Ontario Hansard — 25 April 1977 (30th Parliament, 4th Session)

1977-04-25

Ontario — Debates (Hansard)

Ontario Hansard — 25 April 1977 (30th Parliament, 4th Session)

1977-04-25

Ontario — Debates (Hansard)

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April 25, 1977

30th Parliament, 4th Session

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Hansard Transcripts

L021 - Mon 25 Apr 1977 / Lun 25 avr 1977

STATEMENTS BY THE MINISTRY

HOME RENEWAL PROGRAMME

ORAL QUESTIONS

LAKE POLLUTION

OECA PUBLICATION

LAKE POLLUTION

BINGO REGULATIONS

AID FOR HAMILTON

QUEBEC LANGUAGE LEGISLATION

SALES TAX EXEMPTION

MULTILINGUAL TRANSLATIONS OF WORKMEN’S COMPENSATION ACT

CHILDREN IN UNLICENSED HOMES

SALES TAX EXEMPTION

NORTH PICKERING PROJECT

BINGO REGULATIONS

NUCLEAR POWER DEVELOPMENT

JOBS IN AGRICULTURE

QUEBEC MILK

RICHMOND HILL NURSING HOMES

PEEL TEACHERS’ DISPUTE

BRANT COUNTY TEACHERS’ DISPUTE

CITIZEN COMPLAINTS AGAINST POLICE

OCCUPATIONAL HEALTH

ENTERTAINMENT TAX

ONTARIO MALLEABLE IRON

PETITIONS

INTRODUCTION OF BILLS

REGIONAL MUNICIPALITY OF DURHAM AMENDMENT ACT

CONSUMER PROTECTION AMENDMENT ACT

ANSWERS TO WRITTEN QUESTIONS

ORDERS OF THE DAY

TORONTO GENERAL BURYING GROUNDS ACT

CANADA TRUSTCO MORTGAGE COMPANY ACT

BOROUGH OF YORK ACT

WEBWOOD INVESTMENTS LIMITED ACT

BOROUGH OF EAST YORK ACT

LOMBARDO FURNITURE AND APPLIANCES LIMITED ACT

KEVALAINE CORPORATION LIMITED ACT

FRED LEBLOND CEMENT PRODUCTS LIMITED ACT

ROMAN CATHOLIC EPISCOPAL CORPORATION (DIOCESE OF ALEXANDRIA) ACT

VILLAGE OF ERIE BEACH ACT

FRANK POSTEL ENTERPRISES LIMITED ACT

BUDGET DEBATE (CONTINUED)

ROYAL ASSENT

The House met at 2 p.m.

Prayers.

STATEMENTS BY THE MINISTRY

HOME RENEWAL PROGRAMME

Hon. Mr. Rhodes: Mr. Speaker, later this afternoon at the appropriate time I will be tabling a report entitled, An Evaluation of the Ontario Home Renewal Programme. This report contains the findings of an independent survey carried out by the consulting firm of Peter Barnard Associates.

In reading the report, members should note that the survey is based on statistical data gathered from the more than 400 municipalities that have participated in the Home Renewal Programme. In-depth interviews were conducted with municipal officials and other persons in 25 municipalities and a questionnaire survey of residents was carried out in six municipalities -- Cornwall, Kenora, Sarnia, Sudbury, Toronto and Windsor.

The results of the survey indicate that the Ontario Home Renewal Programme has been highly successful and has been a valuable tool in helping my ministry meet its objective to help to preserve and upgrade the existing housing stock in the province.

As with any programme, there are areas where changes can be made, and this report contains recommendations for modifications and minor refinements. It also recommends that the programme be continued.

The government announced earlier this year that the Ontario Home Renewal Programme would be extended for one more year, that is until March 31, 1978. But before any decisions are taken for beyond that date, I think it is important that those communities involved in the programme be given an opportunity to respond to and comment on this evaluation.

I will therefore be forwarding copies of this report to all municipalities which have participated in this programme and ask them to give me their comments by May 30 of this year. The report will also be provided to the members of the Provincial Municipal Liaison Committee and to the hon. members of this House.

Mr. Kerrio: How about a statement by the Premier?

Mr. Lewis: I will defer to you if you would like to make a statement.

Hon. Mr. Davis: I haven’t thought of one, but I will think of one.

Mr. Lewis: Okay. Well, we’ll still be here at 6. Don’t worry.

Mr. Reid: Just one word: “Go.”

ORAL QUESTIONS

LAKE POLLUTION

Mr.

Lewis: May I ask the Minister of the Environment the following: Does he recall that back on July 27, 1976, in a private memorandum to cabinet, the Minister of Natural Resources, dealing with fishing in waters where fish were contaminated, made the following recommendation -- and please forgive me for using his preposterous words -- I quote: “Do not prohibit angling on any water where it is known that at least some of the fish are contaminated, and continue to make available for leasing for private and commercial recreational purposes.” On September 17, 1976, the cabinet committee on resources development had a memo which indicated that it agreed with the general approach proposed by the minister.

Can the Minister of the Environment confirm that this is now government policy, and what further specifics flow from that?

Hon. Mr. Kerr: Mr. Speaker, since the hon. member asked the question of the Minister of Northern Affairs (Mr. Bernier) last Friday -- as it was issued over his signature when he was Minister of Natural Resources -- I made some inquiries and what the hon. member has indicated was generally the discussion that took place. As far as government policy is concerned, the answer to that is no, that still has to be approved by cabinet and by the government. I expect it will be dealt with very shortly, as the hon. Minister of Northern Affairs indicated on Friday.

Mr. Lewis: By way of supplementary, since the minister, according to the memorandum I have covering a number of divisions within the Northern Affairs and Natural Resources ministerial areas, appears to have taken this rather further down the road, and since obviously there is increasing concern in Ontario, will the minister not now in advance of his compendium release all of the information on the levels of contamination in various species in various lakes, since obviously he can’t wait another two months while anxiety is heightened?

Hon. Mr. Kerr: No, Mr. Speaker -- I shouldn’t say no. The answer at the present time would be that up until now, we have issued bulletins or releases dealing with approximately 90 lakes. Thas has been an ongoing release of information that was handled by the Ministry of Health until the first of this year and has subsequently been handled by my ministry.

As the hon. member no doubt has seen, a number of these releases or bulletins deal with various lakes in certain parts of the province. This information is released just as soon as we have the analyses from the Ministry of the Environment laboratories which have the responsibility of analysing fish. This has been going on now for a couple of years and I expect to release another bulletin within a week covering 23 more water- courses, which will make the total about 107.

The booklet or guide to which the hon. member is referring will contain roughly 150 to 160 lakes and rivers. I will make sure that the difference, which obviously is available now, added to what has already been released by way of bulletin, is tabled in this House within the next week.

Mr. Reid: Supplementary: In view of the fact that the fishing season opens within about three to four weeks, can the minister indicate when this booklet, with the compendium or without it, is going to be made available to the people who are fishing on these lakes?

Hon. Mr. Kerr: As has been mentioned on a number of occasions, it is not a question of releasing the booklet as some of the media indicated, it’s a question of getting it printed in sufficient quantity to distribute around the province. We’re hoping that will be available in June. But in the meantime the information we have, dealing strictly with fish levels in specific lakes, can be issued before that time.

Mr. Ferrier: Supplementary: Other than further testing of fish to determine the mercury levels that may be there, is the ministry making any study as to the source of the mercury -- whether it’s natural or whether there is an industrial or other source of it?

Hon. Mr. Kerr: Yes, Mr. Speaker. When we completed the analysis of fish from Lake Simcoe last fall and subsequently from the Muskokas, the Lake of Bays, where there are no known sources of mercury contamination by conventional industrial sources, we have undertaken a study of those areas to find out just what the possible source can be and whether it’s more than a natural source or rock formation or sources of that kind.

The study we’ve undertaken in Simcoe started in January and has been extended to the recreation lakes in Muskoka because of the findings there. I would assume that it could be very well just a matter of manpower to extend it to the Timmins area as well.

Mr. S. Smith: In view of the fact of my question of last November regarding a list of lakes that contain fish with unacceptable levels of pollutants -- in view of the fact that the fisheries branch in the Ministry of Natural Resources now says that they prepared an answer to that question last December -- could the minister tell me whether it’s his ministry or the Ministry of Natural Resources that’s suppressing the publication, or at least the giving to me of the answers that the fisheries branch provided for the minister about last December?

Hon. Mr. Kerr: That information should come from the Ministry of Natural Resources --

Mr. S. Smith: But you’re not suppressing it?

Hon. Mr. Kerr: No, we are not suppressing it, certainly.

Mr Nixon: It is the Minister of Natural Resources. Great suppressor.

Mr. Bain: Could the minister indicate what criteria he uses in judging whether mercury contamination is natural or non-natural? I use the example of Lake Timiskaming. On various occasions he has said its contamination is natural and then on other occasions he said it originates from the mills that used to be the Cobalt area. I was wondering when the people might have a definitive answer on Lake Timiskaming.

[2:15]

Hon. Mr. Kerr: I’ll have to look at that particular lake, Mr. Speaker. It’s quite possible that the early information indicated it as from a natural source. I think that a natural source may be part of the problem in the hon. member’s area; however, old mill tailings areas and old mining operations, of course, are always a possible source of mercury content.

OECA PUBLICATION

Mr. Lewis: Never knowing how much time is left around here, I must ask the government House leader this question: Does he know, or is he aware, that there is a document circulating through the Ontario Educational Communications Authority, called The Political Climate -- 1976-1980: A Planning Overview, prepared by their corporate division in May 1976, which indicates an obsessive and slightly paranoid preoccupation with politicians, the use of moulding political behaviour and opinion, gratuitous comments on politicians and on the councils that are advisory to the OECA? Has the document been brought to his attention?

Hon. Mr. Welch: No, Mr. Speaker.

Mr. Lewis: By way of supplementary, might I ask the minister to read the document and comment on observations such as: “The Ministry of Education: OECA’s main difficulty in connection with this ministry is Tom Wells.” Or on the Conservative Parity: “At best, Mr. Davis will remain leader for another three or four years, which means a change in the leadership of the party within our five-year planning horizon even if the Conservatives remain in power” --

Mr. Breithaupt: It may mean a divorce for the member for Ottawa South (Mr. Bennett).

Mr. Lewis: -- and a limitless corps of observations of that kind strewn throughout the document, albeit some obviously perceptive?

Hon. Mr. Davis: We’ll be here for another four years, yes.

Mr. Lewis: I would therefore ask the minister, could he possibly follow this up fairly seriously, given the often strange and disconcerting behaviour of OECA as they deal with politicians and the public and their various advisory councils? I’ll send him a copy.

Hon. Mr. Welch: It’s obvious that I’m not on the mailing list for the brown envelopes that are distributed throughout government, Mr. Speaker.

Mr. Lewis: Touché.

Hon. Mr. Welch: But, number two, I take it, we need very little further evidence of the autonomy of the board of OECA.

Hon. Mr. Rhodes: Who needs freedom of information?

Mr. Lewis: Brown envelopes have begun to flow again.

Hon. Mr. Davis: I suspect it was a friend of the Leader of the Opposition who wrote that report.

LAKE POLLUTION

Mr. S. Smith: I would ask the Minister of Natural Resources if he would please explain how it is that the fisheries branch of his own ministry had prepared an answer to my question of November regarding the polluted lakes in Ontario and that he had still written me in March saying that he and the Minister of the Environment are still working on the answer? Why has that answer not been given to me?

Hon. F. S. Miller: I believe, Mr. Speaker, there was not only a letter; I thought there had been some oral communication telling the hon. member that we were trying to prepare the whole package. And it wasn’t just two ministries; a number of ministries, including the Ministry of Health, were involved in preparing a reasonable package to inform the public, not only of the specific information about mercury levels in specific lakes but also of the risks of mercury and a number of other pieces of information which we thought would be of very real value to the people fishing or likely to be eating the fish.

This is taking a fair amount of time. In fact, it is being proceeded with as quickly as possible; that much I can tell the hon. member.

Mr. S. Smith: By way of supplementary, there’s always the chance that I don’t quite understand the answer, but let me ask the minister whether he thinks it’s reasonable that an elected member like myself should ask for information, that the information should be ready and available and yet that it should not be given to me as an elected member? Is that reasonable while the minister works on some pamphlet that he wishes for public distribution? Is that the way the minister treats the Legislature?

