Newfoundland and Labrador Hansard — Oral Questions; Statements by Ministers — 25 November 2002 (44th General Assembly, 4th Session)

2002-11-25

Newfoundland and Labrador — Debates (Hansard)

Newfoundland and Labrador Hansard — Oral Questions; Statements by Ministers — 25 November 2002 (44th General Assembly, 4th Session)

2002-11-25

Newfoundland and Labrador — Debates (Hansard)

November 25. 2002 HOUSE OF ASSEMBLY

PROCEEDINGS Vol. XLIV No. 34

The House met at 1:30 p.m.

MR. SPEAKER (Snow): Order, please!

On November 20, the hon. Government House Leader raised a point of order

concerning comments made by the hon. the Leader of the Opposition during Oral

Question Period on November 19.

Before getting into the details of the point of order, the Chair would like

to remind all hon. members of the importance of conducting the proceedings in

this or any other Parliament in such a way as to respect the integrity of all

members. Without such respect, the proceedings descend into disorder and the

work of the House becomes secondary to wrangling and disputes. To quote Marleau

and Montpetit on page 525: "...the use of offensive, (or)

provocative...language in the House is strictly forbidden." "Personal

attacks, insults...are not in order."

While the acceptability of language depends on the context, there are certain

prohibitions which are fairly well established. These can be found in 481 of Beauchesne's

6th Edition.

A member must not, "(

e) impute bad motives or motives different from

those acknowledged by a Member or (

f) make a personal charge against a

Member."

It has been consistently ruled in the House that language must be temperate.

I think this is the key to the whole matter.

It is also, however, a requirement when raising points of order that members

bring such matters to the attention of the House immediately. In the case of

something said during Oral Question Period, of course, it should be raised at

the appropriate time, immediately after the proceedings are over.

However, it is perhaps a good opportunity to remind all members of the

necessity of keeping their language temperate and of respecting the integrity of

one's colleagues and the dignity of the House.

In respect of the expression raised by the hon. the Government House Leader,

the expression, "Shame on you," the Chair has done some research and

has found that it is one that is frequently used in various parliaments.

However, the expression, "less than honest", is in the category of

imputing bad motives and, when applied to an individual, is unacceptable and

tends to cause disorder.

Two points that I want to make: One is, that from now on all points of order

will have to be raised when they arise or in the case of Oral Questions, of

course, they should be raised at the appropriate time.

The Chair did take the point of order under advisement and, in the view of

the Chair, calling a member less than honest is unparliamentary and the Chair

now invites the hon. Leader to withdraw that comment.

The hon. the Leader of the Opposition.

MR. WILLIAMS: Thank you, Mr. Speaker.

I graciously accept your ruling, and I withdraw my remark that the hon.

gentleman was anything less than honest.

Thank you, Mr. Speaker.

MR. SPEAKER: The Chair would like to take this opportunity as well to

invite to the House today fifteen adult education students from the school,

Skill for Success on Military Road. They are accompanied by their instructors:

Bernadette Galgay, Agnes Murphy and Anne Buckle, Director.

SOME HON. MEMBERS: Hear, hear!

Statements by Members

MR. SPEAKER: The hon. the Member for Humber East.

MR. MERCER: Thank you, Mr. Speaker.

I rise today to inform all hon. members that Humber Valley Resort has

received an International, Mercedes-Benz award as the best Canadian resort

development in 2002.

This award was recently accepted by local entrepreneur, Brian Dobbin, at an

awards ceremony held at the Royal Ascot Pavilion in London, England.

Mr. Dobbin and his partner, Mr. Rex Phillpott of Cottles Island, received the

award for the resort that they are currently constructing in Humber East on the

north shore of Deer Lake just east of Strawberry Hill. A resort which will

consist of some 350 luxurious chalets and a championship golf course.

The Mercedes-Benz awards are presented annually to the top international

property developers and property marketing companies in the world. This year

over 1,000 companies were nominated worldwide, including eight from Canada with

Humber Valley Resort being the only Canadian winner and the only recipient to

receive the prestigious five star platinum commendation.

Mr. Speaker, this award speaks highly of the high regard that the Humber

Valley Resort development and its principals have on the international scene and

the ability of Newfoundlanders and Labradorians to successfully compete in

International markets.

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

congratulating Mr. Brian Dobbin and Mr. Rex Phillpott of Humber Valley Resorts

on receiving this prestigious award.

Thank you.

SOME HON. MEMBERS: Hear, hear!

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

MR. HUNTER: Thank you, Mr. Speaker.

I rise today to ask the House to join with me to send special congratulations

and best wishes to the organizing committee, supporters and the senior hockey

team, the Cataracts of Grand Falls- Windsor.

Mr. Speaker, the Cataracts are back for the 2002 and 2003 season in senior

hockey with the Labatt's Western Senior Hockey League.

Mr. Speaker, the Cataracts have not played Provincial Senior Hockey since

1984-1985 season, but with the help of many people and sponsors, too many to

mention, we now have a very energetic group of players from Badger, Bishop's

Falls, Gander and Lewisporte.

The Cataracts are showing great skills in hockey and I know the spectators

watching this team will not be disappointed; they have already won three out of

four games played. Saturday past, I had the honour of participating in the start

of the first game on home ice at the Windsor Stadium. The Cataracts played to a

full house both on Saturday and Sunday.

Mr. Speaker, the supporters of the Cataracts will be shouting: Go Cats Go for

some great hockey. I say thanks to the team and the organizing committee.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Carbonear-Harbour Grace.

SOME HON. MEMBERS: Hear, hear!

MR. SWEENEY: Thank you, Mr. Speaker.

I would like to congratulate Mr. Ches Penney, a native of Carbonear, on being

named Atlantic Entrepreneur of the Year for 2002. Mr. Penney is chairman and

founder of The Penney Group of Companies which has blossomed from a small

owner-managed road building company in 1971, to a holding group with more than

sixty companies in four provinces. The Penney Group of Companies employs almost

3,000 people in a multitude of industries, including: construction, real estate,

automotive, seafood processing, off-shore oil and gas services, ship repair,

steel fabrication and marine terminal services.

Mr. Penney is a well-respected businessman in the community who builds long

lasting relationships with his colleagues and the business community based on

trust and honesty. He also supports a number of non-profit and charitable local

pursuits. His tenacity, sense of commitment and infectious spirit provide

encouragement for our Province's entrepreneurs.

I think it is fitting that we acknowledge Mr. Penney's contribution to

entrepreneurship in Newfoundland and Labrador and the contributions of all

entrepreneurs within the Province. Also, I would like to recognize the Atlantic

Canada Opportunities Agency, Atlantic Progress magazine and Air Canada

Jazz who sponsored the Entrepreneur of the Year program in the Atlantic region.

Mr. Speaker, I ask all members to join with me in expressing congratulations

to Mr. Penney and all who made the awards possible.

Thank you.

SOME HON. MEMBERS: Hear, hear!

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

MR. HARRIS: Thank you, Mr. Speaker.

I rise today to acknowledge the 30 th anniversary of the St. John's

Status of Women Council. Since 1972, the St. John's Status of Women Council

have been working hard to advance the social and economic equality of women in

our Province, and all members of the council, past and present, are to be

commended for the excellent work they have done.

There were a series of events this past week in honour of the anniversary,

including a gala dinner on Saturday evening, which I had the pleasure of

attending. Unfortunately, there were not other members of the House there to

enjoy the historic event and to hear the speeches and comments of so many

activist women, both past and present, who shared stories of their struggles and

achievements.

Wendy Williams, feminist activist, long-term council member, and past

President of the Provincial Advisory Council on the Status of Women, was here

from British Columbia to give the keynote address. We want to thank Wendy and

all the women, past and present, who worked so diligently in furthering the

cause of women.

Over the past thirty years, the St. John's Status of Women Council has been

lobbying on behalf of women, challenging and changing inequalities that women

face, and advancing equality in the Province. They established the first women's

centre in Canada to be owned in their own building and were also the driving

force behind the development of women's shelters in this Province and started

the Iris Kirby House.

While much has been accomplished, there is much work to be done. The St. John's

Status of Women Council will continue to play a leading and critical role in

addressing women's issues, shaping government policy and furthering women's

equality in Newfoundland and Labrador.

MR. SPEAKER: The hon. the Member for Bay of Islands.

SOME HON. MEMBERS: Hear, hear!

MR. JOYCE: Mr. Speaker, I would like to take this opportunity to

congratulate the McIvers Community Improvement Club, better known as the MCIC,

on its 30 th anniversary which I had the pleasure of attending on

October 26, 2002. The Club was organized in 1972 by a group of women from the

town and, at present, it has twenty-nine active members. As I said at their 30 th

anniversary dinner, they wanted to do it right so there were no men allowed and,

to this date, this policy still stands.

The McIvers Community Improvement Club is a beneficial organization which

provides an extraordinary amount of support to the community as a whole.

Initially, the Club was created to help raise funds for persons who had to

travel for medical reasons; however, today it has expanded its efforts and

provides aid to several groups within the community. The Club's priorities now

include: providing aid for people who travel for medial reasons; helping the

youth of McIvers; donating to the church; assisting the local Fire Department;

and supporting the Town Council. All monies that are donated by the Club are

raised by a weekly bingo game which is held at the Community Hall.

The McIvers Community Improvement Club has, for thirty years, shown

tremendous spirit and unwavering dedication to the Town of McIvers. It is

estimated that this group, totally volunteers, raised over $130,000 to help and

improve their Town and its residents.

Mr. Speaker, I would ask all members of the House to join me in extending

congratulations to this remarkable group of women who have each been, and who

will continue to be, extraordinary examples of community leaders.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

Statements by Ministers

MR. SPEAKER: The hon. the Minister of Tourism, Culture and Recreation.

SOME HON. MEMBERS: Hear, hear!

MS BETTNEY: Thank you, Mr. Speaker.

I rise today to inform my hon. colleagues about the cultural policy announced

on Saturday that will help preserve and enhance the culture of Newfoundland and

Labrador. This policy focuses on both the tangible and intangible heritage of

the people of this Province. It includes the activities of artists and art

professionals, heritage professionals and volunteers, and Aboriginal and

European-based tradition bearers.

Our culture is the heart of our identity. We are very much defined by the

marine environment in which we live. Our culture includes our past and present

day peoples, including their art forms expressed in music, dance, theatre,

literary works and film. We want to preserve, protect and strengthen our culture

by valuing the legacy created by our predecessors and contemporary professionals

alike. Our Province has made, and continues to make, significant contributions

to the cultural fabric of Canada and the world.

The main component of our cultural policy is a set of guiding principles

which will direct government in setting cultural goals and developing

strategies, initiatives and programs. These principles focus on all aspects of

culture from its inherent value and quality of life, its socioeconomic value,

linguistic diversity and peer assessment. They will allow us to clearly

articulate priorities on cultural matters to our federal partners, and help us

work collaboratively to identify priorities in existing programs. In drafting

the policy, we reviewed international models of cultural policy from countries

such as Ireland, Scotland, Denmark and Australia, and identified the best

practices within each.

Based on these guiding principles, I am proud to say that we have one of the

most progressive cultural policies in Canada, if not in North America.

