-· _!l Volume XL Tuesday Province of Newfoundland FORTIETH GENERAL ASSEMBLY OF NEWFOUNDLAND Second Session VERBATIM REPORT {Hansard} Speaker: Honourable Patrick McNicholas Number 1 18 March 1986

The House met at 3:00 p.m. Mr. Speaker in the Chair. SERGEANT-AT-ARMS: Mr. Speaker, I have the honour to info~ you His Honour the Lieutenant-Governor has just arrived to open the Second Session of the Fortieth General Assembly of Newfoundland. MR. SPEAKER (McNicholas): Admit His Honour the Lieutenant-Governor. HON. w. ANTHONY PADDON (Lieutenant-Governor) : Mr. Speaker and Members of the Honourable House of Assembly: you to this Second the Fortieth General the Province of I welcome Session of Assembly of Newfoundland. As we progress through 1986, it is helpful to briefly reflect upon recent events.

Perhaps one of the most positive events to occur has been the significant change in attitude brought about by the election in late 1984 of a new Government in Ottawa. A new. spirit of federal-provincial understanding and cooperation has clearly emerged across the Nation since that time. We now have a Federal Government that is sensitive to the circumstances, needs and aspirations of all regions and walks of life in the Country. Acrimony has given way to ha~ony, flexibility has replaced resistance, and cooperation characterizes this new "rapprochement.. with the Federal Government.

This bodes well for the future, especially for Newfoundland which, in the past, has been unjustly relegated to L1 March 18, 1986 Vol XL second-class status in the Canadian Confederation. There will, of course, continue to be differences of opinion with the Federal Government, but a new perspective has been gained and a new relationship prevails. Over the past several years, my Government has grappled with the effects of a serious economic recession. Particularly hard hit were our major resource industries· - the fishery, forestry and mining sectors.

However, the total output of the Province's economy has now recovered to its pre-recession level and I am pleased to announce that recent measures implemented by my Government, in concert with national and international economic trends, point to a period of sustained provincial growth. The challenge facing us, and the continuing focus of my Government, will be to avail of the economic opportunities which exist and to create meaningful employment for all Newfoundlanders and Labradorians. In short, the creation of new jobs is the prime objective of my Government.

To this end, my Government has already embarked on a number of initiatives and will implement others this year to ensure that the groundwork we have laid provides a solid base for a heal thy and dynamic economy. Our initiatives in the area of trade, so important to all our resource-based industries, will continue. The Atlantic Accord, a milestone in the Province's history, will generate wealth and much needed jobs to improve the quality of life of our people. In the fishery, the fruits of industry restructuring are beginning to provide stability and No. 1 Rl

jobs so vital to our rural communities, and the efforts of my Government in the development of a fleet of middle distance vessels will provide added supplies of raw material and many new jobs for inshore plants. Mr. Speaker, and members of the · ·bon. House of Assembly: One of the major opportunities for improving the Province's economic position lies with increased international trade. The importance of trade to Newfoundland must not be underestimated.

From its first discovery, the wealth of Newfoundland's natural resources was fully recognized and the value of these resources to the international marketplace well understood. our first settlers realized the great wealth in the fishery and harvested this resource for the growing markets in Europe. With further settlement and development, our wealth in minerals and forest resources became evident and at this moment the Province stands on the threshold of a new era based on extraction of oil and gas for international consumption.

Today, exports account for over a third of our total economic output and contribute about a half billion dollars to our provincial economy. A· full ninety per cent of all goods produced in Newfoundland are shipped outside the country, mainly to the United states. In fact, the United States currently purchases over seventy-five per cent of our fish, sixty-five per cent of our iron ore and 60 per cent our our newsprint. This makes Newfoundland the single most export-oriented province in L2 March 18, 1986 Vol XL Canada. Clearly, international trade is the essence of our well-being.

Our economic destiny always has been, and will continue to be, determined by our capacity to trade, with expanded market opportunities providing the key to sustained economic renewal and future growth. We are, in short, critically dependent on an open international trading environment. In this regard, Newfoundland is poised at an historic crossroads. For most of Canada's history, long before this Province · joined Confederation, the Government of Canada followed a selective protectionist path with respect to trade.

Although this trade policy was successful in building a manufacturing base in Central Canada, it· frustrated the efforts of those provinces that sought to build a strong resource-based economy focused on exports. The process of trade liberalization has come a long way since that time, but we must now complete the process of reducing as many barriers to trade as possible and develop a policy that is of benefit to all regions of Canada. To this end, my Government is encouraged by the new initiatives of the Government of Canada to liberalize trade relationships with all parts of the world.

Over the next year, it will be the responsibility of my government to ensure that national policies in this area are sensitive to and meet Newfoundland's needs. In particular, my Government's efforts will be directed in support of comprehensive bilateral trade discussions with the United States and the liberalization of multilateral trade through the renegotiation of the General Agreement on Tariffs and Trade. No. 1 R2

Indeed, we must look to new dynamic international trading arrangements if we are to secure and expand our markets for primary and secondary processed goods and to improve our investment potential. Mr. Speaker and Members of the House of Assembly: While my Government looks forward to participating in these trade negotiations, we must also continue with ongoing programmes to assist our exporters in finding new markets and investment opportunities.

As was evidenced in the recent trade mission to parts of Asia, opportunities exist in China, Hong Kong and Japan for the sale of Newfoundland fish products, minerals and newsprint, and for the transfer of marine-related technology and services. Trade missions such as these represent one of the most effective mechanisms to promote Newfoundland products and to capture opportunities which exist for diversifying our economy and improving our overall economic performance. International business is done as much on the basis of the relationship developed between people as on the value of the products to be exchanged.

Face to face meetings with key decision-makers in foreign markets set the stage for economic co-operation and facilitate further investment possibilities for our private sector. My Government is committed to these missions and will launch new ones wherever viable opportunities exist. Aggressiveness and perseverance are the key ingredients to improving markets for our exports, to seeking capital investment for L3 March 18, 1986 Vol XL our industries, and to exposing our capabilities and comparative advantages to potential investors and entrepreneurs worldwide.

It is up to us to open doors, to promote new opportunities and to secure trade ties. My Government remains confident that we will find renewed growth and prosperity through this approach to international trade. Mr. Speaker, members of the hon. House of Assembly: In my. address to you on April 25th of last year I took great pleasure in being able to inform this hon. House of the signing of an agreement between the Government of Newfoundland and Labrador and the Government of Canada with respect to the offshore.

This agreement, The Atlantic Accord, provides the basis for legislation which has been introduced to this hon. House and which is before the Parliament of Canada. This legislation will allow the Province of Newfoundland to garner the economic benefits and revenues which will accrue from oil and gas production on our Continental Shelf. The equal partnership between the Government of Canada and the Government of Newfoundland and Labrador is cemented by the wording of the legislation, which clearly states that it may not be amended without the consent of the other Government.

This will ensure that no succeeding governments can abandon the course we have elected to follow. Even further, the Government of Canada has agreed with the Government of Newfoundland and Labrador to enact a constitutional amendment to forever enshrine the basic principles of this legislation once the requisite number of other provinces concur. No. 1 R3

My government is therefore actively seeking the support of the other provinces of Canada to ensure that this consent can be obtained. With The Atlantic Accord, serving as a model for an increasing number of similar agreements, it is anticipated that this constitutional amendment shall be achieved. Indeed, within the past year, the report of the Federal Royal Commission on the Economic Union and Development Prospects for Canada, citing the example of The Atlantic accord, has called for an amendment to the Constitution of Canada which would generally recognize the constitutionally binding nature of such agreements.

We stand on the threshold of true prosperity as a result of this legislation and the spirit of co-operation that now permeates our relations with the Government of Canada. The task my Government - now faces is to ensure that all our citizens can share in these benefits and are prepared for the challenges which will follow, while at the same time minimizing any social disruptions that may result. Hr.

Speaker and Members of the Honourable House of Assembly: On February 11, 1986, the first anniversary of the signing of the historic Atlantic Accord, the government of Newfoundland and Labrador and the Governmnet of Canada signed an agreement to formally establish an Offshore Development Fund.

The purposes of this Fund are "to defray the social and economic infrastructure costs related to the development of oil and gas in the offshore area before production begins and to ensure that the provincial economy is well positioned to reap L4 March 18, 1986 Vol XL the economic benefits of offshore development." The Fund consists of three hundred million dollars and is cost-shared seventy-five percent by the Federal Government and twenty-five percent by the Province.

My Government's broad strategy for use of the Offshore Development Fund will be to assign priority to projects which are designed to give major long term economic benefits to Newfoundland in line with the Province's offshore development policy. Generally, this will include education and training . programmes aimed at providing better opportunities for Newfoundlanders and Labradorians to participate in oil exploration, development and production activities.

It will- also encompass research and development projects in petroleum-related fields which will lead to the development of greater local technical - expertise. Infrastructure required to enable a specific industrial site to be utilized in support of oil development shall also receive strong consideration where its absence would preclude the Province from _being considered as a site for that particular petroleum-related industrial activity. Other project areas will be given careful consideration as well.