Mr. Lewis: Oh, contempt, indifference.

Hon. F. S. Miller: It is not, Mr. Speaker. As a matter of fact, I think my record in giving information in this Legislature is pretty good. I intend to keep it that way.

Mr. Ruston: Like closing hospitals.

Mr. Roy: In fact, it’s too good; that’s why you are there.

Interjections.

Mr. Speaker: Order.

Hon. F. S. Miller: I thought the hon. member understood that we would have a package of information available that was useful in a very broad way for a number of people. I’ll be glad to check to see, for the member’s personal use, if some part of it may be raised at once.

Hon. Mr. Davis: Going fishing?

Mr. Reid: Supplementary: Can the minister indicate what information will be available through his offices and licence issuers to people who buy fishing licences for the season starting on May 21?

Mr. Speaker: Order, please. That has nothing to do with the original question about the polluted lakes and what have you,

Mr. Reid: If I may, Mr. Speaker, it has to do with the pollution in the lakes -- so that the people know what lakes are polluted --

Mr. Speaker: Order, please. This is an important question. We can come back to it later.

BINGO REGULATIONS

Mr. S. Smith: I will ask a question of the Minister of Culture and Recreation, Mr. Speaker. Can he explain why one of the officials in his ministry informed the church-affiliated sponsors of the nightly bingo at the International Centre on Airport Road that it must stop busing people from Hamilton, Brantford, Toronto, Acton and Collingwood to attend its charitable bingo operation?

Hon. Mr. Welch: Mr. Speaker, that question should be directed to the Minister of Consumer and Commercial Relations.

Mr. Speaker: Do you redirect it?

Mr. Nixon: Does he run the bingos?

Mr. Speaker: The question is redirected by the minister.

Hon. Mr. Handleman: I don’t know about the specific instance, but there have been rules issued that those people who are running bingos must keep their expenses within a certain percentage of the gross -- I believe it is 20 per cent -- and must return 15 per cent to the charity that they are supposedly supporting by the bingo.

I don’t know that particular case. I would be glad to look into it to see whether or not that is the reason why. But the busing costs money, and if the busing brings them over the expense limit, then it may have been very well suggested that’s one way they can get within the limit.

Mr. Nixon: You let the Jockey Club bring them in from all over.

Mr. S. Smith: By way of supplementary: Would the minister kindly look into the fact that it is alleged that a Mr. Fisher and a Mr. Don Spade of his ministry informed a Mr. Doyle that it was not permitted for people in one community to play bingo in another community? Furthermore -- you know, big daddy government is getting bigger all the time --

Mr. Nixon: They can’t drink beer but they can play bingo.

Mr. S. Smith: -- they renewed the bingo licence only to June 30 on condition that buses are stopped by that time?

Mr. Lewis: Oh, shame. Resign.

Interjections.

Mr. Speaker: The hon. minister only, please. Order, please.

Mr. S. Smith: I recognize it isn’t as important as internal memoranda on the OCEA. I recognize that, but it does affect a number of people.

Hon. Mr. Handleman: Mr. Speaker, I will be glad to look into those allegations.

AID FOR HAMILTON

Mr. Deans: Mr. Speaker, I have a question for the Premier: Since Hamilton has unfortunately not been able to acquire the Pan-American Games and since the province of Ontario indicated a willingness to make up to $17 million available for the purpose of providing facilities --

Mr. S. Smith: Could we have it anyway?

Mr. Deans: -- and other matters related to the Pan-American Games --

Mr. Shore: Will you settle for $12 million?

Mr. Deans: I will settle for $12 million; is that an offer? Would the government --

An hon. member: You get Marvin as well. That’s the problem.

Mr. Deans: -- recognizing that part of the initiative surely was to create employment in the area --

Mr. S. Smith: How about $6 million and a draft choice?

Mr. Deans: -- consider three projects: A hospital in the east end of the city to meet long-standing needs --

Mr. Reid: Sounds like an election question.

Mr. Ruston: Here is his campaign speech.

Mr. S. Smith: You could call it the Pan-Am hospital.

An hon. member: And he wants to keep one choice until after the election.

Mr. Speaker: Order, please. Let’s get the question, and then the answer.

Mr. Deans: I am just waiting for a break. A hospital in the east that has been approved by the Ministry of Health --

Mr. S. Smith: And a partridge in a pear tree.

Mr. Deans: -- additional senior citizen accommodation in the east end which has been proven needed --

Mr. Nixon: That’s good.

Mr. Deans: -- and a stepping up of the sewer project in Winona which the minister agrees is required but for which there was no money available? Would the Premier use the money for those purposes and create the employment and meet the needs of the community in the meantime?

Mr. Breithaupt: And a new firehall in case --

Hon. Mr. Kerr: What riding is all that in?

Hon. Mr. Davis: I won’t make one observation about the Winona request that I could. In that these requests are all, of course, indirectly non-related to the hon. member’s riding, I can understand him asking the question. I can only say, Mr. Speaker, in the same general way the question was asked, this government is always prepared to look at any reasonable request from any municipality, any board. We are most reasonable people on this side of the House and certainly we look at any reasonable request.

Mr. Nixon: You gave Hamilton a new arena before the last election. What are you going to do this time? You can use the money for an election.

Hon. Mr. Davis: Any allocation of funds, of course, has to relate to the priorities and the availability of money. I should also point out to the hon. member, who wasn’t that enthusiastic about the Pan-Am Games initially --

Mr. Deans: Oh, not so.

Hon. Mr. Davis: Oh, well, I am sorry. I thought you weren’t. I can only say to the hon. member that there is no question there would have been employment created but if memory serves me correctly the design for the major facility was to be a 15,000-seat arena, I think, for most of the indoor events, and the architectural work and so on hadn’t started, so that there would not have been, in this current fiscal year, any capital expenditure. The funding, of course, was to be provided out of certain lottery proceeds.

There was no money in this year’s budget to accommodate the possibility of the Pan-Am Games in the city of Hamilton --

Mr. S. Smith: But there is for an election. It’s about the same time.

Mr. Speaker: Order, please. Order, please.

Hon. Mr. Davis: I really can’t say to the hon. member that there is any funding there that is not now being used that we could use for other worthwhile purposes.

Mr. Deans: Supplementary: Am I to assume from what the Premier has said that if the city of Hamilton and the surrounding municipalities making up the regional municipality of Hamilton-Wentworth were to request funds for the purposes that I have asked about, since the government was prepared to spend up to $17 million on the Pan-Am Games it might be prepared to entertain such suggestions for those projects, since they would equally create employment and provide needed facilities?

Hon. Mr. Davis: I think there were three projects that the hon. member was anxious that his constituents know he had expressed an interest in, and I understand that. I think the funding for the servicing in Winona might be available, as it should be in other parts as well, on a one-third, one-third, one third basis, and I think the hon. member knows that.

Mr. Deans: You said no.

Mr. Speaker: Order.

Hon. Mr. Davis: With respect to the possibility of a Hamilton East hospital, I think that’s a matter being discussed by the health council in that community. As I pointed out, the funding for any of those projects would have to be out of general tax revenues. As I tried to explain to the member, none of the funding for the Pan-Am Games was coming from that source and none of it was in this current fiscal year.

As I say, this government is prepared to try to help wherever it can within the priorities and the financial limitations that are imposed upon all of us in this House.

QUEBEC LANGUAGE LEGISLATION

Hon. Mr. Davis: I think they are two rather distinct issues, and the hon. member, with his legal training, I’m sure would understand that. I don’t want to get into any sort of provocative discussion -- I don’t mean provocative in terms of the House -- but I made my observations as related to the option that has been presented by the Premier of Quebec and some of his ministers and, I assume, the government, as to the question of economic union or association.

I made my statement in Montreal; I repeated it here a week ago this evening, although it was somewhat lost sight of in the midst of other discussions, and I restated it very clearly. That was based on the concern that I felt that the Minister of Finance or Treasurer from the province of Quebec had really stated in so many words in this province that the debate about separation, in his view, was over.

[2:30]

I very simply stated that no Canadian has the right to make that statement or express that point of view, and that as far as I was concerned that debate was not, is not and, in my view, will not be over for some period of time.

If anybody in Quebec, in the government -- and I emphasize in the government -- felt that because there had been no prior statement, the option of economic union or association had some slight attraction, I went on to say -- I hope I’m right in this -- that the people of this province are very committed to national unity; are very committed to having Quebec as part of Confederation; and would be prepared to assess any restructuring of the constitution or how this country functions; I think that the people of this province would approach that in a very positive frame of mind.

This is my point of view and I hope I am expressing it on behalf of all of us.

I did point out at the Empire Club that I thought that frame of mind, that feeling, would not be the same if the issue we were discussing was solely that of economic union; and, as I have said -- that is not an option open, as far as I’m concerned.

The hon. member is trying to relate that to my concern with respect to the white paper. I must emphasize that the white paper, as I understand it, is in the process of being re-assessed and put into the form of potential draft legislation. I will not comment in advance of the legislation.

As I pointed out on a number of occasions, people who try to relate what we are doing in a very progressive, logical way with respect to the French language being used for the Franco-Ontarian minority in this province -- as it relates to the legal and traditional position in the province of Quebec -- are dealing with two different situations, not only in law but in terms of the tradition and practices in this province.

I understand that the member for Ottawa East is concerned that we move more expeditiously, or more rapidly in some of these areas. I see nothing contradictory in what we have been saying, in what has been and is the policy of this government; but I would point out to him that I think there is a contradiction in the question that he has asked me, and the position of his colleague, the member for Essex South (Mr. Mancini), as it relates to another issue that is before the House.

Mr. Breithaupt: Just like your candidate in Essex South.

Mr. S. Smith: Point of order. I believe the answer that the Premier just gave does not have any bearing on the precise question being asked. In fact, it was a very unfair statement to make at this time. I would draw his attention to this clipping about his candidate in that particular riding --

Mr. Ruston: Yes. Going to get a new candidate Bill?

Mr. S. Smith: -- it is headed, “Klees Condemns Wells Over French School.” Show the clipping to the Premier and bring it back to me.

Interjections.

Mr. Speaker: Order, please. It seems to me it was quite a broad question in connection with the Judicature Act and I wasn’t sure of the connection between the two.

Mr. S. Smith: The answer certainly had nothing to do with it.

Interjections.

Mr. Speaker: Order, please. A supplementary from the hon. member for Ottawa East?

Mr. Roy: I preface my supplementary by saying this: I had not intended to make the association between the Premier’s statement on economic association and the Judicature Act. I said I applauded his statement on economic association.

Mr. Speaker: Your supplementary, please.

Mr. Roy: My supplementary is this: Recognizing that the Premier is one of the leaders of this country fighting for Canadian unity, how does he expect to have credibility with the people of Quebec, which his predecessor Mr. Robarts had, when talking about Franco-Ontarian rights -- and in his statement he says that his commitment to Franco-Ontarian citizens, to their educational, language and social rights will not be diminished -- as long as he keeps legislation such as this on the books of this province?

Mr. Speaker: Order, please. It seems to me that’s the same question. Is there a different answer?

Mr. Roy: It wasn’t answered.

Mr. Speaker: Order, please. We are wasting time when we repeat the question; the answer has to be repeated as well.

Hon. Mr. Davis: Mr. Speaker, I would like to expand on my answer to the first question. I agree with you that the second question is exactly the same.

Mr. Ruston: You didn’t answer the first question.

Mr. Nixon: Take another look at it, Bill.

Hon. Mr. Davis: I say to the hon. member, I’m really not concerned in that sense about my credibility. I am very concerned about the future of this country. I apologize to no one for the positions I have taken, and I say to the hon. member, unlike perhaps some suggestions made by others during this discussion in this province and elsewhere, that in the remote possibility --

Mr. S. Smith: Here comes another cheap shot.

Hon. Mr. Davis: -- that something were to happen in the province of Quebec, nothing is going to diminish the rights of the Franco-Ontarians in this province as long as I have anything to do with it.

Mr. S. Smith: What rights? Their rights to a trial in French maybe?

Mr. Roy: Don’t you call this a right, to a trial in French?

Hon. Mr. Davis: It was suggested the rights would diminish.

