecast the code would be finalized in the summer of 1980. Under the present circumstances, however, and in view of the advanced state of the code development, I would like to assure the House that this government will be looking into ways of advancing that schedule.
Second, it must be appreciated that by virtue of our constitution this is a most difficult area of overlapping jurisdictions. Recognizing this factor, the House amended the Highway Traffic Act in preparation for the implementation of the proposed federal code as it relates to those areas within provincial jurisdiction.
Third, and finally, I should emphasize that the federal, provincial and municipal governments will need, individually and jointly, to make a large number of arrangements concerning the administration, enforcement and funding of the system.
Although I cannot report to you any specific arrangements made at this date, I can tell you this government has such matters under consideration and that the present wording of the draft federal act specifically contemplates formal federal-provincial agreements regarding shared responsibilities and the apportionment of the costs of the implementation, administration, enforcement, training requirements and other matters necessary for implementation of the act and its code of regulations.
MAPLEHURST CORRECTIONAL COMPLEX
Hon. Mr. Walker: I am sorry I do not have copies of this statement for members of the House. It has just been drafted at this moment.
I have just returned from the Maplehurst Correctional Centre in Milton where I went early today to apprise myself of the damage to facilities and details of the incident which occurred there last night. I am now in a position to inform honourable members concerning this disturbance.
At approximately 7:45 p.m. last night, 107 inmates of the Maplehurst correctional complex were watching the monthly movie in the gymnasium when they suddenly began to throw chairs around. Within minutes, a full-scale rampage was launched in the gymnasium resulting in damage to facilities and equipment. This damage is estimated to have been in excess of $50,000. During this spree of wilful damage, washroom fixtures, windows, lights and chairs were smashed. The major damage involved the wilful destruction of a wide variety of recreational equipment, including musical instruments and sports equipment, such as pool tables and ping pong tables.
At the height of the confusion, 18 inmates battered their way through a door to a power and heating equipment room and then through another door to the roof of the building from which they leaped to the ground and escaped. I understand seven of these escapees have already been recaptured.
When the incident erupted, supervisory staff withdrew from the gymnasium and were joined by other staff who secured the exits from the gymnasium area. One staff mender, a recreation officer, who was acting as projectionist for the movie, was trapped in the projection room. Inmates hammered at the door and damaged it seriously in attempting to reach him. Fortunately, in the midst of the chaos, some inmates chose to act responsibly. They intervened on behalf of the recreation officer and escorted him from the projection room and eventually led him to safety.
Shortly after nine o’clock, or approximately one hour and 20 minutes after the incident had begun, staff had restored order. Subsequently, a total of 71 inmates were escorted from the medium security institution at Milton and dispersed to two maximum security institutions in Metropolitan Toronto.
We believe the incident was
an act of retaliation by inmates of the correctional centre against staff for taking disciplinary action against four inmates earlier in the day. Following a sports competition, four inmates attacked another inmate in a washroom, resulting in an injury which necessitated the amputation of part of a finger. Police were called in to investigate that incident and we anticipate the laying of criminal charges against four inmates in connection with that incident.
I am pleased to report that the staff at Maplehurst Correctional Centre did an outstanding job in bringing this potentially very dangerous situation last night under control with no injury to inmates or to staff.
I would also like to thank the Halton regional police and the Ontario Provincial Police, who responded quickly to remain on standby should they be needed. Maplehurst staff controlled the situation in the institution without the use of police, but we were most appreciative of the support that their presence provided outside the institution.
As honourable members will be aware, especially those who served on the committee that considered my ministry’s estimates this year and visited the Maplehurst complex, this is a modern facility that provided an outstanding program for inmate population. This new institution, which opened in 1975, has accommodated more than 4,000 inmates, many of whom have benefited from the excellent academic, vocational and work opportunity programs it has offered.
In the past, inmates have treated the facilities and equipment with respect. It is therefore most unfortunate that this irresponsible rampage will limit some of the future programming not only for inmates who were not involved in the incident but also for inmates who in the future will be sent to this institution to complete their sentences.
The recreational equipment that was destroyed will not be replaced in the immediate future. In this time of financial constraint there is no money to replace it in the ministry’s budget, and I do not intend to free up funds for it. Therefore, the replacement of equipment will be largely dependent on how soon money can be raised by inmates to replace it. I realize this will impose program limitations on inmates who were not responsible for the damage. However, perhaps some of those same inmates will finally come to appreciate what it is like to be a victim of a crime.
The inmates involved in this regrettable incident will be subject to disciplinary action, and one way or another they will pay for their irresponsible acts. When recaptured, the inmates who escaped will be taken before the courts where criminal charges will be laid. The other inmates will appear before the superintendent at a hearing to determine the degree of their involvement in the incident.
I have authorized the superintendent of Maplehurst Correctional Centre to order the forfeiture of the earned remission which is standing to the credit of any inmate who was involved. The loss of remission will be proportionate to the inmate’s degree of involvement. I have further instructed the superintendent that the inmates must pay for the destruction they have caused. Inmates who were involved will forfeit any weekly incentive allowance they have standing to their credit.
Inmates who are determined to have been ringleaders in the incident will be placed in segregation with a complete loss of privileges. This means they will have restricted visiting rights, the loss of television privileges, the loss of mattresses in their cells and they will be denied library and smoking privileges. Inmates at the centre will clean up and repair the damage themselves.
In
summary, the situation at the centre is calm at this time, and the programs within the adult training centre portion of the complex, which was not involved in the disturbance, are proceeding as usual.
[2:30]
As well as thanking the police for their standby assistance, I wish to express our sincere appreciation for the excellent work that has gone into the apprehension of some escapees and the search for others. I realize the police in this region were already hard pressed by the situation that resulted from the train derailment in Mississauga, and I regret the added strain on the police resources that this situation necessitated.
Mr. Speaker: I want to remind the Minister of Correctional Services that standing order 26(
b) definitely states a copy of any ministerial statement will be distributed to the opposition parties at or before the time the statement is made. I was conferring with the Clerk at the time you admitted you hadn’t circulated your statement. I just want to serve notice that in the future I think we should live up to that standing order.
ESL PROGRAMS
Mr. Grande: Mr. Speaker, a point of privilege: On Friday last, while I briefly left the Legislature, the Minister of Education (Miss Stephenson) answered a question I had asked previously. In her response, she suggested the statements I had made were untrue. The minister’s allegations are groundless and I would like to correct the record.
Mr. Speaker: Order. What is the honourable member’s point of privilege? If you are going to stand up here and make a prima facie case for a point of privilege, you must demonstrate at the earliest possible moment and as quickly as possible how your privileges, as a member of this assembly, have been abrogated. If you can do that, I will listen to you further.
Mr. Grande: Mr. Speaker, I am correcting the record, sir.
Mr. Speaker: How?
Mr. Grande: By the minister --
Mr. Speaker: This is obviously a difference of opinion between what the member for Oakwood says and what the Minister of Education says. If this is alleged to have taken place last week, you should have raised it at the first opportunity. You said you were away from the House for a brief period of time and returned. I think you had a responsibility to correct the record last week, not now.
Mr. Grande: Mr. Speaker --
Mr. Speaker: Would you like to challenge my ruling?
Mr. Grande: No.
Mr. Renwick: Mr. Speaker, if I may, my colleague is rather polite. The point of privilege was he had been accused of lying to the chamber.
Mr. Speaker: I doubt that’s what he said, because if anybody accuses another member of telling a deliberate falsehood, I am sure any presiding officer of this House would have caught it.
ORAL QUESTIONS
GAS AND OIL PRICES
Mr. S. Smith: A question for the Premier with regard to yesterday’s conference: If we are to judge from the Premier’s statement today and also from the televised conference and the media report, it would appear that Ontario was successful neither from the point of view of getting our price argument across, nor from the point of view of having a redistribution of the benefits of such price increases.
Under these circumstances, although the Premier referred to the private meetings as well, is he absolutely certain nothing happened in the private meetings that might in some way mitigate this general impression of failure? If not, what does the Premier feel now remains that he can possibly do in order to influence the outcome of what the final decision will be?
Hon. Mr. Davis: I can tell the Leader of the Opposition that nothing happened in those private meetings that was really in any way substantially different from the public discussions. There were two aspects. One, that of the distribution of proceeds, I think in terms of what the producing provinces feel is their share or whatever they determine by way of royalty, was supported by every other province there. Ontario was the only one that raised this publicly and also at the private meetings.
I think that is going to continue to be an area of debate over the next number of years. I think it is something that is not going to go away. I would be surprised if there isn’t a decision made to have a committee, perhaps the Ministers of Finance and Treasurers of the provinces, get together to take a look at the whole question of the foundation for the equalization program and whether or not resource funds are to be considered a part of it.
Of course we would like to see that sort of study done, except I would predict the results of that study would then impose fairly substantial burdens on the federal treasury. In terms of the overall financial position of the country I think these would be difficult to sort out. But I think it is the kind of study that will have to move ahead if the distribution is to remain as is at present constituted.
I am sorry to take so long but it is an important issue. One of the points made by the producing provinces, which has some validity in terms of their perspective, is that their present royalty of roughly 45 per cent applies to those depleting resources such as the conventional crude. When it comes to the synthetics or the crude from the tar sands, the royalty or tax, or whatever way one would wish to describe it, moves down to a figure that is probably closer to 15 per cent.
That hasn’t yet been defined, and I think it is a little early. But their argument -- just so the members will know -- is that their 45 per cent royalty on the conventional sources is depleting, it is diminishing over a period of years. They argue that their rate of return, or however we wish to describe it, on the synthetics would be substantially less.
I don’t think that answers what I think is a broader problem. This is not just in terms of what money might be going in one direction or another, but in terms really of one of the basic ingredients of Canada. The counter-arguments -- and you saw it, those of you who watched -- were the very strong statements from every other provincial jurisdiction with respect to the resource sector. There were some Premiers who had reservations on some aspects of price, but on the question of resource responsibility there was just no other Premier -- and I guess this hasn’t altered in the last 10 to 15 years -- who was prepared to accept anything less than total provincial control.
