Newfoundland and Labrador Hansard — Oral Questions — 27 March 2002 (44th General Assembly, 4th Session, Vol. XLIV No. 6)

2002-03-27

Newfoundland and Labrador — Debates (Hansard)

Newfoundland and Labrador Hansard — Oral Questions — 27 March 2002 (44th General Assembly, 4th Session, Vol. XLIV No. 6)

2002-03-27

Newfoundland and Labrador — Debates (Hansard)

March 27, 2002 HOUSE OF ASSEMBLY

PROCEEDINGS Vol. XLIV No. 6

The House met at 2:00 p.m.

MR. SPEAKER (Snow): Order, please!

On Tuesday, March 26, the hon. Government House Leader rose on a point of

order. The point of order was that Oral Questions in the House should not

require an answer involving a legal opinion. He stated that there had been two

or three questions of this nature asked, and the Chair took the matter under

advisement.

In reviewing Hansard, the Chair saw three questions involving, I guess,

asking about legal opinions. The hon. the Member for The Straits & White Bay

North asked the Minister of Fisheries if he had asked for legal advice on a

certain matter. The other two questions were from the hon. the Member for

Labrador West, asking the Premier to quote a

section of the statutes and to

table a legal opinion, and asked what these legal opinions were.

Beauchesne is quite clear on these issues; 410.(13) states,

"Questions should not seek a legal opinion or inquire as to what legal

advice a Minister has received." Beauchesne 411 states, "A

question may not: (1) ask a solution of a legal question, such as the

interpretation of a statute."

It is clear that while it is not out of order to ask a minister if he has

sought legal advice, it is inappropriate and out of order to ask the minister to

disclose the opinion.

The Chair has, on many occasions, asked all members for their co-operation in

formulating questions so that they are in compliance with our Standing Orders

and Oral Questions and other parliamentary authorities that we use in this

Chamber.

I want to draw members attention briefly to Beauchesne 410 and 411

again, which clearly define how questions should be structured. It says, 410.

"...

(5) The primary purpose of the Question Period is the seeking of

information and calling the Government to account.

(6) The greatest possible

freedom should be given to Members consistent with the other rules and

practices.

(7) Brevity both in questions and answers is of great importance.

(8) Preambles to questions should be brief and supplementary questions require no

preambles. Supplementary questions should flow from the answers of Ministers.

(9) Questions should not repeat questions already asked although this does not

mean that other questions on the same point are out of order. ...

(12) Questions

should not be hypothetical.

(13) Questions should not seek a legal opinion or

inquire as to what legal advice a Minister has received." 411. "A

question may not: (1) ask a solution of a legal question, such as the

interpretation of a statute. (2) seek information about matters which are in

their nature secret, such as decisions or proceedings of Cabinet or advice given

to the Crown by the Law Officers."

I draw hon. members attention to these rules because, as I have said in the

past, I have asked hon. members to keep these in mind. I am asking them again to

follow these guidelines when they are putting Oral Questions.

MR. E. BYRNE: A point of order, Mr. Speaker.

MR. SPEAKER: On a point of order, the hon. the Opposition House Leader.

MR. E. BYRNE: Thank you.

Mr. Speaker, yesterday in debate in this House, the Minister of Works,

Services and Transportation stood - I quote from Hansard - and said, "The

hon. the Member for Placentia & St. Mary's - I went to Ottawa looking for

$100 million to do the Trans-Labrador Highway, and while I was there I also

talked to Paul Martin to see if he could come up with $100 million for the

research for Placentia & St. Mary's so we could start negotiations with

Inco." He was referring to his meeting of March 14, I believe, in

interviews I have looked at.

Mr. Speaker, it has come to my attention from sources that the minister did

not speak to Mr. Martin. I am rising on a point of order to give the minister an

opportunity to say if he did, in fact, speak with Mr. Martin about the $100

million that Inco has been looking for, for research and development for the

hydromet. When did he speak with Mr. Martin? Where did he speak with him? And,

what were the details of his conversation?

MR. SPEAKER: Order, please!

To that point of order, the Chair can only take what hon. members say in the

House as being accurate at the time. Really, the hon. member ought to have

raised this yesterday, immediately after the member had said that. In any case,

in this House, there has always existed a difference of opinion and different

interpretations of matters between two hon. members. In this case, it certainly

appears that one member has a different opinion than the other.

There is really no point of order.

Statements by Members

MR. SPEAKER: The hon. the Member for Cartwright-L'Anse au Clair.

SOME HON. MEMBERS: Hear, hear!

MS JONES: Thank you, Mr. Speaker.

It is with great pleasure that I rise today and recognize the Labrador

Fishermen's Union Shrimp Company Limited who are holding their Biennial

Convention in L'Anse au Clair today.

This company, which is owned and operated by Labrador fishers, has played a

huge role in the economy of many communities in the District of Cartwright-L'Anse

au Clair. They currently have viable fish plants operating in L'Anse-au-Loup,

Mary's Harbour, Charlottetown, Pinsent Arm and Cartwright, and employ hundreds

of people across the district.

The Labrador Fishermen's Union Shrimp Company Limited is certainly a leader

within the fishing industry in this Province and in the country. They are to be

commended for their innovation and prudence which has led them to their

tremendous success.

On behalf of the constituents in my district, I would like to thank and

acknowledge the General Manager, Mr. Gilbert Linstead; President, Mr. Frank

Flynn, and their Board of Directors for their contribution that this company has

made to rejuvenating communities that were so adversely affected by the cod

moratorium.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. HUNTER: Thank you, Mr. Speaker.

Mr. Speaker, yesterday, March 26, mention was made in the House of the

recipients of the Futures of Newfoundland and Labrador Youth awards.

I would like to draw special attention today to one of those recipients, Zach

Goudie of Grand Falls-Windsor, who has been honoured in the category of linkages

for fostering community partnership.

What Zach has accomplished in our area is truly impressive, and he has won a

great deal of admiration for showing such leadership skills at a relatively

young age.

Even though he is still a high school student, he has demonstrated a talent

for inspiring those around him, teens and adults alike. Through his own

initiative, he has brought together young people, private citizens, community

leaders and officials of government in order to strike a special committee.

The aim of the committee is to create a strong network that links young

people throughout the area and gives them a strong voice and an avenue to

participate in their community. This committee has created new avenues of

communications and action by uniting individuals and groups across the

generational divide.

Zach puts what he has done in perspective by saying: When you work with

others, you realize that networking can help get things done and that building

partnerships is vital for anything to succeed.

Now that, Mr. Speaker, is what I call a winning attitude.

Thank you very much.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Municipal and Provincial Affairs.

MR. LANGDON: I ask leave of the House, Mr. Speaker, to read a Members'

Statement.

MR. SPEAKER: Does the hon. member have leave?

AN HON. MEMBER: By leave.

MR. SPEAKER: By leave.

SOME HON. MEMBERS: Hear, hear!

MR. LANGDON: Mr. Speaker, it is both an honour and a privilege for me to

rise in this hon. House today to offer congratulations and extend best wishes to

my wife's parents, my in-laws, Mr. and Mrs. Benjamin and Dorothy Loveless of

Seal Cove, Fortune Bay, who will celebrate their 62 nd wedding

anniversary on Good Friday, March 29.

SOME HON. MEMBERS: Hear, hear!

MR. LANGDON: Mr. and Mrs. Loveless were married at the Salvation Army

Church in Seal Cove, in 1940. Together they had ten children, twenty

grandchildren and eleven great-grandchildren. Mrs. Loveless has spent her life

caring for others as she raised her own family as well as caring for her husband's

parents at home until their passing at the ages of ninety-seven and ninety-nine

year.

Mr. Loveless worked as a logger and later as a provincial public servant with

the department now known as Works, Services and Transportation. Mr. and Mrs.

Loveless continue to live at Seal Cove, where they are held in high esteem by

members of their family and the community.

Mr. Speaker, I am sure hon. members will join with me in congratulating

Benjamin and Dorothy Loveless on their special day.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. MANNING: Thank you, Mr. Speaker.

I stand today to congratulate a young lady from my district, Jenine Browne.

Jenine Browne of Memorial University Women's Sea Hawks Basketball team is a

graduate of Fatima High School in St. Bride's, now in her second year at

Memorial University where she is studying Kinesiology.

During her first year as a Sea Hawk, Jenine was her team's point leader

with an average of 14.5 points per game. Jenine was selected to the 2 nd

Team Atlantic University Sport All Stars and named to the Canadian

Interuniversity All Rookie Team. Jenine was also named Atlantic University Sport

Rookie of the Year.

Jenine was also selected St. John's Athlete of the Month for November 2000.

During her rookie year she was also named Newfoundland and Labrador Athletic of

the Year. Jenine is also enrolled full-time and carries an academic average of

As and Bs.

In her second year as a Sea Hawk, Jenine led her team to their second

Atlantic University championship in three years. She scored 22 points in the

championship game. She led her Sea Hawk team in scoring, as well as the Atlantic

Conference and the entire nation, in scoring averaging 21.2 points per game.

Jenine has been selected as a member to the Canadian Interuniversity Sport 1 st

All Star Team. She is the only person selected for this team East of Ontario.

Jenine has been named the Atlantic University Sport Conference Most Valuable

Player and the Atlantic University Sport Tournament Most Valuable Player. She

led the tournament with 24.5 points per game.

She has been selected Molson Athlete of the Month for the months of November,

December, January and March. She has been selected The Telegram Athlete

of the Week many times. Jenine is the top scorer in Canada as of this year at

the university level. She has led her team to a 17-3 season record. She has been

invited to attend Canada's National Team training camp in May.

MR. SPEAKER: Order, please!

The hon. member's time is up.

MR. MANNING: By leave, Mr. Speaker.

MR. SPEAKER: Does the hon. member have leave?

AN HON. MEMBER: By leave.

MR. SPEAKER: By leave.

MR. MANNING: This is camp is for players to play for Canada this coming

summer in France. I have known Jenine Browne all her life. She is a fine young

lady, a superb athlete, and a positive role model for our young people.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Conception Bay East & Bell

Island.

MR. WALSH: Thank you, Mr. Speaker.

I rise today to acknowledge the tremendous achievements of Roger Jamieson,

the former President of Hospitality Newfoundland and Labrador (H.N.L.). Mr.

Jamieson has served on the HNL executive for the past four years; two years as

treasurer and the past two years as president. In that time, he has overseen the

hospitality industry in this Province grow to an astounding $700 million a year.

HNL is the largest industry association in the Province and has over 720 members

representing all sectors of the tourism and hospitality industry.

During Mr. Jamieson's term, HNL has achieved a new found sense of

legitimacy. The strength of the association has grown to a point where both the

provincial, as well as the federal government, consult Hospitality Newfoundland

and Labrador on any tourism-related legislative changes and how they might

affect the industry.

The working relationship between HNL, the Province, and ACOA is excellent.

Mr. Jamieson has prided himself over the last two years on the continuation and

building of those relationships. Hospitality Newfoundland has worked very hard

at selling Newfoundland and Labrador to the world as a unique place to visit.

The work is beginning to pay off. Last year we saw a 40 per cent increase in

non-resident tourists to this Province and thanks to the exposure of the recent

movies, we intend to see that many more. Most people in businesses will visit

this Province thanks to the new Convention Centre here in St. John's.

The tourism industry in Newfoundland and Labrador continues to grow. The work

of organizations such as HNL and its former president, Roger Jamieson, cannot be

overlooked as they are facilitating much more growth. Mr. Jamieson will continue

now in the position of past president with the executive.