Mr. Speaker: Order, please. We’re wasting time with this calling back and forth.

Mr. S. Smith: The Premier gets lower every day.

Mr. Speaker: Order.

Mr. S. Smith: What about Hatfield? Is the Premier going to bring him up next?

Mr. MacDonald: With reference to the original question and dead on it, since this government 10 years ago, following the B and B report, got a task force report on the extent to which French could or might be used in our courts, would the government now table that task force report so that the Legislature might judge the adequacy or inadequacy of what Robarts or the present Premier has done in the last 10 years in that area?

Hon. Mr. Davis: Mr. Speaker, I can’t speak with as much specific knowledge about the courts. I will look into that information. The hon. member knows what we’ve done. But I think it also would be relevant perhaps to trace, if this were to be done, the total --

Mr. MacDonald: Will you answer my question?

Hon. Mr. Davis: I won’t undertake to table it until I myself have seen it.

Mr. MacDonald: That’s all I ask.

Mr. Speaker: Order. Order, please.

Hon. Mr. Davis: But I say to the hon. member I think it is relevant that there be an understanding of all the programmes that have been developed for the Franco-Ontarians in this province, including the field of education, where somebody I know rather well had a very direct hand in bringing it about.

Mr. Lewis: What was that? Somebody you know rather well?

Mr. Speaker: Order, please. Order.

Mr. Lewis: That’s another gem of self- effacement.

Mr. Speaker: Order, please, the hon. Leader of the Opposition.

SALES TAX EXEMPTION

Hon. Mrs. Scrivener: Mr. Speaker, I would like to respond to the question asked by the hon. member for Perth (Mr. Edighoffer) on Thursday, April 21, concerning retail sales tax exemptions to underground utility cables.

Underground cable for electrical utilities will continue to be exempt from retail sales tax, regardless of whether the cable is to be used in-duct or is buried direct. I informed the OMEA of this decision in my letter to them of March 8, which they then acknowledged on March 24. There has been a delay in finalizing the enabling regulation due to discussions among members of my ministry, the OMEA and representatives of municipal utilities. The regulation has now been revised to incorporate their suggestions and is being processed through Management Board and cabinet. When it is approved it will be retroactive to June 1, 1977.

MULTILINGUAL TRANSLATIONS OF WORKMEN’S COMPENSATION ACT

Mr. Ferrier: I have a question, Mr. Speaker, for the Minister of Labour. In view of the concern expressed by the francophone community in my riding, will the minister see that The Workmen’s Compensation Act is translated into French and made available to them in French?

Hon. B. Stephenson: Mr. Speaker, there have been directions issued to the Workmen’s Compensation Board about multilingual translation of certain documents. I shall certainly approach them about the possible translation of the entire Act into French for their consideration.

Mr. di Santo: Supplementary: When translating them into other languages, will the minister also make sure the documents translated are understandable?

Mr. S. Smith: You don’t want them translated, you want them rewritten.

Hon. B. Stephenson: I gather there has been some newspaper discussion about the understandability, if you will, of certain of the Workmen’s Compensation Board documents.

Mr. Reid: Understandability? There’s the problem.

Hon. B. Stephenson: I have asked specifically that the documents be looked at so that indeed they will be made clear to all those individuals who have to read them. The staff of the board stands ready at any time, however, to help anyone who is having difficulty understanding the documents.

Mr. Deans: Supplementary: Is it possible to produce for the House the documents that the minister intends to have translated and to tell us into which languages she intends to have them translated? Do they include The Construction Safety Act?

Hon. B. Stephenson: We were talking about The Workmen’s Compensation Act, and that does not include The Construction Safety Act, which is

an Act under the Ministry of Labour.

Mr. Deans: I understand that.

CHILDREN IN UNLICENSED HOMES

Mrs. Campbell: Mr. Speaker, my question is to the Minister of Community and Social Services.

Hon. Mr. Davis: I thought it might be.

Mrs. Campbell: Considering the fact that the minister’s answer given to me the other day regarding unlicensed children’s boarding homes suggested that many Children’s Aid Societies won’t use unlicensed homes, will the minister tell the House whether he can give the same assurance for family courts? Are there, in fact, children sent into unlicensed homes from family courts; and who, if anyone, is looking after these children’s welfare?

Hon. Mr. Norton: The hon. member, I am sure, is well aware that the family courts in this province do not come within the jurisdiction of my ministry, although the question of many of the group homes and boarding homes for children do. I cannot give the member the assurance that she asks at this point in time, but I can assure her that the whole area, as she is aware, is under review, and will be under the jurisdiction of the new children and youths services division of the ministry. One of the reasons for the reorganization was to look at precisely the kind of problem that I know concerns her and underlies the question that she has asked.

Mrs. Campbell: Supplementary, Mr. Speaker: Do I take it, then, that at this point in time this ministry cannot answer as to who is responsible for the welfare of those children in unlicensed homes; and that no such assurance will be available, at least until the minister has introduced the legislation transferring responsibility of all of these facilities in his ministry? Is that the thrust of his reply?

Hon. Mr. Norton: No, Mr. Speaker, it is not and I don’t think I really need to elaborate on that. The hon. member did in fact ask a question with regard to how many children were being placed in these homes under the jurisdiction of the court. She did not ask me the question at the time about who was concerned, who was responsible for the welfare of those children. Obviously our ministry bears the responsibility for the welfare of those children, and will continue to do so, through whatever agencies are available, Children’s Aid Societies and so on, across this province.

The question of those group homes which are presently not under the purview of the legislation is under review and we will be developing means of closer supervision.

Mrs. Campbell: A final supplementary, Mr. Speaker: I would point out to the minister that I did in fact ask who was supervising and it was as a result of his answer that I asked my supplementary. Could he, then, now tell us if he is responsible for these homes, as his answer indicates, how many of them are there, to his knowledge, which do not comply with the standards of health and safety, either of the municipality or of his ministry?

Hon. Mr. Norton: Mr. Speaker, I cannot answer that question at this point. I will try to find that information. If the hon. member has information about any or all of the standards in such group homes, I would be quite happy for her to pass that information to me and I would be quite happy to investigate it.

SALES TAX EXEMPTION

Hon. Mrs. Scrivener: Mr. Speaker, a few moments ago I referred to the retroactivity of a regulation for The Retail Sales Tax Act as being June 1 of this year, and of course it is January 1 of this year. I am afraid my mind was on other events.

Mr. S. Smith: Other events?

Mr. Reid: That’s the ninth.

Mr. Breithaupt: June 9.

Mr. Lewis: That certainly answers the question.

NORTH PICKERING PROJECT

Mr. Godfrey: Mr. Speaker, a question of the Premier with regard to North Pickering land acquisition royal commission: In view of the fact that last week the Premier promised there would be an early answer to those owners who have been dispossessed and are awaiting a decision, and in view of the fact the hearings have now been postponed, may I ask the Premier what specific steps he has taken to ensure there is a speedy answer for these people?

Hon. Mr. Davis: Mr. Speaker, we are moving expeditiously to make sure the hearings get under way very shortly and we’ll have something to say in the next day or so.

[2:45]

Mr. Godfrey: Supplementary: Perhaps the Premier did not hear what I said, I asked what specific steps were being taken. Has he approached the Lieutenant Governor to reconvene the board?

Hon. Mr. Davis: It is not a question of approaching the Lieutenant Governor to reconvene the board.

BINGO REGULATIONS

Mr. Kerrio: I have a question of the Minister of Consumer and Commercial Relations. Will he tell the House when he expects the new ceilings on administrative cost for bingos to be implemented; and can we expect a report from him on the effectiveness of this new initiative in the early stages of its implementation?

Hon. Mr. Handleman: My understanding is that the administrative ceilings, the so-called cost of operation regulations, have in fact been implemented and that many people are being given an extension of their present practices so that they can phase into the new conditions of operation.

Mr. Kerrio: Supplementary: Has the minister considered speaking with the Minister of Culture and Recreation concerning the 15 per cent ceiling, not only on private enterprises but on the province’s own Wintario lottery which has administrative costs above 15 per cent?

Hon. Mr. Handleman: Yes. As a matter of fact, I have discussed this with the minister along with my other cabinet colleagues. All I can say is we found many instances where bingos were being operated for the full benefit of the promoter when it should be for the benefit of the charities. We are trying to help the existing bingo operations to meet those guidelines.

Mr. Reid: For whom is Wintario being operated?

Hon. Mr. Handleman: So far, to the best of my knowledge, no licences have been cancelled.

NUCLEAR POWER DEVELOPMENT

Mr. Moffatt: I have a question of the Minister of the Environment. In view of the statement tabled in this House about two weeks ago by the Minister of Energy (Mr. Taylor), which indicates that in the short term we are going to be more dependent upon nuclear power as a source of energy for quite some number of years, has the Ministry of the Environment any plans with regard to stating general policies and specific measures to be taken with regard to the disposal of nuclear waste, the construction of plants, the siting of plants and their adaptability and fitting in with the general industrial complex of the province of Ontario?

Hon. Mr. Kerr: Yes. My ministry works very closely with the Ministry of Energy as far as nuclear power and the disposal of waste from nuclear plants are concerned. There is an interministerial committee which involves those two ministries, as well as Health -- and there is one more that I can’t think of off the top of my head -- in long term policies. It involves also Environment Canada. So there is no question that both ministries are aware of each other’s position in respect to nuclear power and, more importantly, the disposal of waste from that source.

Mr. Moffatt: Supplementary: In light of that I would like to ask the minister what his response is going to be to the application to have the Darlington generating station exempt from the terms of The Environmental Assessment Act, in light of the fact that Ontario Hydro went to the town of Newcastle and bought an agreement with them that they would not pose any objection to that kind of application.

Hon. Mr. Kerr: I don’t understand what the hon. member says when he says Hydro bought an agreement from the town of Newcastle. There must have been a price tag on it or some sort of a document.

Mr. Moffatt: That is correct. That is exactly what it was.

Hon. B. Stephenson: What is it you are alleging?

Hon. Mr. Norton: What are you alleging?

Hon. Mr. Kerr: As far as Darlington is concerned, there has been no decision with regard to any move to exempt that project from the Act.

Mr. Speaker: A final supplementary on the subject.

Mr. Moffatt: The minister apparently does not know that Ontario Hydro extracted from the town of Newcastle a commitment that, in return for signing a document which gave them certain sums of money for the development to go ahead, the town would not ask for any environmental assessment under that Act with regard to the Darlington station.

Hon. B. Stephenson: Has the member got that document?

Hon. W. Newman: You are accusing the council of selling out to Hydro.

Mr. Speaker: There doesn’t seem to be any question to that. There’s a rebuttal of an answer.

JOBS IN AGRICULTURE

Mr. Riddell: I have a question of the Minister of Agriculture and Food. Can the minister clarify for us and give us details of the types of jobs that are to be created in the agricultural sector, as outlined in the budget, which indicated that new funding will be provided for job creation in agriculture infrastructure?

Hon. W. Newman: Yes, I can give the member a fair number on the list right now. As he knows, $2 million additional was allowed for tile drainage, which would increase the work there. There will be a certain amount of research work done at the University of Guelph by the use of students and others and in our agricultural colleges the junior agriculturalist programme will be extended. We will probably work on an abandoned orchard programme, probably in eastern and maybe northwestern Ontario.

We are also looking at some other programmes of cleaning up, removing abandoned farm buildings, the windbreaks programme and several other programmes, plus the other part of the budget that includes the summer youth programme to subsidize summer farm labour jobs; part of that is included in the overall budget.

May I just finish, Mr. Speaker, by saying there also may be other programmes we’re working on right now.

Mr. Bain: Supplementary: Could I ask the minister what specific programmes and jobs he has in mind for agriculture in the north in the light of the fact that the north has unique problems that aren’t covered by general blanket provincial programmes?

Hon. W. Newman: I would disagree with the hon. member’s comment to start with, Mr. Speaker. We have special programmes for the north and we are looking at special programmes for the north. I outlined in this house last Friday, I believe it was, many of the programmes we have for the north. We’re very much concerned about the north because we think there’s a great potential there.

Mr. Bain: What new jobs in agriculture?

Mr. Speaker: Order, please.