In terms of price, I think it is premature to debate that question. I think there will be an opportunity here when that decision is made. One has to assess the results of these things not just on the two particular items but on some of the broader implications. We were arguing very strenuously for a number of the “ifs” and “buts” to be in place prior to a price decision.
I think it is fair to state, and I am not in any way being critical, that a lot of other first ministers yesterday said, “We agree to moving towards world price. What are you going to do about this situation?” The maritime provinces, for instance, referred to electricity, because so much of their generating capacity is fuelled by imported oil. I am totally sympathetic with their situation. Their hydro rates I guess are more than double ours, and the impact there is very severe.
Our approach has been, let’s put the “buts” in place. Let’s have a committed policy for national energy security or self-sufficiency, some rationale in terms of conservation, some program in terms of protection of the consumer and some -- we didn’t propose a bank, we proposed a fund, and out of this emerged a proposal for a bank.
Mr. S. Smith: By way of supplementary, I think it would appear from the Premier’s answer in terms both of price and the redistribution of the money that comes with the higher price, Ontario has not succeeded in persuading a single province to our point of view.
Keeping in mind that in Ontario we have had the largest increase of any province in unemployment during the month of October, a seasonally adjusted increase of 31,000 on our unemployment rolls -- and we’re just heading into the winter -- what is the Premier’s strategy to deal with this increasing unemployment this winter, especially now that high interest rates, high energy prices and a drain from our economy as well will one pile upon the other, creating grave difficulty for our citizens?
Hon. Mr. Davis: I pointed out some of the concerns. I’m not being facetious but I’m sure the Leader of the Opposition hasn’t had an opportunity to read the papers we brought there on Saturday or Sunday. I’ll get both of them to him. We expressed some of these concerns in these.
I should point out, though, in fairness, while I think there was a desire -- and I can’t say this is going to happen -- on the part of some to have the price on January 1 increased by $3 rather than the $1, I am relatively optimistic. I can’t say it definitely, because we’re not part of that final decision, but the price increase will probably be only $1 on January 1.
The impact of this is then postponed until March 1. So in terms of home heating oil, a good bulk of the coming season will not be at the new price. I think it’s fair to state -- I can’t calculate in litres -- that the four cents per gallon for gasoline would take effect on March 1, not on January 1. Our papers really presented the concerns that will probably manifest themselves to a greater extent next summer than will be the case this coming spring. In other words, and I want to qualify it, I hope it will be $1 in January so that we will have the winter and spring period with the impact of that amount of money and not something in excess of that.
Mr. Cassidy: Supplementary: Since it’s clear that Ontario fought the good fight on behalf of Ontario’s consumers and industry at the first ministers’ conference, but lost, can the Premier now say specifically what steps Ontario intends to take within Ontario’s own jurisdiction in order to protect consumers and to maintain the strength of our industry in the face of these very substantial increases in oil prices taking place next year and in 1981?
Hon. Mr. Davis: I can assure the member we made every effort to fight the fight yesterday. I think that was obvious to everyone. I would say to the leader of the New Democratic Party in terms of our own strategy -- and we’re not minimizing the potential of these impacts -- we have had in place a strategy related back really to 1974 and 1975 in terms of our own industrial economy. It’s not going to make it any easier. Anyone who suggested it is, I think, is making a fundamental miscalculation.
In spite of the problems we foresee, I think we can be sufficiently creative here. There is a sufficient strength in the economy of this province that we will continue to make progress. It’s going to be tougher, but the program that has been developed by the Minister of Industry and Tourism (Mr. Grossman) and the Treasurer (Mr. F. S. Miller) has happened during the course of an increase in energy costs generally throughout Canada, and I think we’ve been successful to date.
[2:45]
I do not have any specific point to make today with respect to the potential impact on some segments of the consumer groups. When I say that, I made it very clear in our presentation, and this was supported by a number of other Premiers, that for certain segments of our society -- people on fixed incomes, senior citizens, et cetera -- there should be built in to whatever may emerge by way of national energy policy a program allowing for a sufficient amount of the funds flowing from the oil and gas industries generally, to be used to offset the impact on some consuming groups. This was one of the main points we argued in August.
Mr. S. Smith: Final supplementary from me, Mr. Speaker: In view of what the Premier has said regarding equalization as a possible route for dealing with the redistribution of some of this revenue; is the Premier now prepared, in view of the fact there is no other apparent immediate solution to the redistribution problem, to remove Ontario’s agreement from the federal-provincial deal which led to the bill that is going to take away retroactively our right to equalization money that already exists?
In other words, if I may simplify a somewhat wordy question, is the Premier now prepared to insist Ontario receive the money that was coming to us for the past year or so, and not have that right removed retroactively with regard to equalization?
Hon. Mr. Davis: I think the provincial Treasurer has answered this. I know it is very hard to explain in a way everybody would understand or agree with. The bill, and the policy as at present there, never envisaged that Ontario would be a recipient of equalization payments. That has never been the feeling. The fact that because of the existing formula, which on a technical basis doesn’t relate to resource, Ontario could be the recipient today -- and I forget the figures; they have been debated here in the House -- this to me is really sort of a negation of what was intended.
We could start to become legalistic. I think really it does offend in general terms and in policy terms what this province’s commitment has been to Canada in the sense of our participating with the other provinces of Canada. While I am not happy with what is happening in terms of distribution of oil and in terms of whatever may occur in price -- I had better withhold that judgement until I see -- I don’t think that is the kind of thing that would prompt me to say, “Well, we didn’t get it this way; let’s go back and try to get it another way.”
I would say to the Leader of the Opposition I think it is a very legitimate question to ask; but it is not something, quite honestly, that I would recommend to the Treasurer that he move on at this time.
Mr. Peterson: I want to question the Premier’s
interpretation of the current fiscal arrangements act. In the judgement of a number of observers of the scene, they would argue that Ontario is entitled legally and morally, under the current arrangements because the object of that act was not concerned about per capita income, the concern was to equalize provincial revenues on a per capita basis, and increasingly by your own arguments we are morally entitled to that money.
Why wouldn’t the Premier use the most logical route ahead of him right now? He has gone in the posture of a pauper; why wouldn’t he go back now and say, “We are legally entitled to that. If other provinces are going to play that kind of game, we are going to play the game. We are legally entitled”?
Hon. Mr. Davis: The member for London Centre is very familiar with how the finances of this country work. I would only make this observation: Yes, legally, we are perhaps entitled --
Mr. Peterson: And morally as well.
I don’t quarrel with the question, but it’s not something that at this stage -- I emphasize “at this stage” -- I am prepared to recommend that our Treasurer pursue.
MISSISSAUGA TRAIN FIRE
Mr. S. Smith: Mr. Speaker, again a question to the Premier, in the absence of the Solicitor General (Mr. McMurtry), with regard to the Mississauga disaster. Can the Premier tell the House, if he knows the facts, what the nature of the public inquiry is going to be into the event? Can he assure us that the inquiry will be public? Can he tell us what the terms of reference will be and what input the province will have into those terms of reference, if it happens that the federal jurisdiction holds the inquiry? Basically, can he bring us up to date on how eventually the public of Ontario is going to learn the facts of this very unfortunate matter?
Hon. Mr. Davis: Mr. Speaker, I can’t give the Leader of the Opposition any definition of the form this inquiry may take. I was asked yesterday whether it would be a royal commission. I don’t envisage it -- although I haven’t discussed this aspect with the Attorney General -- being a royal commission in that traditional sense of the word.
I think there’s no question that a part of it, at least, would be of a public nature. I don’t think there’s any question about that. I understand the potential is there for the Canadian Transport Commission to have a public inquiry into the actual physical cause of the accident, which may have been a truck -- I don’t mean by that, another vehicle -- on one of the cars or something of that nature. I think that is one consideration.
The broader consideration as I see it, at least, is to determine in what way we can prevent this sort of situation from occurring again. I think that has to be the main thrust of whatever inquiry is conducted; to find ways and means to transport goods, which we all know have potential hazards, but which we all know, none the less, have to be moved, from one point to another.
I can’t tell the Leader of the Opposition any more than that at the moment because, quite honestly, the Attorney General has been extremely busy just trying to help with the existing situation.
Mr. S. Smith: I have a supplementary question to the Premier, having to do with matters of liability as a consequence of the accident. Can the Premier tell us whether the province of Ontario will be negotiating with CP Rail or taking CP to court in an effort to recover the costs which Ontario has incurred in the entire evacuation operation, as well as in the fireflghting and cleanup operation? In particular, is the Premier in a position to comment on the so-called waiver, which allegedly has been demanded of citizens of Mississauga when they request that out-of-pocket expenses be reimbursed by CP?
Is this waiver something the Premier thinks should be signed by these citizens? Has he any information or any view on that matter?
Hon. Mr. Davis: Mr. Speaker, I have only the general information that CP has offered to those people affected it will pick up hotel bills. How extensive the offer is I quite honestly don’t know. I haven’t had a chance to discuss with the Attorney General whether or not the waiver on it constitutes something that would limit CP’s liability or in any way inhibit the individual’s potential expenses in case of further damage.
With respect to our own situation, there will be, obviously, additional costs, primarily I would think because of the extra Ontario Provincial Police officers, or those who are entitled to overtime, et cetera. There has been no discussion as to what our approach is going to be on that matter. I think it will probably be two or three days before we’re in a position to make that sort of determination.
There will also be -- and I’m sure the municipality is already looking at this -- the liability in terms of the recreation commission. For instance, their building was partially destroyed, as were some of their vehicles. There will be the question of liability in terms of the firefighters and the Peel regional police. All of these things will have to be taken into account. My guess is there will be some discussion between the province and the city of Mississauga as well to see what approach we might take co-operatively.
So far, although I have had no direct communication, there has been every indication that CP, in terms of the individuals who have been affected, is making an effort to see that instant out-of-pocket expenses are reimbursed. I wouldn’t want to venture an opinion on whether the waiver is proper or not until I’ve seen it or had some consultation with the law officers of the crown.