I ask all members of this hon. House to join with me in congratulating Roger

Jamieson on his successful term, for two years, as President of Hospitality

Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Labrador West.

SOME HON. MEMBERS: Hear, hear!

MR. COLLINS: Thank you, Mr. Speaker.

I rise today to say how happy we were on Sunday, around noon, to learn that

Wayne Smith, his twelve-year-old son, Terry, and his thirteen-year-old nephew,

Stephen Wheeler had amazingly survived this past weekend while lost in Labrador.

The story could have had a much different ending, Mr. Speaker, if Mr. Smith had

panicked rather than do what he did, erect a shelter, light a fire, and wait to

be found.

Mr. Speaker, the weather conditions at the time were less than ideal.

Temperatures were in the minus twenties with wind chills dipping below minus

fifty, creating blizzard conditions. Even though the weather conditions were

terrible, a tremendous search effort was organized and conducted.

Mr. Speaker, as MHA for Labrador West, I would like to thank, on behalf of

all residents of Labrador West, especially the families of those who were lost,

the following people and organizations: the Volunteer Ground Search and Rescue

Team in Labrador West, whose training and knowledge of the local area and

conditions make them indispensable in any search; cabin owners in Esker who

happened to be at their cabins for the weekend; Emergency Measures Organizations

who responded quickly to the search; the Labrador West and Churchill Falls

detachments of the Royal Newfoundland Constabulary; CF(L)Co, who provided a

helicopter; Quebec North Shore and Labrador Railway, wholly owned and operated

by the Iron Ore Company of Canada, who made available two helicopters, a

portable power plant for the search and rescue command post, and a train to

transport supplies and rescuers; the Steelworkers Union, Local 5795, President

George Kean; Lawrence O'Brien, MP for Labrador, and his Labrador West office.

Search and Rescue out of Halifax had a Labrador helicopter dispatched -

MR. SPEAKER: Order, please!

The hon. member's time is up.

MR. COLLINS: By leave, Mr. Speaker?

MR. SPEAKER: Does the hon. member have leave?

SOME HON. MEMBERS: By leave.

MR. SPEAKER: By leave.

MR. COLLINS: Search and Rescue out of Halifax also had a Labrador

helicopter dispatched and a Hercules aircraft ready to leave Nova Scotia.

Mr. Speaker, I was in contact with many of these groups over the weekend as

the search was being conducted and, believe me, everybody gave 100 per cent.

I spoke with Wayne since his rescue and, I can tell you, he truly feels a lot

of gratitude to everyone who assisted in ensuring this story had a happy ending.

Wayne will be personally thanking everyone who took

part in the search because,

as he said to me, people put their lives in danger to find them and choppers

flew in conditions in which they probably would not normally have flown.

Incidentally, Mr. Speaker, the pilot of the chopper who found him was a

friend Wayne went to school with many years ago.

Mr. Speaker, Wayne is very proud of his son and nephew for their help and the

manner they handled themselves throughout this ordeal. All three of them were

found in good condition.

I ask this House to join me in applauding the efforts of all those involved

in the search and rescue effort, and also to Wayne, Terry, and Steven for using

their experience and inner strength to survive in what can be a very unforgiving

area.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Justice and Attorney General.

MR. PARSONS: Mr. Speaker, by leave?

MR. SPEAKER: Does the hon. member have leave?

SOME HON. MEMBERS: By leave.

MR. SPEAKER: By leave.

MR. PARSONS: Mr. Speaker, today I would like to pay tribute to Music

Industry Association of Newfoundland and Labrador President Roger Skinner, who

passed away suddenly this February while performing in support of the Big

Brothers/Big Sisters Celebrity Secrets Variety Show at Mile One.

Mr. Skinner has been active in the music industry since 1968 as the drummer

for the Ducats, a Newfoundland based rock and roll group. He also had

considerable experience as a studio musician during his long and successful

career.

Roger Skinner had been quite active within the Music Association

organization, promoting Newfoundland and Labrador artists through participation

in the ECMA awards, and preparation for the upcoming Juno's this April.

Mr. Speaker, I ask all members of this House to join me in expressing

condolences to Mr. Skinner's family, and be cognizant of the contribution his

work and volunteer achievements have made to our Province.

Thank you.

SOME HON. MEMBERS: Hear, hear!

Oral Questions

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

Mr. Speaker, in a press release yesterday entitled, Highway Robbery; Province

Has Broken Labrador's Trust, the hard-working and devoted Member of Parliament

for Labrador, Lawrence O'Brien, said that the raid of the Labrador

Transportation Initiative Fund was beneath despicable and disgraceful, in

addition to being fraudulent.

The devoted and outspoken Mayor of Happy Valley-Goose Bay describes the

action as a crime and says that we, in fact, have a credibility problem with

Ottawa.

Mr. Speaker, would the Premier tell the people of this Province: Does he feel

that these two strong and very negative opinions, from two champions of

Labrador, reflect the reasons why he is unsuccessful in obtaining clawback

concessions, equalization concessions, transportation funding, and other issues

of major importance to the people of this Province?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

Two thing of note in the question. The first is that we do acknowledge a

difference of opinion with the MP, Mr. O'Brien, and the Mayor of Happy

Valley-Goose Bay, at this point in time. We do understand one other thing,

though, Mr. Speaker. Those same two gentlemen fully support this government in

all of our efforts to have a better fiscal arrangement with the government in

Ottawa, and they fully support us on that despite a disagreement over this issue

at this point in time.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

Mr. Speaker, Mr. O'Brien may have changed his opinion since the last time

that the Premier spoke (inaudible). The Member of Parliament also said yesterday

that this government has shown the federal government that their promises mean

nothing, that their commitments mean nothing, and that they cannot be trusted

with a blank cheque. He said that they have broken the trust of the federal

government, but he also said, more importantly, they have broken the trust of

the people of Labrador and the Province.

MR. SPEAKER: Order, please!

The hon. member is on a supplementary. I ask him to get to his question.

MR. WILLIAMS: Mr. Speaker, due to the fact that Lawrence O'Brien,

Member of Parliament, advises Paul Martin and Jean Chrtien on Labrador issues,

would the Premier tell us how much damage he is doing to this Province because

the Member of Parliament simply does not trust him?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

Again, I can say this and inform the Opposition Leader and all Members of the

House of Assembly, I spoke with the Prime Minister yesterday in the morning and

he raises no concerns about a lack of trust or confidence with respect to the

Government of Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Mr. Speaker, with respect to Mr. O'Brien as the MP, our

members in Labrador, our Liberal members in Labrador and the members of this

caucus will gladly, on any one day, if there is a debate to be had with respect

to Mr. O'Brien. We do not intend to debate Mr. O'Brien. We understand he has

a difference of opinion on this issue. We accept that, for this point in time.

We will continue to work with him, but in the meantime, Mr. Speaker, we will

gladly put our record of accomplishment in Labrador as provincial MHAs up

against Mr. O'Brien's and the federal government's accomplishments in

Labrador anytime.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Leader of the Opposition.

MR. WILLIAMS: You pass along the message, Premier.

Mr. Speaker, the Member of Parliament for Labrador has also said that on two

separate occasions, both in person and by letter, he asked the Premier and his

ministers to submit a formal and a detailed proposal for highway funding and he

still does not have one to date. He says that this government is not cooperating

with the federal government and he has also said there is no wonder they are so

far in debt and had to steal from the Labrador Transportation Fund.

MR. SPEAKER: Order, please!

I ask the hon. member now to get to his question.

MR. WILLIAMS: Would the Premier explain why his government has not even

bothered to prepare and present a proper proposal as ammunition for Mr. O'Brien

to take to his caucus and ministers, and your friend, the Prime Minister, when

this Province is strangling under its own deficits and its own debt?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

I am sure that the Opposition must be delighted that Mr. O'Brien said

something because they have not said anything.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: All we heard here for three days since the Budget are the

members opposite quoting Mr. O'Brien, because they refuse to say what their

stand is on Phase III of the Trans-Labrador Highway. They refuse to say what

they would have done differently other than take the money from the fund as

revenue so that we could keep a deficit down to manageable means and strike the

balance in the Budget, Mr. Speaker. Those are the issues that we are dealing

with.

MR. SPEAKER: Order, please!

I ask the hon. Premier to now conclude his answer.

PREMIER GRIMES: Mr. Speaker, I am sure that Mr. O'Brien understands

quite fully that we are going through all of the appropriate channels. I

personally have written the Deputy Prime Minister, Mr. Manley, as to what

instructions he wants the government to follow, government-to-government. We do

not need to use Mr. O'Brien or anyone else as an emissary for the government.

He will be a supporter of ours in the initiatives -

MR. SPEAKER: Order, please!

I ask the hon. Premier to now conclude his answer.

PREMIER GRIMES: - that are put forward when we get the directions and

instructions from the Deputy Prime Minister as to exactly how he wants to make a

detailed solution with respect to the infrastructure funding -

MR. SPEAKER: Order, please!

I ask the hon. Premier now to take his seat.

PREMIER GRIMES: - and we will deal with it on a government-to-government

basis.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

I am delighted. I am delighted that a Liberal has finally told it the way it

is, and I thank Mr. O'Brien.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Mr. Speaker, yesterday in this House the government fought

tooth and nail to prevent the Minister of Works, Services and Transportation

from tabling his slide presentation. The reason why government did not want it

tabled was because they embarrassed this Province by presenting it to the

federal government.

The Member of Parliament, Lawrence O'Brien, said that a request for nearly

a billion dollars required a concrete, a properly costed, a formal presentation

and not something which was amateurish and not formal and not professional.

MR. SPEAKER: Order, please!

The hon. member is on a supplementary.

MR. WILLIAMS: I know what it takes to present a properly costed business

presentation.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: I thank the Minister of Finance for her comment and her

recognition (inaudible) ability.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. member is on a supplementary.

MR. WILLIAMS: Mr. Speaker, would the Premier tell the people of this

Province how he expects the federal government to hand over nearly $1 billion to

this Province on the basis of a Mickey Mouse powerpoint presentation, which is

being laughed at by the federal government?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

I am sure the people of Labrador, as well as the people on the Island portion

of the Province, are delighted to see the level of support that the Leader of

the Opposition is giving to our very serious attempts to have the federal

government engage in a meaningful discussion with respect to highway priorities

in Newfoundland and Labrador.

Mr. Speaker, contrary to what the Leader of the Opposition just described,

and contrary to what Mr. O'Brien described, Minister Collenette was quite

pleased to know that the number one priority for this government is the

completion of the Trans-Labrador Highway. He understood that completely and

fully from the presentation that was given, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: He was also pleased to know that there are also concerns

with respect to highway construction and needs on the Island, as highlighted by

members like the Member for Baie Verte and so on, that we are also trying to

accomplish. We laid out the general nature of the needs of the Province over the

next ten years and indicated that we would like to hear from him, exactly when

he would like to sit down and negotiate the details of how we deal with $100

million for Phase III, first, and the other needs for the next ten years for the

Province, secondly.

So, unlike the description of it by the Leader of the Opposition, the federal

minister involved was pleased to receive the information, and we are anxious to

get involved with the detailed negotiation when they are ready.

MR. SPEAKER: Order, please!

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Mr. Speaker, I would like to know how Mr. Collenette feels,

after the raid on the Labrador -

AN HON. MEMBER: (Inaudible).

MR. E. BYRNE: Do you have the guts to stand up and speak in the

Legislature, on the record, Eddie Joyce, because you haven't said anything

here yet.

MR. SPEAKER: Order, please!

AN HON. MEMBER: Don't have the guts to do it.