It may be desirable, for example, to provide industry grants or incentives to increase local industrial benefits associated with offshore activity. Certain social infrastructure projects in our health care or social service sectors may also be legitimate areas of expenditure if they are required as a direct result of specific onshore petroleum-related developments. Additionally, No. 1 R4

municipal and transportation infrastructure projects not solely related to a specific industrial site, but required to support population growth and economic activity directly generated by offshore development, could be candidates for funding. My Government is very sensitive to the need to establish programmes throughout all areas of the Province where oil and gas related development will occur. This issue is an important one and will be given a high priority in the overall utilization of the Offshore Development Fund. Mr.

Speaker and Members of the Honourable House of Assembly: It was with great pleasure that the Government of Newfoundland and Labrador and the Government of Canada recently announced the approval of thirty-four million dollars worth of projects under the Offshore Development, Fund. Also, the Canada-Newfoundland Offshore Petroleum Board was fully activated a short time ago and held its first formal meeting on Febraury 11, 1986. At present, negotiations are proceeding with Mobil Oil and its partners with respect to a development plan and a fiscal regime for the Hibernia Project.

Successful conclusion to these negotiations is a prerequisite to the release of the Hibernia Project. My Government is hopeful that an agreement will soon be reached on these matters. Mr. Speaker and Members of the Honourable House of Assembly: The resource sector of the Province is the cornerstone of our economy. The policies of my Government with respect to fisheries, forestry, mining and L5 March 18, 1986 Vol XL agriculture have and will continue to recognize this basic and important fact.

In the fishery, my Government is convinced that 1986 will show a marked improvement over the difficulties that have prevailed in the past several years. Strong signs of success from restructuring · of the Province's offshore fishing industry are now emerging. Fishery Products International has embarked upon an aggressive five-year business plan involving major new product development and promotional activities. These programmes are expected to bring the Company to a profitable operating position in 1986.

In addition, its plant divestiture programme is proceeding well through the enthusiastic response and participation of the private sector. This will ensure the future of many ·inshore plants around the Province and those communities dependent on them for their very livelihood. My Government is particularly pleased with the success of the Burin operation. The secondary processing facility is now operating at full capacity and major inroads in the development of new products have been made.

Expansion of this facility is planned for the near future and engineering and other feasibility studies for both the secondary processing facility and the trawler refit centre at Burin are continuing. In total, approximately $12 million has been allocated for these projects, $8 million of which will be provided from the Canada - Newfoundland Burin Peninsula Development Fund. The prospects for the inshore No. 1 R5

fishery also are stronger in 1986 than they have been for some time. Market conditions have improved and we are hopeful that landings will rebound from the disappointing seasons of the past two years. In addition, my Government is prepared to launch new policy and program initiatives wherever possible to resolve the structural problems of seasonality and production imbalances plaguing the inshore sector. In this regard, the Resource Short Plant Program is being refined and improved to more effectively distribute raw material to inshore plants.

This Programme is aimed at extending the operating season of these facilities, thereby providing additional employment and increased income in the industry. A recent change made to this Programme by the Federal Government, at the urging of the Government of Newfoundland and Labrador, will ensure that all future fish quota increases under this plan are made available to Newfoundland plants on a right of first refusal basis. This is a most significant change in policy and will provide for improved stability, greater investment and increased jobs.

To complement this initiative, my Government recently embarked upon a new program aimed at the development of a fleet of middle distance vessels. This fleet will enable our fishermen to harvest quotas which have never been caught and which, if not harvested, may be allocated to other provinces or to other countries. My Government is also hopeful that additional fish will be made available to this new fleet as foreign fishing efforts are displaced and as stocks increase.

Collectively, these L6 March 18, 1986 Vol XL actions will provide many new jobs and at the same time enhance the viability of those processing facilities which now have an almost total dependence on highly seasonal landings. The fact that some of the vessels making up this fleet will be designed and built in this Province is a further source of pride for my Government. My Government also remains committed to an aggressive aquaculture development programme for the Province.

Expansion of research and development initiatives in this area and the opening of an ultra-modern $2 million salmon hatchery at Bay d'Espoir mark significant achievements over the past year. In recognition of the role that commercial aquaculture can play in improving employment and incomes in rural areas of the Province, the Government of Newfoundland and Labrador is also actively pursuing, with the Federal Government, the establishment of a comprehensive Aquaculture Assistance Program.

This Programme will focus on our comparative advantage in cold water species, such as scallops and mussels, which are currently in production at a number of small scale commercial fish farms in the Province. Notwithstanding these important programme initiatives, my Government will continue to press for greater participation in the management of the fisheries resource. We have already taken advantage of opportunities in those areas under our control, but it is critical that we obtain a greater responsibility in determining how and by whom our fishery resouce is harvested.

In 1985, for example, we saw the advent of factory freezer trawlers No. 1 R6

"" in the Canadian east coast fishery and we continue to see the allocation of fish stocks to foreign interests while we struggle to ensure sufficient allocations to our inshore processing plants. The Government of Newfoundland and Labrador has made these views known to the Federal Government, particularly with regard to the northern cod stock, approximately 50,000 metric tonnes of which are allocated to fishing interests outside of this Province every year.

We were recently successful in gaining an additional allocation of cod for the Harbour Grace plant and my Government will continue with representations to ensure that priority of access to this important resource is provided to Newfoundlanders and Labradorians. Hr. Speaker and Members of the Honourable House of Assembly: In the mining sector, iron ore is expected to be a strong performer in 1986, with the mines at Wabush and Labrador City ranking among the most productive in North America. My Government also looks forward to the completion of the newly reactivated fluorspar mine at st.

Lawrence, which, unlike the previous operation, will include a modern processing mill on-site. As well, my Government has recently ma~e a decision to provide a much needed equity investment of $12 million to Baie Verte Asbestos Mines. This investment, which is conditional on certain arrangements being agreed to by the company, the municipality and the workers, should provide long term stability for the mining operation.

I am also pleased to report that the discovery of gold on the southwest coast of the island spurred mineral exploration activity to L7 March 18, 1986 Vol XL unprecedented levels in 1985 and promises to provide a strong impetus for further exploration in 1986. My Government plans to do its utmost to see that this significant gold find results in the development of a new mine this year. Mr. Speaker and Members of the Honourable House of Assembly: My Government takes satisfaction in recent and expected developments in the forest industry and in the management of the forest resource itself.

The extensive modernization programmes underway at the paper mills in Corner Brook and Grand Falls are progressing smoothly, while the modern technology employed at the Stephenville mill allows production of one of the highest quality papers in the world. My Government is especially pleased that our efforts in Corner Brook have proven successful. Kruger Incorporated, the new owner of Corner Brook Pulp and Paper Company, has made a long-term commitment to the operation of that mill, including implementation of a $200 million capital development programme.

Modernization of number four paper machine was completed under this programme earlier this year and number one paper machine is scheduled for completion in late March. Next in line will be number two paper machine, along with modernization of the woodroom and various other improvements to the mill. A decision was only reached recently to reactivate, in the near future, paper machine number seven, which was "permanently" shut down in 1983 by the previous owner. My government is further pleased to inform this Honourable House No. 1 R7

that substantial progress has been achieved towards greater development and utilization of the vast forest resources of Labrador. Serious interest has been expressed by both Canadian and European pulp and paper companies in the establishment of a pulp facility at Goose Bay utilizing a new chemical production process. Negotiations with these companies are continuing and my Government is hopeful that an agreement to proceed with this project can be finalized. In the area of forest management, my Government, in co-operation with the pulp and paper industry, will continue its major initiatives in silviculture.

In this regard, the Government of Newfoundland and Labrador anticipates the signing of a new Forestry Subsidiary Agreement with the Federal Government in 1986, which will provide a basis for maintaining and expanding our forest management programmes and contribute to the creation of many new jobs for Newfoundlanders and Labradorians. My Government is pleased to announce, as well, that a new $1 million Forest Protection Centre at Gander will officially open this year and will significantly improve both the Province's firefighting capability and its facilities for combating forest insect pests.

A firm stand has been taken on protecting the forest resource against insect pests, and I am pleased to announce that the spruce budworm has, for all practical purposes, now been returned to an endemic state. Mr. Speaker and Members of the Honourable House of Assembly: L8 March 18, 1986 Vol XL My Government recognizes the important role played by agriculture in the rural sector of our economy and will continue to support the development of this industry so as to reduce our dependency on imported food products.

The value of farm cash receipts in 1985 increased by six percent over 1984 and continued growth is expected in 1986. Mr. Speaker and Members of the Honourable House of Assembly £ My Government is committed to the development of a strong, vibrant small business sector. While the contribution to the provincial economy by this sector is already very significant, there remains substantial opportunity for expansion.

In recognition of this, the Government of Newfoundland and Labrador recently entered into negotiations with the Federal Government to establish a joint Agreement on Initiatives for Industrial and Small Business Development. As a further measure of support, my Government intends to provide increased loans to small business through changes to financial assistance programs administered by the Rural Development Authority and the Farm Development Loan Board. Mr.

Speaker and Members of the Honourable House of Assembly: My Government has recently intensified discussions with the Province of Quebec over the long standing differences between us on the Upper Churchill power contract. We are optimistic that this new round of discussions will culminate in a mutually acceptable agreement which will see the further use of existing Labrador power for all Newfoundlanders and Labradorians, as well as lead to No. 1 R8

the development of additional hydro projects in Labrador. Attainment of these goals will ensure a long term supply of a relatively inexpensive source of energy for this Province, thereby providing stability in domestic and industrial power costs. Hr. Speaker and Members of the Honourable House of Assembly: My Government regards defence spending as an important tool in regional development and job creation.