Hon. W. Newman: We will be working with the municipalities across this province to work out programmes in conjunction with them. As the hon. member knows, we have a team working right now on the water problem. And I’m aware of the problems of the north; I’m going to have a look at them later on this week, as a matter of fact.

An hon. member: Are you doing anything about them?

Mr. Speaker: Order, please.

Mr. McKessock: A supplementary pertaining to jobs available to farmers for hiring youth: Is there going to be anything different to last year as to the junior agriculturalist programme, or is it just going to be the same as last year? If it is going to be different, when will we know about it?

Hon. W. Newman: The junior agriculturalist programme is already in place. There was a lot of applications this year and, as a result of the additional funds we have, we’ll be allowing more junior agriculturalists to have that great experience of going to work on a farm for the summer to find out what it is really like to work on a farm, and we’re glad we’re able to extend that programme. The students who were picked before already have been picked; we will now be extending that programme.

Mr. Speaker: I’ll allow a final supplementary.

Mr. Wildman: Supplementary: In view of the attempt to produce more jobs in the north and the water problem in northern Ontario with agriculture, can the minister explain whether the Ministry of Agriculture and Food, the Ministry of the Environment or the new ministry responsible for the overall programme will deal with the water problem if we have another dry summer in the north?

Hon. W. Newman: As I said last Friday in this House, we’re working on it right now. We have a preliminary report; it’s working through the secretariat. But the Minister of Northern Affairs and the Minister of the Environment are also involved, as the hon. member knows, in looking at ways and means to try to cope with this problem if we do not get the necessary rain that we need in northern Ontario.

QUEBEC MILK

Mr. Samis: Another question to the Minister of Agriculture and Food: Is the minister aware that 750 pounds of poor-quality milk from Granby Co-op in Huntingdon, Quebec, and 250,000 pounds from Co-operative Fédérée de Quebec, in Fédérée Mont Laurier, Quebec, are being processed weekly in eastern Ontario? Can he tell us what assurance his ministry can give the consumers of Ontario that the quality standards of Ontario will be maintained?

Hon. W. Newman: We have quality standards for all milk processed in the province of Ontario, wherever it comes from, through the Milk Marketing Board. The plants that received that milk know of our standards of quality, and the milk is tested here in the province of Ontario.

Mr. Samis: Supplementary: Since the officials of the Milk Marketing Board themselves, plus farmers in the area, have described the milk by saying, “We had dark milk coming in from Quebec all winter,” can the minister give us some indication of the extent of this importation over the past few months and his projections for the upcoming months?

Hon. W. Newman: We’re very much concerned about the high standards of milk quality in this province, and I think it augurs well for all of us that we do have very high standards.

Mr. Bain: Answer the question.

Mr. Speaker: Order, please.

Hon. W. Newman: The specific problem that the hon. member is talking about is being looked into at this moment.

RICHMOND HILL NURSING HOMES

Mr. Stong: I have a question of the Minister of Health. Will the minister consider giving assistance, in terms of licence and funding, to two nursing homes in the town of Richmond Hill, Elmwood Manor and Country Place Nursing Home, both of which have ample space and beds available and both of which have waiting lists?

Hon. Mr. Timbrell: I will be glad to give an answer on that in a day or two. I had a complete report on that based on a newspaper report which I just happen to have in front of me, of March 16, 1977, and about the rather interesting history of those nursing homes with additions built without permission and that sort of thing. I’ll give a complete answer in a couple of days.

PEEL TEACHERS’ DISPUTE

Mr. Sweeney: A question of the Minister of Education: Given that as of this morning both the teachers and the board in Peel county seem determined to close the schools either by a strike or a lockout, is the minister prepared to see 28,000 students go without their final exams, particularly when it means that a large number of them will lose their year because they need the final mark to complement their year’s work?

Hon. Mr. Wells: Of course, the answer is no, I would not be prepared to see them lose their final year. I don’t believe that that would lose the final marks for this year and I don’t believe that will happen. I believe that solutions will be found.

My friend should know, if he read the paper this morning, that the teachers have put forward a final position suggesting “Med-Arb” -- mediation-arbitration -- a process that’s been used in other jurisdictions and has been recommended by the chairman of the Education Relations Commission for use here in several disputes -- which has been accepted by the teacher negotiators. They’re having a general meeting tomorrow afternoon to get the backing of all the teachers for this method of settling the dispute.

It then will be presented to the Peel board of education and if they will accept it as a method of settling the dispute, I think the sanctions can be lifted and things can be back to normal and a process for settling those items remaining in dispute will be in motion.

These steps are all taking place at the present time. The Education Relations Commission is very deeply involved in them and I’m hopeful that they will result in a conclusion to the problems in Peel.

Mr. Sweeney: Supplementary: While these processes are going on, regardless of what their outcome is, is the minister prepared to tell both the teachers and the board that they have an obligation to be sure that the students are evaluated -- an obligation, not a choice?

Mr. S. Smith: That’s right.

Hon. Mr. Wells: I think that what I would want to do is speak personally with the teachers in this case to find out exactly what they’re talking about. My friend is referring to some generalizations, perhaps, that have appeared in newspapers in this particular situation. It may not be exactly as it appears in the newspapers. The Peel teachers are in a legal strike position --

Mr. S. Smith: Why don’t you know?

Hon. Mr. Wells: They’re exercising what they think are their prerogatives in that strike situation. The board, on the other hand, has it within its power to do certain things also, and I think that both sides are concerned about the welfare of the students. They always are. But it is also a teacher- board labour dispute, and these kinds of side effects very often come to be. None of us like to see them but I think that we have to do everything we can to get the parties together to get the matter settled and that’s the best way to bring to an end any of the unpleasantnesses that may be being caused there.

BRANT COUNTY TEACHERS’ DISPUTE

Mr. Makarchuk: A new question of the Minister of Education regarding the fact that in the dispute between the Brant County Board of Education and the OSSTF one of the matters under dispute is the matter of increments -- whether they should be referred to the Anti-Inflation Board for consideration in the wage increase, or whether they should not be referred. Is the minister prepared to instruct the boards in Ontario to the effect that they should leave out that portion as a negotiable matter, or is he prepared to let it be a matter that can be kicked around by the two sides?

Hon. Mr. Wells: I know the matter the hon. member is referring to. I’m not sure that it matters what I think in this particular matter.

These disputes are between the teachers and their employers, the school boards. It’s incumbent upon the school boards to fill out the forms they submit to the Anti-Inflation Board, not the Ministry of Education nor the Minister of Education. Even if I might express my preference in this particular matter, it’s still the prerogative of the school boards to handle it as they see fit. Therefore, in certain cases in this province it has become an issue as to whether the increments will or will not be counted in the percentage increases they report to the AIB.

Mr. Makarchuk: Supplementary: In this case in view of the fact that if this matter was removed from the bargaining table either way, whether it was decided that it should be considered or that it should not be considered it does not become a matter for dispute. The minister would be in a position to defuse a lot of potential arguments or strikes in this province.

Mr. Speaker: Order, please. Your question?

[3:00]

Mr. Makarchuk: Is the minister prepared to move in that direction?

Hon. Mr. Wells: What I’m saying to my friend, Mr. Speaker -- and I’m sure my friend knows enough about labour-management relations -- is that I can’t remove anything from the bargaining table. If it’s a negotiable item and one of the sides wants to bargain over that particular item, I can’t wave a wand and remove it.

CITIZEN COMPLAINTS AGAINST POLICE

Mr. Singer: A question for the Solicitor General: I wonder if he could tell us whether we are going to see the new bill dealing with police complaint procedures? If we are likely to see it, is he going to follow the recommendation of Mr. Justice Morand and Arthur Maloney or is he going to have the view that he enunciated to the press just a few weeks ago?

Hon. Mr. MacBeth: I hope that the bill will be introduced shortly. It is presently going through the legislative procedures again.

Mr. Reid: Which Parliament?

Mr. Speaker: Order, please.

Mr. Ruston: Third time around.

Mr. Nixon: You are smiling, John.

Hon. Mr. MacBeth: But it will have embodied in it many of the recommendations that Mr. Arthur Maloney proposed and some of the recommendations that Mr. Justice Morand proposed. As I say, I hope it will be before the House very shortly.

Mr. Roy: I wonder if I could ask if it is the minister’s intention and the intention of the government to see this legislation passed before the next election?

Hon. Mr. Handleman: When is that?

Hon. Mr. MacBeth: That may be beyond my control, Mr. Speaker, but it’s certainly my intention.

OCCUPATIONAL HEALTH

Mr. Lewis: May I ask a question of the Minister of Labour? With the new emphasis on occupational health, has the Minister of Labour endeavoured to inform the various community colleges that have courses in industrial hygiene or matters related, to provide in their advisory councils a reasonable cross-section of the community so that various voices are heard when sorting out the content for the programme?

Hon. B. Stephenson: No, Mr. Speaker, I have not communicated directly with boards of governors --

Interjections.

Mr. Reid: Mr. Conservative himself.

Mr. Nixon: In a pin-stripe.

Mr. Speaker: Order, please.

Mr. Breithaupt: The member for Ottawa Centre (Mr. Cassidy) is getting to look like the member for Ottawa South.

Mr. Speaker: We’re wasting time now. The hon. Minister of Labour has the floor.

Hon. B. Stephenson: I’m sorry that the unexpected sartorial splendour of the hon. member for Ottawa Centre has had this disturbing effect upon the members, but as I said, I have not attempted to contact directly the boards nor the presidents of community colleges at this time. Because what we are at this point doing is to --

Mr. Speaker: Order, please. There is too much background noise.

Hon. B. Stephenson: -- establish, with the co-operation of universities, community colleges and other educational bodies, an integrated educational programme -- because we need three levels of educational programme and not simply the community college level. When we have completed that, then I am sure we will be in contact.

Mr. Singer: The member for Ottawa Centre is going to get his hair done every day.

Mr. Nixon: He’s put away his sweat shirts; no more sweat shirts.

Hon. B. Stephenson: I have communicated with some of them because they have indicated to me their interest in providing just that aspect of education in occupational health and safety. We are encouraging them, of course, to do so, making sure that they are aware that there needs to be some input from both management and labour when such courses are undertaken.

Mr. Lewis: I don’t think you should allow the ridicule of pin-stripe socialism, Mr. Speaker. That was the quid pro quo for the Treasurer’s job. May I ask a supplementary?

Mr. Roy: Did you ever think in your wildest dreams that you would ever see the member for Ottawa Centre in a pin-stripe suit?

Mr. Ruston: With a vest?

Mr. Lewis: You’ve been wearing vests all your life, Albert.

Mr. Reid: It is all right, Mr. Speaker. It comes from Syd Silver.

Mr. Breithaupt: It goes back at 6.

Mr. Speaker: Order, please.

Mr. Breithaupt: The rates change at 6.

Mr. Lewis: Albert, you were born in a vest.

May I ask a supplementary of the Minister of Labour, Mr. Speaker?

Mr. Speaker: Order, please, we’re wasting time.

Mr. Lewis: Can I ask the minister in particular to pay close notice to the industrial Hygiene Technology Advisory Committee in Lambton College, which is the signal course of its kind in the province, where 10 out of the 13 members of the committee come from Polysar, Petrosar, Shell, Imperial Oil, Dow and Esso, not a single representative of any of the work force and three representatives from the college itself? Can the minister perhaps convey, if not displeasure at least direction that this kind of thing does not augur well for the course content we might wish in the province?

Hon. B. Stephenson: Mr. Speaker, I’m not sure that I would convey displeasure because, indeed, in the past that has been the makeup of many of the advisory committees.

Mr. MacDonald: That is the problem.

Hon. B. Stephenson: In our enthusiasm and our attempt to ensure that there is, indeed, co-operation between management and labour in this particular area, as well as in all other areas, I should most certainly convey to them my concern that there should be broader representation.

ENTERTAINMENT TAX

Mrs. Campbell: My question is to the Minister of Revenue. Is the minister aware of the confusion, both in her ministry apparently and in the minds of the public, with reference to the retail sales tax as it pertains to performances of Canadian talent, where formerly they used to have exemptions on an application basis? What is the status of those applications now?

Hon. Mrs. Scrivener: Mr. Speaker, there is no confusion in my ministry.

Mrs. Campbell: There is.

Mr. Roy: It is not in the ministry, it is in the minister.