Mr. Speaker, this policy is the result of efforts by several stakeholders in

the cultural community. The Association of Cultural Industries, the Association

of Heritage Industries, the working committee on cultural policy, and, of

course, several staff in the Department of Tourism, Culture and Recreation

contributed to its development.

The creation of this policy represents Phase I of the Cultural Policy

Development Plan. It will form the basis for the Strategic Cultural Plan. Phase

II of the plan will outline the goals, objectives and key actions which flow

from the guiding principles announced last weekend.

Mr. Speaker, we take great pride in the cultural identity that binds us as

Newfoundlanders and Labradorians. We recognize the social and economic

contributions culture makes to our Province. It is important that we benefit

from the uniqueness that is ours, and future generations should be able to do

the same. We, as a government, share this obligation with the people of our

Province. We support cultural products and activities targeted to our own

residents, as well as national and international audiences. Adopting this

cultural policy visibly demonstrates that we are meeting our commitment to

nurture and preserve and enhance our Province's culture.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Bonavista South.

SOME HON. MEMBERS: Hear, hear!

MR. FITZGERALD: Thank you, Mr. Speaker.

I would like to thank the minister for an advance copy of her Ministerial

Statement, and I say to the minister, you are right, we do have a very unique

culture and heritage here in this Province. In fact, I believe we are the envy

of everybody who comes to visit.

Mr. Speaker, culture policies are good, guiding principles are good, but what

I am hearing from the community out there - and it was only, in fact, driving

into work this morning, and the message was loud and clear - while we need good

policy and while we need direction, the comment was: Show us the money. Where is

the commitment to direct funding so that we might be able to implement those

policies and those guidelines as put forward by the minister?

Mr. Speaker, I understand that the CIDA agreement expires in March of 2003,

which is the funding that is provided to the community today, and they are

wondering where funding is going to come from as of March, 2003, when the

funding of today ends.

Mr. Speaker, I know of one incident in my district, in Bonavista, where we

have the Bridge House which was built prior to 1814, and the historical

association in Bonavista has gone to this minister and asked her to allow this

structure to fit into some of the guidelines of funding that is administered by

her department. She is saying: I am sorry, but it doesn't fit into those

guidelines.

That is hard to believe, that the only wooden structure of pre-merchant days,

dating back prior to 1814, does not fit into a heritage structure and a heritage

fund as put forward by the minister. Minister, yes, we need guidelines. Yes, we

need principles, we need direction, but we also need money and commitment in

order to make it a success.

SOME HON. MEMBERS: Hear, hear!

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

MR. COLLINS: Thank you, Mr. Speaker.

Again, I thank the minister for an advance copy of her statement. As the

previous speaker has mentioned, Mr. Speaker, it is going to take money for this

to happen. It is fine to have all the principles in place but I think even

according to ACI President Donna Butt, she talks about the need for dollars to

make sure this can be carried out.

I have to say, Mr. Speaker, that our culture and our heritage are something

that the people of this Province are very proud of, and that is reflected in our

music and in our songs. I would just like to give one example of that, if I may.

If you go to any place in this world and meet people from other provinces in

Canada, and if they happen to have been there four or five years, and you ask

them where they are from, then where they have been living for the last four or

five years is the answer you get. But, if you talk to anyone from Newfoundland

and Labrador, in another part of this country or in other countries, and ask

them where they are from, even if they were there fifty years, the answer you

are likely to get -

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: - the answer you are likely to get is: I have been living

here for the last fifty years but I am from Newfoundland and Labrador.

I think that speaks volumes about the affection and the pride that people of

this Province take in being from this Province.

Thank you.

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

SOME HON. MEMBERS: Hear, hear!

MS FOOTE: Mr. Speaker, I am pleased to inform the House of Assembly that

the Department of Education has received national and international recognition

for its efforts to improve the achievement levels of the students of

Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MS FOOTE: What has caught the attention of the Council of Ministers in

Education, Canada, and the Organization for Economic Co-operation and

Development (OECD) is this Province's Criterion Referenced Tests.

Mr. Speaker, in 1995, the Department of Education began to assess primary

language arts performance using a form of provincial assessment called Criterion

Referenced Tests, otherwise known as CRTs.

When our primary children were first tested in 1995, our students had shown

some improvement over earlier achievement levels but there was significant work

to do. We recognized this work had to begin in the primary grades. Furthermore,

we felt that we needed to expand the program and began using these assessment

tests on students in Grade 6 and Grade 9, for both language arts and math. And,

because of our focus on literacy and our efforts to ensure students get a good

start in their school years, we are now testing Grade 3 students every year.

I was pleased to join the Premier last month to report on the tremendous

achievement levels we have experienced with the most recent results of the CRTs

for our primary students in language arts.

The results illustrate significant learning gains by our primary children and

show that many more students are well prepared to enter elementary school. For

example: Approximately 90 per cent of the Grade 3 students across the Province

are writing at an acceptable level when they leave primary school. This is

significant, Mr. Speaker, when you consider that our system is an inclusive one.

More students are writing at a level that exceeds what is required when they go

to Grade 4; over one-third of our students are entering elementary school with

exemplary writing skills; and 80 per cent of our students are able to read and

understand stories, books and other reading materials at the required level for

Grade 4 entry.

Mr. Speaker, we have made such significant improvements in the reading and

writing skills of our primary students because we take these results and discuss

them with our school boards, school principals and teachers at the district and

school levels and, most importantly, with our students.

We provide meaningful feedback to our schools and teachers to identify the

strengths and weaknesses of our students, which helps them improve achievement

levels.

Mr. Speaker, the Council of Ministers of Education, Canada, has chosen this

Province as the national representative in an international study being

conducted by the Organization for Economic Co-operation and Development - an

international organization of thirty member countries which helps governments

with the economic and social challenges of a globalized economy. The study, What

Works in Innovation in Education, is looking at best practices in enhanced

learning through assessment.

I am pleased to inform this House that Marian Fushell, the Department of

Education's director of testing, certification and evaluation, has been named

Canada's national expert on this project.

SOME HON. MEMBERS: Hear, hear!

MS FOOTE: Ms Fushell recently attended the OECD national experts meeting

in France where our case study on the Criterion Referenced Tests was presented.

I am pleased that our department's expertise in testing and assessment has

been recognized at this level. We are continuously looking at ways to improve

our students' performance, and to be recognized at the international level for

the work we are doing is a testament to our staff and the teachers and students

throughout Newfoundland and Labrador. The success of our CRT program

demonstrates that we have the expertise to take an international lead on many

common issues in education.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Harbour Main-Whitbourne.

SOME HON. MEMBERS: Hear, hear!

MR. HEDDERSON: Thank you, Mr. Speaker.

I certainly would thank the minister for an advanced copy of her ministerial

statement. Looking at the statement, certainly it is always good to hear some

good news on the one hand because when we look at our students, let me say, Mr.

Speaker, that any good news is welcome.

The CRTs certainly are an indication of not necessarily of students

performance, but how the curriculum is being delivered and how effective the

curriculum is. It is rather dangerous for the minister to be talking about

achievement levels when, in actual fact, these tests are internal checks. They

are put together by the Department of Education; they are administered in the

system. They are not based on any type of national standards whatsoever, so they

are internal. So, it is very dangerous when we talk about significant learning

gains - many more students, 90 per cent. This is very, very dangerous because

any statistics, Mr. Speaker, can give a part of the picture, which the CRTs do,

they give a part of the picture, but we have to look at the overall picture. In

looking at the overall picture, let me say, that it is important that we look at

the balance and we look at what is going on in the schools; we look at the

resources that are being put in there; we look at the delivery; we look at all

aspects of it. Just to hang their hats on one particular indication is not where

we should be going. As a matter of fact, it is quite dangerous.

I would say again, that Miss Fushell will certainly represent us well. She

has the expertise, but again, I say to you, Mr. Speaker -

MR. SPEAKER: Order, please!

The hon. member's time is up.

MR. HEDDERSON: By leave?

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

AN HON. MEMBER: By leave.

MR. SPEAKER: By leave.

MR. HEDDERSON: I say that we have to look at the overall picture. We have

to make sure that we just do not get a narrow view of what is happening out

there.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. HARRIS: Thank you, Mr. Speaker.

While it is certainly a pleasure to see that the Province and the people in

the Province could play a leadership role in development of this type of

testing, I do want to sound a note of caution. A CRT, or a test of this nature,

can be a very useful tool, particularly for determining whether a particular

school district or school area needs extra resources because they are not doing

the job well enough, but I am a little worried that there can be abuses of this

type of tool as well.

We see teaching for tests going on to the exclusion of other values in

certain places and we see decisions about funding being made negatively against

schools that do not perform; in the United States, for example. So, we have to

be very careful about this type of testing and make sure it is used for positive

things as well as recognizing that it is a limited tool and only one aspect of

what is necessary to provide a good education in the Province.

MR. SPEAKER: Order, please!

The hon. the member's time is up.

The hon. the Minister of Mines and Energy.

SOME HON. MEMBERS: Hear, hear!

MR. MATTHEWS: Thank you, Mr. Speaker.

The Board of Newfoundland and Labrador Hydro has completed its due diligence

process in examining the proposed framework agreement of the development of the

Gull Island Hydro Electric Project and have passed a resolution supporting this

development.

This vote was, however, less than unanimous. Three of the ten board members

did not vote in support of the resolution before the board. The Chair, Mr. Dean

MacDonald and one other board member, Mr. Mark Dobbin, have since tendered their

resignations. I wish to thank them for the service they have given to

Newfoundland and Labrador Hydro. A third board member, Mr. Bill Kelly, wishes to

continue serving on the board. All board members are to be commended for the

significant time and effort they have contributed to this issue.

I have asked the President and CEO of Newfoundland and Labrador Hydro, Bill

Wells, to report directly to government on the deliberations of the board,

including any concerns regarding the proposed Gull Island development.

Government is most interested in hearing the specific issues and the facts

surrounding them. More importantly, we want to give them full consideration and

evaluation.

An announcement will be made in the near future on filling the position of

Chairperson and the board vacancy.

I want also, Mr. Speaker, to express regrets to my hon. the critic for Mines

and Energy on the lateness of providing this statement to him. It was singularly

unavoidable.

Thank you very much.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. John's East.

SOME HON. MEMBERS: Hear, hear!

MR. OTTENHEIMER: Thank you, Mr. Speaker.

This is a very significant announcement when we consider, certainly, the

background and the expertise and experience of these two individuals. For

example, both individuals were recognized by The Financial Post for

outstanding leadership and were among the top forty under forty in 1998 and

recognized by The Financial Post .

Mr. MacDonald, for example, was Alumnus of the Year of the Business School at

Memorial University and was recognized by the Newfoundland Association of

Technical Industries. But, I say to the hon. minister, to report directly to

government on the deliberations of the board, that is not good enough. Mr.

Speaker, what we should have is the tabling of deliberations -

SOME HON. MEMBERS: Hear, hear!