To this end, the Government of Newfoundland and Labrador has been actively promoting, in concert with the Federal Government, the designation of Goose Bay as a site for a NATO Tactical Fighter Weapons Training Center. Such a facility would involve a capital expenditure of about $2 billion and would support approximately 3,000 permanent and transient military personnel.

With an annual operating budget of about $300 million, the project would also create SOO to 1,000 permanent jobs in the civilian workforce. · While anxious to capture these economic benefits, my Government also welcomes an increased military presence in Labrador as a means to preserve the security and sovereignty of Canada and of our allies. Hr. Speaker and Members of the Honourable House of Assembly: In my address to you last year, I announced the establishment of a Royal Commission on Employment and Unemployment.

In this regard, I wish to inform the House of Assembly that the final report of the Royal Commission will be submitted in the near future. To assist the Commission in identifying the various causes and L9 March 18, 1986 Vol XL contributing factors of unemployment in Newfoundland, my Government has provided it with the resources and manpower necessary to ensure that its investigations are comprehensive and that the opinions and concerns of the general public are fully aired. We anxiously await its findings and I can assure you that my Government will be·sensitive to the recommendations arising therefrom.

The Royal Commission on Employment and Unemployment was also instructed to examine the debilitating effect of the high rate of unemployment among our young people. Its findings related to this persistent problem will be of great interest to my Government as we develop mitigative measures for this very vital segment of our society. Hr. Speaker and Members of the Honourable House of Assembly: The creation of new jobs is the prime objective of my Government. That is what economic development and growth is all about.

The creation of new employment opp9rtunities will not in itself, however, benefit Newfoundlanders if our people are not equipped with the knowledge and technical skills to enable them to capture these opportunities. My Government recognizes that this will not happen automatically. For this reason, we have been very active in formulating new initiatives relating to manpower training and development. Implementation of projects recently announced under the Offshore Development Fund will put in place education and training infrastructure to enable our public institutions to deliver the No. 1 R9

specific type of training that will be required by the offshore industry. Additional projects focused along similar lines will be announced during the coming months. Last year, Newfoundland the Government of and Labrador also concluded a very significant Federal-Provincial Agreement on Training and Employment under the Canadian Jobs Strategy Program. Millions of dollars are being spent this year and more will be spent in future years under this Progranune.

I am pleased to ment~on, as well, that my Government is proceeding with changes to our public training institutions to make them more responsive to today' s needs. A network of progressive and innovative post-secondary training institutions is the objective of the White Paper on the Re-Organization of the Vocational School System. This plan will be finalized shortly and announcements can be expected in the very near future. My Government is confident that this approach will enable the people of this Province, but particularly the young people, to reap maximum benefits from economic growth that lies ahead. Mr.

Speaker and Members of the Honourable House of Assembly: My Government is aware that as the economic development of the Province proceeds, the creation of jobs for our people must be accompanied by realistic and enlightened social progranunes. Indeed, the social needs of our citizens cannot, and will not, be neglected in the Province's quest to develop its natural resources and the economy as a whole. My L10 March 18, 1986 Vol XL Government is convinced that without an educated and secure citizenry, the development of our material resources will not result in a fulfilled society.

Consequently, we will continue our efforts, wherever fiscally possible, to provide better health care, education and other critically important social services. In this regard, my Government is conscious of the need to enhance the quality of education of our children from the time they enter the school system through to completion of high school. In order to make the Department of Education more sensitive to this ever demanding challenge, ' a major functional realignment of responsibilities was recently implemented within that Department.

This initiative will assist in maintaining a balance between the need for careful financial management and the increasing need for contemporary education progranunes in response to public interest and concern. Mr. Speaker and Members of the Honourable House of Assembly: In my address to you last year, I was pleased to inform the House that the Report of the Task Force on Affirmative Action had been received and that my Government was actively considering its recommendations.

Since that time, my Government has introduced a number of policies designed to remove any barriers which might prevent women from full participation in the Public Service. As well, representation of women on Government appointed Boards, Agencies and Commissions is being increased and the Accelerated Management Development Program for women is continuing. No. 1 R10

Also, my Government recently reactivated the Task Force on Affirmative Action to address the needs of the disabled and native peoples. Hr. Speaker and Members of the Honourable House of Assembly: The area of chronic care continues to be a complex and changing phenomenon and one that will increase in importance as the number of elderly requiring care increases. My Government established a Royal Commission on Hospital and Nursing Home Costs to advise on the service needs of our citizens in this respect.

The recommendations of that Commission have now been addressed by my Government and we are moving as expeditiously as possible to implement the highest priority i terns. Already, the Lions Manor Senior Citizens Home in Placentia has been completed and 75 citizens will be accommodated in that most contemporary facility. To assist in further allocating beds for this special group, the Department of Health embarked upon a study of regional needs in chronic care last year. A final report is due for completion this spring.

In the interim, federal - provincial funding in the order of $6 • 5 million dollars will be made available in 1986 to construct facilities for 150 new chronic care beds in the Province, most of which will be established at Agnes Pratt Nursing Home in St. John's and Golden Heights Manor in Bonavista. Hr. Speaker and Members of the Honourable House of Assembly: My Government's Five-Year Plan for hospital construction is proceeding well. This past year has seen the completion of a Lll March 18, 1986 Vol XL modern hospital facility in Clarenville to service the needs of that area.

Another new hospital, located in Salt Pond on the Burin Peninsula, is due for completion this year and construction on the extension of the Central Newfoundland Regional Health Care Centre is to continue this summer. The past year has also seen the beginning of a concerted effort to rationalize ·health services in this Province. Pursuant to the recommendations of the Royal Commission on Hospital and Nursing Home Costs, my Government has initiated a study into the development of health care services in the St. John's region. A final report is expected shortly on the redevelopment of the st. John's hospital system.

These initiatives are evidence of our commitment to provide a full range of quality health care services to all regions of the Province. During the past year, my Government also developed a Green Paper on Health Care Expenditures which addressed issues relating to the cost and financing of health care. We have encouraged public reaction to this document as a means of receiving innovative and cost effective ideas for the future. This is essential given the reduction of federal financial support for health care and in recognition of the large percentage of the Provincial Budget already dedicated to it.

We shall weigh very carefully the views of our citizens in formulating a base for future spending in this area. Mr. Speaker and Members of Honourable House of Assembly: My Government breaking the No. 1 is commit ted dependency of the to the Rll

less fortunate in society on the public welfare system. To this end, we allocated $27 million in 1985 to the Community Development Program within the Department of Social Services in an effort to provide employment opportunities for people rather than obliging them to rely on traditional forms of welfare. This Programme has enhanced the income and the quality of life of 11,500 families and has funded many useful public services throughout the Province. Mr.

Speaker and Members of the Honourable House of Assembly: The Government of Newfoundland and Labrador recently announced, with the Government of Canada, a major new Federal-Provincial Agreement on Social Housing. Under previous arrangements, both the Federal and Provincial Governments had been responsible for delivering housing programmes in this Province, and this' resulted in certain duplications and inefficiencies.

The new arrangement will consolidate the delivery of most housing programmes within the Newfoundland and Labrador Housing Corporation, thereby simplifying the bureaucracy and providing "one-stop shopping" for those seeking help from government. Additionally, the Government of Newfoundland and Labrador will now cost share all housing programmes to · be administered in the Province. These steps should lead immediately to improved services and assistance for those most in need.

In this regard, my Government is pleased to announce that over 2, 400 new families will be receiving housing assistance in 1986, with over $25 million to be spent on housing construction alone. Hr. Speaker and Members of the L12 March 18, 1986 Vol XL Honourable House of Assembly: During the past year we have seen the revitalization of other Newfoundland and Labrador Arts Council with its membership being brought up to full complement.

We are confident that the Council's vital role of ensuring the maximization of Government's funds to both amateur and professional artists of Newfoundland will be wisely and effectively carried out. In this regard, the Council is presently undertaking a major review of its mandate and objectives with a view to being more responsive to the needs of the arts community and to ensure that the vitality displayed in the past by our very talented Newfoundlanders is sustained in their future endeavours. My Government will cooperate with the Council and provide financial support wherever possible. Hr.

Speaker and Members of the Honourable House of Assembly: In addition to The Atlantic Accord, my Government plans to place a number of other important pieces of legislation before you this Session. Significant amendments will be introduced to a number of aspects of The Workers' Compensation Act. An external appeal mechanism to hear the concerns of workers regarding decisions rendered by the Commission will be established; workers' compensation coverage will be extended generally; and the internal administrative procedures of the Commission will be streamlined to provide a more rellponsive service to the public.

Amendments to The Consumer Protection Act will be introduced No. 1 R12

which will penni t an incroo.se in the range of services offered by finance and trust companies and which will also provide greater protection to the general public in the area of consumer loans. An amendment to The Municipalities Act will also be introduced to improve the operational structure of municipalities in such areas as borrowing, taxation and election procedures.

In an effort to increase student participation in the decision making process at Memorial University, my government will be introducing an amendment to The Memorial University Act to increase student representation on the Senate from eight to twelve members. Amendments will also be proposed to The Public Service (Pensions) Act to ensure equitable treatment of all persons under government sponsored pension plans and to eliminate the existing minimum entry age.