Hon. Mrs. Scrivener: Canadian performances and productions which are produced by Canadians are, of course, exempt from retail sales tax on admissions.

ONTARIO MALLEABLE IRON

Mr. Breaugh: I have a question of the Minister of Labour. Would she provide us with a copy of whatever documents she forwarded to the UIC appeal board concerning the Ontario Malleable Iron workers in Oshawa? Would she also give us some indication of what else she might be contemplating that would help those people, who haven’t had a paycheque in going on two years, to either find another job or get some financial assistance in some way?

Hon. B. Stephenson: I’m not sure that there is any specific documentation. There have been a number of direct telephone calls and conversations about it. That I am aware of. I am not aware that there are transcripts of those calls. I shall, however, remind the hon. member that indeed there is an employment adjustment service within the Ministry of Labour which stands ready to assist any individual found in the unfortunate situation in which many of these former employees of that company are.

Mr. Speaker: The question period has expired.

PETITIONS

Mr. Breaugh: I have a petition to present to the Legislature. The petition consists of approximately 3,000 ratepayers in my riding in the region of Durham and the petition reads:

“We, the undersigned residents of the region of Durham request the following: An immediate solution to the problems of increased water and sewer rates, high taxes and duplication of services in the region of Durham. We submit the costs of simply existing in the region have increased dramatically as a direct result of the region being implemented. As an immediate solution, we require that increased funding from the province be made available in the amount requested by the region in December of 1975 of the Treasurer of Ontario.

“Secondly, as a long-range solution, a full inquiry is required into the benefits and costs of the transition to this form of municipal government”.

Mr. Speaker: Will the hon. member send it down to the desk?

Mr. Moffatt: Mr. Speaker, I also have about 2,000 names of a petition with identical wording to that submitted by the member for Oshawa, all from the residents of the region of Durham.

Mr. Godfrey: I too wish to present a petition in the same wording as the two previous ones, numbering some 2,000 residents of Durham West.

Mr. Moffatt: Mr. Speaker, with regard to the petitions, those three petitions which have been presented are merely the forerunners of others which will be coming in and we simply wanted to give you notice that they are under way.

Mr. Breithaupt: Thanks for the notice.

Mr. Speaker: We will have to check and see if these three are in order first of all.

Mr. Breaugh: They are in order.

Mr. Speaker: Fine.

Presenting reports.

Motions.

INTRODUCTION OF BILLS

REGIONAL MUNICIPALITY OF DURHAM AMENDMENT ACT

Mr. Breaugh moved first reading of Bill 57,

An Act to amend The Regional Municipality of Durham Act, 1973.

Motion agreed to.

Mr. Breaugh: Mr. Speaker, this bill addresses itself to what is known locally as “The Great Water and Sewer Ripoff.” This bill returns control over water and sewage services in the regional municipality of Durham to the area municipality.

CONSUMER PROTECTION AMENDMENT ACT

Mr. B. Newman moved first reading of Bill 58,

An Act to amend The Consumer Protection Act.

Motion agreed to.

Mr. B. Newman: Mr. Speaker, this bill requires that every product offered for sale by a retailer that is marked with the universal product code must also be clearly marked with its individual purchase price. This would ensure the rights of the consumer to the privilege of comparison shopping.

ANSWERS TO WRITTEN QUESTIONS

Hon. Mr. Welch: Mr. Speaker, before the orders of the day, I wish to table the answers to questions 28, 29, 30, 31 and 32 standing on the notice paper.

ORDERS OF THE DAY

TORONTO GENERAL BURYING GROUNDS ACT

Mr. Drea moved second reading of Bill Pr2,

An Act respecting the Trustees of the Toronto General Burying Grounds.

Motion agreed to.

The bill was also given third reading on motion.

CANADA TRUSTCO MORTGAGE COMPANY ACT

Mr. Peterson moved second reading of Bill Pr4,

An Act respecting Trustco Mortgage Company.

Motion agreed to.

The bill was also given third reading on motion.

BOROUGH OF YORK ACT

Mr. Deans, on behalf on Mr. MacDonald moved second reading of Bill Pr5,

An Act respecting the Borough of York.

Motion agreed to.

The bill was also given third reading on motion.

WEBWOOD INVESTMENTS LIMITED ACT

Mr. Stong moved second reading of Bill Pr6,

An Act respecting Webwood Investments Limited.

Motion agreed to.

The bill was also given third reading on motion.

[3:15]

BOROUGH OF EAST YORK ACT

Mr. Leluk moved second reading of Bill Pr9,

An Act respecting the Borough of East York.

Motion agreed to.

The bill was also given third reading on motion.

LOMBARDO FURNITURE AND APPLIANCES LIMITED ACT

Mr. Deans, on behalf of Mr. Burr, moved second reading of Bill Pr11,

An Act respecting Lombardo Furniture and Appliances Limited.

Motion agreed to.

The bill was also given third reading on motion.

KEVALAINE CORPORATION LIMITED ACT

Mr. Grossman moved second reading of Bill Pr13,

An Act respecting Kevalaine Corporation Limited.

Motion agreed to.

The bill was also given third reading on motion.

FRED LEBLOND CEMENT PRODUCTS LIMITED ACT

Mr. Leluk, on behalf of Mr. Morrow, moved second reading of Bill Pr16,

An Act respecting Fred Leblond Cement Products Limited.

Motion agreed to.

The bill was also given third reading on motion.

ROMAN CATHOLIC EPISCOPAL CORPORATION (DIOCESE OF ALEXANDRIA) ACT

Mr. Villeneuve moved second reading of Bill Pr19,

An Act respecting The Roman Catholic Episcopal Corporation for the Diocese of Alexandria, in Ontario, Canada.

Motion agreed to.

The bill was also given third reading on motion.

VILLAGE OF ERIE BEACH ACT

Mr. Breithaupt, on behalf of Mr. Spence, moved second reading of Bill Pr20,

An Act respecting the Village of Erie Beach.

Motion agreed to.

The bill was also given third reading on motion.

FRANK POSTEL ENTERPRISES LIMITED ACT

Mr. Drea, on behalf of Mr. Johnston, moved second reading of Bill Pr24,

An Act respecting Frank Postl Enterprises Limited.

Motion agreed to.

The bill was also given third reading on motion.

BUDGET DEBATE (CONTINUED)

Resumption of the adjourned debate on the motion that this House approves in general the budgetary policy of the government.

Mr. Cassidy: Mr. Speaker, I had been led to understand that every one of the Conservative cabinet was going to be here for this particular speech.

Mr. Breithaupt: Wrong again.

Mr. Cassidy: Wrong again, yes. It’s unfortunate because it might have been a helpful piece of information for them.

Ontario is passing through difficult times and it faces a difficult economic future. More and more evidence indicates we face major changes in our industrial and economic structure if we are to continue to enjoy the prosperity that has been Ontario’s lot in the past, almost automatically.

The terms of trade within Canada are shifting against Ontario, and the economic pre-eminence we have enjoyed for so long in this country is weakening. The persistent increase in our unemployment rate to more than seven per cent this winter, which the Treasurer (Mr. McKeough) seems to think is temporary, may well mark the start of a period of chronically high unemployment, unless there is decisive action by the government.

We believe that Ontario can continue to prosper, but the Treasurer seems to have lost confidence in Ontario. That’s why the budget he brought down on April 19 is such a profoundly disappointing document for us in the New Democratic Party.

Mr. Bain: And for the people of the province.

Mr. Deans: He just doesn’t understand.

Mr. Cassidy: In speech after speech since last September, the Treasurer has been laying his ground with warnings of difficult times ahead. Some of the analysis that was prepared in advance of the budget was perceptive, but to quote the Treasurer himself, “When the drains are plugged, you need a good plumber, not another public relations man.”

We expected, and Ontario needed, a serious, bold and innovative budget that would show the Conservatives are as capable of managing bad times as they are of profiting politically from the good times that Ontario has enjoyed over the past three decades. The Treasurer has failed to provide that serious new approach and all of us in Ontario are poorer as a result. He intends to continue the mismanagement of the Ontario economy that has brought us to our present difficult situation.

The Treasurer has helped to create stagnation in the Ontario economy, and now he asks us to accept that that stagnation will continue. He is so caught up in his ideological straitjacket that he cannot bring himself to apply the remedies that everyone else agrees the Ontario economy needs. This steadfast disciple of simplistic laissez-faire economics honestly believes a handful of corporate executives, many responding to direction from outside Canada, can do a better job of bringing Ontario out of its economic morass than the private and public sectors working together co-operatively with strong leadership and a sense of direction from the Ontario government.

The Treasurer has provided an outrageous rationale to justify his government’s accepting a level of permanent unemployment which can only be described as intolerable.

Mr Wildman: Shame.

Mr. Cassidy: McKeough is playing R. B. Bennett and Herbert Hoover wrapped into one --

Mr. Samis: Quite a combination.

An hon. member: I wish he’d said Calvin Coolidge.

Mr. Cassidy: -- except that he outdoes them both in the bravado and in the bluster with which he defends the indefensible.

Hon. Mr. Kerr: Better get the jeans back on, Mike.

Mr. Makarchuk: Darcyville.

Mr. Cassidy: We suspect that it’s the Treasurer’s ideology that has compelled him to make tax proposals that are entirely inappropriate to our needs in 1977. The facts and figures with which he defends his position are a compendium of misrepresentation and an abuse of the facts for political purposes.

Finally, we had been led to expect serious new proposals and ideas for the long-term health and development of Ontario’s economy. Instead, we were treated to an analysis that was so brief and superficial that it wouldn’t even pass a first-year economics test, and to a demonstration of hand-wringing in the direction of the federal government, of business and of labour that does Ontario neither credit nor good.

The Conservative government’s reputation for being able to manage Ontario has been growing increasingly thin, and now it is threadbare. The emperor -- or should I say the Duke of Kent -- has no clothes.

Hon. Mr. Kerr: Better get the jeans back on, Mike.

Mr. Breithaupt: But you have?

Mr. Cassidy: Yes, I have.

Mr. Bain: You have them.

Mr. Cassidy: The distortions and misrepresentations in this budget all favour a government facing re-election. They are so glaring that I feel I have to deal with them, even though I also want to talk very seriously about what we feel should be done for Ontario, both in 1977 and over the next decade.

The Treasurer is no plumber, but he is a public relations man doing his best to cover up the mismanagement of the economy by his government over the last five or six years. We can only conclude that this is the political budget for 1977 and that the real budget has been held back on the presumption that the Tories will be back in power when the election is over. Then the real medicine would come.

Mr. Philip: The one that implements Blair.

Mr. Cassidy: In his budget, the Treasurer states, and I quote: “I think there is every reason to be optimistic about the outlook for 1977.” The recent federal budget, he adds, and I quote, “builds in considerable fiscal stimulation.” His opinion is shared by almost no one; his facts are definitely misleading, and the figures he uses in this document are just plain wrong. Consider the following: The most basic assumption on which this budget is based is that Ontario will have real growth of 4.7 per cent in 1977. This estimate just is not credible.

The most recent Conference Board estimate for Ontario is for real growth of just under three per cent, compared to the estimate of the Treasurer of 4.7 per cent.

Hon. Mr. McKeough: They are revised to three per cent, if you want to be accurate.

Mr. Cassidy: The recent federal budget forecast growth of four per cent for Canada as a whole. While the Treasurer’s election crystal ball tells him there will be almost no slowing down in growth this year from the forecasts of last fall, virtually every major forecaster in the country -- and I’ve been consulting them -- has been cutting back his forecasts of growth for 1977 from what he anticipated last December.

Take the highly respected forecast of Judith Maxwell of the C. D. Howe Research Institute, for example. She says, and I quote: “The combination of restraint in monetary and fiscal policy and of controls on wages and profits has dampened the economic recovery, with the result that production has been losing momentum since the spring of 1976, unemployment has been rising, productivity growth has been sluggish, and corporate profits have been stagnating.

“If investors and consumers were confident that good days were ahead, the potential would exist for a more robust economic expansion. However, confidence was at a low ebb in 1977, reflecting the fact that the economy had been losing momentum, and the impact of longer-range structural problems faced by many industries. This has put a damper on corporate investment and has curbed consumer spending, both on ordinary items and on new housing.”

That’s no socialist, wild-eyed radical. That’s the C. D. Howe Research Institute’s considered opinion of what’s happening, and it differs a great deal from what the Treasurer has to say.