MR. OTTENHEIMER: - the tabling of information, the tabling of details

leading to these resignations. We would get the information ourselves, but

unfortunately this open and accountable government has chosen to exempt

Newfoundland and Labrador Hydro under the provisions of their Freedom of

Information Act.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MR. HARRIS: Mr. Speaker, it is certainly a great shock to hear that the

chairman of the board, another significant and well recognized businessperson,

and the only Labrador member of the board, has chosen to resign over the

proposal. Although he may be staying, the three people who voted against this

proposal have clearly recognized that there is a significant problem with this

kind of proposal and speaks volumes about what this government is doing; where

even a hand-picked board and appointed by government, has found that three of

its most significant members are not prepared to support a proposal such as is

now about to be presented to the people of this Province.

MR. SPEAKER: Order, please!

The hon. member's time is up.

Oral Questions

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

My questions this afternoon are for the hon. the Premier.

Mr. Speaker, the chairman of the Premier's Royal Commission stated on

Friday last week that in their numerous public meetings throughout the Province

there have been discussions against the lost windfall profits from Churchill

Falls, the total control of the Churchill River exercise by Quebec, and the

thirty years ago. The chairman said: If we don't resolve the Upper Churchill

situation this time around, this will be a very significant and fundamental sore

on our place in Canada for the next thirty-nine years.

Mr. Speaker, my question for the Premier is, due to the fact that his

government intends to give away power from the Lower Churchill agreement until

2055, which is fifty-two years from now, and do nothing with the Upper Churchill

contract, does he agree with Mr. Young that it will be, in fact, a very

significant and fundamental sore on our place in Canada?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you.

Mr. Speaker, with respect to the

preamble, we have not needed a Royal

Commission for those statements to be made. They have been made in the Province

for thirty years since 1972. Every single person in the Province has been saying

those kinds of things. It is just that it has not been said before a Royal

Commission. Everyone in this House knows that. The first start by a Conservative

government, led by a Premier Moores at the time in 1975, led to the building of

a road from Happy Valley-Goose Bay into the Lower Churchill site and the

clearing of land actually for the work camp before it was cancelled. In fact,

people have been trying to deal with this issue for thirty years and everybody

in the Province is unanimous about the fact that we have foregone significant

revenues and significant opportunities primarily - and the Chair of the Royal

the adequate and appropriate role at that point in time. That is the Commission

that he is now leading up and heading up, talking about renewing and

strengthening our place in Canada.

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: Yes, Mr. Speaker.

I, too, have spoken with the Chair and he, in fact, indicates that every

stone should be looked under, turned over and examined, every opportunity

seized, and they are hoping to make some recommendation to us as to how we can

do both things: maybe even develop the Lower Churchill and accomplish something

on the Upper Churchill at the same time, Mr. Speaker.

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, let me ask the Premier a very, very straightforward question:

Premier, with regard to the Lower Churchill deal, do you support moving forward

on a deal with Quebec without first seeking a better deal on the Upper

Churchill?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

Mr. Speaker, every single person who has occupied the seat and the position

that I now hold, the Premier of Newfoundland and Labrador, has done, on behalf

of the people of Newfoundland and Labrador, two things. There is a former

premier in the House who, even in the short time that he was there, I am sure he

would have done it - had he been given an opportunity to have one meeting, it is

the one he would have had. It is a two-fold request. One is to the Quebec

government to see if there is any basis on which they would volunteer to reopen

negotiations on the Upper Churchill contract. There was some progress being made

for a number of years until a former, former, former premier, Premier Peckford,

decided to challenge them in court twice and lost in the Supreme Court of

Canada. That hardened the positions in Quebec, and since that time they are kind

enough to listen to you and then they say: No, thank you. We have a legal

agreement which has been upheld by the Supreme Court of Canada, challenged by

Newfoundland and Labrador, and we are not going to voluntarily open that

contract with anybody.

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: Mr. Speaker, the other request has been to the Government

of Canada - because this is the Chairman of the Royal Commission and the real

of Newfoundland and Labrador in the first instance by not guaranteeing us a

corridor through Quebec or financing it so we could build it ourselves. That is

the grievance that is being dealt with in the Royal Commission. Every single one

government, and each time the answer has been no, you must go ahead and do

something else because we are not going to reopen the contracts or give you

money.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

I do not want to put words in the mouth of the hon. the Premier so I will ask

the Premier again a very straightforward question: With regard to the Lower

Churchill deal, do you support moving forward on a deal with Quebec without

first seeking a better deal on the Upper Churchill? Yes or no, Premier? That is

all I want.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

Mr. Speaker, what I support and what this government supports is this: This

government supports - and the Leader of the Opposition was kind enough, because

it was shown the other day that he tries to put words in our mouths and is not

successful at it. We are allowed to give our own answers.

Mr. Speaker, what we support is this. We support moving forward with things

that are to the advantage and benefit of Newfoundlanders and Labradorians. We

also support keeping every single option open and pursuing every single option

every day to fight for Newfoundlanders and Labradorians for some redress on the

Upper Churchill because it has been an absolute injustice in Newfoundland and

Labrador, but we do not support the proposition that when you have done that,

when you have even challenged it in the courts, when you have checked with the

governments of the day, regardless of their political stripe, and when you know

that the answer is no, we do not support it - like Premier Peckford, just

picking a fight for the sake of looking like you are fighting when you know what

the outcome is going to be -

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: - and then denying yourselves the possible benefits of

some things that we can do ourselves. We are trying to do both things, Mr.

Speaker: accomplish some development and get some redress.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

Mr. Speaker, a reread of Hansard will indicate that the Premier has said he

does not support what Mr. Peckford did, so therefore his answer is yes, he would

proceed with a deal on the Lower Churchill without seeking any redress or a

better deal on the Upper Churchill.

Yesterday, in conversation with the Premier, the Premier said, in answer to

our poll - the poll where 67 per cent of the people have answered this question

MR. SPEAKER: Order, please!

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

MR. WILLIAMS: - I am surprised that anybody would have answered yes to

that question.

In other words he said yesterday he agrees with 67 per cent of the

(inaudible) -

MR. SPEAKER: Order, please!

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

MR. WILLIAMS: - twenty-four hours later, a completely different opinion.

Mr. Speaker, both Members of Parliament, Lawrence O'Brien and John Efford,

have spoken out against this proposed deal.

MR. SPEAKER: Order, please!

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

MR. WILLIAMS: Mr. Speaker, I would ask the Premier, in light of the fact

that Mr. O'Brien has said that the Premier should wake up, smell the roses,

and do something right for a change in reference to the Lower Churchill, would

the Premier please confirm that he has not, in fact, even informed his fellow

Liberal MPs in Ottawa of the specific details of the Lower Churchill deal? And,

if not, why not? What are you trying to hide from them, Premier?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

Just a couple of things because I think everyone would recognize it was a

fairly lengthy answer with some

preamble. Again, just for the record, Mr.

Speaker, I did not say yes. I used the words that Hansard - that anybody can

read, and they can read my words. I gave an answer which is understandable to

people who want to read it and check the record. I did not say what he said, so

his tactic of trying to interpret what I said is fine, he can continue to use if

he likes, Mr. Speaker, and maybe we will have to rise on points of order again

to make the distinction.

Mr. Speaker, let me say this. There is a very different view here. What the

Leader of the Opposition is proposing is this: that, having asked the question,

having sought out the opportunity both with the Government of Quebec and with

we, as Newfoundlanders and Labradorians, want to do today - Quebec is not

willing to reopen the contract, primarily because the nature and status and

legality of it has been reaffirmed in the Supreme Court of Canada. I am sure, if

he was the Premier of Quebec, he would not go to his people and say: I think we

should voluntarily now change this contract and give the money that we are now

using in our province, even though it is a legal contract, give it back to

Newfoundlanders and Labradorians.

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: So, Mr. Speaker, knowing that is the answer, we would not

then refuse to develop. We would prefer a different answer and we are going to

try to find other avenues to get redress under the Upper Churchill just like any

Newfoundlander and Labradorian would do every day.

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: Yes, Mr. Speaker.

With respect to our federal colleagues, the issues are clear. I would love to

have our federal colleagues, all of them, plead the case more strongly and see

that we would like to have to -

MR. SPEAKER: Order, please!

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

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, the facts are that this government is doing this deal out of

desperation. Those are the facts!

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Mr. Speaker, according to its published annual report, the

Lower Churchill Development Corporation states that it is owned 51 per cent by

with the objective of developing all or part of the hydroelectric potential of

the Lower Churchill Basin.

Mr. Speaker, my question for the Premier is this: What role, Premier, has the

Lower Churchill Development Corporation played in these Lower Churchill

negotiations with Quebec?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

A very good question, Mr. Speaker, and I am glad that it is asked so we can

have a discussion about it. The fact of the matter is this: the Lower Churchill

Development Corporation, as described, is 49 per cent owned by the Government of

Canada, 51 per cent owned by Newfoundland and Labrador. We are trying to do a

project in which we own the assets and the project 100 per cent; not to have 51

per cent come to Newfoundland and Labrador, and 49 per cent go to Canada.

current Liberal one, when asked to participate, they have just changed the rules

with respect to funding that they used to have for major project development to

get out of the business. The only successful one - and we had this discussion

with the Deputy Prime Minister and the federal Minister of Finance just one day

last week, myself and the Finance Minster, because we talk about it and bring it

up every chance we get - the only successful major megaproject that they got

involved with in Canada was Hibernia. They got involved in three others out West

that all failed and cost them money -

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: - and, because of failures out West, they created a

policy to say, we will not get involved in megaprojects; and when they were

asked if they were willing to participate -

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: - through the Lower Churchill Development Corporation,

they said: No, we do not get involved in megaprojects. We do not want to

participate in developing a hydro project in Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

Premier, that has not stopped them from giving $4 billion guarantees to

companies like Bombardier and Nortel, though.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Mr. Speaker, in that same annual report, an option was

granted by the Province to the Lower Churchill Development Corporation with

respect to the Gull Island assets and water rights.

Mr. Speaker, my question, which I would like to ask this Premier is: What is

the status of that option to acquire the Gull Island assets and water rights?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

with respect to any loan guarantees they give or anything they get involved in.

All I can tell you is the information that we know to be a fact. They do not

not be involved in funding and building new megaprojects, which is very

different, Mr. Speaker; very different.

AN HON. MEMBER: (Inaudible).

AN HON. MEMBER: It is not new, boy.

PREMIER GRIMES: It is not new, it is an existing operation that they are

trying to find a way to save from collapse and lose hundreds of jobs in Canada.

They will answer that, that is their role, and our Federal MPs will answer as to

why is it the government -

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: - that they are part of has a policy that does not let it

get involved in the Lower Churchill Development Corporation.

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: Mr. Speaker, all the options that are available under the

LCDC or elsewhere are still in place, the corporation still exists.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: I asked the hon. Premier the status of the option. He has

indicated that the corporation still exists and the option still exists.

Premier, is that, in fact, the case as well?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Mr. Speaker, let me answer again. The Lower Churchill

Development Corporation still exits and it has all of the assets and options

available to it that it had yesterday and today.

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 can only have access to the information that is in the public domain, that

I can access on the Web, that are public documents.

AN HON. MEMBER: (Inaudible) not what you said last week.

MR. SPEAKER: Order, please!

MR. WILLIAMS: I can advise the Premier, that according to the Lower

Churchill annual report this option expired yesterday, November 24, 2002.