Mr. Cassidy: Supplementary: Will the Premier undertake, on behalf of the government, to inform CP that the demand for a waiver is unreasonable and is unacceptable when people who are just beginning to plan to return to their homes have no idea of whether there has been any damage to their homes, their gardens or things that they own because of the emissions from this particular crash; when they cannot possibly measure what the long-term consequences of this particular disaster could conceivably have been on them? Will the government tell CP that the offer of meeting the expenses is welcome but that it should under no circumstances impose the condition of the waiver at this time?
Hon. Mr. Davis: Mr. Speaker, I’m obviously concerned about this aspect of it. I’m trying to look at it objectively, and I’m making no brief for CP, but if there is a desire to get money to people instantly, if that is the reaction of CP, it may be the member could be right about the waiver but perhaps we should leave the question of total liability, if there is total liability, until somewhere further down the road. That may be a wise course to take, but I know of a few situations where people are money out of pocket for Sunday and Monday night and would like to have that reimbursement. I think one has to weigh this.
This is being looked into and we will make sure, as a government, that no one is being disadvantaged; but at the same time we don’t want to inhibit, either, the transfer of some funds for those people who have a genuine need and can’t wait for two or three weeks, a month or however long it might take the favourite profession of the member for Brant-Oxford-Norfolk (Mr. Nixon) to deal with it.
Mr. Kennedy: I have a supplementary. As one of the early evacuees, although we’re very interested in the details of the upcoming inquiry could we be informed of how long the removal of the chlorine from the one existing tank car -- and we’re not sure how much the contents are -- might take? Following that, when that is removed, will the people be able to return to their homes? Can the Premier give an estimate of how quickly this could take place and if this is the final thing that is keeping the people, the thousands who are still under the evacuation order, from returning?
Hon. Mr. Davis: Mr. Speaker, I have to be very careful. Can I phrase it this way to the member for Mississauga South: my best information is that at about 10 minutes to two, when I was talking to the Attorney General (Mr. McMurtry), they were in the process of sealing the chlorine tanker. The guesstimate would be that will take approximately two or three hours, but I am no technician so I am not putting any time frame on it, that was the best guess.
Once the chlorine tanker is sealed the decision can be made as to whether it can be pumped out safely or whether it can be moved in some way. The best guess at this moment is that the people within the general boundaries I described, with perhaps the people south of the QEW, will be able to return later this afternoon and this evening should be the last night people within that other area are away from home. I emphasize to the member for Mississauga South that I would not want the public, or whomever, to say the Premier says everybody can go home tomorrow. I don’t think I’m in a position to make that statement yet, but that is the likelihood.
Mr. B. Newman: I have a supplementary. Will the Premier assure us that the inquiry will go beyond simply the transportation of dangerous cargo such as in this case, but will also include the overnight storage or parking of dangerous cargo, especially in built-up areas, as occurred in the Windsor situation when CPR in the first instance triple-tracked an area and then parked hazardous cargo within 100 feet of a school and within less than 50 feet of homes?
[3:00]
Hon. Mr. Davis: My guess, and I can only help the honourable member to this extent at this moment, is that in any inquiry that relates to the transportation of material such as propane, chlorine, et cetera, obviously the transportation study would include the question of storage. Storage, one could argue, is when that tanker is standing still on a siding in the city of Windsor, that is on the rail line but standing still so it is temporarily stored. My guess is anybody involved in such an inquiry would in fact include that sort of situation.
GAS AND OIL PRICES
Mr. Cassidy: A question of the Premier, Mr. Speaker, related to the first ministers’ conference yesterday. Since the Premier said, and I quote, “It would be unconscionable for the federal government not to return all discretionary new revenues back to the people,” can the Premier tell the House specifically what he proposes to ensure these new federal revenues generated in Ontario by the federal government’s proposed increase in the price of oil in 1980 and 1981 are in fact returned to the people of Ontario?
Hon. Mr. Davis: I think I was talking about consumers generally. I sensed from the discussions yesterday that the federal government will have a program for some cushioning in terms of some consumer groups. I can’t be any more definitive than that, but that was the general proposition that was stated.
Mr. Cassidy: Supplementary: Will we have an assurance the revenues generated for the federal government here in Ontario, and those revenues will amount to an estimated $180 million in 1980 and $760 million in 1981 through the currently proposed increases, will in fact be returned to the people of Ontario and not be given out as a new form of handout to multinational oil companies?
Hon. Mr. Davis: I quite obviously am not in a position to give that sort of guarantee because I won’t be writing whatever legislation emerges. I think the leader of the New Democratic Party has read our statement, he knows Ontario’s point of view; but for me to give a guarantee that will be the case I quite frankly can’t.
I think it is also fair to state there is another aspect of return to the consumer, we have to be quite fair about, and that is the question of the equalization of the oil price; there have to be some federal revenues to bring about this equalization.
It is not just a question of the people in Quebec or the Maritimes being the sole beneficiaries. There are one or two members -- well the two members opposite -- who are the beneficiaries of the oil equalization policy if they buy gasoline in Ottawa Centre. I mean if those two members were not buying gas there they would be paying an extra 25 cents or 30 cents a gallon right at this moment.
We have to be consistent in terms of a commitment to oil price equalization, because there are 600,000 people or more in the province of Ontario who are the beneficiaries of that particular policy because they happen to be east of that mythical line from the valley down to just east of Kingston, or wherever it is.
Mr. Conway: Supplementary to the Premier concerning the Prime Minister’s statement yesterday that one of the considerations in federal policy will be the possible transfer of the Canadian Home Insulation Program to the provinces: Can the Premier indicate whether or not he discussed this further with the Prime Minister? Can he indicate whether or not it is the Prime Minister’s firm intention that the program be transferred, at least administratively, to the provinces at an early opportunity, with increased funding? Is it proper to assume that this government is actively pursuing such a transfer in the interests of consumer protection and conservation in Ontario?
Hon. Mr. Davis: This was one of those items I mentioned to the Leader of the Opposition earlier, where there appeared to be some general consensus but which would take the officials of the various ministries a period of time to work out. One of them is CHIP and the possibility for its administrative transfer to the provinces, hopefully with perhaps some greater flexibility or some additional funding for the program itself.
I think I can state that if in fact we find it is administratively better for the provinces to do it, if we think we can do it more effectively, if this is to be funded out of the federal revenues, et cetera, then I think our inclination -- I say “our inclination” because we want to see the details -- would be to take on this responsibility; that is if we genuinely think we can do it more effectively.
Mr. Cassidy: A supplementary, Mr. Speaker: Could the Premier tell us if he is aware of the fact that the new federal revenues which will be generated within Ontario by the proposed price increases would be enough to provide for a tax credit of $88 per family for people earning less than $22,000 in Ontario this coming year and $180 per family in 1981, and could still provide close to $400 million in terms of energy self-sufficiency projects in Ontario?
Will the Premier of Ontario, having lost the case on price, be pressing to have this kind of money come back into Ontario; or when he says the discretionary new revenues should go back to the people will Ontario once again be left the loser in negotiations with the federal government?
Hon. Mr. Davis: I can only say to the leader of the New Democratic Party what I said about eight minutes ago: Our point of view has been expressed. There is, I think, a general consensus -- and certainly this was part of the Prime Minister’s statement as I recall it -- that policies would be developed to provide protection for consumers. I have to tell the leader of the New Democratic Party the federal policy has been defined for us no more than that at this precise moment. I can’t tell him any more until I know some more. When I know more I will share it with him.
CLEANUP OF SPILLS
Mr. Cassidy: Mr. Speaker, I have a question of the Minister of the Environment. Can the Minister of the Environment explain why it is that we are now beyond 11 months from the introduction of the current Bill 24, the spills bill; and will the minister assure the House that bill will be given quick acceleration by the government in order that it receive third reading before the House rises at the end of December?
Hon. Mr. Parrott: I think there is no doubt that bill will be finalized before the end of this session. There are many reasons why it hasn’t been here for third reading, partly because I think many members wanted a pretty extensive debate on the bill itself, partly because the committee was preoccupied with other matters, which is fair enough. Indeed, most of the clause-by-clause consideration of that bill is completed. I suspect with only one amendment yet to be considered it will then pass speedily through the remaining stages of committee and third reading.
Mr. Cassidy: Supplementary: Will the minister not agree that the New Democratic member for Beaches-Woodbine (Ms. Bryden) has consistently pressed the government to accelerate consideration of this bill but has met continued resistance from the Conservative side within the committee? Would the minister not agree now it is essential that the principle there be a cleanup when there is an environmental spill be adopted in legislation in Ontario, particularly after the disaster we have just had in Mississauga?
Hon. Mr. Parrott: I certainly would not agree with that at all. The truth of the matter is there has been a great deal of discussion on this bill. There is no question it is a bill of which I and my ministry are particularly proud. It is good legislation. That doesn’t mean we want to cut short the debate. As a matter of fact, I recall time and time again during estimates where it was not unusual for the one party to have an hour and a quarter, the other party to have an hour and a quarter, while the Tory members out of that two and a half hours were left with 15 minutes of debate.
On no occasion, I say to the honourable member, have our Tory members taken more of the time on that committee than the members opposite.
Ms. Bryden: Supplementary: I would like to ask the minister is it not true that the final amendments were tabled only two weeks ago, or maybe 10 days ago, and that when the committee had time for dealing with this bill, the Conservative members were not willing to sit when I moved that we sit on a certain part?
Mr. Martel: The chairman was on vacation.
Hon. Mr. Parrott: If memory serves me correctly, it was the member for Beaches-Woodbine who wanted another delegation to make a presentation to that committee. That is one of the major reasons that bill was held up.
MAPLEHURST CORRECTIONAL COMPLEX
Mr. J. Reed: My question is for the Minister of Correctional Services. I understand that the minister has been out to Maplehurst today and is launching an investigation into the disturbance that took place last night. There are three parts to this question. I wonder if the minister could either answer them today or take them under advisement and use them in the course of his investigation.
Mr. Wildman: Put them on the Order Paper.
Mr. J. Reed: First of all, could the minister tell us how this disturbance will affect the working-out program from Maplehurst which has proven to be quite successful? Has he any comment to make on that at this time or will he have in the very near future?