Amendments to The Electric Power Control Act will be proposed to ensure that an appeal may proceed to the Supreme Court of Newfoundland from the findings in a Public Utilities Board report on a Hydro or Power Distribution District referral. My government also proposes to amend The Department of Environment Act to substantially increase the penal ties imposed on those who are responsible for pollution and to ensure that, where government must initiate -crean-up efforts, the cost is ultimately borne by those responsible for the pollution in the first instance. L13 March 18, 1986 Vol XL Mr.

Speaker, and members of the bon. House of Assembly: With the prospect of a revitalized inshore and offshore fishery, with increased exports of fish products, with stability in our forestry, mining and agriculture sectors, combined with the prospects held out by the development of the Hibernia oil qeld, my government is confident that the necessary steps are being taken to break the unemployment problem in this Province.

Growth and balance, however, must be our watchwords: growth in our economy and growth in our employment opportunities for our people, tempered by the balanced perspective necessary to ensure the provision of vital health care and other social services. As well, my government is ever cognizant of the need to ensure and protect the unique culture of Newfoundland. It is said that Newfoundlanders, when they leave the Province, never put down roots anywhere else. Rather, they simply drop anchor, ready always to return. It falls to the members of this bon.

House to ensure the creation of a climate of confidence so that our people may leave their roots deep in the soil and bedrock of this Province. Mr. Speaker, and members of the House of Assembly: During the course of this Session, you will be asked to grant supply to Her Majesty. I invoke God's blessings upon you as you commence your labours in this Second Session of the Fortieth General Assembly. May Devine Providence guide you in your deliberations. No. 1 R13

MR. SPEAKER (McNicholas): Order, please! Motion, the bon. the President of the Council to introduce a bill, ••An Act To Implement An Agreement Between The Government of Canada And The Government Of Newfoundland And Labrador On Offshore Petroleum Resource Management And Revenue Sharing, •• carried. On motion, Bill No. 59 read a first time, ordered read a second time on tomorrow. MR. SPEAKER: I would like to announce that His Honour, the Lieutenant Governor, has been pleased to make a speech to the members met in General Assembly and that for greater accuracy I have obtained a copy. MR. HODDER: Mr. Speaker.

SOME HON. MEMBERS: Hear, hear! MR. SPEAKER: The bon. the member for Port au Port. MR. HODDER: Mr. Speaker, it is my honour, on this most formal occasion in the House of Assembly, to move that an address of thanks be presented to His Honour in reply to the gracious Speech From the Throne and to express gratitude to His Honour for opening the Second Session of the Fortieth General Assembly of the Province of Newfoundland and Labrador. I would also like to take this opportunity, Mr.

Speaker, to greet and welcome all honourable members to this House of Assembly and, as well, I would like to welcome the representatives of church, state L14 March 18, 1986 Vol XL and guests participate proceedings. assembled today to in these opening Mr. Speaker, as a newly-elected member to this side of the House, I want to begin my remarks by saying how deeply grateful I am to the people of the district of Port au Port for electing me for the fourth time to represent them in their House of Assembly. SOME HON. MEMBERS: Hear, hear! MR. HODDER: In a very profound way, Mr.

Speaker, I appreciate their expression of confidence in me and I assure them that I will do my utmost to ensure their confidence and trust is not misplaced. I should point out, Mr. Speaker, that some twenty years ago I sat in the gallery of this House with ·my mother and watched my father, then the member for Burgeo LaPoile, reply to the Speech from the Throne. I had not much interest in politics at that time and did not think that twenty years later he would be sitting with her watching me. SOME HON. MEMBERS: Hear, hear! MR. HODDER: Mr.

Speaker, I feel confident that each member of this Legislature has a genuine aim and desire to enhance our social, cultural and economic development and to ensure that Newfoundlanders and Labradorians have a standard of living equal to that of other Canadians. I have found that all members take their work earnestly and conscientiously as we jointly strive to see our Province take its proper and equal place within No. 1 R14

the framework of Confederation. Mr. Speaker, one cannot but feel the confidence and optimism that is the underlying spirit of the Speech from the Throne. It can be clearly seen that the Government, of which I am proud to be a part, has implemented policies and programmes which will move this Province forward both economically and socially. One can only be impressed, Mr. Speaker, by the vast array of initiatives undertaken in the gracious Speech from the Throne. The Speech shows that this is a government that pr9vides strong leadership. It understands people and it understands their needs and aspirations.

It is a government that can be strong and firm and it has placed the Province on the path of economic and social progress. SOME HON. MEMBERS: Hear, hear! MR. HODDER: Mr. Speaker, this Speech from the Throne will be a turning point in the history of Newfoundland and Labrador. It is a bridge to a better future.

We have just come through a grave economic recession in this Province and while times have been tough, we have wisely managed the forest, fishery and mining industries, and while the government grappled with the recession and with the problems that beset it, we have been sensitive to the disadvantaged in society. We have continued to build hospitals and we have continued to create jobs. We have a firm foundation and we will build a firm future on that foundation. L15 March 18, 1986 Vol XL SOME HON. MEMBERS: Hear, hear! MR. HODDER: Mr.

Speaker, this government was given a mandate in 1982 to negotiate a fair and equitable deal for Newfoundland and all Canadians. That was four short years ago and after a bitter confrontation with the previous federal government, this government went on to negotiate what is, in my opinion and in the opinion of the vast majority of Newfoundlanders, the best possible deal for this Province and for Canada in general. Mr. Speaker, I firmly believe that out of the Atlantic Accord will come a new beginning that will achieve for Newfoundlanders the quality of life we have sought for generations. Mr.

Speaker, it is also from this new beginning that the people of the district of Port au Port will be able to participate in the mainstream of Newfoundland life more fully. I look forward, Mr. Speaker, to the development of the fishery in Port au Port. As well, I look forward to the development of her mineral resources and to the development of the infrastructure of the district which I might say is well underway. Mr. Speaker, I must also applaud this Province's initiatives in the fishery, most particularly in the middle distance fleet policy and in aquaculture.

I also applaud the initiatives in foreign trade as well as our initiatives for an open trade environment with the United States which can only do this Province good and take us along the lines which we intend to steer the boat. I am pleased as well, Mr. Speaker, of the wise use No. 1 RlS

the government has made so far with the Offshore Development Fund and the early initiatives that the Province has taken to ensure that our young people are trained for the new era which has dawned in our Province. I am glad, Mr. Speaker, to be part of this process and together we can make the Province a better place to live. I now move, Mr. Speaker, that an address be presented to His Honour in reply to the gracious Speech from the Throne and that a committee be appointed to draft this reply. Thank you, Mr. Speaker. SOME HON. MEMBERS: Hear, hear! MR. WARREN: Mr. Speaker. MR.

SPEAKER ~McNicholas~: The han. member for Torngat Mountains. MR. WARREN: Mr. Speaker, it is indeed an honour and a privilege for me to second the motion presented so ably and graciously by my colleague the hon. member for Port au Port (Mr. Hodder). I am confident the voters in the district of Port au Port knew who to send to the House of Assembly. SOME HON. MEMBERS: Hear, hear! MR. WARREN: Mr. Speaker, this afternoon while listening to His Honour deliver ~he Throne Speech, I could not but reflect back over the year from June 19, 1979 until February 8, 1985 when I was a member of the official opposition.

How critical L16 March 18, 1986 Vol XL I was! I realize the opposition should criticize but not just for the sake of criticizing and, Mr. Speaker, this is what the opposition always does. Today, I am please to say in a very positive tone that this Throne Speech has outlined for us the possibility of gold at the end of the rainbow. I believe this is an opportune time for me to say a special thank you to the voters of Torngat Mountains who decided against all the odds to put me back into this han. House of Assembly. SOME HON. MEMBERS: Hear, hear! MR.

WARREN: For a few moments I want to address six or seven important measures outlined in the Throne Speech that will be of immense importance to the people of Torngat Mountains and to Labrador as a whole. The fishery is of utmost importance in my district and hopefully through the fishery restructuring programme fish plants will be upgraded and oves:­ the side sales to fos:-eign counts:-ies will not be necessary. In the last two yeas:-s oves:- three million pounds of cod was shipped out of Labrador to European countries and not one single fishermen in my district benefited from this process. However, Mr.

Speaker, hopefully, as indicated in the Throne Speech, this could be eliminated. The establishment of a pulp facility at Happy Valley-Goose Bay is another example of this government's determination to assist towns that have received severe blows in the past two No. 1 R16

years. The Upper Churchill power contract is mentioned in a positive manner. Until our government can have fruitful negotiations with Quebec, I am afraid that the cost of electricity will continue to rise. Our Premier is committed to insuring that Newfoundlanders and Labradorians will receive every benefit possible and not have our resources taken away. SOME HON. MEMBERS: Hear, hear! MR. WARREN: Our offshore will be protected by the Atlantic Accord, although the Leader of the Opposition (Mr. Barry) and his party do not think so, _but, Mr. Speaker, we have the best possible deal.

The NATO Tactical Weapons Training Centre in Labrador is another economic boost for Labrador. This government is committed to assuring all Canadians that our Province will play a role in the defence of our country and, at the same time, to assure the people of Labrador that the environment, the wildlife and the health of all will be protected. SOME HON. MEMBERS: Hear, hear! MR. WARREN: Mr. Speaker, the Labrador Inuit Association, the federal government and the provincial government have met on two occasions in relation to land claims.