Could the Premier please advise the people of Newfoundland and Labrador,

based on his last answer, if the option has expired or not, and what are the

consequences of that expiry for the people of Newfoundland and Labrador?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

I am glad to see that that is the only source of information he has, what is

in the public domain. I am delighted to hear that.

Mr. Speaker -

MR. RIDEOUT: You wish...

PREMIER GRIMES: Is the Member for Lewisporte suggesting he might have

some other information?

MR. RIDEOUT: You never know.

MR. SPEAKER: Order, please!

PREMIER GRIMES: Okay, thank you. I appreciate that.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: Thank you, Mr. Speaker.

I appreciate the interjection from the Member for Lewisporte, who is also a

former Premier, who indicated that he has other information. So, he is

contradicting the Leader of the Opposition, Mr. Speaker. He has other

information, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: And, Mr. Speaker -

MR. SPEAKER: Order, please!

I ask the hon. Premier now to give his answer, quickly.

PREMIER GRIMES: And, Mr. Speaker, to indicate, I think, because Hansard

might not have picked it up, but the Member for Lewisporte said that it is from

inside the government, as well.

MR. SPEAKER: Order, please!

I ask the hon. Premier now to conclude his answer, very quickly.

PREMIER GRIMES: Mr. Speaker, the Leader of the Opposition says, my only

information is from the public domain, Web sites and so on, and the former

premier says, no, he has information from inside the government; very different

information.

MR. SPEAKER: Order, please!

I ask the hon. Premier to take his seat.

The hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

The Premier of our Province did not even know that the option had expired on

the Lower Churchill Development Corporation.

SOME HON. MEMBERS: Shame!

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

Premier tell the people of our Province why he is proceeding with this deal when

the following are against it: former PC Premier Brian Peckford -

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. WILLIAMS: Wait, there is more to come.

MR. SPEAKER: Order, please!

MR. WILLIAMS: - former Liberal Minister of Mines and Energy, Chuck Furey;

current Liberal MP Lawrence O'Brien -

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. WILLIAMS: - current Liberal MP John Efford -

SOME HON. MEMBERS: Oh, oh!

MR. WILLIAMS: A few less laughs that time.

A Chairman of his own Royal Commission, a former Chairman of Newfoundland and

Labrador Hydro -

MR. SPEAKER: Order, please!

The hon. member is on a supplementary, he ought to get to his question

quickly.

MR. WILLIAMS: Thank you, Mr. Speaker.

I am in the middle of my question. Chairman of the Royal Commission and a

former Chairman of Newfoundland Hydro, Vic Young, myself, and eighteen of our

caucus members, and finally, most importantly, 67 per cent of the people of our

Province as confirmed by an independent poll last week.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. member is on a supplementary, he ought to get to his question

quickly.

MR. WILLIAMS: Am I finished, Mr. Speaker, or can I continue?

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. member ought to get to his question very quickly. He is on a

supplementary and should require no

preamble.

MR. WILLIAMS: I will continue. I would ask the Premier: Premier, can you

stand up for this Province for a change and can this deal like you canned your

wasteful advertising campaign this weekend?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

Again, I guess it is a difference of approach and attitude basically. We will

gladly have the informed debate and then we will see whether or not these same

people - I do not expect ever to change Brian Peckford's mind, I can tell you

that right now today. Don't ever expect to change the mind of the Leader of

the Opposition, Mr. Speaker, and a few others.

Mr. Speaker, when we release the information, if we are fortunate enough to

get there, we will gladly have the debate and see who is for and against these

issues in Newfoundland and Labrador.

Mr. Speaker, just so the Leader of the Opposition would not want to be

mistaken, because his only information, he suggests, is from the public domain

and he is not in the Cabinet meeting, the Lower Churchill Development

Corporation option is renewed annually, on or before November 24. So he would

now - because he is not part of the Cabinet he would not know - it was renewed

again this year and is optioned for another year.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

Mr. Speaker, we look forward to hopefully having something, unlike the

Opposition who are against something - it depends upon who you are talking to,

whether it is the Leader of the Opposition or the former Premier. Either they

are against something they have not seen, which is what the Leader of the

Opposition would have you say, or the Member for Lewisporte would say: We have

seen it all. We have our government sources and we know we are against it.

Mr. Speaker, we will gladly have an informed public debate if we are

fortunate enough to have something about growth and development and prosperity

to actually talk about, because that is what we are trying to accomplish and we

will stick with it.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for The Straits & White Bay North.

SOME HON. MEMBERS: Hear, hear!

MR. TAYLOR: Mr. Speaker, in light of the announcement by Minister

Thibault last week about the probability of cod closures in our fisheries around

this Province next year, I have a couple of questions for the Minister of

Fisheries and Aquaculture.

Mr. Speaker, in the statement about the Gulf groundfish stocks, Fred Woodman

of the Fisheries Resource Conservation Council said, both of these stocks are

seeing fewer numbers of three-year-old fish - the first age at which their

numbers can be estimated. We do not think this is a result of fewer fish being

born; they just don't seem to be surviving to age three.

Mr. Speaker, a DFO research document that I read over the weekend seems to

support this. The document says: Harp seals consume very small cod. Seventy-two

per cent of cod consumed by harp seals off the West Coast of Newfoundland were

less than or equal to twenty centimetres in length.

Mr. Speaker, why does the federal minister seem so willing to close the

fishery in Newfoundland and Labrador when his own advisors see the natural

mortality resulting from predation by seals as the number one constraint to

stock rebuilding?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Fisheries and Aquaculture.

SOME HON. MEMBERS: Hear, hear!

MR. REID: Thank you, Mr. Speaker.

I thank the member opposite for the question, even though I am not sure what

it was he exactly asked. With regard to seals, we have in excess of 6 million

harp seals off our shores here in this Province. We also know that last year

they ate somewhere in the area of 7 million tons of some species. We also know

that roughly 150,000 metric tons of that was cod, and the figures I am quoting

come from DFO themselves. In a conversation I had with the federal minister this

morning, I mentioned seals to him, and the need to do something with them. I

certainly hope that he will take our advice and do exactly that.

Thank you.

SOME HON. MEMBERS: Hear, hear!

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

MR. COLLINS: Thank you, Mr. Speaker.

My question is for the Minister of Mines and Energy. I ask the Minister of

Mines and Energy: Keeping in mind the commitment of the Premier, of the minister

and Inco, concerning the hiring at Voisey's Bay, that other Labradorians would

have first priority after hiring Aboriginals, can the minister confirm to the

people of Labrador that this year no qualified Labradorian who applied for

employment at Voisey's Bay was denied while others from outside Labrador were

hired for these positions?

MR. SPEAKER: The hon. the Minister of Mines and Energy.

SOME HON. MEMBERS: Hear, hear!

MR. MATTHEWS: Thank you, Mr. Speaker.

The agreements and the targets that were set under the Environmental

Assessment Panel and subsequently recognized in IBAs are well understood, I

think, by all of us. I am not sure that I got the hon. member's question

right. I thought I heard him ask the question, or to make the statement, that no

qualified Labradorian was hired despite the fact that many applied for work

while some from the Island did. If that is the circumstance, I would beg to

differ with that because I know many Labradorians in addition to Aboriginals

were hired for the project this year. There are also some people from the Island

portion of the Province hired as well for the project. If he wants to clarify

what his question might be with respect to that issue, I would be glad to

respond to it further.

MR. SPEAKER: A supplementary, the hon. the Member for Labrador West.

MR. COLLINS: Thank you, Mr. Speaker.

I would like to clarify it because the minister did not get it right; the

same as he has not gotten it right when it comes to the hiring principles.

My question, Mr. Minister, is: Were there any Labradorians who applied for

employment at Voisey's Bay, who were qualified, denied employment while people

from other areas were hired?

MR. SPEAKER: The hon. the Minister of Mines and Energy.

SOME HON. MEMBERS: Hear, hear!

MR. MATTHEWS: Thank you, Mr. Speaker.

I have no direct knowledge that, in fact, occurred or was the circumstance,

but if the hon. member has specific information with respect to people whom he

thinks appropriately should have been hired and were not, while others were

inappropriately hired and should not have been, I would be happy to have that

information examined by my officials and indeed raise the question with the

company itself; because, as I understand the circumstance, hiring from within

Labrador this year on the first phase of the project was very, very good,

exceeding targets that were all agreed to, and we hope that it will continue

that way because in fact that was the intent expressed in the IBAs and it grew

out of the Environmental Management Assessment Panel that was signed off by

everybody in 1998.

MR. SPEAKER: A final supplementary, the hon. the Member for Labrador

West.

MR. COLLINS: Thank you, Mr. Speaker.

I say to the minister, that indeed took place. People did not receive

employment for jobs they were qualified for, and the minister responsible for

Labrador, I say to the minister, also raised these concerns so maybe you should

talk to the minister in your Cabinet who is responsible for Labrador.

Will the minister commit to the reviewing and enforcement that people from

Labrador will receive employment opportunities from Voisey's Bay when

construction starts next year? And, will he go one step further and guarantee

that any development of the Lower Churchill will contain the same hiring

provisions?

MR. SPEAKER: The hon. the Minister of Mines and Energy.

SOME HON. MEMBERS: Hear, hear!

MR. MATTHEWS: Thank you, Mr. Speaker.

I will indeed confirm that this government, through my department, will

continue to do its job in monitoring what is happening with respect to the

development of the Lower Churchill. I would also ask the hon. member to also go

one step further and commit to the people of the Province and his constituents,

inasmuch as this is a very significant issue with him, that he bring forward the

details to my attention so I can do the right thing in terms of what he is

alleging to be a circumstance but provides no specific information around, and

that is wrongful hiring practices on the project. If he has something to expose,

if he has details, if he has information that I should be examining, I would ask

him to bring it forward as an hon. member should do and as a good representative

from Labrador should do, and this government, through this minister, will

undertake to do what we should do.

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.

SOME HON. MEMBERS: Hear, hear!

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

Today I am tabling the Public Accounts of the Province for the financial year

ending March 31, 2002, as required by the Financial Administration Act.

This year as well, Mr. Speaker, we have provided a brochure to go along with

the Public Accounts. It is important to note that these financial statements

present the Province's financial activities and our financial position in a

complete and transparent manner. Again this year they have received a clean,

unqualified, audit opinion by the Auditor General.

SOME HON. MEMBERS: Hear, hear!

AN HON. MEMBER: (Inaudible) a change.

MS J.M. AYLWARD: No, it is not a change, I say to the member opposite. It

is not a change. It has been consistent.

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

Board.

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

I say to the Member for Bonavista, that it is not a change. The Auditor

General has consistently given us clean audited statements, as presented by the

Public Accounts information, just to be factual, and I think it is important for

that.

Mr. Speaker, pursuant to subsection 26.5(

a) of the Financial Administration

Act, I am tabling one Order in Council relating to funding pre-commitments for

the years 2003, 2004 to 2007 and 2008 fiscal years.

Further, Mr. Speaker, I would also like to table today before this House the

Audited Financial Statements of the Province of Newfoundland and Labrador Pooled

Pension Fund for the year ending December 31, 2001.

It is important to note that government continues to make annual payments of

$40 million to the Public Service Pension Plan, increasing to $60 million in

2003, and $76 million to the Teachers' Pension Plan. As well, $27 million in

annual special payments are being paid into the other two plans. This is part of

government's commitment to substantially reduce the unfunded liabilities of

the $3.5 billion plans.