Second, did the minister, when he was directing that certain action be taken regarding compensation and so on, also direct that due consideration be given to those inmates who took it upon themselves to protect a staff member in that disturbance, the projectionist?
Further, will the minister investigate the design of this medium-security institution that is apparently designed in such a way that would allow such an escape to take place?
Hon. Mr. Walker: I think I could reply to the three questions at this moment. I would say to the member for Halton-Burlington with respect to the program of community service being afforded by Maplehurst centre, although it has ceased today we expect it will resume very shortly. I will say most of the programs -- in fact all of the adult training programs -- in the centre continued on today without interruption when calm had been fully restored. We do expect the programs to resume certainly by the first part of next week. They do provide a great deal of service to the area communities.
The second question related to the individuals who gathered around to surround the projectionist to protect him from the mob at that moment in time. I would say those people have been identified and will not in any way be affected by any reprisals that are taken at the institution by the administration.
The third question is that of design. It is a medium-security facility, and we are now going to reassess the whole question of the security at that facility. This is generally in line with a growing preponderance of heavier-term individuals which is causing some pressure within our system. We will certainly be looking at the security aspects of that facility.
Mr. J. Reed: Supplementary: Is the minister indicating by that reaction to the third part of that question that indeed the institution is being used for the serving of sentences beyond its original design and beyond its original concept?
Hon. Mr. Walker: No, not beyond its original concept. In the period of the last five years the people who now remain in our institutions tend to be more hard core. At one point they were diluted, so to speak, by easier-term inmates, who have a sedative effect on the operation of the institution. Certainly, there is no question of it at this time.
[3:15]
Mr. Renwick: By way of a supplementary question: I was very worried about the minister’s statement that four charges will be laid. Will he explain to the House what he means by that? Is he being presumptuous or do the crown attorneys or the justices of the peace still have something to do with whether or not charges are accepted against people?
Hon. Mr. Walker: We have been advised that charges will be laid against the inmates who were involved. The inmate who was attacked has had discussions with the police and the police are laying charges.
Mr. Renwick: The minister doesn’t understand the rudiments of law. I don’t know where he took his law.
J. D. CARRIER LAYOFFS
Mr. Mackenzie: A question for the Minister of Industry and Tourism: Can the minister explain to the House why, in view of a $2-million loan guaranteed by the ODC to J. D. Carrier Shoe Company Limited for 1978-79, which was on the basis of an expansion to provide 195 new jobs in one year and 470 jobs within five years, 1,400 footwear employees were permanently laid off last Friday? Can he tell us why there was not a statement? Can he tell the House whether or not he was informed in advance? Can he say what kind of discussions he was involved in that would protect the workers and the $2-million investment?
Hon. Mr. Grossman: I am not sure how many months ago ODC gave some assistance. Carrier had quite a fair degree of capital put up by the principals involved in the company. It is fairly well backed and its backing included some from the banks, which had also carefully reviewed the situation. A combination of circumstances, including a simple downturn in the market of more monumental proportions than they had anticipated, caused Carrier to get into some degree of difficulty.
At the present time there are trustees and receivers in the operation. We have contacted them, and of course they contacted us as a creditor. Our indication to them was that we would prefer to see arrangements made which would maintain the jobs. We preferred that one of two things happened: either the operation would be purchased by someone or adequate refinancing would be made available to keep it going.
ODC reports to me they still believe that in the long term J. D. Carrier Shoe Company Limited does have a fairly decent hope of success. In order to get over the short term I have encouraged ODC to be as lenient a creditor as possible. I’d like to ensure that either a new purchaser can come in or that the current operators get whatever leniency they require from ODC in order to permit them to continue to operate.
Mr. Mackenzie: Supplementary: I fail to understand the minister. It doesn’t sound to me as if they had any discussions at all while this was going on, or in advance.
I am wondering if the minister can tell the House what is being done to protect the workers in this case? Can he inform the House whether or not he was aware of the long history of very unacceptable labour relations of this company when the loan was approved? Can he say whether any monitoring was done of this company when they disposed of the only two plants they had taken over where the workers had a contract within the last year? Just what is going on in the case of J. D. Carrier Shoe Company Limited and the loan we have given them?
Hon. Mr. Grossman: When Ontario Development Corporation reviews these loans -- and I remind the member it’s a decision made by the ODC board on the recommendation of staff -- it does it quite properly on a straight businesslike basis. They assess the market. They assess the financial viability of the firm. They also are interested to see whether banks and other financial institutions are prepared to stand behind the company and the degree to which the principals are prepared to stand behind the company.
Labour relations are traditionally not something I would expect ODC to look into, except to the extent it might indicate some basic instability or some basic problem which would affect long-term profitability.
Mr. Cassidy: Hear no evil, see no evil.
Hon. Mr. Grossman: ODC monitors its loans. Our field staff is out there monitoring the progress of its loans all the time. I think I will conclude by saying yes, we have monitored the situation from the time the loan was given right up until today, and we are continuing to do everything we can to make sure the employees are protected.
EXPLOSION SUPPRESSION
Mr. Leluk: Mr. Speaker, my question is to the Premier. In view of the near-catastrophic accident in Mississauga this last weekend, and in view of the fact we have a commercially-available Canadian product called Explosafe, an explosion suppressant system manufactured here in Rexdale by Vulcan Industrial Packaging Limited, which in all probability would have prevented the tank cars carrying the propane and butane from exploding; would the Premier undertake during the course of the provincial inquiry to investigate the potential use of Explosafe to equip tank cars carrying potentially explosive hazardous chemicals in order to prevent future disasters of this kind?
Hon. Mr. Davis: I am --
Mr. Martel: A short answer.
Hon. Mr. Davis: Why? I can assure the --
Interjections.
Hon. Mr. Davis: Oh so this is it; this material the member has sent across to me. There are some days I could send this across the House.
Mr. Martel: Don’t drink it.
Hon. Mr. Davis: I can assure the member for York West I will ensure this particular suggestion is brought before whatever inquiry is developed.
I notice the plant is located in the very favoured community of Rexdale. The only observation I would make is I hope there are a number of employees there who live in Brampton, but whether there are or not I certainly will bring this to the attention of whatever inquiry is conducted.
MARGARINE PRODUCTS
Mr. T. P. Reid: I have a question of the Minister of Agriculture and Food, but perhaps the Minister of Consumer and Commercial Relations (Mr. Drea) might be interested as well.
Has the Minister of Agriculture and Food contacted his counterpart in Ottawa concerning the study that was done by that ministry in Ottawa in regard to margarine, which indicated that over half of the margarine being produced contained between 25 and 40 per cent fatty substances which are of concern to people who are on high-risk heart attack types of diets? Has he contacted the minister and has he made that list of margarine available to you?
Hon. Mr. Henderson: We have been well aware of this for quite a number of years. No, I haven’t contacted the minister.
Mr. T. P. Reid: I am sorry, all I caught is that the minister is aware of it. Has he asked the federal minister to make this list available so the consumers of Ontario will know what products could be injurious to their health? Surely as minister here he is concerned that that information be made available.
Hon. Mr. Henderson: My answer to the honourable member firstly was we have been aware of the fat content. The medical people, everybody have all been aware of the percentage for a great number of years.
Mr. M. Davidson: The consumer isn’t. What are you doing about it?
Hon. Mr. Henderson: My final answer to the honourable member was no, I have not contacted the federal Minister of Agriculture.
Mr T. P. Reid: One further supplementary: In view of the importance of this matter, will the minister publish a list of those margarine products high in fatty substance so the people of the province will know; or as an alternative will he impress upon his kissing cousin in Ottawa that he should make that study available? Again, it was paid for with taxpayers’ money and they have a right to know.
Hon. Mr. Henderson: We will look at the proposal.
TRANSPORTATION OF DANGEROUS GOODS
Mr. Philip: Mr. Speaker, I have a question for the Provincial Secretary for Resources Development concerning his statement earlier today on the movement of dangerous goods. Is he aware that the report of the Ontario select committee on the highway transportation of goods recognizes that once federal legislation on the transportation of dangerous substances is in place the province will have to react quickly?
Furthermore, is the minister aware that the Minister of Transportation and Communications of this province (Mr. Snow), in a letter to his federal counterpart in February 1977, recognizes that the province will have to enact complementary legislation to, in his words, “give uniform application to the federal regulations across Canada and with respect to all modes of transportation”?
If so, can the minister assure the House that the moment the federal legislation is in place there will be provincial legislation coming forth under the Ministry of Transportation and Communications to assure that the complementary legislation is in place in this province -- preferably before the House adjourns if this is possible -- so that Ontario citizens can be protected against dangerous goods being transported on Ontario highways?
Hon. Mr. Brunelle: Mr. Speaker, in my statement today I did indicate that in 1977 Bill 85,
An Act to amend the Highway Traffic Act, was passed to make sure this legislation would complement the federal legislation if and when it would pass.
I believe this province has a good record and has co-operated fully. It was mentioned again in the statement in Regina. This was brought to the attention of the federal minister. So I believe everything has been done as far as the province is concerned.
Mr. Philip: By way of supplementary, if everything has been done then the recent statements by the Minister of Transportation and Communications seemed to be in conflict with this. Is the minister aware of the reports coming from within the trucking industry that in spite of the passage of Bill 89 in June of this year there are still unregulated carriers carrying dangerous goods on Ontario highways without authorization?
Can this minister, as the co-ordinating minister for the resource ministries, inform the House of what action he has taken in his capacity as a co-ordinator to co-ordinate enforcement by the Ministry of Transportation and Communications and the Ministry of the Environment in this regard?
Hon. Mr. Brunelle: Mr. Speaker, I’m sure the minister, as well as the ministry, is well aware of what the honourable member has said, but I’ll be pleased to refer this to him.
MISSISSAUGA TRAIN FIRE
Mr. Kennedy: I have a question of the Minister of the Environment. Would he comment briefly on the monitoring that’s presently in place with respect to the impurities in the air in Mississauga; and could he give some indication if the freeing of the atmosphere from this toxic material, chlorine, will in fact be dependent on air currents and air movements to finally free the air of these impurities?