MR. FRENCH: That is right, you haven't.

MR. SPEAKER: Order, please!

MR. E. BYRNE: Sitting in your seat yapping all the time. Stand up and

speak in the House, put yourself on the record.

MR. SPEAKER: Order, please!

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

A supplementary, the hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

Mr. Speaker, in reference to this government's actions on this Budget,

independent people, quite independent people, like fellow Liberal MP, Lawrence O'Brien,

the Mayor of Happy Valley-Goose Bay, Peter O'Brien of the Canadian Federation

of Independent Business, have used several terms to describe the raid on

Labrador.

My question, Mr. Speaker, for the Premier is: What does he think the words

despicable, disgraceful - this is the question, Mr. Speaker.

MR. SPEAKER: Order, please!

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

MR. WILLIAMS: Pardon, Mr. Speaker?

MR. SPEAKER: I ask the hon. member to get to his question.

MR. WILLIAMS: This is the question.

Mr. Speaker, my question for the Premier is: Does he think the words:

despicable, disgraceful, highway robbery, broken trust, fraudulent, crime -

MR. SPEAKER: Order, please!

The hon. member now is getting into an area that is -

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

It is inflammatory, the words are inflammatory. It is going to cause, I

guess, problems and disorder in the House. This kind of language ought not to be

used in Parliament. I am asking the hon. member to be cautious with the kind of

language that he is using. I do not want to bring this House into disrepute. It

cannot reflect on members of this House or on this institution, and I ask the

hon. member to get to his question and to be more selective with the vocabulary

that he is using.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Mr. Speaker, if I could respectfully point out to the

Chair, these are not my words.

MR. SPEAKER: Order, please!

Honourable members cannot do that. They cannot - what we have referred to in

this House - use the back door to do what we cannot do through the front door.

The Chair is not going to tolerate this kind of language.

MR. WILLIAMS: Mr. Speaker, my question for the Premier is: What does the

Premier think of these characterizations which have been used by other people,

and also comments made - financial perspective, a business perspective - that

talk about the credibility problem that this government has with Ottawa, that

talk about a need to get a financial act together, that talk about the fact that

the Province has stumbled badly -

MR. SPEAKER: Order, please!

The hon. member is on a supplementary; I ask him to get to his question.

MR. WILLIAMS: - and the fact that the Province cannot be trusted with a

blank cheque?

My question for the Premier is: Premier, do you think that these

characterizations and these public comments by truly independent people are

having any further effect on the business reputation of Newfoundland and

Labrador in addition to the damage you have already done as a result of the FPI

fiasco?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

I appreciate the reference to one person who is independent, and the fact

that his name was used. I expect that means the Leader of the Opposition agrees

with his views, and that is Mr. O'Brien of the Canadian Federation of

Independent Business. He is nodding, which means he indicates, Mr. Speaker, that

he agrees with his views.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

PREMIER GRIMES: The view, Mr. Speaker, of Mr. O'Brien, the most telling

one for Striking the Balance, is that he suggested that there was something

wrong with the Budget because the government should have rolled back the wage

increases for public sector (inaudible). That indicates quite clearly, the fact

that the Leader of the Opposition supports the views of Mr. O'Brien, that is

the real agenda of the Opposition; because they will not talk about it openly

and publically. Maybe he might like to stand up and talk about whether or not he

supports the views of people like -

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

PREMIER GRIMES: - Mr. O'Brien, and that is what they would do if they

were the government.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Opposition House Leader.

SOME HON. MEMBERS: Hear, hear!

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

company or a consultant company out of Winnipeg to do a study on how people in

this Province feel about working, this Legislature and people in this Province

would be rightfully outraged.

My question is to the Deputy Premier. How can he justify, based on comments

made by his Parliamentary Secretary yesterday, that it is okay for this Province

to hire a cultural research company out of Winnipeg to study the attitudes of

how Newfoundlanders and Labradorians feel about working?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Industry, Trade and Rural

Development.

SOME HON. MEMBERS: Hear, hear!

MR. TULK: Mr. Speaker, for all of the hon. gentleman's feigned

opposition, his feigned offence to what this government has done, let me just

say this to him. This government believes in research and development.

SOME HON. MEMBERS: Hear, hear!

MR. TULK: I know that the hon. gentleman believes in research, unlike his

leader who sits next to him.

Mr. Speaker, the kind of interview that the hon. gentleman gave to The

Telegram yesterday, just goes to show either one of two things: either his

lack of understanding of what it takes to do proper planning for this Province,

or his lack of understanding of what he has in his hands.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Opposition House Leader.

SOME HON. MEMBERS: Hear, hear!

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

Based on the comments by the Parliamentary Secretary, the minister or Deputy

Premier can try to spin and turn this issue any way he wants. The Province of

Newfoundland and Labrador has a statistical agency that can provide any and all

of the information; all you need to do is call.

The fact of the matter remains, Mr. Speaker, to the Deputy Premier: How can

you and your government, how can the Premier, the Deputy Premier - because this

issue was passed in Cabinet - justify spending $380,000 of taxpayers' money to

find out how people in Gaultois or the Goulds or Kilbride or Griquet or on the

South Coast or Northern Coast of Labrador, to find out how they feel about a

job? Here is how they feel: Create the opportunity and they will take the job!

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Industry, Trade and Rural

Development.

SOME HON. MEMBERS: Hear, hear!

MR. TULK: Mr. Speaker, what a shallow understanding of what this piece of

research is all about.

Mr. Speaker, so that the hon. gentleman can take it home over Easter, if he

does not have all of what is in this contract and what is in this proposal, I

want him to take it over Easter and read it. I am going to table it for him so

he can take it and read it over Easter, as to what this project is about. What

this project really is about, I say to the hon. gentleman, is to study and

research as to how we can, in our efforts to improve the economy in this

Province -

AN HON. MEMBER: (Inaudible).

MR. TULK: He is at it again.

- to study and research as to how we can foster innovation, how we can foster

entrepreneurship, how we can make the workplace a better place for our people in

Newfoundland and Labrador to work in. That is what it is about; I will table

that document for him.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Opposition House Leader.

SOME HON. MEMBERS: Hear, hear!

MR. E. BYRNE: What an unbelievable revelation here. The Deputy Premier

has stood in the House to say that the government has hired a research company

out of Winnipeg to see if their jobs and renewal strategy for growth is

happening. That is what he is saying, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. E. BYRNE: The question is this: If that is the case, while he is

tabling the remainder of the contract could he also table how this company was

chosen? Were Newfoundland and Labrador companies given the opportunity to

participate? What made this company so special to study how the attitudes of

Newfoundlanders are towards work? What made this company so special to justify

how the government's own jobs and renewal strategy for growth is occurring?

What is it, minister?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Industry, Trade and Rural

Development.

SOME HON. MEMBERS: Hear, hear!

MR. TULK: Mr. Speaker, let me say to him -

AN HON. MEMBER: (Inaudible).

MR. TULK: I sat down and I listened to my member when he asked his

constituent a question. I would like for my member to respect his constituent,

who happens to be the minister, and listen as well.

Mr. Speaker, let me say to the hon. gentleman, he has the thing backwards.

Unlike the Opposition, unlike his leader, we believe in research. We believe in

finding the best there is and I think in this case we found it. We believe in

finding the best there is so that the people of Newfoundland and Labrador can

reap the benefits of it.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Cape St. Francis.

SOME HON. MEMBERS: Hear, hear!

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

Mr. Speaker, the Minister of Works, Services and Transportation stated

yesterday in this House of Assembly that he met with the federal Minister of

Finance to discuss the $100 million for research for Placentia & St. Mary's

in order to start negotiations with Inco.

Mr. Speaker, I will quote from Hansard: "...I also talked to Paul Martin

to see if he could come up with $100 million ..."

MR. SPEAKER: Order, please!

The hon. member knows that the House has ruled that he cannot quote directly

from any document; not from Hansard, or any document.

MR. J. BYRNE: Mr. Speaker, that is news to me. I thought we could quote

from Hansard.

Anyway, Mr. Speaker, he said he met with the federal Minister of Finance to

discuss the $100 million for research for Placentia & St. Mary's in order

to start negotiations with Inco. To give the minister a chance to clear this

matter up, can the Minister of Works, Services and Transportation tell this

House of Assembly when he met the federal Minister of Finance to discuss this

matter? Where he met? What were the details of that discussion, and what can he

produce to show that he actually did meet the minister to discuss this matter?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Works, Services and Transportation.

SOME HON. MEMBERS: Hear, hear!

MR. BARRETT: Mr. Speaker, I am glad the hon. member asked the question

because when I was in Ottawa, any time I am in Ottawa, I take opportunity to

meet with a whole range of people in Ottawa. The people in the federal Cabinet

in Ottawa are good friends of mine, and one of my good friends in Ottawa is Paul

Martin. Paul Martin and I sat and discussed economic and social opportunities

for this Province for about an hour. I do it all the time I go to Ottawa. I have

met with numerous Cabinet ministers in the thirteen years that I have been

involved in politics.

In Newfoundland, I have met with numerous federal politicians in the last

thirteen years and I am always there to advance the cause of Newfoundland and

Labrador. I talked about the Trans- Labrador Highway and all kinds of other

initiatives for Newfoundland and Labrador. What is the problem with that? What

is the seriousness of going to Ottawa and calling upon your friends and saying,

I would like to talk about economic opportunities in Newfoundland and Labrador?

That is why we were elected, to serve the people of Newfoundland and Labrador,

and as long as I am the member for the District of Bellevue, I will go to Ottawa

and talk to my federal counterparts about economic and social and infrastructure

needs for Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. J. BYRNE: Mr. Speaker, from that answer it should be noted that the

minister did not say when he met with him or where he met with him. In other

words, he did not meet with him, Mr. Speaker, to discuss this matter.

As the Opposition critic for Works, Services and Transportation, Mr. Speaker,

and along with government's so-called open, transparent and accountable

government policy, I requested on January 3, 2002, under the Freedom of

Information Act, information pertaining to the provincial roads program. I

received a letter back from the Deputy Minister of Works, Services and

Transportation stating that they wanted $236.25 for that information. Mr.

Minister, do you agree that your department should charge the Official

Opposition critic for the information that should be in the public domain and

required to carry out that position?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Works, Services and Transportation.

SOME HON. MEMBERS: Hear, hear!

MR. BARRETT: I guess there are two questions. I will handle the first

one. My discussions and my meeting with my good friend Paul Martin occurred on

February 5, 2002, at 5:03 p.m. Ottawa time.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

MR. BARRETT: At 5:03 p.m. Ottawa time and if he wants to know the

location, it was in -

SOME HON. MEMBERS: Oh, oh!

MR. BARRETT: Do you want to ask another question where the location was?

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

I ask the hon. minister now to get to his answer.

MR. BARRETT: So you will not run out of questions, I will let you ask

where the meeting took place.

MR. SPEAKER: Order, please!

I ask the hon. minister now to get to his answer quickly.

MR. BARRETT: The second question was the hon. member said that he

requested some information from the department. All the information that he

requested was on the public record. What he wanted was the tenders and all the

items that were tendered for road work for the last couple of years. The House

of Assembly financed a research department in the Leader of the Opposition's

office, and I am sure that if he were to consult with his people in his office

upstairs that they would have been able to go into the computer and get all the

information.

MR. SPEAKER: Order, please!

A final supplementary, the hon. the Member for Cape St. Francis.

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

Mr. Speaker, we will be checking out the 5:03 p.m. Ottawa time, to make sure

that the minister is not misleading this House of Assembly.