Thank you very much, Mr. Speaker.

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

MR. K. AYLWARD: Mr. Speaker, today I am pleased to table the 2002

Drinking Water Safety Annual Report, as committed by government through the

Source to Tap drinking water initiative launched in 2001.

The 2002 Drinking Water Safety Report was released in September of this year.

The report was provided to all Members of the House of Assembly at that time.

All municipalities, local service districts and other community organizations

throughout the Province have received the report as well.

Thank you.

Notices of Motion

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

MR. PARSONS: Mr. Speaker, I give notice that I will on tomorrow ask leave

to introduce a bill entitled, "An Act To Amend The Access To Information

And Protection Of Privacy Act." Bill 25.

MR. SPEAKER: The hon. the Member for Trinity North.

MR. ROSS WISEMAN: Mr. Speaker, I give notice that I will on tomorrow ask

leave to introduce the following private member's resolution:

WHEREAS the percentage of the Province's population over the age of

sixty-five is increasing faster than any other province in Canada; and

WHEREAS an aging population requires specific attention to medical treatment,

quality of life issues, affordable prescription drugs, home support services and

other direct and indirect supports; and

WHEREAS the Government of Newfoundland and Labrador is not responding to the

health needs of the seniors in our Province;

THEREFORE

BE IT RESOLVED that the Government of Newfoundland and Labrador

make public immediately a detailed action plan to respond to the long-term care

needs of the Province's aging population.

Petitions

MR. SPEAKER: The hon. the Member for Bonavista South.

MR. FITZGERALD: Thank you, Mr. Speaker.

I stand today to present a petition signed by hundreds of Newfoundlanders and

Labradorians. Mr. Speaker, the petition reads:

To the hon. House of Assembly of Newfoundland and Labrador in legislative

session convened, the petition of the undersigned residents of Newfoundland and

Labrador;

WHEREAS the government has requested the Board of Regents to consider a name

change of our University; and

WHEREAS Memorial University of Newfoundland is excluded under the

Newfoundland and Labrador Act; and

WHEREAS publicly funded universities can be named for a region of a Province,

and

WHEREAS when other political entities change, the name of the university

within it did not; and

WHEREAS our educational mandate is not limited to this Province; and

WHEREAS the University is on the Island of Newfoundland; and

WHEREAS the first university in other provinces did not reflect the entire

name of the province; and

WHEREAS there will be enormous costs to undergo this name change; and

WHEREAS there are enormous disadvantages to not having a geographic identity

attached to the University; and

WHEREAS another proposed university in this Province is more suitable to have

Labrador added to its name;

WHEREFORE your petitioners urge the Government of Newfoundland and Labrador

to retain the current name - Memorial University of Newfoundland; and

As in duty bound your petitioners will ever pray.

Mr. Speaker, I am presenting a petition today that has been brought forward

by hundreds of Newfoundlanders and Labradorians, and I understand there have

been petitions circulated and petitions returned to members of this Legislature

with between 6,000 and 7,000 names on them, to reflect people's

dissatisfaction with changing the name of Memorial University of Newfoundland as

it presently exists today.

What I find intriguing about this particular petition that I am presenting,

Mr. Speaker, is that a lot of the names are signed by Legions in the Province

here. This particular petition that I am presenting, the Royal Canadian Legion

of Botwood, the Royal Canadian Legion of Bonavista, have signed and submitted

this petition, along with other names right across the Province, to say that

they want the name of Memorial University to stay as it presently exists today.

They see no benefits in changing the name of this institution which has been in

existence now for the past fifty-three years. It is a name that is known, not

only in Newfoundland and Labrador but right across the world, as Memorial

University of Newfoundland.

At a time when we see the cost of tuition going up, we see enrollment

dropping, people are asking if now is the time to get involved in a cost of

changing the name of this institution.

MR. SPEAKER: Order, please!

The hon. member's time is up.

MR. FITZGERALD: Mr. Speaker, just a minute to clue up.

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

AN HON. MEMBER: By leave.

MR. FITZGERALD: I understand that there are other petitions that other

members on both sides of the House have been presented with, a similar petition

that will be presented here in a time that they see fit. The message is loud;

the message is clear. They want to maintain the name of our University, the

Memorial University of Newfoundland, as it presently exists, and the people

signing the petition see no reason or no good whatsoever in having the name of

this institution changed.

Thank you very much.

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

MR. COLLINS: Thank you, Mr. Speaker.

I rise today to present a petition on behalf of a number of people from

Labrador West and a number of people have signed as well from Trinity North. The

petition reads:

WHEREAS in 1998 the Province provided funding for four new MS drug therapies;

and

WHEREAS the Newfoundland and Labrador Prescription Drug Program only provides

medical coverage for seniors under the Senior Citizen's Drug Subsidy Program

and people on income support; and

WHEREAS all citizens in other Canadian provinces can receive assistance with

the high cost of MS drugs, using co-payment and sliding scale programs, not

limited to social assistance income levels; and

WHEREAS these drugs can improve significantly the quality of life for people

with MS.

We, the undersigned, ask the House of Assembly to direct the government to

implement a co-payment or sliding scale program for these drugs so that people

can get financial assistance with the high cost, as in other Canadian provinces.

Mr. Speaker, I have presented this petition during a number of sessions of

the House of Assembly. Ever since I have been elected I have been addressing

this concern, because what this government is doing to the people of the

Province has nothing whatsoever to do with their ability to pay. It has to do

with what they require the people who work in this Province to do to their own

personal lives before they will. If it was a question of not being able to pay,

that is one argument, Mr. Speaker, but that is not the case in this situation.

Every other jurisdiction in this country assists their citizens with the cost

of these high-cost drugs but our Province insists, and this government insists,

that the people of this Province financially ruin themselves, their future,

financially jeopardize their children's education and not be able to save any

RRSPs, if they are saving any. They require them to liquidate all of these

things, to spend the money on these drugs, to get rid of any new vehicle they

may have, reduce their income down to income support levels, and then this

government will provide assistance.

Mr. Speaker, that frankly, is not good enough. This government has a role and

an obligation to the people of this Province - who work hard contributing their

taxes to the well-being of this Province - to assist them as every other

province in this country does with their citizens. The cost of these drugs is

such that people cannot afford to pay for them out of their paycheques. These

are high-cost drugs. They average anywhere from $1,500 to $3,000 a month. It is

not only MS, Mr. Speaker, it is people with Alzheimer's; people who require

hormone replacement drugs. All of these specialized drugs can greatly enhance

the quality of life of people in this Province and yet this government refuses

to help out anyone who requires it. Mr. Speaker, if a person is on income

support, the drugs are provided for them.

MR. SPEAKER: Order, please!

The hon. member's time is up.

MR. COLLINS: By leave to clue up, Mr. Speaker?

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

AN HON. MEMBER: By leave.

MR. SPEAKER: By leave.

MR. COLLINS: Mr. Speaker, if somebody is on income support the drugs are

paid for by this government. If people have an insurance plan that provides

coverage that is fine, but there are many, many insurances plans in this

Province, particularly in the private sector, where these drugs are not covered,

or if they are, there is a lifetime maximum on the coverage provided. At the

level of purchasing these drugs, that lifetime maximum is reached in a very

short period of time, leaving the people with no coverage for any other thing

that they may need in the future.

I strongly urge this government to provide and come up with a policy of a

co-payment and sliding scale program that will assist the people in this

Province who need their help.

Thank you.

SOME HON. MEMBERS: Hear, hear!

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

Board.

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

I am wondering if I might take the opportunity, with the approval of the

House, to table as well other documents that I have to table that were here on

the table with the - mixed of the other three -

AN HON. MEMBER: (Inaudible).

MS J.M. AYLWARD: It is just the tabling. It is not to speak to them.

MR. SPEAKER: Order, please!

AN HON. MEMBER: (Inaudible).

MS J.M. AYLWARD: I did. I did ask for leave and I am wondering, with the

permission of the House, if I might table these seven special warrants?

MR. SPEAKER: Order, please!

The hon. member has asked for leave to revert to Presenting Reports and

tabling.

SOME HON. MEMBERS: By leave.

MR. SPEAKER: By leave.

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

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

Pursuant to

section 28(4)(

e) of the Financial Administration Act, I am

tabling seven special warrants relating to the fiscal year 2002-2003.

MR. SPEAKER: Further Petitions?

The hon. the Member for Bonavista North.

SOME HON. MEMBERS: Hear, hear!

MR. HARDING: Thank you, Mr. Speaker.

I am very proud to stand here today and present this petition on behalf of

the local service districts of Gander Bay North, Gander Bay South, and Main

Point, Davidsville and the 302 residents who have signed the petition.

The petition is worded as follows:

To the hon. House of Assembly of the Province of Newfoundland in Parliament

Assembled;

WHEREAS the Gander Bay Highway from Main Point to Gander is one of the

busiest secondary roads in the Province of Newfoundland and Labrador; and

WHEREAS a large number of Gander Bay residents and others use this road daily

to commute back and forth to work and for other personal reasons; and

WHEREAS the extensive growth of alders and brush along Route 330 has made it

extremely dangerous;

THEREFORE your petitioners urge the Government of Newfoundland and Labrador

to provide funding under the Department of Municipal and Provincial Affairs

current Job Creation Program to correct this serious problem.

Mr. Speaker, the road in question, Gander Bay Highway, as most people know,

is one of the busiest secondary highways in the Province. It is also one of the

narrowest secondary highways in this Province. The shoulders of that road now

have deteriorated almost to the point where there is hardly anything left. Where

there is shoulder left, not only alders are growing to the shoulder but they are

growing up in the shoulders of the road. For that full twenty-five to thirty

miles of highway there is not one place, not one section, where there is an

extra passing lane.

Also, Mr. Speaker, in that area it has been noted as one of the best areas in

the Province where moose have been most prevalent. So, Mr. Speaker, in addition

to the danger aspect of the road, work is also needed in that part of my

district. It is one of the areas where work is probably needed more than any

other part of Bonavista North.

In closing, Mr. Speaker, I urge the Minister of Municipal and Provincial

Affairs or the Premier's Office, whoever will be making the final decisions on

these make-work projects, to seriously consider applications from the Gander Bay

North, Gander Bay South and Main Point, Davidsville areas.

Thank you.

SOME HON. MEMBERS: Hear, hear!

Orders of the Day

MR. SPEAKER: The hon. the Government House Leader.

MR. LUSH: Mr. Speaker, Order 7, and the minister will be closing debate

on second reading of Bill 15.

MR. SPEAKER: Order 7, Bill 15,

An Act To Amend The Highway Traffic Act.

The hon. the Minister of Government Services and Lands.

MR. NOEL: Thank you, Mr. Speaker.

As I was saying when I concluded debate last Tuesday, I think it was, I want

to thank all hon. members who spoke in support of this bill which will ban the

use of hand-held cellphones by drivers while driving in our Province. I want to

congratulate everybody for being willing to lead the country in taking this sort

of action, and we are doing so, people should know, because it is the right

thing to do. Using cellphones while driving is a danger to life and limb and it

is costing our automobile insurance policyholders a lot of money and it can

continue doing so into the future.