Hon. Mr. Parrott: Mr. Speaker, there are several factors that I think must be addressed in responding to that question. Yes, we are monitoring, and have been of course since the very early hours of it. Second, we will only feel confident that our monitoring system is totally in place when we can be assured that the rail car has been sealed off. We’re confident that we’re monitoring now, but I think we must extend that to a very wide area and will do so. It’s important to get that car sealed off.
Having done that, then of course we will monitor, and particularly the pockets. As the member knows, it’s a heavy gas and we must measure the low-lying ground. We have had an awful lot of measurements there to this point in time and all of them -- and I underline that -- have been in a very low range.
If a good deal of chlorine did go up at the time of the initial explosion I’m advised that that would spread in a radius and then come back down. The radius of that would be 100 kilometres.
[3:30]
We have measured those areas of highest impingement upon the environment and we believe that they are in such low range that they’re one millionth of what might be a potential hazard. The degree of safety here is extremely high, and we are pleased to know that. It eventually comes back to ground level, and we are measuring it where we expect readings to be highest. Indeed, we have done that all through this piece, through measuring air currents, to try to put our equipment where the readings would be highest, so we could err on the side of safety. I can assure the member those readings have been extremely low on all occasions.
Members can be assured that we want to be unconditionally satisfied it is safe in that area before we agree to the return of residents.
Mr. McClellan: If I understood the Premier’s statement correctly, something in the order of 30 or 40 per cent of the chlorine gas had escaped. This represents something in the order of 30 tons of chlorine gas. My question to the minister is how quickly does the Ministry of the Environment, or some authority, intend to give us more specific details of what happened to that enormous quantity of chlorine gas?
Hon. Mr. Parrott: We will be glad to supply as much detail as the member wants. In very general terms, as I understand the situation, if the vast amount of that tonnage went up in the initial early period it would do so at the same time there was an excessive amount of heat. This would give cause to believe the gas would rise to approximately 4,000 feet into the atmosphere.
It would start to disperse and spread out in that radius of 100 kilometres of which I spoke. Then because it is heavy, it would descend to ground level.
I don’t know whether or not I have been able to make that clear to the member. It goes up and disperses over a very wide area. Then we measure where, scientifically, one would expect the greatest impingement on land. We have measured that and we find it is at the safety factor I mentioned. The readings were very low; on most occasions it was so low we were not able to get a reading.
I can give more specific details, but I am not sure that doesn’t answer the honourable member’s question.
WATER POLLUTION
Hon. Mr. Timbrell: Mr. Speaker, in answer to a question raised by the leader of the New Democratic Party on November 5, I am tabling today a report submitted to me last Friday by Dr. M. G. Fisher, medical officer of health for the Hastings and Prince Edward counties health unit.
The report deals in some detail with the history and current status of the arsenic situation related to private well water supplies and municipal water supplies, as well as the Moira River system. It outlines surveillance activities by the health unit and Ministry of the Environment staff.
I am pleased to report that the medical officer of health is satisfied, and has so advised me, that the present situation does not constitute a health hazard to the people of the area. I would assure the House, though, that ongoing surveillance will be maintained to ensure that the health of the community continues to be protected.
I am advised by my colleague, the Minister of the Environment (Mr. Parrott), that he intends to make a statement on Thursday next on the environmental aspects of the question raised by the honourable member.
Mr. Cassidy: Supplementary, Mr. Speaker: I am pleased to have the assurance of the ministry, but can the minister say whether that assurance is based on extensive examination of the health of the people in the area who may be affected by the water, which has as much as 50 times the acceptable levels of arsenic because of seepage from these tailings? Have there been specific medical examinations of individuals, or is this just an assurance coming from the medical officer of health, based on general knowledge of the area?
Hon. Mr. Timbrell: I would invite the member first to read the report. I am sending to the health critics copies which they may share with their leaders and any other interested members of their parties.
Members will see in the report that the medical officer of health is satisfied no one is drinking the water. Based on that and continued surveillance and education of the public that they shouldn’t draw their water from any of the Moira River system and other surveys done over recent years he gives me that assurance.
But I invite members to read the report. If they have any further questions at a later date I will be pleased to answer them, or if I don’t have the answers to get the answers.
MINISTER’S COMMENT
Mr. Speaker: In connection with the alleged point of privilege raised earlier by the member for Oakwood (Mr. Grande) and the intervention by the member for Riverdale (Mr. Renwick) when he alleged an honourable minister had called someone a liar, or accused someone of lying, I have had an opportunity to check Hansard for last Friday, on page 4376, where the Minister of Education said, in part, “The matter has been investigated thoroughly, and the answer to the allegation is that it is entirely untrue.”
The standing order says that one member shall not accuse another member of uttering a deliberate falsehood. This always causes the chair some difficulty when an honourable member says, “that is an untruth,” which in effect can be interpreted as meaning that the honourable member lied.
I think it would clear up the whole situation if the Minister of Education would withdraw the word “untrue” and given her verbal and oratorical agility, I think she could find a better way of expressing herself than by saying that a statement made by a member of this House is “entirely untrue.” I will give the minister an opportunity.
Hon. Miss Stephenson: If the member will read my response, I think what I said was that the allegation was entirely untrue.
Mr. Speaker: That’s right. The minister can play with words all she likes, it still has the same meaning. I’m asking the honourable minister to withdraw the word “untrue.”
Hon. Miss Stephenson: It is factually incorrect.
Mr. Speaker: You do withdraw the allegation that it was an untruth?
Hon. Miss Stephenson: Mr. Speaker, if indeed a reasonable synonym for “untrue” is “factually incorrect,” I shall withdraw “untrue.”
Mr. Speaker: Thank you very much.
PETITION
MINISTRY OF NATURAL RESOURCES REPORT
Mr. Foulds: Pursuant to standing order 33(
b) of the Legislative Assembly, I have in my hand a petition signed by 20 members of the assembly, petitioning that the annual report of the Ministry of Natural Resources for the fiscal year ending March 31, 1979, tabled October 11, 1979, be referred to the standing committee on resources development for such consideration of the report as the committee may determine.
MOTION
COMMITTEE MEETING
Hon. Mr. Wells moved that the select committee on Ontario Hydro affairs be authorized to meet on Thursday, November 15.
Motion agreed to.
ANSWERS TO QUESTIONS ON NOTICE PAPER
Hon. Mr. Wells: Mr. Speaker, I would like to table the answers to questions, 316, 327, 330, 331, 332, 334, 335, 338, 340 and 341 on the Notice Paper.
ORDERS OF THE DAY
COUNTY OF NORTHUMBERLAND ACT
Mr. Rowe moved second reading of Bill Pr7,
An Act respecting the County of Northumberland.
Motion agreed to.
Third reading also agreed to on motion.
CITY OF HAMILTON ACT
Mr. Charlton, on behalf of Mr. Mackenzie, moved second reading of Bill Pr8,
An Act respecting the City of Hamilton.
Motion agreed to.
Third reading also agreed to on motion.
CITY OF HAMILTON ACT
Mr. Isaacs, on behalf of Mr. Mackenzie, moved second reading of Bill Pr10,
An Act respecting the City of Hamilton.
Motion agreed to.
Third reading also agreed to on motion.
DINORWIC METIS CORPORATION ACT
Mr. G. Taylor, on behalf of Mr. Hennessy, moved second reading of Bill Pr17,
An Act to revive the Dinorwic Metis Corporation.
Motion agreed to.
Third reading also agreed to on motion.
CITY OF CORNWALL ACT
Mr. Samis moved second reading of Bill Pr19,
An Act respecting the City of Cornwall.
Motion agreed to.
Third reading also agreed to on motion.
COUNTY OF SIMCOE ACT
Mr. G. Taylor moved second reading of Bill Pr22,
An Act respecting the County of Simcoe.
Motion agreed to.
Third reading also agreed to on motion.
HONING CORPORATION LIMITED ACT
Mr. Cunningham moved second reading of Bill Pr23,
An Act to revive the Honing Corporation Limited.
Motion agreed to.
Third reading also agreed to on motion.
CO-OPERATORS LIFE INSURANCE ASSOCIATION ACT
Mr. G. Taylor, on behalf of Mr. Lane, moved second reading of Bill Pr24,
An Act respecting Co-operators Life Insurance Association.
Motion agreed to.
Third reading also agreed to on motion.
SMITH BROTHERS JEWELLERS, LIMITED ACT
Mr. Sterling moved second reading of Bill Pr26,
An Act to revive Smith Brothers Jewellers, Limited.
Motion agreed to.
Third reading also agreed to on motion.
ASSUMPTION CHURCH CEMETERY ACT
Mr. Bounsall moved second reading of Bill Pr29,
An Act respecting the Assumption Church Cemetery.
Motion agreed to.
Third reading also agreed to on motion.
CITY OF TORONTO ACT
Mr. Renwick: Mr. Speaker, a point of order: My point of order is that as the minister has called all of the orders of business on private bills except Bill Pr5 standing in my name,
an Act respecting the City of Toronto, and as that bill was reported to the assembly by the standing committee on the administration of justice under the chairmanship of my colleague the member for Etobicoke (Mr. Philip), would the minister please advise the House why it is now an exception and why that bill has not been called for second reading?
Hon. Mr. Wells: Mr. Speaker, I would be happy to tell my friend the member for Riverdale. There is a
section in Bill Pr5 which would provide for the licensing of group homes. This
section has been under discussion and negotiation between various ministries of this government and the city of Toronto.
There has been some question as to the type of licensing arrangement provided for in this bill and whether, in fact, it isn’t duplicating what is going to be done provincially. Also, in the Municipal Act amendments which have been introduced, there is provision for a piece of general legislation to allow for registration of group homes if municipalities wish to do so. Because of these negotiations and discussions, we haven’t proceeded with this bill.
We are hoping that some changes in the bill can be considered by the House before it is finally passed; I will keep my friend informed as these discussions go on.