MR. SPEAKER: Order, please!

I ask the hon. member to get to his question quickly.

MR. J. BYRNE: On March 1, 2002, I responded in writing agreeing to pay

for the requested information. His department now wants this charge for

information -

MR. SPEAKER: Order, please!

I ask the hon. member to now get to his question.

MR. J. BYRNE: - to be paid upfront before I get the information. Does the

Minister of Works, Services and Transportation really believe that it is right

and proper to charge his critic upfront for information required to do his job,

which is part of the democratic process?

MR. SPEAKER: Order, please!

I ask the hon. member to get to his question quickly.

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

Isn't this just delaying tactics and in effect, denying information to the

Official Opposition? Where is the openness and transparency of government?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

The issue with respect to a request under Freedom of Information, it is a

choice that the Opposition has to make. The instructions that are in this

government, which is the most open and accountable that the Province has ever

seen, is this -

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Instructions are, if he needs information that is

available - they do not have to use the Freedom of Information Act. The Freedom

of Information Act, they would know, has a

section that says you have to pay for

the information if it is requested under that act. There is a charge

section in

the act. If they want the information for free, just ask for it. You do not have

to write a request under the Freedom of Information, just ask for the

information. But, if you write under the Freedom of Information, then you

trigger the act.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

My question is for the Minister of Health and Community Services. There are

over 5,000 people in the Province with Alzheimer's, and about 1,500 of them

with mild to moderate (inaudible) would benefit from medication such as Aricept,

Exelon and Reminyl to the point that entry to nursing home care would be

significantly delayed; at a cost of $1,800 a year per patient compared to more

than $25,000 for nursing home care. If only 10 per cent of those patients could

benefit from these drugs the Province could save approximately $3.5 million a

year by improving their health and improving their lives, as well as saving the

Province money. Will the minister indicate to the House today that these drugs

will be included in the provincial drug formulary so they could be available to

Alzheimer's patients in this Province?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS BETTNEY: Mr. Speaker, I am not able to make that commitment here

today, that we will include Aricept or similar class of drugs in the provincial

drug formulary.

As members would realize, the drug program is one that is highly

overextended. It costs us in the order of close to $80 million a year in order

to be able to fund drugs under this program. In doing so, we try to keep with

what is already on the formulary and obviously, to only add drugs that have

proven clinical, pharmaco-economic value. We review that, and have agreed to

review that, through the Atlantic drug review program.

At this point the drug program has not recommended this particular drug or

class of drugs. However, there is review that is continuing on this area.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Signal Hill-Quidi Vidi; time for one

quick question.

MR. HARRIS: Thank you, Mr. Speaker.

That is one example of saving money and improving lives in our health care

system. I have here a national study showing that the current drug system with

12 per cent of Canadians with no drug coverage whatsoever leads to poor health,

increase of costs, additional hospital and doctor visits, as well as increased

hospitalization.

Will this Province support a national pharmacare plan which studies have

shown the overall cost would be less than what is now being spent on drugs in

this country and improve people's lives? Will this government support such a

national initiative, Mr. Speaker?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS BETTNEY: Mr. Speaker, I have stood in this House on many occasions and

spoken -

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS BETTNEY: Mr. Speaker, I have spoken in the House on many occasions of

our commitment to try and be able to provide, as best we can, for the drug needs

for people in this Province who have prescription drug requirements. We do not

have the resources to have a universal drug program. This is an issue for health

departments right across the country. It is something that we recognize as being

a major cost of health care in the Province -

MR. SPEAKER: Order, please!

I ask the hon. minister now to quickly conclude her answer.

MS BETTNEY: - and we are taking every measure that we possibly can to try

and make the most efficient use of the money that we can put to our provincial

drug formulary, but it is not universal at this point and we simply do not have

the resources for that.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Question Period has ended.

Presenting Reports by Standing and Special Committees

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

Board.

MS J.M. AYLWARD: Thank you, Mr. Speaker.

Mr. Speaker, I am pleased today to table the first Annual Report of the

Newfoundland Municipal Financing Corporation in accordance with

section 13(3) of

the Municipal Financing Corporation Act.

Mr. Speaker, the NMFC plays a very important role in financing municipal

capital projects in our Province. The Corporation borrows the necessary funds in

the Canadian capital markets and re-lends these funds to our municipalities for

such projects as water and sewer, paving, waste management, as well as

recreation, and life safety requirements.

The Corporation's borrowings are guaranteed by government, Mr. Speaker, but

there has never been a requirement for our Province to make a payment under its

guarantee. A significant portion of the Corporation's loans to municipalities

is paid by government under various cost-sharing arrangements, and in recent

years government has also provided funding to assist with the restructuring of

municipal debt.

To date, $35 million has been allocated to the debt relief fund maintained by

NMFC for this purpose. Mr. Speaker, NMFC has carried out a very important public

policy function on behalf of government and I would like to acknowledge the

efforts put forth by staff, the corporation's board, as well as my colleagues

at the Department of Finance, Justice, and Municipal and Provincial Affairs.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MS J.M. AYLWARD: Mr. Speaker, pursuant to

section 55(3) of the Financial

Administration Act, I wish to table the following information with respect to

guaranteed loans paid out by the Province since the last report to the House of

Assembly.

Further, Mr. Speaker, pursuant to

section 49(2) of the Financial

Administration Act, I wish to table the list of temporary loans raised under

section 48 of the act, since the last report to this hon. House.

Thank you, Mr. Speaker.

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

MS THISTLE: Thank you, Mr. Speaker.

I am pleased today to table the annual report of the Labour Relations Board

for the calender year 2001. This report outlines the activities of the Labour

Relations Board in 2001 with respect to case loads, hearings and various matters

which come under the jurisdiction of the board.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Works, Services and Transportation.

MR. BARRETT: Mr. Speaker, I would like to table the report of the Public

Tender Act exemptions for December, January and February.

Notices of Motion

MR. E. BYRNE: On a point of order, Mr. Speaker.

MR. SPEAKER: Order, please!

The hon. the Opposition House Leader, on a point of order.

MR. E. BYRNE: Mr. Speaker, I wonder if some time throughout the day, or

even when the House gets back after Easter, just if I could, seek clarification.

I want to be very clear that I am not challenging the Speaker, his rulings, or

anything.

Today, the Member for Cape St. Francis, in Question Period, was quoting from

Hansard. We were of the understanding, based upon Beauchesne , page 152,

497 that that was allowable. I will just quote it. I am just seeking

clarification from the Chair. It is under the

section Documents Cited during

Rules of Debate, it says: "497. A Member may quote from Hansard, but not

from the unedited preliminary version known as the "blues"." That

is: Debates , September 24, 1985, p. 6893.

I am just asking the Chair that at some point - not necessarily immediately,

but certainly when we get back over the Easter break, if he could take the

matter under advisement to give some direction, I guess, to all members in terms

of our own debates. When we are citing documents in the House, is Hansard an

acceptable document that we can cite, because if it is not we will not plan to

do it in the future?

MR. SPEAKER: To the point that the hon. member has raised, our own

Standing Orders, of course, are to be guiding the parliamentary authorities that

we follow, or the rules that we follow. If it is not covered in our own Standing

Orders we use the Standing Orders of the House of Commons and then, of course,

other parliamentary authorities beyond that.

I think the member should recall that some time ago we had the same point of

order raised. I think the ruling at that time, based on our own Standing Orders,

was that quoting from any document, including Hansard, was not acceptable in the

House.

I will certainly review that ruling, but I believe that was the ruling at the

time because our Standing Orders are the ones that guide us in making decisions

in the House. If an incident or a point raised is not covered by own Standing

Orders we use the House of Commons, and then we use parliamentary authorities

after that.

Answers to Questions for Which Notice has been Given

MR. SPEAKER: The hon. the Minister of Human Resources and Employment.

MR. SMITH: Thank you, Mr. Speaker.

I rise to respond to a question which was raised by the Leader of the

Opposition yesterday, in Question Period, with regard to the culture research

project which we heard referenced here in debate this afternoon. The question

was with regard to the involvement of the Department of Human Resources and

Employment. In fact, in his remarks, the Opposition House Leader had in fact

alluded and stated that the department was actually managing the project.

AN HON. MEMBER: (Inaudible).

MR. SMITH: Mr. Speaker, again, I am just trying to set the matter

straight. The hon. member will have ample opportunity to rise and respond, as I

am sure he will.

The situation is, I have gone back and checked out, certainly yesterday when

the question was raised I had no knowledge of the program, or at least the

involvement by my own department. Upon check, the only reference that I can find

is in fact an arrangement that was made between the Deputy Minister of Industry,

Trade and Rural Renewal, at that time, and the deputy from my department whereby

an arrangement was made in the absence of the deputy from Industry, Trade and

Rural Development, when he was going to be away on holidays. He had assigned the

signing authority to the deputy from my department, in fact, that operated only

during the absence of the deputy while he was on holidays. There was one

transaction which happened through that period of time. When he returned, that

was it.

There was no involvement by my department, Mr. Speaker, but I do say that I

would have been delighted to be involved because we have heard the hon. minister

say here today that this is a good initiative on part of the people of the

Province, it is something that we need to do, and I am sure the people of the

Province recognize that we are on the right track in trying to do what is in

their best interest.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. E. BYRNE: A point of order, Mr. Speaker.

MR. SPEAKER: On a point of order, the hon. the Opposition House Leader.

MR. E. BYRNE: Thank you.

Just for clarification, Mr. Speaker, the Minister of Human Resources and

Employment had just said that this is only a one-time thing because the deputy

minister from the Deputy Premier's office was on holidays.

In the documents that I have, it does not say that, and I want to quote it

for clarification and set the record straight. This is a letter from the Deputy

Minister, Mr. John Scott, to your Deputy Minister, Miss Vivian Randell, and it

says: The initiative will be managed by the Department of Human Resources and

Employment in its capacity as lead department for the Strategic Social Plan. I

am delegating my signing authority relating to its implementation (inaudible) to

Miss Vivian Randell, Deputy Minister of Human Resources. The delegation is

effective immediately and will continue until the end of the initiative or the

end of the fiscal year.

So, my questions are based upon correspondence that went from that department

to yours, not any conjecture, but where it actually said that your department

would administer it from this day forward until the end of the initiative or

until the end of the fiscal year.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

There is no point of order.

It being Wednesday, and 3:00 p.m., we are now at private member's

resolution.

Private Members' Day

MR. SPEAKER: On a point of order, the hon. the Minister of Finance and

President of Treasury Board.

MS J.M. AYLWARD: By leave, Mr. Speaker, I would like to have leave to

table some more reports.

MR. SPEAKER: Order, please!

The hon. member is asking for leave to table a report. Is it agreed?

SOME HON. MEMBERS: By leave.

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

Board.

MS J.M. AYLWARD: Thank you, Mr. Speaker.

I want today to table a

summary of the special warrants for 2001-2002, in a

very timely manner, Mr. Speaker.

MR. SULLIVAN: (Inaudible).

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Minister of Finance and President of Treasury Board.

MS J.M. AYLWARD: Thank you, Mr. Speaker.

A special warrant for $17 million to provide additional funds for health care

facilities equipment and renovations. Special warrants to provide additional

funds for occupational reclassifications. A special warrant of $6.3 million to

provide additional funds for our income support and our senior citizens' drug

subsidization programs. Under education, a special warrant of $10 million to

provide additional funds for teachers' salaries, and also for the Newfoundland

and Labrador Education Investment Corporation, the fund that builds and does

maintenance and renovations to our schools in the Province. Mr. Speaker, under

the Department of Justice, a special warrant for $411 million to provide

additional funds for occupational reclassifications. A special warrant of $1.9

million to provide additional funds for payment of salary increases and

retroactive pay to provincial court judges, and a special warrant of $720,000 to

provide additional funds, Mr. Speaker, for the purchase of digital court

recording equipment.