It is realized that it will take a number of years for a settlement; however, all three parties are progressing in a most positive manner. In fact, Mr. Speaker , within two days , the Minister of Intergovernmental L17 March 18, 1986 Vol XL Affairs (Mr. Ottenheimer), the Minister of Rural, Agricultural and Northern Development (Mr. R. Aylward) and myself will be meeting in Ottawa on aboriginal constitutional matters. SOME HON. MEMBERS: Hear, hear! MR. WARREN: The youth of our Province are of great concern to us and the young people in my district are no exception.

From October until the following June of each year, the young people in my district will accept any job offered but, unfortunately, the jobs are just not there. The Department of Social Services Community Development Program has proven its worth in my district. In Nain, a small community of 1,000 people, last February, 110 were on short-term and 9 were on long-term relief. One year later, through this programme, the 110 had been reduced to 68. Thirty-three families were taken off social assistance and put into the work force. I must say, hats off to the Minister of Social Services (Mr. Brett). SOME HON.

MEMBERS: Hear, hear! MR. WARREN: The government has given assurance that some 2,400 new family units will be constructed in this coming year. Included in this major undertaking is a four-unit single family complex for Nain, the first ever in Labrador. SOME HON. MEMBERS: Hear, hear! MR. WARREN: The Throne Speech also mentioned No. 1 Rl7

the health of our people. Mr. Speaker, on Thursday past, I visited Postville, in my district. I am appalled that the only water available comes through two artesian wells, one producing salt water and the other, rusty water. The top priority of this village is a water and sewage system and this government, as of today, through our Department of Rural, Agricultural and Northern Development, is waiting for the federal government to sign on the dotted line, and some $9 million will be flowing for an extension of the Canada-Newfoundland Native Peoples agreement. SOME HON. MEMBERS: Hear, hear! MR.

WARREN: On the same day, Mr. Speaker, I visited Nain and viewed the commercial caribou hunters in action. This project is carried out by an all Native peoples group from coastal Labrador, who have shown that, given the opportunity, they can produce as well as anyone else in this Province. SOME HON. MEMBERS: Hear, hear! MR. WARREN: OUr government was quite pleased to assist with a $90,000 grant to this venture. My colleagues, the hon. the Minister of Rural, Agricultural and Northern Development (Mr. R. Aylward), the hon. the Minister of Culture, Recreation 'and Youth (Hr.

Matthews) and the hon. the Minister of Environment (Hr. Butt) just visited the second Labrador Winter Garnes, and for those of you who have missed such a display of L18 March 18, 1986 Vol XL sportsmanship and respect and love of each other, let me say, you are welcome to the third Labrador Winter Garnes. Finally, Mr. Speaker, the district of Torngat Mountains is very appreciative of the support of this government and, incidentally, we are looking forward to the opening of an all-grade school in Nain before the end of this year, which will cost in excess of $4 million. My district does need a lot of things, Mr.

Speaker, such as recreational facilities and a marine haulout. And, Mr. Speaker, Them Days · magazines, representing the cultural identity of Labrador, needs to be preserved, and hopefully, both governments will take the necessary steps to make sure that Them Days will continue. Mr. Speaker, with the course that our Premier has set and the support of all members of this hon. House on both sides and the ambition and the pride of Newfoundlanders and Labradorians, we will, in a very short period of time, have the opportunity to say to our Premier, well done thou good and faithful servant. SOME HON.

MEMBERS: Hear, hear! MR. WARREN: Mr. Speaker, it is a great honour to second the motion that a committee be appointed to prepare an address in reply to the gracious Speech from the Throne. SOME HON. MEMBERS: Hear, hear! MR. BARRY: Hr. Speaker. No. 1 Rl8

MR. SPEAKER: The hon. the Leader of the Opposition. MR. BARRY: It is customary to compliment the mover and the seconder of the Address in Reply to the Speech from the Throne. I would have to join in that tradition and give particular compliments to both members for ·the brevity of their remarks because, Mr. Speaker, that in itself, I think, goes to underline the very essence ·of this document which we have just had recited·. It underlines the fact that it is an empty and a hollow document, and I thank members opposite for underlining this fact by the brevity of their remarks. Mr.

Speaker, the most shameful thing about this speech that we have heard today is not that there is no leadership shown, no new direction, no hope held out for those who are · suffering great hardship around this Province today, the most shameful thing is that we have thousands of Newfoundlanders at this moment being subjected to the threat of loss of jobs and the threat of court action, fine or imprisonment and not one single word, Mr. Speaker, in that Speech from the Throne made reference to this fact.

I think if there is anything that would serve to show how far removed members opposite are from the reality of life in this Province today, it is that. SOME HON. MEMBERS: Hear, hear! MR. BARRY: Mr. Speaker, in the brief time that I will have this afternoon, I will refer to the lack of any proper economic policies on the L19 March 18, 1986 Vol XL part of this administration, I will refer to the failure of federal/provincial relations as promised by the Premier and members opposite, but, Mr.

Speaker, before I get to these remarks I would like to deal with what is one of the most fundamental issues facing us today in this Province and that is the rapid decline of democracy, the decline of respect for basic and elemental human rights. I do not know, Mr. Speaker, but we have another indication of how people in this Province feel about the current administration and what they have come to expect from a Speech from a Throne written by the administration, when we look around and we see the galleries half empty. I want to welcome, Mr.

Speaker, those honoured guests who have consented to come and participate in what is a very important part of our democratic process. But, Mr. Speaker, I think it should not go unnoticed that we have many, many empty seats in this House of Assembly today, and that is another indication that the people of this Province are losing any expectation of seeing new direction, seeing leadership, seeing new ideas, seeing imaginative programmes coming forth from members opposite. And I might be excused for mentioning, Mr.

Speaker, that many of those in the gallery are those connected with the labour movement, that we saw were provided with passes, because they were expecting, Mr. Speaker, to hear something in this Speech that would hold out some hope for them, that would give some indication that they are not to see a continuous oppression, a continuous attempt, Mr. Speaker, No. 1 Rl9

to lay the heavy hand of the law into collective bargaining in this Province rather than the process of discussion, of negotiation, of real and meaningful dialogue. We have a long history of labour relations in this Province, under the current Premier and under members opposite, that has seen a steady and continuous decline in this dialogue, in this process of consultation that permits reasonable men and women to reach a fair settlement when a labour dispute arises. Not only have we seen a lack of consultation and a lack of dialogue, but most recently, Hr.

Speaker, we have seen a series of provocative acts, we have seen what appears to be almost a deliberate attempt to provoke members of the labour force in this Province to go out in def lance, Hr. Speaker, of a court injunction, in defiance of a piece of legislation. We ask why is it that members opposite have forced the public employees of this Province to take this step of last resort?

Why have they flung in their faces steps such as on the same day that union leaders are being arrested down on the picket line, the signing of an Order in Council to give car allowances not just to the two members opposite who spoke - AN HON. MEMBER: Do you not get that allowance? HR. SPEAKER: Order, please! HR. BARRY: No, I do not get that allowance. AN HON. MEMBER: What about your car? L20 March 18, 1986 Vol XL MR. SPEAKER: Order, please! HR. BARRY: Nor does my executive assistant. Hr. Speaker, we have seen - MR. PATTERSON: (Inaudible). HR. BARRY: Yes, and that is another example.

We have gone through several sessions of the House of Assembly where attempts have been made to shout us down, in all breaches of the rules of this House, when we get up and attempt to make a point. On the same day that union leaders were being arrested in front of this building, Hr. Speaker, for exercising a democratic right to express their discontent, we see an Order-in-Council being signed that very day to avoid the restraint programme by the backdoor and increase the salaries paid, call it what you like. Car allowance they call it. I was up in Labrador, Hr.

Speaker, this past weekend and I spoke with some of the constituents of Torngat Mountains and they said, "Bring back to the House of Assembly this question: How many miles is the member for Torngat (Mr. Warren) going to be able to drive to use that car allowance?•• Answer that question, Hr. Speaker.

I think the answer gives a very obvious indication of the total lack of regard for basic consideration of the workers of this Province who are not just being kept at a very low salary level, but who see great inequities, a lack of parity between individuals doing the same job; a security person in the MOS unit and a security in the health services of this Province are doing the same job with several No. 1 R20

thousand dollars difference in wages. Now we see large, full-page advertisements where the Premier and members opposite attempt to explain this away by saying, • Oh, that is collective bargaining.• Well, Mr. Speaker, the administration has to take responsibility for that lack of parity developing and, yes, the negotiators on the union side, they take responsibility as well. They are prepared to take that and face up to that responsibility and proceed, over a period of time, in a thrust for parity.

But do we see the Premier, do we see members of his administration, do we see the President of Treasury Board willing to take responsibility for this? No. What we see is a heavy-handed, dictatorial and arrogant approach. I would submit that we would have to look a long way to find the courts being brought into a labour dispute, as they have been in this case, so quickly with so little attempt made to bring about a negotiated settlement.

One has to look at the situation as it developed and conclude that this had to be a deliberate strategy on the part ·of members opposite, a deliberate strategy to attempt to avoid the responsibility which they should accept. That is heavy-handed, Mr. Speaker, dictatorial, because we have seen, over the last seven or eight years in this Province, less and less dialogue with members of the union movement. Mr. Speaker, I will use the President of the Fishermen's Union as an example. I think something like five years went by and the Premier did not have a single meeting with that individual.