The Ontario Economic Council is equally pessimistic. The outlook is for real growth of four per cent or less, it says, and unemployment will grow to a peak of seven and a half per cent and stay near that level until the early 1980s.

Next, consider that fiscal stimulus from the federal budget, which is the Treasurer’s chief rationale for not taking stimulative actions at the provincial level in Ontario. To put it bluntly, two-thirds of the so-called stimulus cited by the Treasurer is phoney, but has been brought into the accounts to make the overall picture look good.

Specifically, the continuation of the federal investment tax credit provides no new stimulus for Ontario’s economy, because it was there last year. The federal indexing scheme is a way of keeping taxes from rising, but it does not represent any overall cut as put forward by the Treasurer. What the Treasurer has called a reduction in unemployment insurance premiums is in fact a decision not to increase contribution rates. The choice of a word like that is itself a manipulation for political purposes.

Finally, the Treasurer would have us believe that the $500 million in federal tax refunds is a new stimulus for Ontario’s economy when it’s no different from the refunds that were paid last year, the year before, or five years before that. That’s really grasping at straws.

One should add that when the Treasurer is counting Ontario’s own tax changes he correctly adds up about $210 million of tax increases, but that $80 million of his so-called tax reduction is in fact the continuation of the fast write-offs for business which existed last year. In net terms, that means what appears as a balance between tax cuts and tax increases in this year’s budget is in fact an $80 million tax increase borne by small taxpayers. Another misrepresentation.

The revenue side of this year’s budget is unrealistically optimistic. The Treasurer now estimates his 1977 revenues at $12.6 billion. That’s half a billion dollars more than his official estimate last fall, even though his actual receipts during the past six months have been recalculated to $300 million below forecasts. Why the optimism? His forecast growth rate on revenues has almost doubled from 7.7 per cent anticipated last fall to 13 per cent today, despite the increasing signs of stagnation in the economy. That kind of forecast has an election smell.

Certain tax fields have been particularly inflated for reasons that we can only assume are political. For the third year in a row --

Hon. Mr. Kerr: For heaven’s sake, political?

Mr. Cassidy: -- that’s true -- mining tax revenue has been overestimated by about $50 million. After we adjust for tax concessions the government is expecting a 24 per cent increase in corporations’ tax revenues on a forecast increase of profits of only 6.3 per cent -- and that’s unrealistic.

Taken together, the mining and the capital and corporations tax may be overestimated by as much as $250 million in revenue. We strongly suspect that sales tax and income tax revenues have also been overestimated because of the rose-coloured economic forecast that the Treasurer used. Apart from blind faith, we could get no convincing rationale from ministry officials for such big revenue increase forecasts.

[3:30]

Obviously the political justification for juggling revenue figures is so that the Treasurer’s press release could forecast a budget deficit of less than $1 billion. That was the game last year -- but then the Treasurer came in $300 million off target. We anticipate that the final deficit this year will be even further off target than in 1976-77, and will in fact exceed $1.4 billion.

The Treasurer has so grossly distorted the real budget picture for 1977 that he has also destroyed the credibility of his stated goal of moving toward a balanced budget within three years. We know the government wants a balanced budget to be an election issue in hopes of diverting the public’s attention from the record-breaking deficits that have marked the Davis government’s regime and have raised Ontario’s total liabilities by $8 billion between 1971 and today.

I, therefore, want to put on the record the fact that the public are being misled if they believe the Treasurer is committed to balancing Ontario’s budget by 1980, and that is largely due to the distortion by the Treasurer and his people. The very first line of the 1977 budget press release says, and I quote: “A five-year plan designed to balance the Ontario budget was revealed by the Treasurer.” Quite naturally, a number of the press wrote their stories accordingly. The Treasurer’s own budget statement, however, was much more coy. “Our objective,” he said, “is to have the capacity to balance the Ontario budget by 1980-81.” No commitment; just to have the capacity.

If we are prepared to bring the Ontario economy grinding to a halt completely, this government has the capacity to balance its budget today. Any government has that capacity at virtually any time. If we examine it closely, the centrepiece of Ontario’s fiscal strategy in the budget may not be a promise at all, certainly lacks credibility, and relates far more to the Conservative Party’s political needs than to the economic needs of the province. I am not alone in questioning the government’s rosy forecast.

The Ontario Economic Council again estimates Ontario’s net cash requirements could reach $4 billion by 1981, and its estimate is based on lower expenditure increases than those that we have seen since 1971.

When it comes to the municipal taxpayers, I am not sure whether to call the Treasurer’s actions misrepresentation or downright fraud. What is clear is that the municipalities are being shortchanged on the Edmonton commitment by between $50 million and $108 million, depending on how we count, because the Treasurer has refused to recalculate municipal grants under that commitment to take into account his projected higher rate of revenue increase for 1977-78.

The consequence of that piece of fiscal hocus-pocus will be yet another municipal property tax increase, and one that is as severe and as damaging as in 1976. I shall come later to the misrepresentations that underlie the atrocious decision of the Treasurer and the Ontario government to raise the full employment target for Ontario and to tolerate more than 200,000 workers being permanently unemployed.

What I want to turn to now is central to the ability of the Conservative Party to govern, because there is ample evidence of mismanagement of Ontario’s economy, both by the Treasurer and by his colleagues. It isn’t just misrepresentation, it is mismanagement as well. Consider the rosy forecasts that were made last year. A good year, the Treasurer said in his budget last April. He promised us 116,000 new jobs.

In fact the labour force grew by less than he had expected, yet despite that, between March 1976 and March of this year the Ontario economy, under the shaky direction of the Treasurer, produced only 29,000 new jobs and added 49,000 additional workers to the permanent army of the unemployed.

That is real performance. It is a wretched start on the task that is now facing us all in Ontario, which is to create a million new jobs in this province, under conditions that are greatly changed from the booming 1960s, over the next 10 years. I don’t think the Conservative Party is any longer up to that challenge.

No matter how one looks at it, Ontario has been sliding back under the Tories. Back in 1971, when the member for Chatham-Kent first became Treasurer, the unemployment rate was 5.2 per cent. Today, it is nudging eight per cent. The Treasurer has been one of the chief architects of the public sector growth in Ontario, of which he is now the chief critic. In fact, Ontario’s government expenditures have risen from 11 per cent of gross provincial product a decade ago to 16 per cent of the present budget.

Our net debt in Ontario has risen from 30 per cent of budgetary revenue when the present Treasurer first became Treasurer to 54 per cent today, or from four to eight per cent of gross provincial product. We are not in the bankruptcy court yet but it is a headlong slide and it’s a sign of the cynical and almost irresponsible way with which the Conservatives approach Ontario’s finances.

Consider now just how differently the Treasurer reacted to the slowdown of Ontario’s economy in 1975 and to the slowdown we are experiencing today. The economic picture in Ontario in both years looked remarkably similar. Inflation was worse two years ago and unemployment was lower. Nevertheless, the government undertook a major programme of independent fiscal action to get the Ontario economy moving. If stimulation was justified in 1975, then it is clearly justified today.

I searched the indicators to find out why the government moved so readily two years ago and so reluctantly today. The only variable that explains their actions is the fact that in February 1975 the Progressive Conservatives were 12 per cent behind the official opposition in the Gallup poll,

whereas in February 1977 they were 15 per cent ahead and didn’t feel they had to try to manipulate the electorate in order to gain re-election. I think it is a measure of the Treasurer’s cynicism that the chief factor that guides the government’s fiscal policy is not the state of our economy in Ontario but the Conservative Party’s standings in the Gallup poll.

Let’s look at some other indicators. When one mismanages an economy as badly as Ontario’s is being mismanaged, everybody loses. Our gross provincial product could be $3.5 billion higher and Ontario’s fiscal deficit could be $500 million lower if Ontario’s unemployed workers were back on the job. The mismanagement of housing policy in Ontario has given our major cities some of the highest house prices on the continent. That has held back consumer spending that could have stimulated other areas of the economy.

Whether one looks at inflation, at growth, at unemployment or at the equitable distribution of incomes, we are failing abysmally in Ontario by the standards of sound economic management which have been accepted in this country ever since World War II. This province, which is in Canada’s manufacturing heartland, is running a $5-billion deficit in its manufacturing trade with the rest of the world. We are contributing substantially to Canada’s balance of payment difficulties through Ontario Hydro’s continued heavy borrowing abroad.

Western industrial nations are all having economic difficulties. But Ontario has enormous natural advantages, which means it should be able to do better than most jurisdictions in our present difficult times and not tag along at the rear. Running the economy of this province demands imagination and verve and also calls for a lot of careful rethinking about the ways we have been doing things, both in the private and in the public sectors.

A sound manager would have embarked on this process of rethinking, but this government has lost touch with Ontario and the only direction it is willing to give to the economy is to abdicate its responsibilities and leave everything up to the corporate sector.

Let me give two final examples of mismanagement. First is the Treasurer’s irresistible urge to take Ontario’s sales tax off the machinery and equipment sector. He did it in 1971-72 and he did it again in 1975. Last November he extended the rebate indefinitely, repeatedly insisting that this was the only way to create jobs and get the economy back on the track.

Hon. Mr. McKeough: Just to correct the error, I didn’t do that in 1971-72.

Mr. Cassidy: The five per cent investment tax credit in 1971 was equivalent to taking the sales tax off machinery.

Hon. Mr. McKeough: They were two entirely different things.

Mr. Cassidy: Exactly the same.

Mr. Lewis: Exactly the same.

Mr. Cassidy: By now I think the record is pretty clear.

Hon. Mr. McKeough: You don’t know what you are talking about.

Mr. Cassidy: Machinery investment rises in Ontario in response to demand and to a growing economy, as it did in 1973-74. It does not respond to artificial stimulus when the demand is not there. The 2.4 per cent increase in machinery investment this past year is surely evidence of that. Not one scintilla of evidence has been put forward to prove the machinery tax rebate has created a job. There is no indication that this misplaced incentive will do any better in 1977.

In fact, we have asked in the House and I have asked the minister’s officials whether they can prove any jobs were created from machinery tax credit. The answer consistently is, “We don’t know. We aren’t even asking the question.”

Mr. Wildman: Blind faith.

Mr. Cassidy: Industry is now using only 81 per cent of its capacity, so there’s no incentive to invest. What machinery is being installed may well be eliminating more jobs than it creates. Only two industrial sectors, clothing and cars, are currently working at above 86 per cent of capacity. So there is enormous scope for increased production if it is stimulated by consumer demand. The idea that this tax rebate is an ineffective incentive isn’t just some sort of socialist fantasy. The Treasurer says as much in budget paper A, which says that the high unemployment in 1973 and 1974 was not the result of too little capital investment.

The Ontario Economic Council, which I quote with pleasure because I think it has done a good job on its papers this year --

Mr. Wildman: Being subversive.

Mr. Cassidy: -- has just warned that tax incentive policies designed to encourage investment have a reduced impact because of the extent of the operations of subsidiaries of United States firms. In other words, in a time of economic slack, Ontario’s $160-million handout in 1977 may well wind up as new plants and equipment in Michigan, Ohio or California. Now that’s as counterproductive as any policy can get.

The C. D. Howe Research Institute has also been warning that in times like these further tax concessions to industry are likely to be quite ineffective. Is this a sound way to manage the economy? All the evidence says it is not.

Hon. Mr. McKeough: Not quite all.

Mr. Cassidy: When the Treasurer produces it, we’ll look at it with interest.

Hon. Mr. McKeough: Not quite all.

Mr. Cassidy: The final example, I cite more in sorrow than in anger. It is 10 years since the Smith commission called for the reform of Ontario’s property tax system, based on market value assessment. That reform has moved from delay to delay, from excuse to excuse, from one minister to another, to the point where what original value may have lain in the proposal has been almost completely frittered away.

Things seemed to be moving a year ago in the budget, when the Treasurer set up the Blair commission to recommend the best means of easing the transition to the new form of assessment.

Mr. Riddell: Before they even had the data.

Mr. Cassidy: But now the Blair report is out, the Treasurer’s silence about the property tax reform in his pre-election budget is deafening. That silence contrasts with the lyrical speeches on property tax reform and market value assessment that were being made both by the Treasurer and by the then Minister of Revenue (Mr. Meen) up until last fall.