Thank you very much, Mr. Speaker.

MR. SULLIVAN: A point of order, Mr. Speaker.

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

MR. SULLIVAN: Mr. Speaker, on a point of order, it is customary under the

act and legislation of this House, the Financial Administration Act, that

warrants should not be tabled here if they are issued during the period the

House is sitting. They should come as a Supplementary Supply Bill or be included

in the Budget for 2002-2003. It is contrary to the act, and it is incumbent upon

the minister, if the date on this is when this House is in session, it is

contrary to the act and we should see a Supply Bill to be debated here if it is

in this Budget or presented for approval in the 2002-2003 Budget.

MR. SPEAKER: Order, please!

There is no point of order.

The hon. the Member for Cartwright-L'Anse au Clair.

SOME HON. MEMBERS: Hear, hear!

MS JONES: Thank you, Mr. Speaker.

I rise today, Mr. Speaker, to debate a private member's motion that I put

forward. I am going to read the motion so that people are clear:

WHEREAS the Constitution of Canada commits the Parliament and Government of

Canada to make equalization payments to provinces to ensure Canadians have

access to reasonably comparable levels of public service at reasonably

comparable levels of taxation; and

WHEREAS the current equalization program does not meet this constitutional

requirement and there is evidence that we are moving further away from

satisfying this commitment; and

WHEREAS the treatment of non-renewable resource revenues in the present

equalization system is unfair;

THEREFORE

BE IT RESOLVED that this House of Assembly call upon the federal

government to replace the current equalization formula with a fairer system that

re-establishes the fundamental principles on which this program is based; and

BE IT FURTHER RESOLVED that this hon. House go on record of supporting the

efforts of our Premier, the Premier of Newfoundland and Labrador, and the

Premier of Nova Scotia, in campaigning for fairness as it relates to offshore

resource royalties.

Madam Speaker, that is the motion that I put forward to hon. members today,

and it is a motion of tremendous significance and of importance that it be

raised and its awareness be raised at this particular time in our history in

Newfoundland and Labrador especially.

We have to encourage people to become involved in this cause. One way,

certainly, to do that is to have it debated in this House, have it recorded, and

all of us, as elected members, have the opportunity to express our views on this

important issue.

Equalization is there to assist the equalization receiving provinces to

achieve a greater degree of fiscal self-reliance so that those provinces can

deliver an appropriate level of services to the people they serve.

Madam Speaker, equalization payments are subject to several things. One of

them is ceiling and floor provisions. This is to provide protection to

individual provinces, year over year, so that there are not reductions within

their payments. The program is an important source of revenue for all the seven

provinces that are now receiving those payments. Those provinces are:

Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick,

Quebec, Manitoba, and Saskatchewan.

Madam Speaker, equalization and the natural resources is probably one of the

areas that has been causing the greatest contention for us in Newfoundland and

Labrador. Non-renewable natural resource revenues have posed numerous

difficulties in the operation of the equalization formula. The greatest

difficulty is created by the volatility provincial non-renewable resource

earnings. I say that because this is obviously the situation that we find

ourselves in, as a government, and as a Province, as we deal with some of the

non-renewable resource developments that are before us today.

There are some generic solutions that have been applied to the formula by the

Atlantic Accord on offshore revenues and royalties. We did get a solution, I

guess, then, or an Accord, in which we looked at a percentage of the revenues

that would be left to Newfoundland and Labrador.

Nova Scotia also has a similar arrangement on its offshore revenues, Quebec

on its asbestos, and Saskatchewan on potash. There are a number of agreements

that have been put in place by the federal government over the years to deal

with equalization, and, having done so, certainly realizing the tremendous

importance it is to Newfoundland and Labrador to be able to hold on to those

revenues that are generated.

Madam Speaker, equalization impacts all areas of government within this

Province. It is a new approach. If not found, we will remain trapped in what

some people would call a cycle of dependency and never be able to get ahead.

Because, as the formula is today, any revenues that we generate, as a Province,

are claw backed dollar for dollar on equalization, which leaves our Province

with very little capital to be able to invest in other areas of governance, and

in other areas of infrastructure, programs, service delivery, or whatever the

case may be.

We have to find a new approach. We are at a time in our history where we are

being forced to look at another alternative, at a new way, a different way in

which we can generate revenues, provide more benefits.

Equalization was one of the founding principles of the Canadian

Confederation. Its purpose was to ensure that no matter what province you lived

in across this country, from east to west, that you would have a right to have

similar services and opportunities provided to the people of this country. This

principle of equalization is placed in the Constitution of the country, which

gives it the highest priority in terms of reflecting what the need is from

province to province.

When the Province is strong, Mr. Speaker, Canada is strong as a nation. When

we do well in Newfoundland and Labrador, the federal government does even

better. Much better, I might add. We have today, in our Province, a number of

non-renewable resources in which large sums of money are being paid out to the

federal government in taxes or royalties, or whatever phrase you would like to

use to certainly distinguish it. On Hibernia alone, there is over $21 billion in

oil reserves with the current system of equalization. This Province could only

see 10 per cent of that money entering the provincial Treasury.

Under the current clawback system, Newfoundland and Labrador retained just

$29 million of $98 million of revenues in 2001, and stands to retain only $54

million of $180 million in revenues in 2002. That is just one example, Madam

Speaker, of what we are dealing with as a provincial government and as a

Province, people who live in Newfoundland and Labrador.

When you can generate $100 million in revenue, and only be able to turn in

$29 million or $30 million of that revenue to the provincial Government of

Newfoundland and Labrador, I do not think I need to indicate any further the

kind of problems that can cause when you have such high demands and such

tremendous need out there across Labrador.

The same thing is happening with iron ore in Labrador West. The same thing is

happening with other oil and gas developments within our Province, and now, Mr.

Speaker, we are, in Newfoundland and Labrador, at a time in our history where we

are looking at developing more non-renewable resources than we have had in the

past. We are looking at Voisey's Bay. We are looking at the Lower Churchill.

We are looking at future oil and gas developments. All of these projects are

non-renewable resources. All of these projects could provide to the people in

Newfoundland and Labrador, finances, investments, and opportunities that they do

not have today. But, we can only do that if we have the co-operation of the

understand, and feel what it is that we feel in Newfoundland and Labrador.

This is our opportunity, Madam Speaker, to make real progress. This is our

opportunity to generate our own revenues for our own people to make tremendous

progress to move forward to do things in this Province that we could not do in

previous years.

willing to co-operate, if they are willing to work with the Provinces that are

affected, like Newfoundland and Labrador, to create a new format, a new way, a

different way, a way that allows us to be able to see some of the revenues that

are generated from our own resources invested for our own people and for our own

benefits.

Madam Speaker, this is not a new issue for Newfoundland and Labrador, but it

is certainly an issue where we have reached a point in our history where we have

to certainly stand up, be counted, and launch a very serious campaign to have

equalization changed.

As I have said already, every other service, every other program, every other

piece of infrastructure that is in this Province, is affected by how

equalization is dealt with. We started that. Our Premier, when he told office,

launched a major campaign. He presented our case to the federal government. He

has presented it to all the other premiers and to the Canadian public. He did

that through a number of forums. He provided a position paper to the Senate in

Ottawa, on how we would like to see this particular issue handled, and where we

would like to see our Province and the federal government move with it.

Madam Speaker, the Senate Committee released its report on equalization just

a few days ago, and I was really pleased with some of the recommendations that I

saw in their report. Pleased on two accounts. One, that finally there is a

realization in Ottawa that this is a problem, and that it needs to be dealt

with, first of all. Secondly, there is an understanding of how it needs to be

dealt with, which is very important; because you just cannot tinker with

equalization without actually being able to fix the problem so that provinces

benefit. Every single time you change one particular aspect of the equalization

formula, it affects payments in the provinces.

I was pleased with the report of the Senate Committee and I know that we, as

a Province and as a government, has a significant role in that process. Our

Premier was in Ottawa; he presented to the Senate Committee. He outlined where

we would like to go with this, as a Province of Newfoundland and Labrador. He

made suggestions to them on how it could be changed.

I was pleased when I saw the recommendations, because the recommendations of

the Senate report certainly reflect where it is that we want to go as a

provincial government, and it is certainly supportive of the campaign that has

been ongoing in Nova Scotia and in the other Atlantic Provinces.

Madam Speaker, some of the recommendations in the report I want to outline.

One, removing the ceiling on equalization payments, and maintaining the floor

provisions in the equalization program; but restoring to a ten province

standard, which is what we have been asking for. This is one of the key pieces

to being able to develop an equalization program that is going to provide fair

returns on non-renewable resources or revenues for the Province of Newfoundland

and Labrador.

Another recommendation: provisions to protect non-renewable resource revenues

from clawbacks and an undertaking and evolution of the equalization provisions

of the Atlantic Accord to determine if they have met the intent for which they

were designed. These particular recommendations have a combination effect in

terms of where we want to go. We need to ensure that any new developments that

we have in Newfoundland and Labrador will provide significant revenues to our

government and to the people of the Province. For example, when you look at

Voisey's Bay - and I will just take some estimations because I do not have

firm figures in front of me. Some people would say that over the twenty years of

developing of the Voisey's Bay project that we could see something like $4

billion in revenues accrued to the federal government.

You would think, Madam Speaker, by the sound of my voice I have said it all

but I can tell you, I do not have it all said yet. Bear with me for another few

minutes.

A very serious note, Madam Speaker, very serious this is because the whole

future of this Province is contingent on what happens with equalization. This I

can assure you, the amount of progress that we make will be measured by how we

reform or re-devise a new equalization program. Take Voisey's Bay for example,

economists will say that over the life of the project, twenty years of the

project, over $4 billion in revenues will be accrued to the federal government

in royalties and taxes and so on - benefits, revenues, accrued to the federal

government. That is a very large sum of money and a sum of money that if it were

accruing to the provincial government, would have significant impacts upon the

economy of this Province.

MADAM SPEAKER (Hodder): Order, please!

I remind the hon. member that her time is up.

MS JONES: May I have leave to clue up my comments?

MADAM SPEAKER: Does the hon. member have leave?

SOME HON. MEMBERS: By leave.

MADAM SPEAKER: By leave.

MS JONES: We will make sure the hon. members across the way are

accommodated in this debate; let there be no fear in that.

Madam Speaker, as I was saying, the amount of royalties that accrue to the

federal government as a result of equalization from our non-renewable resources

is significantly higher, much higher, tremendously higher, than what accrues to

us as a Province. This is where we have some significant problems and we want to

ensure that we make changes. We can stand in this House each and every day and

talk about roads that need to be upgraded, that need to be paved; talk about

infrastructure, like water and sewer. Even in my own district, water and sewer

is needed in almost every community categorically from one end to the other end.

But, it is these pieces of infrastructure that we would then be able to afford,

without question, be able to afford if we were deriving more investments from

our non-renewable resources, more revenues from our non-renewable resources.

We have a responsibility, Madam Speaker, we are at a period in our history

today where we have to make significant changes if we are to make significant

progress. I can honestly tell you that this government is about making progress.

It is about serving the needs of people in our Province, the infrastructure

needs of our people, the service needs of our people and we can only do that

when we have control and have the revenues that are to be derived from the

resources that we develop. We have to develop for ourselves, Madam Speaker, and

we can only do that with the cooperation of our federal counterparts.