I L21 March 18, 1986 Vol XL think probably a total of two meetings have taken place in the entire period that the Premier has been in office, and those were in recent years, when the Premier needed the assistance of that individual in proceeding to Ottawa on a particular point. That, Mr. Speaker, is not reaching out, that is not dialogue, that is not making a reasonable attempt to negotiate and to arrive at a just settlement of labour disputes in a fashion that preserves the basic dignity of individuals. And I bet that members opposite, the Premier and others, were betting, Mr.

Speaker, that the very real concern that Newfoundlanders have with anything that smacks of breaking the law, the great law abiding nature of Newfoundlanders quiet·_ Newfoundlanders are prepared to put up with a lot and become concerned, Mr. Speaker, when they see action taken which is - labelled illegal and the Premier and members opposite were betting that public opinion would rise up against members of NAPE. MR. FLIGHT: But they are wrong. MR. BARRY: Yes, they are wrong. Mr.

Speaker, I have travelled this Province over the last little while and I have been speaking to as many individuals as I can on this issue and I can tell the Premier and I can tell members opposite that they are wrong if this is what they are thinking, and they are on a course, Mr. Speaker, that is going to see a much more serious condition exist in this Province - it is bad enough right now - very shortly if positive steps are not taken to reach out and make an approach to the labour leaders who are involved, to the members who are involved in this dispute. No. 1 R21

Mr. Speaker, when I was in Happy Valley - Goose Bay, there was an individual who crossed the picket line. He came subsequently and spoke to me and said, "I crossed the picket line because I have certain religious beliefs which make it very difficult for me to take the approach that I know I need take in terms of my union responsibilities but I decided I had to go back to work. I went back to work", that gentleman said, "and I was suspended for thirty days. When that happened I said, I may as well be back on the picket line,'' and that gentleman was back on the picket line.

"If these employees are so essential, another individual asked me in Corner Brook on the weekend, "how is it they are going to be suspended when they go back to work?" Mr. Speaker, we have put forth a proposal, ··and we ask the Premier, we as~ the . President of Treasury Board (Mr. Windsor) and members opposite, to give serious consideration to our proposal: Lift the threat of suspension as a sign of good faith. Indicate to the public employees that the administration will be prepared to go back to the bargaining table with a proposal leading to parity if the workers return to work. Agree, Mr.

Speaker, to instigate a full industrial enquiry into the state of collective bargaining in the public sector and, most importantly, acknowledge, admit that Bill 59 has not worked and will not work and remove Bill 59 from the Statute books of this Province. SOME HON. MEMBERS: Hear, hear! MR. BARRY: L22 March 18, 1986 Vol XL Now, Mr. Speaker, a lot of us in this House, when Bill 59 was introduced, had held out by the minister then introducing the bill that there was a deal.

The minister looked up to the gallery and the labour leaders in the gallery nodded and acknowledged that there was a commitment from the minister in the implementation of that legislation to do it through them, to consul ·t and reach agreement with them with respect to essential employees. Mr. Speaker, that agreement was broken and it was from that breach of faith that we had the present impasse develop. Now, we may as well face the fact, Bill 59 is going nowhere and that process under Bill 59 is going nowhere. That commitment is going to be needed, Mr. Speaker, as part of any resolution of this labour dispute.

Now, we have been asked ·by the Government House Leader (Mr. Marshall) to agree to an early passage of Interim Supply, and we have acknowledged our willingness to co-operate in seeing that the business of this Province is expedited and not unduly delayed, but, Mr.

Speaker, we have given a commitment to let supply pass so that the public service can be paid after April 1 contingent upon our receiving full, frank and open responses to the questions that we will have with respect to the expenditure of those dollars, and contingent upon a resolution, a settlement of this labour dispute; we do not believe that this House should recess for Easter or for any other period until this dispute is settled. SOME HON. MEMBERS: Hear, hear! No. 1 R22

MR. BARRY: We put members opposite on notice today that we will use every parliamentary device within our capability, we will employ the Standing Orders of this House and we will do whatever we can to keep this House open until that labour dispute is settled. SOME HON. MEMBERS: Hear, hear! MR. BARRY: Mr. Speaker, on other matters, we saw a previous administration in this Province meet defeat at the polls, to a large extent, because they broke faith with the rural part of this Province. We saw, Mr.

Speaker, a resettlement programme, one which affected my original home community - Red Island, out in Placentia Bay was resettled. We saw many communities around this Province disappear from the face of the map because of a very up-front resettlement programme. What we are seeing in this Province today, Mr. Speaker, is a hidden resettlement programme. What we are seeing in this Province today from members opposite is a cowardly resettlement programme, a resettlement programme being done through the backdoor. Why do I say that, Mr. Speaker?

I refer you to the restraint programme and to the cutback in essential services in many rural areas of this Province. A week or so ago I met with a committee trying to save the hospital at Come By Chance. Now, when the people from Red Island resettled and had to make a decision where to locate, one of the things they looked at was the proximity to hospitals and medical services, and many of them moved to Southern Harbour and other areas close to L23 March 18, 1986 Vol XL Come By Chance. One of the reasons they moved there was because they saw a hosp .i tal at Come By Chance. Now, Hr.

Speaker, we see a decision being taken to remove medical facilities from that community and not just from the community of Come By Chance, to remove then a distance from many of these families who originally made that resettlement decision based upon how close they would be to a hospital and to doctors. We look around in our educational system and we see today inequities, inequality developing all around the Province. We see, Mr. Speaker, as a result of this ridiculous School Tax Authority system, different standards with respect to education in different parts of this Province. We see, Mr.

Speaker, parts of this Province with unbelievably high areas of unemployment. Ones which come to mind are the Burgeo - Bay d'Espoir area, the Port au Port Peninsula and parts of Labrador. Mr. Speaker, what is happening is there is no tax base out there for these School Tax Authorities, there is no place for these School Tax Authorities to raise the money no matter how high they make the individual poll tax. And what is the result?

Every day we see more and more the situation develop where there is one standard of education in our urban areas and another standard of education in our rural areas, and that is not right, that is not progress, that is going in the wrong direction, Mr. Speaker, and it has to be dealt with. People are starting to move, starting to make decisions as to where to live based on the fact their children are not getting a proper education in many of the No. 1 R23

rural communities Province today. around this The Rural Development Authority was set up by a previous Conservative Administration. I think it played a large

part in helping that administration win power, gain the government. Mr. Speaker, the Auditor General' s report shows that Rural Development Authority funds are being spent now in urban areas. For what reason? Are there enough jobs out in our rural areas? Mr. Speaker, I would submit that is again just another feature of this hidden resettlement programme by a Premier and an administration that have lost touch with the reality of life in this Province. We had held out to us before the last provincial election a great promise of a new era of federal-provincial co-operation. Mr.

Speaker, another sham, another complete act of deceit, another failure on the part of the Premier and members opposite. Look at any sector · you want to look at. Look at the recent Wilson budget with its cutbacks in regional development programmes, with its imposition of charges to the fishermen of this Province. Look at the Nielsen report with its threat to transportation in this Province, with its threat, Mr . Speaker, to many of the programmes that are crucially important to rural areas of this Province. Look at, Mr.

Speaker, the offshore agreement that members opposite have as the flagship of their legislative programme. They called a special session, Mr. Speaker, for February and they ran out of the House in disarray, without completing second reading on that bill. L24 March 18, 1986 Vol XL SOME HON. MEMBERS: Hear, hear! MR. BARRY: Look at the promise that was held out with respect to getting control of our fish stocks offshore and getting protection of our fish stocks offshore and consider the reality of what has taken place.

Look at the commitment that was given by the now Prime Minister of this country to intervene and assist in the resolution of the Upper Churchill dispute. Where has that promise gone? Mr. Speaker, more and more we see the reality of federal/provincial relations being that the Premier of this Province is being told by the Prime Minister of canada, yes, we are members of the same party, stay in line with our party policy if you expect to get anything out ~f the federal government, and the Premier is staying in line, falling in line meekly and shamefully, Mr. Speaker.

Perhaps the most shocking characteristic of the present administration, Mr. Speaker, again as exemplified in the Speech from the Throne we just heard, is the loss of concern for the ordinary person in this Province, the gulf that has developed between the members in power and the lost generation of young people, the 40,000 young Newfoundlanders who see no hope of ever in their lifetime seeing job satisfaction obtained in this Province. We had a new record established last month. For the first time in the history of this Province we had over 100,000 men and women obtaining unemployment insurance.

I do not hear members opposite standing up and acknowledging that record with pride. No. 1 R24

Loss of contact, Mr. Speaker, with the consumer in thi~ Province: Oil prices we have seen continuously decline from in the mid-thirties - $30 per barrel down to $10. The consumer in this Province is saying, 'How is it that when the price goes up I am hit immediately and when the price goes down the benefit disappears? Where is it?' Is it four cents a litre it pas trickled down so far, when the price of oil has declined over $20 a barrel? Mr.

Speaker, the consumers of this Province recognize in that simple fact, and it does not matter how many full page ads, paid for by the taxpayer's dollars, members opposite put in the newspapers, the consumers of this Province are not going to believe it because their pockets tell them that they are being ripped off by members opposite. Mr. Speaker, we have seen a lack of any adequate economic development policy that would offer hope to the unemployed, that would offer hope to those who are trying to plan a future for themselves in this Province.