The mismanagement of property tax reform these 10 years is the mark of a government that has lost its grip. A lot of people, moreover, are now being hurt by the government’s delay. Many of them are tenants and home owners who are being over-taxed because of the injustices of the present assessment system. Their numbers are swelled, however, by the small businessmen, by the homeowners on modest incomes and by the supporters of charitable organizations and Catholic schools for whom homes, businesses and vital community institutions are threatened by the injustice of the Treasurer’s proposals as validated by the Blair commission.

The New Democratic Party has made its position on the major issues around property tax reform very clear. We should like the government to make its position equally clear before the election, rather than delaying a difficult decision in hopes it will be returned to power and then can take the action.

People talk frequently in this House about the waste of a government that pours millions into a Minaki Lodge and hundreds of millions dollars into ill-conceived land assembly at Pickering and Haldimand-Norfolk. I want to talk now about another form of waste -- the waste in human terms that results from this government’s mismanagement of the economy, and that means the waste, the tragic waste of Ontario’s unemployed.

This winter the unemployment rate was 10 per cent in Windsor and in the Simcoe-Georgian Bay region. It exceeded nine per cent in St. Catharines-Niagara, in the Ottawa Valley, in the Peterborough-Lake Ontario region, in the southwest and in the northeast, and it averaged eight per cent across the province. One worker in every 12 was out of a job and, when you come to teenage workers -- fresh entrants into the work force -- one in every five was unemployed. That is tragic and that, in our terms, is unacceptable.

When the number of job vacancies is less than one-half of one per cent of the labour market, you can see that unemployment in Ontario is a social and economic problem and not the fault of the people out on the street.

In addition to the 312,000 people who in March were counted as unemployed, there were another 149,000 who had recently lost their jobs or were laid off but who didn’t count in the labour force survey because they had given up looking for work. The survey doesn’t count people in remote locations, it doesn’t count Treaty Indians, and it doesn’t count the 50,00 people who in March were working in part-time jobs because they couldn’t find full-time employment.

Mr. Wildman: It never counts Treaty Indians.

Mr. Cassidy: Even if you count only the 149,000 who had just lost their jobs, rather than ignoring the hidden unemployment that exists in Ontario, then Ontario is running its economy with a rate of 11.3 per cent unemployed. In other words, one worker in every nine can’t find a job.

[3:45]

Moreover, these hidden unemployed aren’t just some concoction created by Ed Broadbent or myself. The official unemployment insurance statistics show 40,000 more people are collecting benefits than are counted as unemployed; and the UIC totals don’t include young workers who’ve never become eligible for benefits or a substantial number of workers who, for personal reasons, or who, through ignorance, don’t try to collect unemployment insurance, or who are not eligible.

The situation that exists is tragic and unacceptable to everyone except to the Treasurer, to his minions and to his party. Their response is worthy of Marie Antoinette. Instead of taking meaningful action to curb unemployment, the Treasurer has chosen to try to define it away. I can’t tell the House how deeply disturbed my colleagues and I were to encounter this self-serving economic sophistry of budget paper A on unemployment, or to hear the Treasurer assert, and I quote: “The full employment target for Ontario appropriate for the 1970s is 5.3 per cent, up from three per cent some years ago.”

Now that the budget has been published, the Treasurer knows his redefinition of unemployment is a political error of major proportions and it could even cost his party the election. He is trying to wiggle around his commitment to keep unemployment high by saying the figure might be tinkered with a little. It’s all rubbish and it makes my heart break.

What Ontario’s Treasurer is saying is that in order to keep the Ontario economy from overheating, it is necessary to maintain a permanent army of more than 200,000 men and women in Ontario perpetually unemployed. Moreover, his lamentable record of meeting targets in the past suggests the number of unemployed will be even higher. I say that is shocking and unacceptable.

Mr. Lewis: But typical.

Mr. Cassidy: We would never tolerate such a target if we were the government of this province. No other government, no other jurisdiction in the western world, would dare to set 5.3 per cent unemployment as a desirable economic goal.

The argument presented in the budget paper is that structural changes in the economy are combining to increase the rate of unemployment that prevails when the economy is at its maximum capacity. We’ve gone to some lengths in order to try to discern the meaning in a paper which is notably devoid of it. The paper argues that increases in the labour force have been concentrated in groups with traditionally higher rates of unemployment -- namely, an influx of women and young people -- and that their unemployment is less serious than the unemployment of prime-aged males.

What’s really happening, of course, it that the economy is no longer expanding as solidly as it did in the 1960s. Therefore, it is no longer succeeding in absorbing these new entrants into the work force.

Unemployment for women is not traditionally higher than for prime-aged males, and it is a misrepresentation to claim it has been. In fact, the unemployment rate for women has averaged one per cent below that of men consistently in Ontario over the past two decades. That’s true whether you take prime-aged women or whether you take women of all ages. Women’s unemployment exceeded that of men for the first time in 1974 only as a direct consequence of the slowdown in the economy. To say their rate of unemployment is traditionally higher is another self-serving representation.

I see the Treasurer is looking troubled. He’s trying to loosen his tie. The statistics come from Ontario Statistics 1976, a very commendable book published by his ministry.

As far as young workers are concerned, they were 24 per cent of the labour force in 1972 when this government accepted the three per cent full-employment target -- 24 per cent at that time. Today, five years later, young workers have risen to 25 per cent of the labour force, an almost insignificant change over half a decade. Again, therefore, the only difference is the slowdown in the economy. During the 1960s, the proportion of young workers in the economy expanded dramatically but they were absorbed, and that’s not happening today.

The Treasurer and his staff are misrepresenting the facts to try to prove a point that gets them off the hook for failing to create jobs. What’s particularly offensive about this

section of the budget paper is that it classes every woman worker as a member of the secondary labour force. This is a sexist notion, as sexist a notion as we have heard from government in this Legislature in a long, long time. It is an obvious prelude to deliberate discrimination in government economic policies between the so-called primary and secondary members of the labour force, in which the government intends to relax its efforts at job creation once it has achieved what it considers a satisfactory employment rate among prime-aged males.

I might say the degree of resentment at this second-class status to which the Treasurer relegates them is enormous and quite justified among the women workers with whom I have talked. I fail to understand how women can be put in the back seat, when at least one-third of Ontario’s female work force is made up of women who are single or who are heads of families, and when most working women work out of necessity in order to balance the family budget.

The second major reason for changing the full-employment target is, and I quote: “The worker preference changes induced by revisions to The Unemployment Insurance Act in 1971 and 1972.” I have read this material again and again and I cannot find where the budget paper even says specifically that the UIC system is the cause of increased voluntary unemployment. When there are only 12,000 vacancies, it’s pretty hard to argue that 312,000 unemployed people are sitting around being choosy.

The Treasurer is being insulting when he indicates he believes a lot of people are on the Ontario labour force only to take advantage of unemployment insurance benefits.

If he’s been listening, in fact, be could have learned as long ago as 1974 that the Ontario Ministry of Labour had determined that, and I quote: “A tax on the unemployment insurance system served mainly to divert attention away from more fundamental manpower concerns” -- an opinion with which we associate ourselves -- and, from the same source, that far more important than unemployment insurance in explaining the difficulties of matching workers to jobs during the 1973-74 boom was, and I quote: “the lack of training and on-the-job experience during 1971-73, regional and sectorial shifts in labour demand, and a failure to learn how to adequately utilize women, youth and various minorities.”

The report went on to say that one of the main causes of the present situation was the reluctance of employers and social planners to treat labour as a resource to be developed and planned for over the long-term horizon, rather than to treat it as if it flowed from a tap. Alas, our Treasurer prefers not to be confused by the facts.

We understand why the Treasurer has resorted to this sophistry, because his statistical redefinition of unemployment is 30 times as effective in reducing concern for the unemployed in his terms than are his programmes for creating full-time jobs. The 3,600 jobs that have been promised in construction and in work with old people represent barely one per cent of the number of unemployed in Ontario at this time and one-tenth of one per cent of the total labour force.

The problem of the 138,000 young people who are not students and who are unemployed has been almost totally ignored because the Ontario Youth Employment Programme and the wage subsidy to private employers is timed to be of use almost inclusively for students seeking summer jobs.

To support his redefinition of unemployment, the Treasurer has cited the Economic Council of Canada and the US Council of Economic Advisers along with the Bank of Canada.

What he fails to recognize is that first, as an industrial province, Ontario should have a lower target for full employment than Canada as a whole and, second, that it is the task of government in co-operation with the private sector to find means of improving the skills, mobility and adaptability of the work force and to identify and eliminate other bottlenecks in the economy so that the potential growth rate of the economy can be improved, not worsened, and so that we can safely run the economy as close as possible to 100 per cent employment.

Once the Treasurer’s people decided to say, in error, that the rate of unemployment among women was traditionally higher than men, all the figures and conclusions of this budget paper came into question.

Mr. Wildman: All wrong.

Mr. Cassidy: Frankly, I prefer the compassionate positions that were once advanced by the government, and I quote John White in 1973, “Any unemployment figure in excess of three per cent is unacceptable to this government.” We’ll go along with that.

I quote again: “Low income workers, young people and students and older employees have been particularly hard hit by unemployment. The real cost of unemployment to these people has been enormous, not just in terms of lost incomes, but also in terms of human dignity and family security. In addition, there’s been a heavy cost to the community at large in lost output and weakened confidence.” We associate ourselves with that remark as well. It was made by the present Treasurer in his 1971 budget when the unemployment rate was running at 5.2 per cent.

The tragic consequences of unemployment which he acknowledged to exist then exist again today, but this government no longer cares enough even to try to get people back to work and to get the Ontario economy moving.

Mr. MacDonald: That’s a more relevant quote.

Mr. Cassidy: I want to turn for one minute, and one minute only, to the announcement by the Liberal Party and by its leader that his party intends to support this budget. I do so because of the very harsh words he had to say about the government’s record on unemployment during his response in the Throne debate. The least I can do is to read those remarks into the record:

“Mr. S. Smith: In my own constituency office I have people with all levels of education -- grade nine, grade 13, MAs, PhDs -- unable to find work. The bitterness, the hopelessness, the frustration which these people indicate to me is something which is simply intolerable.

“I get the feeling that we have broken faith with our young people. We push them through high school and nurse them through various educational opportunities and then we dump them on the labour market to rot like so many surplus vegetables. This a time when they should be achieving a measure of independence and one in five of our workers under 20 cannot find a job.

“We cannot abandon them. The Treasurer, in his budget, must offer hope and jobs to counteract the despair, the fear and the disillusionment of 143,000 jobless young people.”

He found it intolerable three weeks ago, but now the Liberal Party in Ontario finds this budget, this heartless budget, so tolerable that it intends to support the government on a motion of confidence. I simply cannot understand how a party leader with that attitude can support a government which is so demonstratively incompetent at resolving our problem of unemployment.

Mr. Roy: We want to keep the government going so they’ll bring on solutions.

Mr. Lewis: You want to keep them going on forever, never mind solutions.

Mr. Cassidy: When there are no solutions there’s no use in keeping the government going.

Mr. Wildman: You make up your policy decisions on a trampoline, while flipping over and over.

Mr. Roy: Now that the member for Ottawa Centre has a pin-striped suit he shouldn’t be irresponsible.

Mr. Nixon: I think the word is that we want jobs not elections.

Mr. MacDonald: You know you’re going to get one.

Mr. Cassidy: Let me now turn to the Treasurer’s proposals, specifically for job creation. Both the promises which were made in the Throne Speech about job creation and the promise that was made in the budget a year ago, that Ontario would take appropriate action if the economy began to run off the rails, are simply not matched by action.

For the labour force generally, the Treasurer is promising to create about 3,000 full-time jobs, or about one-tenth of one per cent of Ontario’s labour force. For students, he promised about 4,000 more jobs on the government’s summer employment programme; plus something less than 20,000 summer jobs in the private sector which will be subsidized by $1 an hour. We suspect that many of these so-called new jobs will be last year’s jobs, only cheaper for the employers.

What really counts, however, is that next to nothing is being done for the 138,000 workers under 25 who were out of work at the time the budget was delivered. I know that the students are having a hard time finding work because of the economic situation, but I think Ontario’s priorities are misplaced when attention to young workers is almost totally confined to students. It seems the main reason the Treasurer chose this route was the political reason that summer jobs are easier to create than year-round jobs and the public relations impact is more visible if you’re going into an election.