Mr. Speaker, we proposed this bill because it is the right thing to do. It is

the right thing to do for safe driving in our Province. It is the right thing to

do to try to minimize injuries and it is the right thing to do to try to

minimize insurance rates.

Some of the speakers raised questions about whether or not this will cause

the police forces in the Province any additional problems. The fact, Mr.

Speaker, is that the police in our Province have encouraged us to pass this bill

because they have told us it will make their job easier. It will help them to

more clearly identify when somebody is breaking the law in this regard. Right

now people can be penalized for using cellphones while driving if the officer

judges that they are driving without due care and attention. The reality and

practice is that that is a difficult call for policemen to make and the

consequence has been that I do not think there have been many tickets given on

that basis in our Province, and so many policemen have asked us to do this. The

police forces have indicated their support for this kind of initiative. It will

not cause them any additional work because the law is there now making it an

offence to drive without due care and attention. This just makes the offence

more specific and makes it easier for a policeman to find offenders.

Some people also suggested that this would be an additional burden on police

forces in our Province who are already understaffed. The reality, Mr. Speaker,

is that, to some extent I guess, we do not require the number of police people

that we have had in the past because of the decline in population in the

Province, and also because of the increasing technology, it does not require as

many police officers to enforce the laws as it did in the past.

Some other speakers questioned whether or not this would have the support of

the wireless industry in the country, Mr. Speaker. As I said the last time I was

speaking, I met with the president of the wireless industry in Canada and a

senior official of Aliant more than a year ago on this. They indicated that they

did not support this sort of legislation. Actually, they indicated they would

come back and talk to me some more, but the fact is that nobody from that

industry has indicated that they have a problem with this. They have had a long

time - they have had over a year-and-a-half, I guess - that they have known that

we planned to do this, and they have not initiated any discussions. I know

publicly, as some people in that industry have indicated, that they think this

is unnecessary, even though they admit and they go out and advertise themselves

and try and educate people not to use cellphones while they are driving.

Everybody admits it is a problem, but some of those people felt that we should

not legislate against it. I think it is not a problem for them because they

recognize that most people will use the hands-free phone instead of the

hand-held phone, and consequently there will not be any significant decline in

the use of the wireless services.

As some of the members indicated, Mr. Speaker, a lot of the research and a

lot of public opinion feels that we should ban the hands-free as well as

hand-held because the problem is getting up in the conversations. I agree with

that line of thought, but I think we are only able to propose going as far as

the public is prepared to go. At this time, I think that the public is prepared

to support the banning of hand-held but not the banning of hands-free. I think

this is a reasonable first step, and I am sure the public are going to be very

happy with this initiative.

Some people have raised the question of the number of demerit points that

will be involved in this offence. While the bill itself does not stipulate the

number of demerit points that are involved, the demerit points are determined by

how an offence is categorized by the Registrar of Vehicles. This offence will be

categorized as imprudent driving - it is under the classification of imprudent

driving - driving without due care and attention, and all offences in that

category require four demerit points. That is why that will be the case for this

offence.

Many members have indicated that we should make sure that we properly

publicize what we are doing here, and inform the public and give the public

adequate time to become familiar with the new law and to make preparations in

their vehicles for abiding by the law. We certainly intend to do that. We will

proclaim the law, if this House passes it, within a few months, I would think,

after it is passed, in order to give people an opportunity to become familiar

with the new law.

AN HON. MEMBER: What about demerits?

MR. NOEL: Pardon me?

AN HON. MEMBER: Demerits.

MR. NOEL: I just spoke about demerits.

Mr. Speaker, one other issue that was raised in this House was the question

of whether this will lead to any reduction in the price of automobile insurance

in our Province. I can only tell members that, insofar as it leads to a

reduction in the number of accidents and the number of claims made on insurance

policies over the long run it will result in a reduction in insurance costs, but

that is not going to be anything significant in the short run. As with many of

the things that we can do and we have tried to do to try to reduce the cost of

accidents and the cost of insurance, this may have some long-term effects on the

cost of insurance but it is not going to do anything to deal with the dramatic

increases of 10 per cent to 20 per cent to 30 per cent that we have been seeing

in each of the past several years.

There was just a story on the weekend, Mr. Speaker, of the problem the

Metrobus in St. John's is having with automobile insurance, and their

insurance rates for the present year have increased from some $300,000 to, I

think, about $900,000. While that is not typical of the kind of insurance rate

increases we are seeing, there are many increases of that sort of significance.

It is important for us to do all that we can to control the cost of

insurance, and we have been trying to do that. We issued a consultation paper

over a year ago and we proposed some fifty-one, I think, options for changing

our insurance system in the Province that we think could lead to substantial

savings over the long run. The one proposal that we asked the public to think

about was to restrict the right to compensation for soft tissue pain and

suffering injuries, and our evidence is that such a change could lead to a

reduction of some 35 per cent in the cost of liability insurance in our

Province, saving policyholders some $40 million a year if the Province were to

decide that it wanted to go in that direction.

As you know, Mr. Speaker, there was a strong and extensive campaign against

that proposal carried out throughout the Province and the result was, public

opinion does not seem to be in favour of going in that kind of direction. Unless

we are prepared to do something significant like that, there is very little that

government can do to control the cost of insurance. The only effective thing you

can do is to control the cost of claims.

While members on the other side have raised questions in this debate about

whether this will have an effect on reducing the cost of insurance, they have

not had much to say over the past year about our consultation paper, and I have

not heard many ideas from them about what may be done in this Province to help

reduce the cost of automobile insurance significantly. As a matter of fact, the

law firm of the Leader of the Opposition was one of the participants in the

campaign against moving to this sort of system of insurance. While that may be

justified and while people in our Province may not want to adopt that sort of

system, people have to understand the reality that the only way we are going to

significantly reduce the cost of insurance is to reduce the cost of claims, and

that is one option for doing so. Unless people are willing to make those kinds

of choices, there is not very much we are going to be able to do as a government

and as a Province to control the cost of insurance, Mr. Speaker.

MR. FITZGERALD: On a point of order, Mr. Speaker.

MR. SPEAKER (Mercer): On a point of order, the hon. the Member for

Bonavista South.

MR. FITZGERALD: Mr. Speaker, I say to the minister that people on this

side of the House have given you an idea already on how you can lower insurance

in this Province, and one is by lowering the taxation that you are presently

charging consumers in this Province to purchase insurance: 20 per cent, the

highest insurance coverage in all of Canada, with not only HST and GST added on,

but a 4 per cent hidden insurance tax as well, that your government charges an

extra taxation for HST and GST, in addition to a policy tax.

SOME HON. MEMBERS: Hear, hear!

MR. FITZGERALD: That is one way you can reduce insurance in this Province

by 20 per cent, I say to the minister.

MR. SPEAKER: Order, please!

There is no point of order.

I would ask the minister to conclude his remarks. His time is pretty well up.

MR. NOEL: The hon. member makes a reasonable point. The fact is that

insurance taxes amount to about 20 per cent and produce about $75 million in

revenues for our Province each year, but as is so typical with the Opposition,

Mr. Speaker, they call for the reduction in all kinds of taxes and they call for

increasing in all kinds of expenditures and they will not specify where we

should reduce expenditures.

AN HON. MEMBER: You cannot have it both ways.

MR. NOEL: You cannot have it both ways is the fact of the matter. There

is no point in advocating cutting all sources of revenue and increasing all

sources of expenditure. If members opposite want us to take that kind of

initiative, they should be more specific about the consequences of such an

action.

Mr. Speaker, I move second reading of this bill.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

On motion, a bill, "An Act To Amend The Highway Traffic Act," read

a second time, ordered referred to a Committee of the Whole House on tomorrow.

(Bill 15)

MR. SPEAKER: The hon. the Government House Leader.

MR. LUSH: Mr. Speaker, Order 8, second reading of a bill,

An Act To Amend

The Automobile Insurance Act, Bill 9.

Motion, second reading of a bill, "An Act To Amend The Automobile

Insurance Act." (Bill 9)

MR. SPEAKER: The hon. the Minister of Government Services and Lands.

MR. NOEL: Mr. Speaker, this bill provides for the appointment of a

Consumer Advocate to represent consumer interests inherent before the Public

Utilities Board of the Province when there are requests by the insurance

companies in the Province for rate increases.

The minister is presently able to make such an appointment, as people will

realize from the fact that we appointed a Consumer Advocate for the present

hearings being requested by a Facility Association within the past couple of

weeks.

The other aspect of this bill, Mr. Speaker, provides that the costs

encountered by the Advocate, the Advocate's salary and any expenses the

Advocate runs up, will be paid for by the Public Utilities Board, just as is the

case with the Consumer Representative who represents consumer interests in

regard to increases in electricity rates in the Province. This is reasonable and

fair because the board will then charge back the insurance industry who,

presumably, to some small extent, will charge back their customers, and those

are the people who will benefit from any reductions that we are able to get in

the cost of automobile insurance in the Province.

Mr. Speaker, for the past year, almost two years ago since I became minister

responsible for automobile insurance regulation in our Province, when I first

became minister we looked at what could be done to try to implement some of the

recommendations of the all-party committee that was established in 1996 and

reported in 1998. It had not been given much attention, I guess, over the

previous couple of years because insurance rates were in the down part of their

cycle and there was not a demand from the public that government take action,

such as was the case when that committee was set up.

Mr. Speaker, we were getting indications at that time that there were going

to be substantial increases in insurance rates in our Province. We felt we had

to look at what we may be able to do so we reviewed the report of that committee

and we put together a consultation paper which we put before the people of the

Province. We had a pretty extensive consultation, rather intently, for some six

months or so, and it is going on today, Mr. Speaker. People are still talking

about the extraordinary costs that they are facing in all insurance policies in

our Province, as is the case throughout the country and throughout the world are

being increased substantially. Insurance is becoming a significantly increasing

proportion of household expenditures and of business costs. I had one business

that came to me a while ago and indicated they were being refused liability

insurance by their current provider and by alternative providers in the

Province. They worked at it for some time and were eventually able to acquire a

policy but their rate for the year was increased from some $25,000 for the

previous year to some $300,000 for the current year. That was for liability

insurance in the retail business.

Many people are seeing significant increases in the cost of automobile

insurance. It looks like that is going to continue, Mr. Speaker, and we have to

do everything we can to try to minimize those increases. Most of the fifty-one

items we had in our consultation had pretty broad public support but as I have

said, the one item that we feel could have made a significant difference to the

cost of insurance was the proposal to reduce compensation or restrict the right

to compensation for soft tissue pain and suffering injuries. There certainly

does not seem to be majority support in our Province for that, or at least that

was the case last year, Mr. Speaker. Whether opinions have changed as a result

of what has been happening in the industry, I guess we will all have to make a

determination over the next while. We are continuing to do that as we prepare to

present our bill for automobile insurance reform within the next few days in

this House.

Unless we are prepared to do something significant to reduce the costs of

claims that are made by insurance policyholders and by people who are injured

and make some reasonable compromises, then people can only face substantially

increasing insurance costs. As I guess most people know, one of the things we

are looking at is the possibility of bringing a choice system into the Province.