Mr. Renwick: On my point of order, my concern is that the standing committee on the administration of justice gave consideration to this bill; the ministry was represented by the parliamentary assistant to the Minister of Intergovernmental Affairs; all of the arguments put forward by the ministry were considered by that committee at the time the
section was put and the
section was put and passed. Undoubtedly there is a precedent somewhere that will defeat my point of order, but is it in order for the government, having gone through the equivalent of the private bills committee, the standing committee on the administration of justice, and having been given full opportunity to present its position to the committee, and then, the committee having passed the bill and having reported it to the House, to not call that bill?
Mr. Speaker: As the member for Riverdale knows, it is the responsibility of the government House leader to order the business of the House.
Mr. Breithaupt: Mr. Speaker, may I speak with respect to that point of order, only to inquire of the government House leader whether he can assure the House that, perhaps by December 1, he will be able to advise us as to progress in other legislation concerning group homes? If that is the case, then the bill can be referred back to committee for presentation again to the House in time that its other provisions would not be lost before the expected termination of the session in mid-December.
Hon. Mr. Wells: I am happy to inform my friend that it certainly is our intention to proceed with and pass Bill 173, the amendments to the Municipal Act, which contains the general legislation, and to deal with the city of Toronto concerning its private bill and suggest some remedies to this House so that bill can be passed before we prorogue.
House in committee of the whole.
CROWN TIMBER AMENDMENT ACT (CONTINUED)
Resumption of the adjourned consideration of Bill 77,
An Act to amend the Crown Timber Act.
Mr. Chairman: Sections 1 to 4 have been carried and I believe the member for Sudbury East was speaking to
section 5.
section 5:
Mr. Martel: Yes, Mr. Chairman, thank you. I want to indicate at the beginning that last week --
Hon. Mr. Auld: I wonder if I could interrupt, Mr. Chairman. I think I indicated I would try to cover a number of the matters that had come up to
section 4. Having touched on
section 5, I wonder if this would be a good time to do so, or shall I --
Mr. Martel: Wait; I have an appointment with your colleague, the Minister of the Environment (Mr. Parrott), at four o’clock.
I want to indicate that I was somewhat surprised at the bill. You will note last week, Mr. Chairman, I asked the minister where the promise of the Premier (Mr. Davis) was in this bill. You will remember the Bramalea charter. The minister leaped to his feet and brushed that aside. I have confidence in our Premier, though maybe those people over there don’t. When he says something I take that as gospel. Let me remind you what my friend, the Premier, said on that great night when he brought out this great charter.
Hon. Mr. Gregory: Do you have it?
Mr. Martel: I’ve got the charter, I want to tell you.
Hon. Mr. Gregory: Where have you been keeping it?
Mr. Martel: I keep it pinned on the wall for such an occasion as today. I only hope you will show as much confidence in the Premier as I am about to do. If one looks down the charter, it says, “A commitment to replacing at least two trees for every one harvested henceforth in Ontario and to regenerating every acre harvested.”
Mr. Germa: That’s two for one.
Mr. Martel: That’s two for one, and that means every acre in the province. When the Premier tells me that, I am so taken by it that I want to know if it is in the bill; and of course it is not.
Mr. Germa: That’s not in the bill? It can’t be.
Mr. Martel: It’s not in the bill. To rectify the problem, I want to move an amendment. In keeping with what the Premier said, in respect to
section 5 I want to move an amendment.
Mr. Chairman: Mr. Martel moves that
section 5a(1) of the bill be amended by inserting after the word “agreement” in the sixth line: “shall provide for the yield to be sustained on the basis that at least two trees are planted for every tree cut under the agreement and to regenerating every acre harvested.”
Mr. Roy: The Premier would be proud of you.
Mr. Martel: He would be proud of me, don’t you think? After looking at the Bramalea charter, that great night two years ago when the Premier made this commitment to Ontario, I can’t see how anyone on that side of the House could even suggest that is not an appropriate amendment for this piece of legislation.
Mr. Roy: That’s right.
Mr. Martel: Therefore, I have no choice but to move it to enshrine the Premier’s words in a piece of legislation.
Mr. Roy: I am sure that was intended but just forgotten.
Mr. Martel: Yes, just an oversight, that’s what I felt. It was just an oversight and I want to make sure that oversight is eliminated, therefore I have moved that amendment before I leave for my appointment with the Minister of the Environment. I leave that amendment and I will read with interest the minister’s comments with respect to that amendment.
I can’t see how you could even attempt to weasel out of it. I hope you wouldn’t because I would be awfully embarrassed, standing in my place tonight as one of those supporting this amendment, and having to force the Premier to vote against his own words, or his colleagues for that matter, because then that would show little faith in the Premier.
Hon. Mr. Auld: Perish the thought.
Mr. Martel: Perish the thought, you say. I am glad it is going to go through. You can call this the Martel-Davis amendment.
Unfortunately, I can’t stay around because I have a four o’clock appointment, but I will read the discussion with interest and I will be back for the vote.
Hon. Mr. Auld: Mr. Chairman, I would like to comment very briefly. Actually the whole purpose of
section 5 is to produce sustained yields, but I am not sure the honourable member is aware there are a number of ways of regenerating.
Mr. Wildman: Was Davis aware of that?
Hon. Mr. Auld: There is natural regeneration. When man does it, I am informed that we would usually plant between 20,000 and 30,000 seeds per acre; we would usually plant between 1,000 and 1,200 seedlings per acre and the sustained yield we would expect to be somewhere between 150 and 200. On that basis and doing some fast arithmetic, the Brampton charter is very modest in a technical sense.
Mr. Martel: Then you should accept the amendment.
Hon. Mr. Auld: It certainly could not be accepted because we might downgrade our program and reduce regeneration.
Mr. T. P. Reid: Mr. Chairman, are we restricted now to speaking on the amendment? Or are we back on
section 5?
Mr. Chairman: We should discuss the amendment; it is before the committee right now.
Mr. Foulds: Mr. Chairman, I must confess to a certain embarrassment. I am embarrassed for the Premier of this province and I am embarrassed for the Ministry of Natural Resources officials. I am embarrassed that the Premier could have made such a promise back in 1977.
Mr. Haggerty: That was an election promise.
Mr. Foulds: I am even more embarrassed he would put such a promise in writing. I am embarrassed for the Minister of Natural Resources, who today has to defend an indefensible position. As my colleague the member for Sudbury East points out the words were quite exact; there was no talk about a sensible plan for regeneration, there was no recognition that silviculture is an important and sensitive matter in the forests.
Back in 1977 it was reducing to political sloganeering perhaps one of the most important matters facing this province in one of its most important industries. The words were exact: a commitment to replacing at least two trees for every one harvested henceforth in Ontario and to regenerating every acre harvested. The wording was quite clever. It mentions nothing about the backlog that needs to be regenerated. It does not, speak to the decades in which we have not adequately undertaken reforestation, regeneration, silvicultural programs.
I recognize that the fault is not entirely with the ministry, I recognize that before the ministry took over the responsibility the record was even worse; but the Premier’s commitment on behalf of the Progressive Conservative government of Ontario, which was I assume solemnly undertaken, was to regenerate every acre harvested. Even that has not happened.
Mr. Haggerty: Not very progressive.
Mr. Foulds: That part of the promise has to make some sense. I think my colleague, the member for Sudbury East, in his own inimitable way has stumbled upon a fundamental truth, a truth that was not present in the election campaign of 1977. In his own inimitable style, my friend and colleague, the member for Sudbury East has brought before this committee in this Legislature a reminder, a very vivid reminder, of a promise not kept.
[4:00]
Mr. T. P. Reid: It’s called the Joe Clark syndrome.
Mr. Foulds: I think it is important, if we are not to debase political life in this province, and if we are not to debase fundamental matters of importance such as reforestation, that illegitimate commitments such as the one made by the Premier in 1977 should not be undertaken in a spirit of public relations in an attempt to reduce a fundamental issue to the lowest common denominator. Therefore, I would hope that the government would accept the amendment my colleague has proposed and at least make a few acts of contrition and a few acts of repentance.
Maybe, just maybe, they will undertake the kind of overall reforestation and regeneration program that is necessary and not merely make glib promises on a platform in Brampton or Bramalea, or wherever it was, where one could hear over the radio tape the gasp of the Minister of Natural Resources of the time as he heard that particular commitment enunciated. One could hear, yes even so far as northwestern Ontario, one could hear out on the hustings, the gasp of despair running through the Ministry of Natural Resources.
One would hope this amendment will bring some reality and sanity to the debate on the issue. One would hope we will have no more promises that cannot be kept and that we would not have, as we had in the charter for Ontario, foolish commitments like the one made by the Premier.
Mr. T. P. Reid: Mr. Chairman, as you know I covered the Brampton charter in my opening remarks and the Premier’s promise of “two for one.” I was speculating, as I listened to my friend speak on the amendment, as to when I first raised this. I went back to Hansard, Mr. Chairman, of 12 years ago, when I was a new member in this Legislature and I was doing the estimates of the then Department of Lands and Forests. At that time we had a backlog of unregenerated forest land in the province of Ontario. In those days we couldn’t get any accurate information from the ministry.
Whether or not they had it, I don’t know, but certainly I was always told by the Department of Lands and Forests that any statistics that I endeavoured to use were not accurate but they would never tell me what the real figures were. Now it seems to be conventional wisdom, if not the truth, that there are at least 100,000 acres a year that aren’t being regenerated, so that in my 12 years in the Legislature we have well over a million acres that haven’t been touched as far as regeneration is concerned.
I have a certain sympathy for the amendment, Mr. Chairman. As you know I did mention it myself in my opening remarks. Whether or not it’s an empty, frivolous gesture I don’t know. I don’t know if we should be playing games with this very important issue.
I think it does serve to underline the fact that in the past both the companies, and particularly the Ministry of Natural Resources, the former Department of Lands and Forests -- which I really shouldn’t blame, because obviously it has been those great managers of the province of Ontario, the great managers of Ontario’s resources, the Conservative government and the Conservative cabinet and the Bill Davis government, which has neglected this extremely important renewable resource.
I am not going to state what we are going to do on this amendment. As I say I feel it is important in underlining the problem. It is obviously not a practical amendment, but what I would ask the minister, before we continue on in the other sections of the bill, is if he has some comments to make as to the commitment of the province on regeneration.