We have submitted time after time that members opposite are on the wrong course. Rather than going on the route of increasing taxes they should be decreasing taxes, and they should start with the provincial sales tax and let us see the economy stimulated by a reduction in those taxes. Put money in the pockets of the consumer, get that money out into circulation, see business expand and see the small business person create the jobs as a result of that stimulation to the economy. That is the policy. SOME HON. MEMBERS: Hear, hear! L25 March 18, 1986 Vol XL MR.

BARRY: If there is a concern for economic development, let us see, Mr. Speaker, the Premier talking to his good friend the Prime Minister and getting a removal of passenger and freight charges on the Gulf ferry. Conside the impact that would have on our tourist industry, consider the impact it would have on the cost of living for people in this Province. Mr. Speaker, we see some bright spots, not because of anything done by members opposite.

We see an improvement of markets for fish products, and we keep our fingers crossed that catches will stay up, but we see an opportunity for the fishermen of this Province to gain back, if prices stay up and prices are good, some of what they have lost over the past few years. But, Mr.

Speaker, we need some direction, a better di~ection from members opposite than to say, 'We are going to build a middle distance fishery series of vessels', and not identify how they are going to be paid for, when fishermen are having trouble paying for the longliners they have now, and when they do not identify where the stocks are going to come from. Because we still have an excessive foreign fishing effort offshore and we have seen no action · by members opposite to gain back sufficient stocks from our fishery. Now, Mr.

Speaker, we need a new initiative by members opposite to persuade their friends in Ottawa to make a full commitment, a renewed commitment to the alleviation of regional disparity and to bringing back those regional development programmes which have been scrapped in recent budgets. No. 1 R25

Most of all, Mr. Speaker, what we need from members opposite, what we need from the Premier, is to bring back some of the ideals with which members opposite, I believe, and I say this in all seriousness, first came into politics. Where is the great election reform promised by the Premier? Where is that great act that was going to remove the risk of patronage, the risk of having to dance to the tune of he who pays the piper? Where is that act? Where is the fight against patronage, Mr. Speaker, and against conflict of interest that we saw members opposite come into politics on the basis of originally?

Where is the cormnitment, Mr. Speaker, that we saw time and time again from the P~emier to live up to his election promises? What about that promise to create jobs, what about that mandate to create jobs we saw coming from the Premier in the last election? Would the ?remier like to know the reality of his job creation performance? Between 1981 and 1986 there were 5,000 j cbs lost in this Province. And it does not matter how many paid advertisements the Premier takes out with 8,056 jobs across the top, that is the reality. The Premier has seen this Province lose 5, 000 jobs and has not seen one job created.

The end result of this r1s1ng contempt for democratic principles and for the rights of workers in this Province, the end result of this hidden resettlement programme that we see underway under the guise of restraint, the end result of this failed promise of federal/provincial consultation and co-operation, the end result of this loss of concern for the ordinary Newfoundlander, the end result for the lack of development of any proper economic policy, the L26 March 18, 1986 Vol XL end result is that the people of this Province no longer believe what the Premier of this Province tells them. Now, Mr.

Speaker, time is rapidly running out for the Premier of this Province. He has a very short time within which to get back to that basic promise that he held out to the people, when he first entered politics, that he would bring a new political morality to this Province, that have-not would be no more, that jobs would be created, that we would be inflicted with prosperity. Mr.

Speaker, it is not the tail of Halley's comet that is keeping the sun from shining in this Province, it is the heavy hand of members opposite, it is the arrogance of members opposite, it is the loss of touch with reality of members opposite, it is the lack of concern of members opposite for the people of this Province and right now, today, for the workers of this Province. I ask the Premier, when he stands up, number one, to make a commitment to get this strike settled and, number two, make a commitment to get back to these basic ideals that we all believe in for this Province. SOME HON. MEMBERS: Hear, hear!

PREMIER PECKFORD: Mr. Speaker. MR. SPEAKER: The han. the Premier. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: Mr. Speaker, the hour is getting No. 1 R26

late so I will say a few words and we can all go to our respective chores. First of all, like most previous speakers, Mr. Speaker, I would like to welcome those people in the galleries and the Heads of Church and State here on this rather ceremonial occasion that occurs every year when we have a Throne Speech. I welcome them and I hope they have enjoyed their time here and look forward to seeing them back again not only this time next year but during the year, when the ·House is open. Mr. Speaker, a lot has been said in the last few minutes by the Leader of the Opposition (Mr.

Barry) , most of which is partly true and partly untrue. Perhaps, first of all, I can deal with a couple of implications in the hon. the Leader of the Opposition's statement. I think the first thing I would like to deal with on behalf of government and the administration, and I will say very little else on it this afternoon, is the Leader of the Opposition's attempt to try to paint this administration as somehow arrogant and overbearing in relationship with the workers of this Province. Mr.

Speaker, it has to be pointed out by me and this government that we are still at the table willing to negotiate with the groups that find themselves not working in the last few weeks. We were at the table, we stayed at the table and we have not left the table. It is unfortunate, both within the confines of the precincts of this House and outside by various leaders in the community, that it has somehow been pictured that the Government of Newfoundland, as an employer, precipitated the present crisis that we find in labour relations today.

It has been implied, has been somehow said L27 March 18, 1986 Vol XL that we were precipitated circumstance. the this ones who present Mr. Speaker, that is completely untrue. We were at the table, stayed at the table, are still at the table and have never left the table. We want the workers who are now presently not going to work to return to work and to begin again the dialogue that we had begun in negotiating a contract for these workers.

That is of utmost crucial importance, for people to go back to work and to begin again what we have not stopped, and that is sitting at the table to negotiate a fair and reasonable package for the workers who are not working right now in various parts of the public service. We are there at the table now, this day and every day, waiting for the leadership of the union to return to the negotiating table. We have not left. We did not precipitate the present situation that we find ourselves in. That is a fact and it has to be said.

I do not want any of my comments to be construed as being provocative, but I have not only the right but the responsibility and obligation to . defend myself and to defend this government. We did not precipitate this present situation. We stayed at the table and the other side did not return to the table, and I find it very disheartening for the Leader of the Opposition to say that somehow we were not willing to negotiate on the essential worker aspect of it. The President of Treasury Board (Mr.

Windsor) can produce a letter that he wrote last June to the union leadership on the question of essential designations, and is it not true that two unions in this Province, CUPE and the Nurses' Union, are now working under Bill 59? And I No. 1 R27

have to quote, because it has been so construed in the press, for the record here today if nothing else if it is not carried, fine, sobeit, I will take my lumps there what the ILO said about the right to strike and Bill 59: "The right to strike may be limited or prohibited as regards public servants acting in their capacity as agents of the public authority or engaged in services whose interruption would endanger the life, personal safety or health of the whole or part of the population." Bill 59 and freedom of association: What did the International Labour Organization, which so many people are holding up as the end-all and be-all as it relates to labour relations in this world, on this planet, say about Bill 59 and freedom of association?

"The committee does not consider the modalities that they impose" - that is Sections 23 and 24 of Bill 59 - "to be an undue hindrance on unions in the exercise of their right to strike and thereby going beyond what is acceptable under international standards and principles on freedom of association." We do not have before us today, as a Newfoundland society, a piece of legislation which, as some are trying to construe, is somehow repressive, overbearing, somehow down on the workers, Mr. Speaker.

The International Labour Organization, which a lot of the individuals who oppose this bill are talking about, has endorsed this legislation as fair and reasonable ... fair and reasonable! The other remembered, we are not how many essential, point that must be Mr. Speaker, is that the final arbiters of will be designated that goes to an L28 March 18, 1986 Vol XL independent board.

And that was one of the other things the International Labour Organization said: "You should be careful. though, that you as a government, or you as a union do not be the final arbiters on this, this should go to an independent board." The bill accommodates that concern ·and, therefore, the designation, if both sides cannot agree, goes to the Labour Relations Board on which there is a representative of labour, a representative of the employer and an independent chairman.

For example, as it relates to the Highways workers, in the Wintertime the designation will be a little bit higher to protect the person in Westport, White Bay, who, at two o'clock in the morning, gets sick and has to go by ambulance to Baie Verte, or Springdale, or Grand Falls, and has to travel in a snowstorm over those roads that are not yet upgraded to the extent that they should be.

Is it not reasonable to suggest that the government, who is the employer for the services of snow clearing and ice control in that area, should ensure by some mechanism that, if at all possible, we will guarantee that that person can get to hospital and thereby have a life saved, or something improved upon health-wise for that individual, over and above not having it, Mr. Speaker? Is that not reasonable? SOME HON. MEMBERS: Hear, hear! MR. SPEAKER (McNicholas): Order, please! PREMIER PECKFORD: Mr. Speaker, it was a Conservative government which brought in the right to strike for the public No. 1 R28

service. It was a Conservative government not a Liberal government, not from 1949 to 1971 or 1972. It was this government that brought it in. What you have to try to do then, Mr. Speaker, if you are going to articulate responsibility it has to be the totality of that responsibility. You have to balance off the health and safety of people whom you are elected to serve, balance that off against a very important labour relations principle, · the right to strike. So it is a balance. It is not all of one or all of the other, it is a balance.