I hope that all members in the House today will support the resolution that

has been put forward. I am going to conclude my comments now. I will have a few

remarks at the end. I encourage all members to take

part in this debate today. I

think it is an important piece for the progress of our Province and I will

certainly look forward to the comments from other members.

Thank you, Madam Speaker.

SOME HON. MEMBERS: Hear, hear!

MADAM SPEAKER: The hon. the Member for Ferryland.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Thank you, Madam Speaker.

I, too, have some comments that I want to make, in particular, to this

resolution here. I guess one of the fundamental principles or basis upon which

we get equalization is in

article 36(2) of the 1982 Constituent Act. I will just

quote the Constituent Act, it says: "Parliament and the government of

Canada are committed to the principle of making equalization payments to ensure

that provincial governments have sufficient revenues to provide reasonably

comparable levels of public services at reasonably comparable levels of

taxation."

Madam Speaker, I advocate that we are breaking the Constituent of our country

because our Province is now in a position where we are not able to provide

reasonably comparable levels of service under reasonably comparable levels of

taxation with other provinces across this country. Six times over this past year

I have done news releases, I might add, Madam Speaker, on this topic. I have

indicated in one - on May 25, for example, I indicated that I am convinced that

Ottawa is not living up to its constitutional obligation to ensure that

Newfoundland and Labrador's revenues are comparable to that of other provinces

in terms of being able to provide a level of services.

There are at least thirty-three different provincial revenue sources of

income used in calculating this equalization formula. That compares to fiscal

capacities of individual provinces to a national standard. Now, some of the

areas that are included here, in at least thirty-three areas - for example,

personal income tax revenue. We look at our business income revenue, capital tax

revenues. We have general and miscellaneous taxes; tobacco taxes; gasoline;

diesel fuel; non-commercial, another category; commercial vehicle licenses,

another category; and it goes on and on. There are a lot of categories that deal

with - like natural resources, for example. There is a new oil revenue category,

an old oil revenue category, heavy oil revenues, mined oil revenues, and

domestically sold natural gas revenues. So, you can see how many are tied into

gas. We have exported natural gas revenues as another category. We have other

oil and gas revenues in another category. Mineral resources from asbestos -

because this is a national thing now and not every province would have access to

all these resources and revenues, but some do. Mineral resources under coal,

other mineral resources, water power rentals - there are a whole variety of

taxes, payroll taxes, you name it. Lottery revenue is another one. They are just

some of the thirty-three areas that are equated into this particular standard.

Now, the national standard against which the fiscal capacity of each province

is currently determined, it is the average per capita, basically, revenue

generating capacity of five provinces. These provinces are Ontario, Manitoba,

Saskatchewan, British Columbia and Quebec. That is commonly referred to as the

FPS, or five-province standard. Now, this five-province standard has created, I

might add, some serious problems. For example, the entitlements that were there

under the ten-province standard, when we went to the five-province standard, I

understand it was only 92 per cent of that amount. I am being told now, and it

is my understanding, that under the current five-province standard that we are

only equalized up to 80 per cent of that figure, which is not full equalization

under our equalization.

Why is that the case? Well, why do we have a five-province standard? Alberta

initially was removed from that in the beginning because Alberta's resources

seemed to weigh to one end of the scale, and to sort of balance that they

dropped, basically, the four Atlantic Provinces from the other end of the

continuum that did not have the same fiscal capacity, and they took the

remaining five provinces. Now, that is no longer relevant today, and it has cost

us money because the ten-province standard would be more applicable today.

Now, Madam Speaker, there is another problem too, another big problem with

equalization, a very major problem, and that is the cap on equalization. Now,

that cap on equalization has been there for twenty years and it has caused a

is not going to put any more money, basically, into the equalization pot, and

everybody has to share it. So, as the disparity becomes greater between us and

other parts of the country - and that is happening in numerous areas - when we

look at comparing economies and their capacities, there is no way to compensate

for that growth and difference in disparity, because there is a cap. In

2000-2001, it was lifted for one year. In the year it was lifted, our Province

got $38 million extra, but the legislation removed it for one year, which meant:

Just what would we have received over the last twenty years? If it was $38

million for that year, I know it would vary with each year, it just gives you an

indication of how many millions - it is in the hundreds of millions, not in the

tens of millions - in effect, we have lost because of a cap on equalization.

You might wonder, why do we have a cap on equalization? Well, I made

reference back in my news release just last May on this same topic, and one of

the points I made in that release with reference to the cap, I said that

changing the ceiling or the cap on equalization does not need provincial

consent. It went on without provincial consent. It was lifted in 2000-2001

without provincial consent, I might add. It was instituted unilaterally by the

federal government. It was revoked, legislation, unilaterally, and it was put

back on, basically, again the following year.

If they have the power - we do not have to wait until 2004 to make changes to

the equalization formula. That is wrong. The federal government, Paul Martin and

the Prime Minister of Canada are telling us that is not correct. In fact, not

only do we not have to wait for 2004; we do not have to wait at all. The federal

government can lift that cap. It did it the year before last with an election

coming on. With an election coming up, it lifted the cap. It put it back on

again after the election. That is not a very honourable thing to do, and the $38

million we got, we would not have gotten. What about the other nineteen years

when we faced the cap, what would we have received in that period of time?

Now, there are a variety of concerns. One of the big concerns of mine, and I

spent some time this morning to sit down and do a little bit of research. I went

back to previous Budgets and revised figures I am taking from the government's

own documents. One of the big areas of concern, the Canada Health and Social

Transfer. This government, the Government of Newfoundland and Labrador,

supported changing the equalization formula, or changed supporting the change in

transfers to this Province, I might add - not equalization - the transfers to

this Province for health, post-secondary education and social services by

need basis. They went along with that, and that was wrong. Here is the impact. I

will just tell you. I researched figures right back to 1992 this morning, from

Budget documents that I have. I have kept them since I came in, and I went back

to that point when I came to this House.

In 1994-1995, for example, we got $441 million in the programs that preceded

the Canada Health and Social Transfer. They were called Established Program

Financing and the Canada Assistance Plan or CAP. Now, I am going to take the

last year in which we converted. Now $441 million in 1994-1995; the year after

1995-1996, it was $427 million. We got a bit less. So, after that year,

1995-1996, when we changed it with the consent of this Province without a

ripple, I might add, on the waves of discontent in this Province, the government

went along with it, what did we get the next year? We got $342.5 million, a loss

of $84.5 million. In 1997-1998 we got only $280 million, a loss of $133 million.

In 1998-1999, $275 million, a loss of $152 million. In 1999-2000, $290 million,

a loss of $137 million. That is when the fuss got created. They were trying to

put some money back in the pot then; they cut so deep and so on, it had such a

devastating effect on health care, post-secondary education in our Province. The

next year, 2000-2001, $339 million. That is still $88 million less than we got

in 1995-1996. In 2001-2002, $331 million, $96 million less, and this year's

Budget we are projecting $341 million, and that would be a loss of $86 million.

You might say, what effect does all of those figures have, just in the last

seven years? In seven years, our Province is going to receive $776.5 million

less, over the seven years, than we were getting under the old plan before they

went to per capita. Divide that by seven; we are looking at $110 million a year.

MR. WALSH: (Inaudible).

MR. SULLIVAN: We have not gone back to the per capita, I might tell the

Member for Conception Bay East & Bell Island.

In 1994-1995, leading up to 1995-1996, the government, of which you are a

member, did not create a ripple. They went along with changing the federal

equalization formula. If you can, show me something in print that you did to

oppose it. We have raised it very strongly. I raised it at the time, as Leader

of the Opposition, and prior to that as Health critic, of how devastating it is

to the health care of our Province. They did not do anything about it, I might

add. They did not rectify that situation and it has cost us over $750 million

dollars in seven years, and I am not looking at accumulative effect; I am just

looking at each year, the amount we lose every single year. Add it up. I am not

doing the double counting that they do accumulatively, that government often

does. For example, in year one, if we lost $84.5 million; in year two, if we

lost $133 million, then there is an accumulative affect there, but what we lost

was over $750 million dollars. Can you imagine what we could do today in this

Province? Just imagine, with $750 million, what we could do.

That has damaged us, and that is an area they fail to balance. How can

Newfoundland and Labrador provide the same level of health care as Saskatchewan,

Alberta, Ontario, Quebec, or any province of this country, with our geography

and our population. I have been saying for some time, there has to be a certain

base established that levels the playing field, and then you can go per capita.

But you have to level the playing fields of geography and the cost to get these

services out to these areas. Something has to be done about that. I think we

have to move to correct that.

Now, we talked about - I know I only have about fifteen minutes. I know I

will get a couple of extra minutes, they indicated, to give me a little bit of

time, but -

AN HON. MEMBER: (Inaudible).

MR. SULLIVAN: I know. I am just saying I did give the initial one there,

I think, something like eighteen or twenty minutes initially when they only had

fifteen, and that person gets to speak again and I do not. We are only going to

put one other speaker up on this, I think, so if you could just bear with me. I

will only be a couple of minutes or so more.

The second part of that resolution, I want to bring to your attention. I

would like to have a comment on that. I am sure the member who moved that might

certainly tune in and, I am sure, could agree with me. The first part of that is

fairly clear, basically, that this House call upon the federal government to

replace the current fund with a fairer system that re-establishes fundamental

principles. That is probably very general, but we do not have a point with that.

The second point I would like to have a little more clarification because the

second BE IT FURTHER RESOLVED states: "that this Honourable House go on

record of supporting the Premier of Newfoundland and Labrador and Premier of

Nova Scotia in campaigning for fairness as it relates to offshore resource

royalties."

One point I am asking is: What is fairness? Has this government put forth a

plan, a certain principle, or a certain aspect that they consider fair? We have

not seen what you forth. How do we know what you are looking for? If we know

what you are looking for we can tell you if it is fair and support it.

I have a suggested amendment to replace that, that is very positive and I

hope will get support. I will just read a replacement for that, that could be

specific and I am sure hon. members of this House can support. I am going to

move an amendment to replace the second AND BE IT FURTHER RESOLVED with the

following: AND BE IT FURTHER RESOLVED that this Honourable House go on record of

supporting - they are the same words - the position that all non-renewable

resources be exempt from federal clawback under the equalization formula. I

think that is something specific that we can say. Why should they be clawing

back on non-renewable resources? I think this is something that is positive, it

is specific. No offence to the resolution but, how do we support what is

fairness? What is the government's definition of fairness, and what have they

presented? If we see something in front of us that says here is what we consider

fairness and here is what we are looking for, we could turn around and say: Yes,

we will support that.

At least the amendment I am moving is specific. It says, basically, let's

stop this clawback on non-renewable resources on equalization and let us allow

our economy of this Province to keep the revenues to grow. Don't penalize us

for showing growth, don't penalize us for showing promise and negotiating

agreements, don't penalize us because we want to become equal partners in this

country. I can tell you, we are not equal partners in this country right now

because we are not getting a fair opportunity to deliver educational programs,

health care programs and other programs. We are at a competitive disadvantage

The member who proposed it from Labrador - we need extra revenues. The

Trans-Labrador Highway is a fantastic concept. The faster it gets a reality in

this Province, I can tell you, the better. The faster we can get control of our

resources to be able to do the things we need - the Trans-Labrador Highway, and

I think across the Straits also, that was only a vision in Prince Edward Island;

a fixed link. It might be a vision but it can become a reality because what

better way for people in this Province - they could get on a road, drive the

Northern Peninsula, go across the Straits and right through Labrador into

Quebec. I cannot wait, to be honest with you, for an opportunity to be able to

travel across this Province and right on through into Labrador. Open up a whole

new area for Newfoundlanders and Labradorians -

MR. SPEAKER (Mercer): Order, please!