I think, as was pointed out, he owes it to the Legislature and the people of Ontario, particularly in view of past history, to make a fairly extensive statement in regard to the amendments to the Crown Timber Act. I wonder if I might ask him at this time to do so.
Hon. Mr. Auld: My thanks to the member for Rainy River. If I may sum up very briefly -- and it is mainly contained, of course, in
section 5, other sections of the bill as I mentioned before are primarily housekeeping -- the main purpose is to pull together all the matters relating to forest management on large company licences in one comprehensive document. I believe this will provide a more meaningful integration of harvesting and regeneration and the necessary planning.
Let me emphasize that the agreement is a contractual document that provides for more effective administration of forest management by the ministry on company areas. In particular, the ground rules of the agreement give the prescriptions, the related standards and the timing of all silvicultural practices, harvesting and regeneration included. This is a new development that is related to these agreements.
As I mentioned previously, the term of an agreement is for 20 years, and at five-year intervals, that is every five years, the annual allowable cut and the company’s performance are reviewed. Nevertheless the yearly activities, such as site preparation, regeneration and so on, are subject to auditing as they occur.
I would emphasize these activities must conform to the prescriptions and standards set out in the agreement before payment of invoices. In other words, the company does not receive any payment under our
schedule until it has actually carried out the work, thus there is an immediate control each year.
As we discussed the other day, when a company has not performed the required activity the ministry will ensure the regeneration is undertaken and charge the company the full cost of so doing. Those costs may well be more than the cost to the company had the company done it as part of the larger project.
The prime concern is to ensure our forest lands are regenerated and kept productive; by signing an agreement the company is undertaking to do just that.
Initially the implementation of the agreement will evolve. I have made it clear several times that although perhaps only three companies will be involved in the first year, within five years all the pulp and paper companies will be taking part. I think actually there would be more than three companies who are prepared to sign at the present time.
Mr. T. P. Reid: Do you have a commitment to that?
Hon. Mr. Auld: I think it is fair to say there are not written commitments from the roughly 11 or 12 pulp and paper companies, but we have firm commitments from at least three, perhaps more; and about three, or perhaps four, is all we feel we can undertake in the first year.
A key element of the agreement which does not exist under the present licence system in the act is the provision for the treatment of backlog, which both the honourable members have mentioned, what we call NSR or not satisfactorily regenerated land. Under these agreements a company would now be required to treat these NSR acreages at a rate of five per cent per year for a period of 20 years.
As regards penalties and incentives, I would emphasize the bill places emphasis on sustained yield and a focus on the annual allowable cut at the five-year review. The recalculation of the annual allowable cut each five years is new. It provides for greater control by the ministry and also reflects the annual changes from depletion and additions to the forests. For example, if a company overcuts its annual allowable, it must at its own cost, regenerate those lands so cut. If on the other hand it doesn’t cut all the AAC, the company must pay to the ministry damages equal to the stumpage of the uncut wood.
While these might be viewed as disincentives, the agreement provides an incentive if the company increases forest productivity or growth. Thus, if a company at its own sole cost undertakes silvicultural practices which increase growth -- such as precommercial thinning, fertilization, et cetera -- the increase in wood attributable to the treatment is available at one-tenth of the normal stumpage. This last was not provided for in the existing act.
The development of roads is vital to forest management. Although the authority to enter into an agreement for roads exists under the Public Lands Act, an incentive for a company to undertake forest management responsibilities is the provision of support in developing a road system.
One of the major problems the ministry has in its own regeneration program is related to the planning and rate of road building as it affects silvicultural treatment. Therefore the agreement provides for appropriate payments to a company to develop the road system, which will provide for general public access.
I believe all parties have available to them copies of the final draft agreement. It was developed following very lengthy discussions with members of the forest industry, as well as our own staff. The industry, for the most part, has given clear indication it realizes the necessity to integrate and improve our steps in forest management in Ontario.
Some concern has been expressed about wasteful practices and how agreements would be affected. Present regulations concerning wasteful practices will apply to an agreement area as to one under licence. One of the most probable results of having a company do the regeneration following harvesting will be to have improved utilization. Excessive slash and stump heights are two of the problems frequently encountered by our own staff when undertaking regeneration. I feel sure the companies will quickly see the benefits of minimizing slash.
Section 5 states: “The purpose of the forest management agreement is management on a sustained yield basis.” Some parts of the cutover will be occupied by permanent roads and landings. I’m told this averages about 10 per cent to 15 per cent. In other words, 10 per cent to 15 per cent of the acreage, once the forest is managed on a sustained yield basis, will be lost to fibre production because it will be used for roads and landings.
This means sustained yield requires that productivity on the remaining productive areas be at a higher level than the natural forest. I mentioned very briefly before the member for Sudbury East had to leave some of the problems which his motion produces.
[4:15]
Mr. M. N. Davison: It is not his motion.
Mr. Wildman: It was the Premier’s idea.
Mr. M. N. Davison: It was the Premier’s promise.
Hon. Mr. Auld: At the present time, I think it is fair to say, more than two trees for one are now being planted and will be planted in the future under forest management agreements in those areas where natural regeneration is not taking place or is not sufficient.
I hope that clarifies some of the matters we were touching on a week ago. We will deal with further questions about the remaining parts of
section 5, if there are any, as we go along.
Mr. T. P. Reid: Mr. Chairman, I don’t want to repeat, any more than anybody else wants to listen to it, everything I said last week. I am still a little confused, regardless of various conversations and everything else, as to why we are going through what seems to me almost an elaborate charade. If it weren’t for specific people who were involved in this, I would think it was another charade like the Brampton charter, another smokescreen or little sideshow the government was putting on to indicate things are happening in the forest industry that in fact are not.
I look at
section 25(4) of the Crown Timber Act, which says, “The minister may enter into an agreement with a licensee for the promotion and maintenance of the productivity of the licensed area.” I repeat I just wonder why we have to have
section 5 all over again. I know we want the whole thing to be in a cycle and we want it to follow logically and so on, but I wonder whether what we are doing here is an absolute necessity when what we really want to accomplish is to see the work being done.
That brings me to three practical matters I want to ask the minister to respond to with regard to
section 5. The first is that sections 5 and 25(4), regardless of which one we look at, provide that the minister may enter into an agreement. The minister says he has three firms which have indicated they are going to accept this provision, respond to it and take over the responsibility. The minister has indicated that within a five or six-year period all 12 or 13 of the largest companies are going to do that.
Hon. Mr. Auld: May I just interrupt for a moment? I was confused last week. The honourable member is referring to
section 5 of the bill and
section 25 of the agreement or of the Crown Timber Act?
Mr. T. P. Reid:
Section 25 of the Crown Timber Act.
The minister has indicated that within a few years all of the companies will be accepting the responsibility for doing regeneration in the province. I must say the draft agreement provides certain healthy incentives for them to do so. One of my concerns, which I have expressed to the minister, is there aren’t many disincentives as far as I am concerned if they don’t carry out the work they have agreed to do.
The minister and his legal advisers have indicated that under the act and with an agreement the government can recover the costs. If the company does not do the regeneration, the ministry will move in and contract the work out or do it itself. The work will be done and the cost charged back to the company that didn’t do it.
As I understand the situation now, the Ministry of Natural Resources has to go in and do the work before it can claim liability against the company. A very practical question arises, one of three which I put to the minister: if the company doesn’t do the work, what guarantee do we have that the minis- try will have that work done? The minister, I am sure, will pardon my scepticism, because over the last 17 years, obviously, the ministry hasn’t done the regeneration work required. We are looking at a very real, practical problem.
What incentives are there for the companies to make these agreements, other than some of the financial incentives that are in the agreement? What happens if they don’t agree, if they decide they don’t want any part of this? For instance, what if Great Lakes decides or what if Boise Cascade or Abitibi decide they’re going to leave the responsibility for regeneration in the province up to the ministry? Of course that would be foolhardy, because they did an even worse job than the companies did previously to 1962, but what are we going to do?
Are we going to have a patchwork or a quiltwork across the province of Ontario, where a company does it in one area and the ministry does it in the next? It’s a practical concern.
The practical concern is that as this phases in the ministry phases out, and then if the company doesn’t do the work where is the ministry going to get the equipment, the people, the bodies to actually do the physical work necessary in regeneration? I think the minister would agree that this is a very difficult point, because there aren’t that many people skilled in the work or that many people around who are willing to do that kind of work, because it is hard, back-breaking work and the pay is very poor. Those are a couple of the real, practical problems as I see them.
The third one, to my mind, is even more important than the foregoing two. That is, as I understand it, the ministry is going to provide the seedlings and the money for roads, et cetera -- all these good things -- and they’re going to pay the company for doing the regeneration work.
But one of the continuing problems since the ministry has been responsible for regeneration, has been the fact there have not been sufficient funds available to carry out a complete and comprehensive regeneration program in the province.
The Brampton charter of the Premier that we’ve heard so much about today was just a great idea, I think it even bamboozled some people during that election, as it was intended to do; but where were the necessary funds to put that program into place if it wasn’t anything more than a charade and a con game aimed at the people of the province during that election? What guarantee do we have, as a Legislature, that the funds are going to be made available to pay for this program, whether it’s the companies, all 12 or 13 of them, or whether it’s the companies in concert with the ministry doing part of the work?
Obviously, and we’ve heard no commitment from the minister today or last week, we in this Legislature vote funds on an annual basis. Mind you, we often vote them after they’ve already been spent, but that’s a different story. However, what kind of commitment can the minister give that the funds are going to be available for this program, and that they’re going to be available in sufficient amounts to carry out both the regeneration on a sustained yield basis and to pick up the backlog of five per cent a year across the province, which is a fair chunk.
If there is roughly $1.5 billion in 12 years, there’s got to be at least another $1.5 million backlog before that, if not more. You’re looking at a very expensive program; yet what have we seen or what have we heard that we should be convinced it’s going to be done?
I said there were three practical aspects, there are four actually; the other one I’ve touched upon but I want to put it to the minister again.
In the draft plan there are certain incentives to the companies to do the work required under the agreement with the ministry, certain incentives such as that the seedlings will be provided by the ministry, there will be money for forest roads, there will be all kinds of assistance, financial and otherwise.