That would enable people to choose to have either a non-restricted insurance

policy in which they can claim for all kinds of injuries, including soft tissue

pain and suffering, and that sort of thing or a restricted policy which would

save them a lot of money in insurance premiums but would restrict what they may

be able to claim for if they are injured.

Mr. Speaker, insurance is a serious problem for our constituents; all kinds

of insurance. As I say, automobile insurance in particular. We are looking to do

a number of things. We have three bills in the House this sitting. One, to ban

the use of hand-held cellphones by drivers - this one - and the one to increase

penalties for impaired driving. Those sort of offences in the Province.

Of course, later on we will be coming with a more complete bill to deal with

more extensive reform.

Mr. Speaker, we intend to do all we can to try to help control the cost of

insurance in the Province and I encourage all members to look open-mindedly at

the alternatives that are out there. We are not going to be able to get the kind

of reductions our people want unless we are prepared to take some dramatic

action. I think we have to even review some of our own positions in this regard

and prepare to change our minds if it looks like the need for reform is

increasing, if it looks like the cost of insurance is becoming unbearable for so

many of our people and if it looks like there may be alternatives out there that

can help solve some of these problems.

Thank you very much, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. Barbe.

SOME HON. MEMBERS: Hear, hear!

MR. YOUNG: Thank you, Mr. Speaker.

I would like to take a few minutes to speak to Bill 9 here as well. It is

important that the public interest of the - you properly represent it. The

insurance industry is not an industry that is widely understood. There are

always a lot of details in insurance and because of that, I believe a lot of

people have shown very little interest. They go out and renew their insurance,

and as soon as that painful part of writing the cheque is over they put it to

one side again. Unless, of course, the unfortunate happens that you need your

insurance. I think that is what the general public has with insurance, or the

vast majority of us.

To think about the need of an advocate brings to question the position of the

superintendent of insurance. What role does that position play? It is a role

that goes out and sees that industry plays fair with our people; that they do

not go out there and not follow the law of the land; that they do have to follow

the law of the land and they do have to put reasonable insurance rates, I

suppose, in front of the people. At least as the law of the land stands. It is a

regulated industry. I do not know how far we can go out there to regulate it

more than what it is, and exactly what role an advocate would play.

The need was brought forward in the consultation paper that the minister has

spoken about. It was a paper that was out, had gone around this Province and

sought the input of the people in general. It was a very extensive piece of work

that was out there a few years ago and it brought back a number of regulations,

or a number of recommendations, and this is just one of them.

It was a controversial document. As the minister has said, the fact that it

had gone out there and suggested limited compensation for soft tissue injuries

is something that did not go very well in this Province. It was seen as a way

for the industry, I suppose, to get away without paying the people who were due

the benefits that they were due. It was a very, very gray area. It was not an

area where it was black and white. It was not a bone broken as such (inaudible)

it was. Soft tissue injuries was something that was always debatable. I think

one of the things that people seen out there, as they protested the move towards

this limitation, was the fact that it put a lot of power into the hands of the

industry. Today, the industry has the means to go out there and fight the

individual. The individual, obviously, cannot stand up to the industry

(inaudible) and the will of the industry that can drag out those things for

years on end. Individuals out there with very limited resources have to have

something that is going to be answered in a very short period of time.

I think when you go into the soft tissue injuries it is something that could

have gone on and dragged out, and would have left the vast majority of us, who

had gone out there and experienced soft tissue injuries, any compensation. That

was how the people felt. They really felt that if they were going to buy

insurance they wanted to know what they were getting. They wanted to be assured

that they were insured. I think when the soft tissue injury came in there, it

certainly changed the balance of power and how they were going to be able to

receive any benefits from the companies. As I said, they certainly felt that the

balance of power had certainly gone into the industries hands.

However, as the minister said, insurance is going up, and it is increasing

considerably. At what levels will it level off, and how will it level off? Will

we have to come to some kind of conclusion that we just cannot afford the

insurance as we have noted in the past? People today are saying, no, that they

do want insurance, that is a complete insurance; but, I suppose, the debate will

always be one that goes on and on because the levels - at some point we are

going to say: Well, we have to have some level of insurance, but not always the

level that we historically had.

What can we do to go out there and help keep prices - I mean, people have

said no to the soft tissue injuries, the limitations that we have there. What

are the other means? Maybe in debate today, as we continue on with this bill,

maybe some of those things will come out or some suggestions on how we should go

out there and keep it at a reasonable level, but yet respect the rights of the

people who go out of there. I think the thing is, anybody will always know that

once you find yourself in a position of needing your insurance - and it is the

most vulnerable time you are. You don't have the means. You probably don't

have the physical wellness to get out there to fight the battle. The tiredness,

the fatigue and all those things that you hear people talk about: I cannot fight

as if I were a well man, as I would two months or a year ago. I think that is a

point that people have seen. They know and understand that if they find

themselves in that position, it is not a position that they can get out of then.

Some of the suggestions, I suppose, that people have gone out and looked at

is that they see insurance companies go out there and behave in such a way. How

they do business. It does not seem to be in a way to keep their bottom line

down. When it comes to, for example, the windshield situation; if you have

insurance your windshield is at one price, but if you don't and you are buying

it on your own, it is another price. I mean those are things that really take

people - in saying that this industry is out there and they are taking us for

what we are worth. If a windshield has a certain value with insurance it should

have the same value without, but that is not how the industry goes. It looks as

if the industry is always gouging the customers. I mean, it has been a long-time

debate as well, and that is certainly not good.

Investments are a big part of the industry. They will go out there and take

my money today, and they are going to be giving me insurance, then, for the rest

of the year. As they invest that money into - and that is something that has not

been factored in. When we look at the industry and talk about the profit-loss

side of the industry, they can claim that, yes, we need to raise it, we are

losing money today, but it is not always factored in, the fact that they have

been investing our money for 364 days. That has been a big part of the industry,

the industry is built on that, but yet when they talk about the losses they

have, that is not factored in there.

I think the fact that they don't have to show financial statements to the

Public Utilities Board, vis--vis this government, on exactly how they are

doing, certainly gives them the opportunity to be less than forward or upfront

with the people of this Province. I think those are some of the things we have

to look at that would make the insurance industry more accountable to the

people, at least to be open.

If they are having losses, well then that is fine, you know and understand

that you are going to have to change it. But I don't think we always

understand and appreciate the fact, when we know that there are certain figures

being put out there by the industry itself, as has been rightfully pointed out,

that show they are talking about it to their shareholders, that they are making

this amount of money, then on the other hand they will turn around and tell us,

at the same time, that, no, they are losing.

The Facility Association is another part, I suppose, that has certainly

bothered people. A lot of people have ended up in the Facility Association

without ever knowing they were in there. They have one accident and they find

themselves in such a high rate program, that it is unacceptable. I mean, there

are people who have had just one accident and have had quite a number of years,

up to twenty years, of accident free driving, with no speeding tickets and

nothing against their record. Yet, the industry has been been able to put people

into this without any notification. Even the fact that without an accident as

such - you have to cancel your insurance, you move away for six months, and when

you go back to renew, at that time you can find yourself in the unfortunate

position of being in the Facility Association, which is extremely expensive and

unaffordable for many people.

As well, when you reach a certain age, the fact that you are eighty years

old, people have found, who are in perfect health and have no reason to give up

driving, that they cannot afford the insurance. They are living on a limited

income. At that point, for no other reason than you have reached the age of

eighty, instead of being rewarded, you are being penalized for reaching that age

and you can no longer afford to drive because you cannot afford to buy insurance

to be out on the road. It is very, very unfortunate.

One of the things that went out in some of the documents that are out there,

that would have a big impact on trying to keep insurance at reasonable levels,

so that the struggle between the people in the insurance companies wouldn't be

as great, the demand wouldn't be there, is more frequent highway patrols. A

part of my duty, I suppose, I was called upon as to the fact that the number of

officers are not out patrolling our highways today, and we mentioned back in the

cellphone usage, how do you regulate it if you do not have the numbers? I think

it has been shown that we do not have the number of officers today on our

highways and out there patrolling to be able to enforce and to be able to see

that we are staying down, that speed limits are kept within reason and driving

practices are kept to the safest that they can be.

Many times they are just not there in numbers and, when the enforcement is

not there, you know, if you can get away with something so many times, the trend

goes, what stops you is an accident. From the accident, of course, is the

insurance that follows behind, and then collectively it is the number of

accidents that has driven the insurance rates to where they are.

One of the things that I hear, and especially in rural Newfoundland, is

vehicle inspections. They certainly made a big impact on the business community,

with the feedback that came back a number of years ago when they took out

vehicle inspections. On top of that is the fact that out on our highways there

are certain vehicles out there that just should not be on our highways. When you

are going to have a spot check once or twice a year at most, to go out there and

check those vehicles, it is not enough to deter people from being out there. The

odds of getting caught again, it is not big enough against them to go out there

and do something about the vehicles that they have. It is just that they need to

get from point A to point B, and they get out there and think about their safety

and they only consider their safety. If you knew the machines that you were

meeting as you were going down the highway, I think you would have a different

opinion of vehicle inspections.

MR. NOEL: Do you think we should bring back annual inspections?

MR. YOUNG: Well, it has certainly been out there. It is something that

has come my way. Being from a very rural district, I have seen it from the

business community. The condition of the vehicles when they come in for repairs

are unsafe, but yet they do not have a means to keep those vehicles in the

garage, to insist that they do the job to put them up to the standards that they

should be. They will just take their machines back.

I have seen situations while I have been there - I live close to a business

as such - where a person was going to take their vehicle back. It so happened

that the RCMP happened to come by at the time and stop the vehicle from being

taken away from the garage. That is the only thing that stopped it. There are

not enough officers to be there to see those kinds of circumstances to ensure

it. That is what concerns people in that industry. I know they talk about it

from a self-serving point of view, the fact that they lost an amount of

business, and going there you would see it, but it is also the safety point.

It gets brought up to me because, being the critic for Government Services

and Lands, they really think that something should be done there from the safety

point of view. As well, I guess, it is self-serving. It is a double role, that

they would bring it to my attention.

MR. NOEL: I don't think the public would agree (inaudible).

MR. YOUNG: I think the public are not in favour of it because they do not

understand so many times what is coming down the road after them.

At the same time, there was another vehicle in my neighbourhood - there was a

very serious accident. This individual was coming down and the steering fell off

the vehicle and there was a head-on collision. There was a serious accident and

it was because this vehicle should not have been on the road, from what I

understand. Those are the kinds of things, if you think about them. If you are

driving down that road and if you only knew the vehicles that are coming on it,

I think if you appreciated the situation you would probably change your views.

I am out there and I maintain and take care of my vehicle. I try to drive

within reason. I have family. There are a lot of circumstances. If the vehicle

coming towards me had not been kept up, I would have been concerned, but I am

not really aware of that in most cases. If you are fortunate enough to be around

a mechanical garage or whatever, you start to hear the stories more by being

around that environment. As I said, in the past, a lot of those conversations

come my way now because they know the role that I play in my district, not in my

district but in a part of government as being critic for the department that is

responsible.