We are concerned that the burden of unemployment is falling so heavily on young workers who are being permanently excluded from the work force as members of “Darcy’s army of the unemployed.”

I therefore want today to propose the creation of an Ontario youth careers programme to provide work experience and career-entry types of positions for workers in their late teens and early 20s. These jobs should be for up to one year. They should provide for significant work experience in job training, and the bulk of them should be in the private and non-profit sector. We believe private employers should bear some of the costs for this programme and that the youth careers programme should be as substantial as possible. I shall come in a few minutes to the magnitude which we think is feasible in this year’s budget for such a youth careers programme.

Mr. Lewis: Kind of a Pied Piper of the unemployed.

Mr. Cassidy: We’re facing two challenges in our economy: What do we do in 1977 and what are we going to do for the next 10 years?

I want to join issue with the Treasurer on the long-term questions first, because I think his response to what is happening in Ontario have been so completely inadequate. The changes that are forecast in our industrial structure over the next few years are frightening. According to the Ontario Economic Council, employment in goods-producing industries in Ontario will shrink from 36 per cent of our labour force this year to 28 per cent in 1987, a mere decade away, if current trends continue.

To put it another way, that means there will be almost no increase in the 1.4 million jobs that now exist in the resource industries, in manufacturing and construction; and in fact there will be a natural decline in manufacturing. If the economy expands by one million workers over the next decade -- and that’s the forecast -- the council says that all of these jobs will have to be found in the service industries and many of them in the government sector.

[4:00]

We in the NDP believe it is not good enough to simply sit back and accept further weakening of an industrial sector which is already both incomplete and vulnerable. We believe that to sit idly by while the work force in manufacturing actually declines would be to irreparably damage our future as a prosperous industrial province. Ontario would go into the next century with nothing ahead but a few more decades of resources to exploit.

The Treasurer (Mr. McKeough) has talked about industrial strategy on many occasions and he let it be known he would have important things to say in this budget. That’s another reason we find the budget so profoundly disappointing. All the bold words of the past about Ontario industry have given way to a pageful of prattle which does little more than call on the federal government for action.

Imagine saying, for action, that, and I quote, “we badly need a national policy of income and price stabilization,” when this government just last fall deliberately decided not to undertake a farm income stabilization plan which was both adequate for farmers’ needs and had the full support of the farm community. Imagine calling for, and I quote, “a national policy with some vision of the economic future,” when what we need is provincial policy with some vision of the economic future.

Imagine worrying about the economy becoming too capital intensive and talking about resisting subsidization and feather-bedding when this government indiscriminately hands out $160 million for investment, with no indication where it should go and no attempt to channel resources to the areas of strength in the economy.

I grant that the Treasurer had a few other words to say. He never ceases to utter his hymns to profits. When the Treasurer isn’t castigating the federal government for doing not enough to develop industry, he is castigating business. Last June he told them that not only should they invest more and get out and boost exports, but that, and I quote, “with just a little more social awareness in your decision-making,” they alone could resolve the problem of the inequities between rich and poor regions of the country. That’s rubbish too, Mr. Speaker.

The Treasurer demeans himself by turning into a naive cheerleader for business when he should be seeking to provide leadership in very difficult times, and he demeans Ontario by constantly trying to shift the blame to labour, to the private sector, to federal government, to foreign competition or to some other bogyman. He strains credibility by saying that everybody is to blame for any problem except the provincial government.

On behalf of the government, the Treasurer says he thinks we should work now to rationalize --

Mr. Bullbrook: You can’t take issue with his statement. He just asks for some social awareness on their part.

Mr. Cassidy: Well we might have some social awareness on the part of the government as well.

Mr. Bullbrook: What’s wrong with that? I am glad he asked.

Mr. Cassidy: On behalf of the government, the Treasurer thinks we should work now to rationalize and concentrate around the best industries in Ontario. That’s fine, but I search in vain to find how he intends to achieve that goal. He wants us to do what we can do best, but he gives no indication in what fields the government thinks Ontario should specialize.

He wants a reappraisal of foreign investment policies to permit what he calls beneficial capital inflows, but he spends too little time worrying about how we can build up strength domestically. Even the Canadian Manufacturers’ Association now estimates that since August 1976 Canada has lost 178,000 jobs in the manufacturing sector. That’s serious, but the response we have had so far from the Ontario government can only be described as superficial.

I want to deal now with a number of specific areas and make some specific suggestions which we believe could have been launched as part of this year’s budget, and as the first steps in reorganizing Ontario’s industry and economy to meet the challenges of the 1980s.

First, our overall industrial situation. We are constantly being exhorted to get out and sell on foreign markets. However, there is an increased parochialism about the world which reminds one uncomfortably of the great depression. As part of their economic strategy, many countries, and not just Ontario, are gearing up in order to create more jobs through manufacturing exports. That puts some limit on the opportunities for Ontario, since we are part of the relatively high-cost North American economy.

There is one foreign market, however, in which Ontario industry has an enormous natural advantage if we started to work hard at it. I mean, of course, the market that is now filled by imports into Ontario from foreign countries. Our imports of finished goods are worth $5 billion more than our exports, and if we include finished materials and certain foods that compete with Canadian products, there is a market within Ontario of close to $20 billion which Ontario industry and the government should take a real crack at.

We’ve had foreign trade crusades in the past; it might be time to have one for ourselves, both to identify products that could be made economically in Ontario and also to let Ontario consumers know how much of the dollar value of goods they buy was made in Canada. We would consider providing means to inform consumers at the point of sale of the Canadian content of goods that are offered, so that they do not wind up buying foreign products out of ignorance, where price and quality are comparable with imports.

An example of what I mean by the inadequacy of the Treasurer’s approach for Ontario’s future is Ontario’s involvement with the automobile industry. I have to say that this is a very sad saga indeed. One in every nine jobs -- or one in every six by the Treasurer’s count last year -- depends on the automobile industry in this province. Ontario ranks in importance with major automobile producing jurisdictions like Michigan, Ohio and California.

Last year the Treasurer spoke with great concern in his budget about the need to revitalize the automobile industry. “We can’t be complacent,” he said. “We must take positive action.” Specifically, he called for measures to increase productivity, to give Canada a larger share of value added in motor vehicle assembly, to reduce the parts deficit and to provide for a regular review of the auto pact.

What disturbs my party is that there has been absolutely no follow-through on the very serious concerns which were raised in the budget last year about the future of Ontario’s automobile industry, even though there is now more cause for concern than there was in 1976.

President Carter’s energy statement last week indicates that the US government will be pressing very hard on the industry to develop a whole new generation of automobiles, based on new lightweight materials and production techniques in order to ensure better fuel economy. It is precisely in new technological development that Canada’s automobile parts industry has tended to do worst.

Last year, our car assembly industry bounced back from the very bad year we had in 1975 when the US car market was soft; our trade deficit in parts went from $1.9 billion in 1974 to just under $2.5 billion in 1975, and it got no better from that very serious deficit in 1976. The initial signs this year are that things are going even worse.

Back in the early years of the auto pact, Canada had very much more than its normal share of investment in the North American car industry. Its share is around 10 per cent, our investment was running much higher. Now we are running far below that 10 per cent share. With an industry that has reached market saturation, and with some turning away from car purchases because of crowded cities, because of high energy costs, because of changing social values -- maybe because of Jimmy Carter -- there is no sign that we will recover that position through economic reasons alone; yet that has been the naive supposition of the Ontario government.

When you have an industry as closely linked to government as automobiles, however, when you have an industry which is totally American-owned and when you have several states which depend even more heavily on automobiles for their economic prosperity than does Ontario, then the failure of the Ontario government to do more than to exhort Ottawa for action on the auto industry takes on serious proportions. When Michigan and Ohio, Illinois or California, Georgia or Massachusetts, are pressing Ford, GM or Chrysler to locate facilities in their state, just where is the Ontario government?

It isn’t good enough to hope that the federal government will take action; it isn’t good enough to maintain a small research unit on autos in the Treasury ministry, along with one or two junior analysts in the Ministry of Industry and Tourism, it isn’t good enough for the Treasurer of this important province to make one speech on budget day about automobiles and then leave the subject alone for a year.

Yet that is precisely what happened. We have searched through the record and sought the help of the Treasurer’s staff to find out what he has said since the bold initiative in the budget of April 1976. We embarked on this quest with some charity, since the Treasurer’s riding of Chatham-Kent is an automobile parts town and since the industry actually feels that he has lobbied actively on their behalf. The record, alas, indicates no discernible pressure that Ontario has taken on behalf of this industry which is so important to our future and which is so seriously threatened.

Not once during 1976 did Darcy McKeough breathe a single word about the automobile industry in the Legislature once he had finished his budget.

Mr. Deputy Speaker: You mean the provincial Treasurer.

Mr. Cassidy: I mean the provincial Treasurer. As best we can establish, the provincial Treasurer mentioned automobiles only twice in passing during the numerous speeches he made in the past year. The most voluminous reference was one page in a 30-page speech to the Conference Board last June.

We believe that part of Ontario’s industrial strategy should be to work actively and publicly, using every means possible, in order to get a better break for Canada on its automobile trade. What is missing, in other words, is the political element and that is one of the major reasons we are losing automobile investments to the more aggressive state jurisdictions in the United States that are trying to keep those jobs at home.

The kind of intervention we talk about may include talking with senior executives of major automobile manufacturers. It may include going cap in hand, if it has to be, to Detroit and Washington. It will certainly include sitting down with the automobile parts industry to develop a strong joint plan to restore health to an industry which is now seriously endangered.

It isn’t good enough for Ontario to abdicate in this vital field of industrial strategy and to expect the federal government to carry the burden on its own. With 90 per cent of the Canadian industry within its borders, Ontario must act at the political level to counteract the very strong political pressures which are now being brought within the US to bring production and jobs back home at the expense of the industry in this province. What goes for automobiles is true for the rest of the manufacturing industry in this province as well.

To put it in plain terms, the Conservative government of Ontario has actually abdicated its responsibility to nurture Ontario’s manufacturing base. It mouths slogans about making room for free enterprise while its actions indicate it is prepared to tolerate a devastating shrinkage of Ontario’s manufacturing sector over the next 10 years. I find it ironic when the Treasurer says in his budget: “We need a national policy with some vision of the economic future to help us see where we should be going.”

For God’s sake, we need a provincial policy with some vision of the economic future to help us see where we should be going. I don’t disagree with the Treasurer’s call for national policies in areas like automobiles, steel and industrial rationalization. What I deplore, however, is the total lack of comparable policies at the provincial level. The Treasurer rejects higher tariffs and industrial subsidies, he’s trying to back away from government spending; but then he has nothing else to offer, his policies are bankrupt.

Mr. Warner: He should resign immediately.

Mr. Cassidy: Two years ago, the Ministry of Industry and Tourism did a detailed study of 13 major industrial sectors in this province in preparation for our submission to the federal government for the current international round of tariff negotiations. These sectoral studies provided clear indication of many industrial opportunities in Ontario which are being ignored or lost because of lack of leadership. Firm after firm, industry after industry indicated they wanted to work in closer co-operation with the government. Not surprisingly, all the sectors called out for higher profit margins; I don’t know any businessman who wouldn’t ask for that.

None of the reports, however, asked the government for more and better capital subsidies; nor do they ask for faster write-offs, nor do they ask for increased depreciation allowances. Instead, the themes that come through clearly are the following:

First, domestic research and development is in desperate straits and must be encouraged, both by persuasion and by direct government co-operation.

Second, most of our industries are dominated by small and medium-sized firms which need better management expertise and access to better trained personnel. This applies in particular to the firms which are Canadian owned.

Third, domestic markets are important. It’s not enough to constantly harp on penetrating foreign markets, and a buy-Ontario policy is seen as being very important.

Fourth, our industrial base is being eroded by imports. While importers

Document details

CollectionOntario — Debates (Hansard)
Citation1977-04-25
Typehansard
Volume / chapterp30 s4 1977-04-25 hansard html
Languageen
Formathtml
SourcePROVINCIAL
Identifierc09e638dfc8c179432783a5cd56a6714b102145b

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