There is also the incentive that if they improve the backlog, or the not satisfactorily regenerated lands, they will be entitled to a reduced stumpage charge on them. There is also the incentive that if they don’t do it on a sustained yield basis then their licence will be changed and they will lose part of their allowable cut because they haven’t provided sufficient regeneration. There, to me, is where the rub comes in. Simply put, in very practical terms, if a company does not do the regeneration it can still take the ministry to court, regardless of what it says in the draft agreement, and if the cost is too large it surely will.
Secondly, the other arrow in the minister’s quiver is that he can do something to the licence. He can either revoke it under the Crown Timber Act, under the present legislation, or he can cut down on their allowable cut.
Mr. Wildman: Did the ministry ever do that?
Mr. T. P. Reid: No, not that I know of.
I’ll give a very personal example. I have two mills in my riding. If the ministry came along in 10 years and said, “You haven’t been providing proper regeneration, we’re going to cut back your allowable cut,” this would mean two things.
Mr. Wildman: No jobs.
Mr. T. P. Reid: Obviously. Their production falls and people are laid off. There are people out of work. Does that make sense? Why should the workers suffer because the company hasn’t done the regeneration job that it should have done? I think it’s obvious that is never going to be used. It never has been in the past. The threat to cancel the licence totally, of course, is ridiculous, because you’re not going to put everybody out of work; you’re not going to cut down on their allowable cut because you’re going to put people out of work. I’d be the first one to say to the minister, “Look, you have put people out of a job and it’s not their fault, it’s the company’s fault.”
The point of all of this, in case anybody has missed it, is simply that there has to be more of a disincentive, to my mind, to ensure the proper amount of regeneration is done. I suggest to the minister -- and I won’t go over all the arguments we had last week about the liability and so on -- that he requires another arrow in that quiver of his, another method of disincentive so that if the regeneration is not done it will hit the companies where it will hurt the most, which is in their pocketbooks.
On top of the liabilities that are covered -- and I must say as a lawyer I’m perhaps not as articulate about that as I should be -- again it was my understanding that clause in the agreement ensured that the ministry would have no trouble getting the money out of the company, because under the agreement the company would have to pay it automatically. Now I understand the company can take the matter to court if the cost is high enough to warrant it, so there aren’t any automatic provisions for the ministry to get its money.
While I can understand why the liquidated damages clause in
section 20 of the agreement is there, as far as I can see it is not going to provide a sufficient disincentive to the company if it decides it’s not going to do it. I’ll recall to your mind that the Ministry of Natural Resources has to do the work before those liquidated liabilities are paid and the ministry, as I’ve already pointed out, may very well not have the funds available. It’s fine to say if we’re going to get it back automatically from the company we can borrow the money to do it, but the company may very well, as I understand it now, take you to court. Those things, as we know, can go on for some time.
I suggest that the disincentive has to be sufficiently heavy so the work will be done.
[4:30]
I wonder if the minister could address himself to some of those very practical aspects flowing from
section 5 of the amendment.
Hon. Mr. Auld: Let me deal first with the last point the member for Rainy River raised. That is, the provision that the ministry may do the work and would do the work if the company didn’t, but that we would have problems in collecting from the company if the sum were large.
The advice I have is that because of the two definitive documents, the management plan and the other manual -- in other words, the detailed requirements set out in the agreement, which is a legal document -- if these matters are not done then while it may require going to court to do so there would probably be an early hearing by the court of competent jurisdiction. Because the matter is spelled out clearly in manuals, which are part of the document, the company’s likelihood of not being found liable is very slim indeed.
That is the reason for the detailed descriptions which would affect the acreage which has to be regenerated by the company. In the event of delay by the company, the ministry will move right in.
Going back to the beginning and the motion of the member for Sudbury East, his motion says, “for every tree cut under the agreement and the regenerating of every acre harvested.” As I mentioned, in those areas of, in effect, first cut, there will be acres which will not be regenerated because they are required for permanent roads and so on, for the planting that will take place and for the future silvicultural treatment of the area, perhaps thinning of the new growth and for its sustained yield in cutting and planting in the future.
The second point is, and I am not a forester of course, there are areas which have been cut which we don’t consider have to be satisfactorily regenerated because they are not the kind of areas which can be economically harvested in perpetuity. I see the member for Rainy River is nodding and aware of that.
The question really is: what are the disincentives, how effective are they and how effective are the incentives? In my opinion the incentive of a 90 per cent cut in stumpage for additional yield per acre is a very strong incentive. But perhaps the strongest incentive is the five-year review. If the five-year review is not satisfactory, this means that the allowable annual cut is only going to last for, say, another 15 years.
The company has a very large investment in its own plant and operation. One of its concerns and one of the foundations of this type of an agreement, an evergreen agreement, is that a company or companies have to look down the road a long way in terms of their timber resources for the future -- certainly the investors do and I would say that the company must.
If they are not doing an effective job and they find they only have a 15-year agreement, for instance, and then a 10-year agreement, in my opinion there would be an awful lot of activity with perhaps some change in the forestry staff to get back on track and to meet the requirements of the agreement, of the prescriptions which are in it, the detailed silvicultural treatment and so on that are involved.
It is really not a question, as the honourable member expressed his concern about, of suddenly saying, “Sorry, fellows, you are out of business tomorrow.” Because of their own records they have a year-to-year record of how they are going in terms of regeneration. They know the terms of the agreement, so when they start off they have 20 years and if they keep up to the standards and meet the targets they always have 20 years ahead of them. If they start falling behind, the years ahead drop back and they are going to have to try a lot harder or they know, and everybody will know, they are going to be in trouble down the road.
I might say I have been emphasizing to the companies -- and I think I have met representatives of all of them -- that the agreements at the moment are optional, but they will be mandatory as we are able to establish agreements with each company. Establishing agreements with each company is not just a matter of getting them in the office to sign. All the prescriptions, the work that has to be done, I suppose the studies and the inventories of their own woodlands, the areas which we license to them, have to be worked out. The prescriptions are not the same in every case, of course.
Again my own feeling, not as a forester but as somebody who has seen a lot of new schemes tried, is that we don’t want to have agreements with everybody. My guess is that we may find there are some things we should add or some things we should change in the form of agreement that is before the members today, perhaps in a year or two.
If that is the case the House of course will be aware of it. I suspect we will learn a little as we go along, but in a few years every company operating in this field in Ontario will be required to be under an agreement.
Just one technical matter: the honourable member was asking why
section 25(4) in the present act was being rescinded from its present position and, in effect, being re-enacted under
section 5. I am told that is legal housekeeping to make it very clear that the provision applies to the agreements that are complicated under --
Mr. T. P. Reid: They are complicated.
Hon. Mr. Auld: -- they are contemplated; that was a Freudian slip -- contemplated under
section 5(
a) of the bill which is before us.
In terms of funds, the amounts that are presently approved by management board over the current year and the following four years, and these are in 1979 dollars for this year, as I mentioned, $4.3 million; for 1980-81, $14.3 million; for 1981-82, $17.3 million and the same amount for 1983-84. That’s a total of $70.5 million, which I think indicates a long-term commitment and, in fact, it was made clear and the government is quite aware that once we get into this program we are going to be in it, or something like it, for certainly the foreseeable future.
Mr. T. P. Reid: If I could just clarify one point and ask one further question if I may.
On the liquidated damages business; am I right in assuming that the ministry has to do the work before the liquidated damages can be claimed for? Would it not be a better arrangement, perhaps because of the practical limitations of manpower, both of ministry staff and people available to do the work, if the agreement said, “If you don’t do the work, you are going to have to pay X number of dollars under the guidelines or the actual cost, if we have to do it”; one or the other -- but put a sort of bottom-line figure there, as an incentive?
If for some reason -- the minister might recall this line -- there is a heavy fire season and there are no people to do the work, why not have as part of the agreement that X number of dollars will be paid for the regeneration, whether or not it is done? Take out that part which I understand is in there; the fact that if the ministry has to do it first before it can claim for the liquidated damages. Again, that may be some legal nicety that I don’t understand.
Hon. Mr. Auld: First of all, the purpose of the exercise is to get the regeneration done, not to sort of collect penalties. My understanding of liquidated damages is that the word “liquidated” means established. In any action for damages, it is incumbent upon the plaintiff to show within fairly close figures exactly what those damages are.
For instance, the damages might include, if there were a delay, some loss of merchantable timber somewhere down the road because it was a year or two late in maturing. That could be part of such damages but the main amount would be the cost of the equipment, the people and the material used to do the work that was left undone under the agreement by the defendant, the company.
I am informed by our expert that paragraph 20 of
section 4 of the agreement is the part that spells it out as far as the two parties to the agreement are concerned. Subsection 4 of paragraph 20 of the agreement says, “Where the company fails to regenerate forests under subparagraph 3, the company agrees to then pay to the minister an amount of money equal to the costs of regenerating such area at the rates referred to in
schedule D for the treatments that in the opinion of the minister, have to be applied to such areas.”
Translated, I think that means that one has to do the work so they have the bill to show what the costs are. Is that it? I am wrong. I was 180 degrees out. They have to pay the amount shown in the estimate, so they don’t have to do the work and that answers the honourable member’s question and I am a little clearer myself.
Mr. T. P. Reid: One further question if I may and then I will let my friends who are chomping at the bit have a chance.
Hon. Mr. Auld: I’ve lost all hope of ever getting a QC.
[4:45]
Mr. T. P. Reid: Does the minister contemplate or can we have his assurance that after the program starts in the annual report of the Ministry of Natural Resources there will be a schedule, if you like, but certainly a survey of all the companies under these agreements and how well they are living up to their agreement?
Hon. Mr. Auld: I am informed yes.
Mr. Wildman: I want to move back specifically to deal with the amendment introduced by my colleague from Sudbury East. Some might consider it a little frivolous for the member to have introduced this amendment to this bill at this time. I think some of the members of the House, including the minister, looked at it that way. If that is the case then what they are saying is that the statements by the Premier in the Brampton charter were in themselves frivolous.
The minister keeps referring to the motion by the m