The member's time is up.

MR. SULLIVAN: About thirty seconds to wrap up?

MR. SPEAKER: By leave?

AN HON. MEMBER: By leave.

MR. SPEAKER: By leave.

MR. SULLIVAN: I think it is an excellent opportunity and I think the way

to do it, Mr. Speaker, is to put pressure on the federal government to

accomplish this.

I will just table this here, give the Chair a copy of this amendment, and

hopefully it will get the support of everybody here in this House so we can deal

with this fairly expeditiously here today. I think, certainly, it has the

support of this side of the House.

Thank you, Mr. Speaker.

MR. SPEAKER: The hon. the Member for Burin-Placentia West.

MS M. HODDER: Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MS M. HODDER: Mr. Speaker, I would just like to speak for a few moments

today in support of the motion brought forward by my hon. colleague the Member

for Cartwright-L'Anse au Clair.

It is a very important motion, Mr. Speaker, and we have to debate and raise

awareness and strengthen our resolve in relation to this particular issue. The

issue before us today, Mr. Speaker, is probably the most important issue facing

this Province. It is not something that we can change through a vote in this

House of Assembly, therefore our role is to put pressure on the federal

government to make change. This issue, Mr. Speaker, is the most important issue

in this Province today because it impacts on all aspects of government in this

Province. The challenge is to make it a major issue for all Canadians.

Canada is a country that was established and built on principles that all

citizens, no matter which province they live in, should have a right to similar

services and opportunities. In fact, as the motion notes, this principle is

placed right in the Constitution of this country. It is a part of what we stand

for as a nation. It is a part of what makes Canada the best country in the world

today. Therefore, Mr. Speaker, it is a part of the fabric of this country, but

it is not yet a reality. The fact is, that successive federal governments have

not kept this constitutional commitment. In fact, we are slipping further away

from this objective, one of our founding principles. It is clear, Mr. Speaker,

that the current system is not working for Newfoundland and Labrador.

As a Province, the present system traps us in a situation where we cannot get

ahead. Each year we work to provide services for the people of this Province.

The Opposition makes demands on us for more and more spending. Many legitimate

needs have to be balanced as government tries to live within the financial

realities that we face. This year we have struck a balance, and the Minister of

Finance has certainly done a really good job with the resources that are

available to us. But, Mr. Speaker, this does not lessen the importance of this

issue. We have to find a way to deal with this problem, with the current system,

if we are ever going to realize our full potential as a province within the

Canadian Confederation.

Mr. Speaker, it should be clear to all Canadians that we do not want to be

trapped in a position of dependency. The current situation is unacceptable to us

as a Province. We want a new approach which allows us to be contributors to the

rest of Canada. We have much potential in this Province and we should not be

perpetually looking to the federal government for a major portion of our

revenue. Mr. Speaker, we have the potential here to be a stronger Province. We

have the potential to help make Canada an even stronger nation. It is time for

us, as a country, to reestablish the basic principles that this country was

founded on.

Mr. Speaker, as I said in the beginning, this issue is vital to our future.

We are entering a period of resource development in this Province which may be

the best chance we have had in a long time to change our position in relation to

the rest of Canada. This will be our chance, Mr. Speaker, to assert ourselves

and realize our potential to break what some people have called the cycle of

dependency. We will not break that cycle of dependency unless there are changes

at the federal level, unless there is a new approach.

Mr. Speaker, the way things are now, most of the benefits from new resource

development goes to the federal government rather than to this Province. Some

have even said that there is no incentive to go ahead with development because

the benefits for this Province are so small. This is why the system has to be

changed, Mr. Speaker.

establish a Royal Commission on Renewing and Strengthening Our Place in Canada.

I think this Commission and the issue of equalization are very closely linked.

Although the Royal Commission will have a broad mandate, I think the issue of

equalization must be dealt with by this Commission.

Also, Mr. Speaker, although the terms of reference have not yet been

announced, it has been stated that the Commission's mandate will be to involve

the people of the Province in seeking a broad consensus to position ourselves in

the global community, to renew our relationship within Canada, to complete a

critical analysis of our strengths and weaknesses, and to provide direction for

the decade to come.

The Royal Commission, Mr. Speaker, will address, among other things, who we

were when we joined Canada in 1949; how we have changed over the past five

decades; our relations with other governments; our contribution as a society,

and where we see ourselves in the future. The Commission will have a broad

mandate to undertake necessary research and conduct public consultations in this

Province.

Mr. Speaker, I also sincerely believe that this Royal Commission would have

the effect of placing the issues of this Province before the rest of Canada in a

way that has never been done before. We have to place equalization on the

national agenda. We have to make our issues, issues for all Canadians.

I am hopefully that this Royal Commission will go along way in not only

causing us to re-examine how we see ourselves, but also, Mr. Speaker, also

require others to re-examine how they see us. I am hopefully this Commission

will enable us to make a stronger case on policy issues such as equalization.

Mr. Speaker, as we enter this debate and this struggle to get a better

arrangement on equalization, we should not be naive about the challenges which

are before us. We should be aware of the mindset which is present in the rest of

Canada and has to be dealt with. We are dealing with a mindset which allowed the

former Progressive Conservative Premier of Ontario to equate equalization to

welfare. We are up against members of the national press who do not understand

this Province and view everything from a Canadian perspective. So, there are

many challenges ahead of us on this issue. We have to change minds and we have

to change the way people see us.

Mr. Speaker, the challenges ahead are daunting but there is some evidence

that when we are persistent and make our case, we can change people's minds.

This is evident in the recently released report of the Senate Committee on

National Finance. The Premier made a presentation to this Committee last

October. He made a strong case that the Province should be the principal

beneficiary of its offshore resource revenues as committed to under the Atlantic

Accord. The recommendations in the report which came out last week recognize

that there are flaws in the current equalization program that need to be fixed.

Several of the recommendations support things the Province has been calling for.

This is certainly an encouraging sign. It is a sign that we have made progress

on this issue, Mr. Speaker.

In conclusion, Mr. Speaker, this is a very important motion.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The Chair is having great difficulty in hearing the member.

MS M. HODDER: It is okay, Mr. Speaker, I am about to conclude.

I will say, in conclusion, that this is a very important motion. It is a part

of this government's overall effort to bring about change in this area, and

this motion deserves the support of all members in this hon. House.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Before proceeding, the Chair has considered the amendment as

put forward by the Member for Ferryland, and we find the amendment to be in

order.

The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

I am pleased today to rise on this important debate here in the House of

Assembly on the motion by the Member for Cartwright-L'Anse au Clair in

relation to the equalization payment system. We have, as part of the

Constitution of Canada, a provision that there shall be an equalization formula

in place, an equalization program to balance out the interests of the various

provinces and to provide, in some measure, for provincial equity in this

country. The idea is very clear, that no citizen of Canada should have a lesser

level of services because of the place in Canada where they live, and the tax

burden on people across this country should be comparable. That is clearly not

the case, Mr. Speaker. It is clearly not the case in this Province where we have

consistently suffered from the necessity of the higher taxes, or the highest tax

rate in Canada some say, the highest tax rate for income tax, a higher level of

taxation for other items, with some exceptions, and I will get to them in a

moment. Exceptions in the area of corporate taxation, in the area of mineral

taxation, in the area of royalties, were very low, comparatively speaking, but

in the area of personal income tax and other burdens on individuals we are on

the high end.

The equalization formula is supposed to even things out, Mr. Speaker. Well,

there are a number of very serious problems with that formula, as has been

brought to the attention of the public in this Province a number of times and

also nationally by people from this Province, including myself. Perhaps the best

way to explain, Mr. Speaker, the effects of the equalization program is to look

at the percentage; and the importance of that program is to look at the

percentage of the equalization monies as a percentage of provincial own source

revenues.

You will see, Mr. Speaker, from a table included in the recent Senate report

on equalization, that Newfoundland and Labrador is the Province whose

equalization contributions are the highest as a percentage of its own source

revenue. In Newfoundland and Labrador, up until 1997-1998, the last year

included in this report, the equalization payments were 49 per cent of the

Province's own source revenues. That compares with numbers for other provinces

that are quite low by comparison.

The equalization formula, Mr. Speaker, resulted in a contribution to this

Province of great significance as a result of the way that it has operated here

in Newfoundland and Labrador. We need to recognize its importance. In fact, it

is vital to this Province that that formula work, and work effectively, to

ensure that we do have the ability to provide for our own citizens in terms of

programs and make sure that because you live in Newfoundland and Labrador, you

do not miss out.

Mr. Speaker, now with Newfoundland and Labrador at around 49 per cent, we see

other provinces such as Saskatchewan, which sometimes is referred to as a

have-not province because they are on the lower end of some of the indicators,

but they receive, as a percentage of own source revenue, about 3.5 per cent in

the latest year for which it was reported. They received 3.5 per cent; the

Province of Quebec about 10 per cent; Nova Scotia 37 per cent; Prince Edward

Island 39 per cent; and Newfoundland 49 per cent. It is more important to this

Province than any other province in the country, that we have an equalization

formula that works, and works well for Newfoundland and Labrador.

One of the difficulties with the formula is that there was an upper, and

there still is, a cap or a ceiling on that formula. That results in a loss to

this Province of funds. In fact, Mr. Speaker, if there had been no cap since

1982, when the most recent equalization plan was put in place, this Province

would have received an additional $800 million over that twenty year period.

That is a significant number, Mr. Speaker, when you look at the needs that we

have in this Province to provide for services, to pay our debt and our interest

on our debt, and to look after the needs of this Province, and to try and be

innovative and creative in sorting out some of the inequities within our

Province between people.

To use an example though, Mr. Speaker, of the concerns that a lot of people

have about the equalization formula, we have to look at the clawback. The

clawback is a situation where, when we earn money, new money from tax revenues

in this Province, that sum is just taken away from what we would otherwise

receive in equalization payments. So we have a net benefit of zero if we are

losing dollar for dollar on revenues that we earn in this Province. Let me give

you the biggest example that I know of, and that is the proposals and

projections for the Voisey's Bay project put forth by Inco. These figures are

not mine. These are figures that were produced by Inco as a result of a request

from the Federal Environmental Assessment Panel looking into the Voisey's Bay

project and they gave an economic impact statement based on a fiscal model. They

were looking at the employment impacts of the Voisey's Bay project, which they

projected at 28,000 person years of employment.

For the total project they also looked at the provincial and federal treasury

impacts, and the treasury impacts are what money the Government of Newfoundland

taxes; whether they be corporate income tax, mining taxes, personal income taxes

from the employees working there, sales taxes, EI premiums, et cetera. What we

$4.9 billion over the life of the project, and the Newfoundland and Labrador

Government would have a net revenue of $417 million. Four hundred and seventeen

million for Newfoundland and Labrador and $4.9 billion for the Government of

Canada; more than ten times as much. That is on a project based solely in this

Province using a mineral resource that is wholly owned by the people of this

Province, in the ground in Newfoundland and Labrador. There is no dispute about

ownership; not like offshore oil and gas. This is a provincial resource mined

and processed in the Province of Newfoundland and Labrador, and the net benefits

to the people of this Province through the tax system are $417 million, and to

Mr. Speaker, that stark figure, that stark realization, is enough to make you

wonder how it is we can ever get ahead in this Province, within this country,

ago, three years ago now, and I raised it again and again because it is the

starkest example that there is as to how the equalization formula and the

clawback provisions work against this Province. Equalization is only part of the

problem here, and I have to recognize that. Equalization causes about $1.2

billion worth of inequality. If you took the equalization part of it out of this

formula, the provincial treasury revenues would be $1.5 billion and the federal

would be $3.7 billion. So, we do have a deficiency in terms of the level and

type of royalties that we extract, and taxes that we extract from mineral

development.