One of the other things that I find that has been coming up with me is the

snow clearing. We go out there and we want and expect safety, and part of that

safety is road clearing. Last week, I had someone call me who had an accident at

8:00 a.m. because the roads had not been salted and sanded. As far as they knew

and understood, it was supposed to be done at 5:00 a.m. with the weather

conditions. The weather conditions were such that it needed to be done but it

was not, and at 8:00 a.m. they were going down, there was black ice, and there

had been nothing done with the highway at that point.

That was brought to my attention but it was also brought to my attention in

my neighbourhood, in my own backyard again. The road from Plum Point to

Roddickton is where a lot of people go back and forth, who have working

obligations. If you are going to be living in Plum Point and teaching in

Roddickton or Englee, you have to get there. You have to be there at such a time

that the roads needs to be maintained long before 8:00 a.m. What is happening is

that so many times you are out there and driving with just one lane being open

at 7:00 a.m. It is just too late to be able to get out and have work obligations

somewhere else.

The thing in rural Newfoundland that I was told, and we were told so many

times, is that you cannot expect to have a job in your own small community, that

you may have to travel up to an hour. If we were going to put industry there, or

encourage industry, you cannot expect it in every community but it would be in a

distance as such that you can go there and find employment without moving out of

rural Newfoundland. I think what is happening now in rural Newfoundland with the

cutbacks in the highways is that you cannot go out there and work in a community

out our way because if you are going to make your commitment to be at work at

8:30 a.m. or 9:00 a.m., you just cannot get there. There is not a safe driving

environment provided for you. I hear that time and time again as the people have

been travelling in particular on that road. I know it is not only that road but

that is the one that I get most of my complaints about in my district.

The 430 itself, this is where this particular accident happened. It was just

north of Port Saunders, heading north. This accident happened at 8:00 a.m. and,

if there is a need to have your roads passable and in good condition, you need

it by then. There were not any other weather conditions at the time to stop it;

it was something that happened overnight with the temperatures.

That really concludes what I had to say about the insurance. It is just the

difficulties of knowing where the industry stands. I think even though the

Superintendent of Insurance is out there and plays a role to see that it lives

by the law, and is being fair and being regulated in that way, there are still a

lot of shades of gray there and there are a lot of ways that I think we can go

out there and tighten up a little to find out more of what is happening. I think

if we do some of the things that are in our control, such as I just mentioned

between the highway patrols, the vehicle inspections and the snow clearing,

those kind of things, I think, would bring back the insurance levels and would

take the pressure off that we see today. Because I think some of them are just

being created out of not having the proper preventative things done to make our

driving safer in this Province.

Thank you.

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

MR. HARRIS: Thank you, Mr. Speaker.

I would like to say a few words at this time on the bill,

An Act To Amend The

Automobile Insurance Act, to provide for a Consumer Representative and to have

the fees, I guess, importantly, of the Consumer Representative be paid for, it

says in the act, by the Public Utilities Commission; but the effect of that is

that the fees and the costs of the Advocate are actually paid for by the

applicant, in this case, one that is currently before the board, the Facility

Association or by the insurance industry because, at the end of the application,

the normal proceeding is that the Board of Commissioners of Public Utilities

will add to its order that the fees of the board would be paid for by the

applicant. In this case, those fees would include the costs of the Consumer

Advocate, although I think at some point, certainly in relation to other

applications before the Public Utilities Commission, and perhaps the minister

can answer this question, I know that previous Consumer Advocates were given a

specific budget by government when they were engaged, and I would wonder - and

perhaps the minster can tell us - how there would be some controls on that.

I know from my own experience in the past as being a representative of the

Consumers' Association, and intervening in hydro rate applications or

telephone company applications when the telephones were under the jurisdiction

of the Newfoundland and Labrador Public Utilities Board, that there was - not a

budget for that purpose - an expense involved and there was a lot of decision

making that had to go into how much money you would actually spend; whether you

could afford to hire an expert, whether an expert was necessary in a particular

case, because quite often these are highly specialized individuals, in the case

of usually actuaries, who are being engaged to challenge or look at the rates

being proposed, and these people charge a pretty hefty rate. They are usually

not available in the Province. You have to bring somebody in from other parts of

Canada and sometimes the United States, who charge fees like $200 an hour or

more for their advice and their witness fees.

There are a couple of ways of doing that. One is by the government

establishing a budget for Consumer Advocate. The other, which was the one that

applied when I was doing these things, because the Consumers' Association did

not have any budget to conduct these interventions, you had to actually apply to

the board at the end of the hearing and the board would decide whether your fees

were appropriate and adequate, and only then would they decided that they would

be paid. It would be based on some sort of determination that the contribution

that had been made by the intervener, in this case the Consumers' Association,

was of assistance to the process.

When you have a situation here where the legislation is saying that it shall

be the cost to the board, are we going to have that monitored by the board or is

the minister, in his role as minister, going to have some influence on the

budget to be associated with the costs of intervening? Perhaps the minister can

answer that when he concludes his remarks. Clearly, there is a need for some

direction in that regard because you cannot ordinarily have an advocate, or a

lawyer in this case, who would normally be a lawyer or law firm, deciding, of

their own accord, how much money they are going to spend on something. Somebody

has to make that determination.

It is important, I would say, that there be a Consumer Representative and a

Consumer Advocate at these hearings. The one that is currently before the board,

for example, has a filing of a document probably two-and-a-half or three inches

thick that I have here in front of me and it is an application by something

called Facility Association, which most people probably have not heard of. This

is set up by the Insurance Act. It is located in Toronto, according to its

letterhead, and this is where you are sent if the insurance industry decides

that you are high risk.

People find themselves assigned to the Facility Association sometimes for

very peculiar reasons. I have heard of cases, for example, where a young person

aged nineteen was assigned to the Facility Association because she had been

"involved in an accident". What had happened, Mr. Speaker, was that

she had been driving a relative's car, her grandparent's car, and she was

struck from behind by somebody else when she was stopped at a red light. It was

not her fault but she was "involved in an accident" and when she

applied for insurance in her own name she was considered high risk because she

was a young person who had been involved in an accident. She was assigned to the

Facility Association and had to pay three or four times what she would have had

to pay if she had applied as an accident-free driver.

We have to look at a number of things here, and I do not know if this

application can even look at that because it is suggested that is really in the

Automobile Insurance Act and that is not decided by this application; this is

only about rates. Mr. Speaker, if you cannot challenge who gets thrown into this

body or pool called high risk drivers, then there is something wrong with the

system and we have to examine that.

This application alone - and this is something, that you do not find out

these things until you actually apply for a copy of the application itself. The

application for Facility Association is applying for what they call an average

rate level, an average increase of 41.3 per cent for private passenger vehicles

and 48 per cent for commercial vehicles. We are taking about average increases

there: an average of 41 per cent increase for passenger and 48 per cent for

commercial. If you look at the application itself, in the detail, actually for

Territory 1, which I understand is the Avalon Peninsula, for Territory 1 they

are looking for a 60 per cent increase for private passenger liability

insurance, and for commercial they are looking for 59.2 per cent for Territory

1. In fact, for commercial for all Territories 1, 2 and 3, it is 59 per cent for

commercial vehicles. This is the overall liability case for all classes of

people who are in Facility Association.

MR. WALSH: How do you get there?

MR. HARRIS: The Member for Conception Bay East & Bell Island asked,

how do you get there? You get there by being considered high risk by the

insurance industry. I just mentioned an example of a nineteen-year-old girl who

was "involved in an accident" by being rear-ended by somebody else,

not her fault. She was driving her grandmother's car and all of a sudden when

she applies for insurance herself a year later she is told that she is high risk

because she is a young person who has been involved in an accident.

Now I ask you, from a commonsense point of view, is that young person, who

happened to be rear-ended, a high risk to the insurance industry? Is this person

at greater risk of having insurance? There is something very wrong with that

system if that is what we are faced with here. There does not seem to be any

sense if that kind of thing can happen.

We are talking about very significant rate increases being sought here. We

are also talking about an organization, which I understand from newspaper

reports, that Facility Association actually made a profit last year. This is

supposed to be cost recovery. We have high risk drivers. They have to be

insured. We do not want uninsured drivers on the highways. We have to be

insured. This is supposed to be cost neutral; you collect premiums and you pay

it out.

What happened last year was that they made $8 million. Is that $8 million

being used to offset the future costs of Facility Association? No, Mr. Speaker,

that was given to the insurance companies to put that in their pockets. Last

year they made $8 million and said they were supposed to make nothing. They put

that in their pockets, and they are coming back to the Public Utilities

Commission looking for rate increases of as much as 60 per cent in some cases,

but averaging 41 per cent of various parts of the coverage. Now I don't know,

that average must be some kind of accumulative average because there is one or

two where they were actually going down. They were actually seeking decreases in

some of them, but they are upping the deductibles. So there are a lot of things

going on. There is a complex application. Some of the coverages will be going

down, but the deductibles are going up from $100 to $500 in some cases, and from

$100 to $250 in others. So there are a lot of adjustments being made here, but

the overall effect of it is that for commercial coverage we are going up by 48

per cent; 48.3 per cent for commercial coverage and 41.3 per cent for private

passenger. Some of which, and I would submit, the more expensive - the public

liability side of it - are going up by 60 per cent or being sought to go up by

60 per cent in the case of private passenger liability in Territory 1, and by 59

per cent in all territories. In other words, every commercial driver in the

Province who is in Facility Association will be potentially facing an increase

of 60 per cent in public liability premiums.

What is also interesting, Mr. Speaker, is that the uninsured automobile

coverage is being proposed to go to $19 base premium in order to be consistent

with the New Brunswick universal uninsured automobile proposed base premium,

which is currently pending review. Now that is very interesting, Mr. Speaker. I

remember a number of years ago in this House when there were proposed changes to

the Insurance Act and we were told that there was a benefit to getting rid of

the uninsured motorists fund in this Province and that would be just done by the

insurance companies themselves. We would no longer have the separate

organization, which was looking after uninsured motorists and would settle the

claims for the uninsured motorists and had a fund to do that. We were told that

this would go into regular insurance coverage now. It would be covered by the

insurance company, and the premium would be $7 per driver; $7 per policy. Now we

are talking about $19. Even though when it was introduced in this House it was

talked about at $7 per driver, and this is supposed to be not a very significant

addition to the cost to drivers.

So this particular type of coverage for uninsured motorists came in at around

$10, went to $14 very quickly, and now we are looking at $19 for uninsured

motorists coverage. Yes, Mr. Speaker, there is a very great need to have at the

table, at the Public Utilities Board, somebody representing consumers here

because something is amiss when we see the Facility Association - which is

supposed to be totally revenue neutral, they just pay their expenses, they just

pay our their cost - collect $8 million one year and put it in their pockets

with the permission of the Public Utilities Commission, I would say. They did

not do it on their own. They did it with permission.

MR. NOEL: (Inaudible).

MR. HARRIS: Government says it made the case against being allowed to do

it, but I do not see any proposal in the legislation here, Mr. Speaker, to make

it illegal for them to do it. If you made the

Document details

CollectionNewfoundland and Labrador — Debates (Hansard)
Citation2002-11-25
Typehansard
Volume / chapter2002-11-25
Languageen
Formathtm
SourcePROVINCIAL
Identifierc09c574b39e2c2d9b39a46729e92b8f948786b7f

Source file is stored in the law ingest library (htm).