The minister from Labrador is having some trouble with his earpiece there.

Maybe it is the volume that is affecting him, but the minister for Labrador, the

Member for Lake Melville, will know that in Labrador West the taxation system

for this Province is terrible. It is miserable. It goes back to 1938 when the

Commission of Government was happy enough to give a mineral lease and a

provision that guaranteed that they did not have to pay any corporate income

tax, and our mineral tax on the minerals from Labrador. So, we get less.

It is very interesting, Mr. Speaker, when you look at the Budget. Look at our

Budget and our Estimates and you see that the whole of resource revenues in this

Province, mineral tax and royalties, amounts to about $50 million, and our

provincial revenues from lottery tickets and lottery sales alone is in excess of

$100 million. So, we have some problems by our own but when we see these kinds

of numbers that are affected by the equalization formula we know that we have a

serious problem and it has to be changed.

Mr. Speaker, we do have support outside the Province for changes to these

formulas. The New Democratic Party of Canada at its convention in August of

1999, in Ottawa, supported a resolution brought forward by St. John's East

Federal Riding Association. I spoke to that resolution in Ottawa and we got

unanimous support for a resolution to review and change the equalization formula

to make it fairer for economic development in places like Newfoundland and

Labrador. So, we do have support outside this Province for significant changes

in the equalization formula.

We now have support from the Senate Committee which its report was issued the

other day. The Senate Standing Committee on National Finance, chaired by Senator

Lowell Murray, issued a report recently which supported a number of changes to

the equalization formula, some of which would benefit significantly this

Province. We have to move forward, Mr. Speaker, to bring about significant

changes to the equalization formula for the benefit of the people of

Newfoundland and Labrador.

So, I support the first part of the resolution wholeheartedly, Mr. Speaker. I

know, sometimes, there are difficulties in private member's resolutions,

especially where members phrase things in a certain way to try and make it

difficult for other people to support them, or have them vague enough that it is

difficult to know what exactly you are supporting.

I have a bit of a problem with the second part of the resolve: House go on

record of supporting the Premier of Newfoundland and Labrador and Premier of

Nova Scotia in campaigning for fairness as it relates to offshore resource

royalties. I suppose, Mr. Speaker, to the extent that there needs to be a

campaign, the offshore royalties, the royalties are set by this Province. We are

the ones who set the royalties. I suppose the mover means that the clawback as

it relates to them, or something like that. It is a little bit vague here.

I have a serious problem with offshore royalties in this Province, the

formulas that are used, how they are devised, the fact that there was no public

consultation or discussion before agreements were put in place, and all of those

things that really have to be changed. Obviously, I suppose what the mover means

is that we want a greater level of fairness in terms of the clawback so that we

do not get nailed on collecting revenues on one hand and giving them back to

Ottawa with the other. That is something that I think we have to - having them

(inaudible). That is something that I can support.

I know we have significant differences between the Atlantic Accord as it

affects Newfoundland and Labrador, and Nova Scotia. We have formulas for our

royalties that prevent us from taking full advantage of the Atlantic Accord

because we are actually letting the developers of offshore resources of this

Province recoup all their capital costs before our royalty system properly kicks

in. The ten- or twelve-year formula that is spelled out in the Atlantic Accord

will be gone before we get any significant revenues from the offshore oil

development.

There are serious problem with the way we do things as well, and the way we

have done things in our own offshore; but, with respect to equalization, I have

to support the resolution and to support the amendment which is a little bit

more clear, because the amendment says -

MR. SPEAKER: Order, please!

The hon. member's time is now up.

MR. HARRIS: By leave, Mr. Speaker, to clue up?

MR. SPEAKER: Does the member have leave?

SOME HON. MEMBERS: By leave.

MR. SPEAKER: By leave.

MR. HARRIS: I just need a minute to refer to the amendment which

recognizes that all non-renewable resource revenues be exempt from the federal

clawback under our equalization formula. That would provide us with a measure of

protection so that we could go ahead and have a proper regime to recover from

our resources the proper level of royalties and be able to keep them for

ourselves, Mr. Speaker, so that we can come to the point that we need to get to

where our revenues are equal to our ability to pay for our system, to pay for

our public institutions, to pay properly for our health care system, to provide

for our share of a national pharmacare system, which I believe we should have,

and to do other things that need to be done to bring about greater equalization

within the Province of Newfoundland and Labrador, as well as across the country.

The equalization formula and how it operates does not do a proper job of

ensuring that we have regional equity, or interprovincial equity, in the

country. That is a very basic point about Confederation, that we are sadly

lacking from right now. We need to see a change and I want to be on record,

along with all other members of the House, I hope, in supporting a major effort

to bring about changes to the equalization formula so it better serves the

people of Newfoundland and Labrador.

Thank you, Mr. Speaker.

MR. SPEAKER (Snow): The hon. the Opposition House Leader.

SOME HON. MEMBERS: Hear, hear!

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

Mr. Speaker, I want to take the opportunity to participate in the debate, the

private member's resolution that has been put forward by my hon. colleague,

related to the serious inequities as we deal with the imbalance, I guess, is the

best way to put it, the serious inequities between the federal government and

the provincial government.

My colleague from Ferryland has articulated very clearly, I believe, the

financial consequences on the one hand but also, in a very articulate and

forthright manner, what has transpired in the last seven to eight years in

particular as it relates to transfers from this Province under the Canada Health

and Social Transfer Act, and what we have lost as a result of that imbalance

that was perpetrated and complied with, I might add, by former members of the

federal government, including the former Premier and former federal Fisheries

Minister.

I am not going to revisit that ground because it has already been visited

and, in a way, I think that does more than justice to it; only to say, as my

colleague has pointed out, that the amount of money alone, $776.5 million less

than what we should have been receiving, and that has provided, obviously, some

serious, serious challenges to everybody in the Province and certainly the

government. That is acknowledged, and I want to be on record as acknowledging

that.

I also note that with respect to the issue of equalization, that in our own

Legislature, in terms of treating opportunities fairly and squarely in dealing

with benefits for the people of the Province, the government has raised the

notion that we are not receiving our just reward, or the benefits accruing from

the Atlantic Accord have not been forthcoming. It begs this question, and the

Minister of Mines and Energy, who is the custodian over that Accord on behalf of

the government and the people of the Province, it begs the question that, before

any development - offshore development - can go ahead, there is a process by

which it must take place.

First of all, the proponent puts forward a plan. Hearings are conducted. The

C-NOPB - the Canada-Newfoundland Offshore Petroleum Board - makes its

recommendations. Those recommendations go to two ministers: the federal minister

responsible for energy or natural resources, whoever it may be at the time in

the federal Cabinet, and the Minister of Mines and Energy in this Province.

Before any development can go ahead, whether that be Hibernia, whether that be

Terra Nova, whether it be White Rose, Ben Nevis, or any other future development

in natural gas, that minister's signature must be on the development scheme.

When he receives, or the government receives, through him, the proponent's

application that has been vetted through the process, through the C-NOPB, the

minister and the government can say they can reject all of the recommendations,

some of the recommendations, accept all of the recommendations or only some of

the recommendations. He has the power, and the government has the power, to say

that this development can only go ahead under the following conditions.

It cannot go ahead in our absence. Our signature must be on the document. It

must be, along with the federal minister's signature. You cannot stand up

necessarily on the one hand and complain about benefits from the Atlantic Accord

have not been accruing to the Province as they should have been, when you have

participated in allowing that to happen. That is the facts of the situation as

they are. Those are not my opinions. Those are not the opinions of any one

particular person, group, or agency in the Province. That is the way it is.

The legislation on development schemes and plans demand, require, it is

mandatory, for the Province to sign off. If the government of the day, the

Cabinet, the Lieutenant-Governor in Council, through the Minister of Mines and

Energy, do not sign off on a development scheme, that project does not go ahead.

That is the way it works.

On the one hand, we are talking about fairness and correcting inequities. We

complain on the one hand, government has, that we are not getting the benefits

accrued or should be accruing to the Province, but yet, it is that very

government that signed off on those development schemes. No question about it,

the former former Premier.

PREMIER GRIMES: (Inaudible).

MR. E. BYRNE: The Premier has asked, would I permit an interjection. If

the Premier can assure me that his interjection is going to add to the debate in

a positive way, then absolutely. I will certainly permit an interjection.

MR. SPEAKER: The hon. the Premier.

PREMIER GRIMES: Thank you, Mr. Speaker.

I just wanted, for further clarity, to the point - what the hon. member says

is exactly correct with respect to the sign-off by the two governments in order

for the project to proceed. The issue that is being addressed here today with

respect to the unfairness of the Accord, is that once the project proceeds with

the conditions that are attached by the federal and provincial governments -

because with White Rose, for example, if it proceeds, there were thirty-eight

conditions agreed to by the two governments.

What we are talking about here in the Accord though is that once the project

does proceed and revenues from the royalty stream, which are not part of that

approval process, that does not get approved in that process. The development

plan gets approved by the two governments. The Accord says, when the money

starts to flow, because the oil is actually produced. Then the inequity comes in

where we were supposed to be the principal beneficiaries, but the Accord itself

needs to be amended because we only get to keep thirty cents on a dollar,

seventy cents goes back to the federal government and then they clawback part of

the thirty cents. So that is not covered and that is not what is signed-off by

the governments when they agree to a development plan. So there are two

different parts and this motion today, as I understand it, is dealing with the

inequity of the cash flows from the revenues. What the hon. member said about

the approvals is 100 per cent correct in terms of letting it proceed in a

certain fashion in the first instances.

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

MR. E. BYRNE: Fair enough, the Premier wanted to lay a point of view on

the table. To a large degree, there is some merit in what the Premier has said.

However, knowing the Atlantic Accord as I do, I am not professing to be the

ultimate authority on what is contained in its document, but I do know what is

contained in this document. I would not say any better than anybody else but

certainly, I will not go as far to say that any worse than anybody else either.

I recall, as a former critic for Mines and Energy, when the Terra Nova

development went ahead, for example. We sought intervener status and, through

myself, the caucus made at the time a presentation to the board in terms of what

the benefits should be. One of the big problems that we had at the time, and we

predicted at the time, was that we traded off significant benefits to the

Province. We said the government has traded off significant benefits to the

Province because they have opted for more royalties and have lost the boat when

it came to jobs and technology transfer. We felt at the time, and we said it in

writing, that the significant loss at that time would be enormous. It has proven

to be so.

For example, all of the procurement that was done on that project, and by

that I mean, whether it is a roll of toilet paper, materials needed for the

structure that was built outside the Province - all of that was done, all of

that procurement - from a faucet required on a sink - all of that was done

outside this Province. When it came to technology transfer and building a

heightened educational workforce or a heightened trained workforce, where did

the engineering work take place? It took place in Leatherhead, England. That was

done because the provincial government let it be done.

Document details

CollectionNewfoundland and Labrador — Debates (Hansard)
Citation2002-03-27
Typehansard
Volume / chapter2002-03-27
Languageen
Formathtm
SourcePROVINCIAL
Identifier95567fa02d43e35ed371c120fc46e2ca552a34cf

Source file is stored in the law ingest library (htm).