And recognizing that balance, recognizing that there were certain sectors of the public service that needed no essential services, we brought in amendments to Bill 59 to exempt any of that unit from being determined essential. There are ten or eleven units now within the public service where there will be no application of Bill 59 because we cannot and would not want to try and make an argument for something being essential in the Department of Consumer Affairs, say, which you really cannot make an argument on' it cannot stand up in logic and reason and therefore there are no employees designated essential there.

Even with the highway workers it will vary. In the Wintertime there will be more designated, there might be thirty or thirty-five percent, if we agree. If we do not agree, then the Labour Relations Board decides for us. MR. FLIGHT: Why should they do it? PREMIER PECKFORD: Because we have not been able to negotiate because the first provision is that we are supposed to negotiate that out and we have L29 March 18, 1986 Vol XL not heard back. There are three letters on that.

The other part of it is that the Labour Relations Board, up to now, has disagreed with hearing a designation because the union had seen fit to appeal the Newfoundland Supreme Court Trial Division decision, which was in our favour, to a higher court. So, while it was before the courts, the board argued that way. The point is simply, Mr. Speaker, that this is not a repressive, unfair law. The right to strike is protected and in many areas there is no designation of essential services.

I know a lot of people have to be armchair experts on a whole bunch of things, because everybody is not in my . position or I am not in theirs either. I could be to them, I suppose, an armchair expert. When the lab and x-ray people went out and the designations were not made, I remember a number of frantic calls that occurred in this Province, and a number of sick people who had to be carried by ambulance from the Burin Peninsula to St. John's. MR. TULK: You are talking about (inaudible). PREMIER PECKFORD: Yes, but there were two or three very, very tragic examples that occurred.

There has got to be balance in everything, Mr. Speaker, and there has to be balance in this. If the union will sit down again and negotiate their wage package and negotiate their essential services and we say, 'In this unit there should be fifteen designated for the · following reasons', we pass it to the union and the union says, • We disagree with those extra five, there is really no reason for it', No. 1 R29

if we come back and say, 'Well, perhaps you are right' and we agree to ten, fine. If we are still insistent that that is very important for a heating system, or for a social worker to provide something - you know, social workers are involved here, too. You have people coming and looking for assistance every week - if neither one of us decides, then it goes to the Labour Relations Board on which there is a labour representative, an employer representative and an independent chairman who will decide. We cannot designate, arbitrate. we cannot The other point, Mr.

Speaker, is that we have not, through our legislation, put anybody in court. The court came into action through a violation of the court order. We did not and will not, Mr. Speaker. We want the workers who are presently out on an illegal stoppage of ·work to return to work and sit down at the bargaining table which we never left. We do not like the present situation in our Province. We will sit down night and day until we have an agreement, as we have done over the last number of weeks and months with a lot of other organizations in the Province. So it it fair and reasonable.

This issue is almost like - it is only different because it is within the Province - the seal fishery outside. It becomes an emotional issue and the facts of the matter do not get carried to the extent that the emotion does. And in the same way everybody who is within hearing of my voice now objects violently to the way people have depicted us as barbarians or somehow trying to destroy little white baby seals on red, bloodied snow.

In my view, L30 March 18, 1986 Vol XL we see the same kind of emotion being stirred up with no debate of the factual implication of the piece of legislation, and it is extremely unfortunate. But we have to get back to the facts on it, Mr. Speaker, we have to look at it from that point of view. On the question of parity, Mr. Speaker, I agree we were both parties to creating unparity, if I can use a ~ew word, the union, NAPE, and ourselves. We both are guilty, as the Leader of the Opposition (Mr. Barry) said. We both are. They signed the agreements.

When collective bargaining came in, here is one of the problems that it created: Instead of having one global agreement for all people who work out of the public purse, like you would have before collective bargaining, there are now a multiplicity of units who negotiate their own collective agreements; one runs out in January, another one runs out the next December, and the economic conditions are different in that December than they were in that January, leading to a different wage package for the ones in December over January. That is what happens. That is the reality of it.

And that is nobody's fault, that is the exercise of time and of conditions as it changes from week to week or month to month within a given society. That is nobody's fault. We did not deliberately try to create unparity so we would now have a problem in 1986. But in the same way that it took a while for this unpari ty to be realized, it will take a while for parity to be regained, even with the best of intentions on both sides. What are we doing this year? The offer that is now on the table tries to get to that, because we are No. 1 R30

.I p~oviding the la~gest inc~eases fo~ the lowest paid. Whe~e the health care wo~kers negotiated 4 pe~ cent, we have said 6 pe~ cent minimum for these people in the NAPE unit where they do not have parity now and then put minimums, $1000 minimum for the first year, $1,100 the second year, $1,300 the third year, making fo~ increases over the life of the contract of somewhere between 19 per cent and 23 per cent. Now, K~.

Speaker, I have to say, Premie~ or no Premier, just as a Newfoundlander, knowing ou~ economic and financial situation, that is not too bad a deal, 19 per cent to 23 per cent ave~ three years, in ou~ circumstances. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: It is not perfect, it is not as good as we would like to see it, but it does try to address the problem. I agree there is a parity problem and we have to solve it with the union over time. That is . not too bad an agreement.

I talked to somebody from the Public Service Alliance of Canada on the plane coming back from Montreal the other day and he was telling me most of their units are signing fo~ 3.5 per cent and 4 per cent with the federal government. MR. FLIGHT: Yes, but they did not have three years of zero and zero. PREMIER PECKFORD: Well, you know, we did not want that either, but the reality of it is that,- MR. FLIGHT: L31 March 18, 1986 Vol XL We had it. PREMIER PECKFORD: Yes, we had it. We had it for all the good reasons. Look whe~e our current account deficit would be now.

It would not be $70 million or $80 million, it would be $200 million or $300 million and then the hon. member would be criticizing us because we do not know how to manage our finances. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: All I will say to the Leader of the Opposition's (Mr. Barry) comment that this is a deliberate strategy to try to push down the worke~s is that in his heart and soul he does · not believe that anybody on this side, or anybody on the other side, would have a delibe~ate strategy to try to oppress peop~e who work out of the public purse. MR. BARRY: Who asked for the injunction?

PREMIER PECKFORD: I listened to the Leader of the Opposition and said nothing, I deserve the same courtesy · in return. So that is not worthy of any furthe~ comment from me, as far as I am concerned, not worthy of any comment. The question of a lack of democracy then comes up: The Leader of the Opposition goes on and somehow contorts his logic to try to make this out, this weird and wonderful bad law that nobody is supposed to read, because if they did then it would not be a weird and wonderful law, that somehow we are into a lack of No. 1 R31

democracy in this Province. Royal commissions on unemployment and employment, a Royal Commission on Hospital Costs and Nursing Home Care, green papers on health costs, going out to the people every time, the reorganization of the vocational schools, is that the actions of a government that._ is oppressive, that is trying to tear down democratic principles, because you go out and get information from the people that you serve and who elected you? That seems to me like a government just the opposite to lacking democracy.

Before any major policy initiative is taken, we are going out and consulting everybody, the doors are wide open, come in and sit down and talk to us about this new policy initiative we are going to take. A hidden resettlement programme: I mean, I know the Leader of the Opposition has a problem in trying to concoct some credible criticism to what we are doing around the Province. Look at Burgeo, Mr. Speaker. Who is keeping Burgeo open today? Who? Name the organization or individual that is keeping Burgeo open today. It is under subsidy.

That fish plant is not viable with the amount of fish that goes in there and is processed out and sold in the marketplace. It is this government that is keeping Burgeo open this very day. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: And the Leader of the Opposition says a lot of rural development authority loans are going to urban centres. Mr. Speaker, the bon. the Leader of the Opposition brought this up before the House closed the last time and he used L32 March 18, 1986 Vol XL the example, and I am sure everybody here now can understand this one, of Gander.

There was a small business in Gander which was going to have a sawmill in Gander in their commercial or industrial park, their commercial park there by the Gander Bay Road, the same way as Edgar Baird did years ago, by the way, in the same place, and we were providing assistance - the man or the business applied and apparently got a low interest loan from government to help him get going in his sawmill. This is supposed to be an example of providing money to urban centres. Where is the wood going to come from, Mr. Speaker, Elizabeth Drive, Gander?

No, I suggest that the wood is going to come from the Gander Bay Road, Clarke's Head, Phillips Head - what are the other places down there? - Wing's Point and so on. Where is the wood going to come from? It is going to come from outside Gander. Who is going to cut the wood, Mr. Speaker? Mostly loggers from the Gander Bay area. Now, this is an example · of this terrible government centralizing everything into urban centres. Ninety to ninety-five per cent of the loans provided under the Rural Development Authority are in rural Newfoundland.

It is a programme that a Conservative Government brought in, that we are very proud of, and somehow now there is a hidden age~da. Little Bay Islands, in my district, is more prosperous today than it ever has been in its history, even back in the days when the Strongs were going good down there. Look at the FPI restructuring, when they sold plants - by the way, that whole restructuring agreement was nothing. I mean, I was mad to ever sign that. That was the No. 1 R32

craziest thing ever I did, it was going to destroy the fishery. Here now we see, today, selling of plants without any government involvement, not one; Twillingate sold to the private sector. Where is the private sector? In Newfoundland. The plants on New World Island, sold without any government involvement. The plants down on the Great Northern Peninsula, Cow Head, Eng lee, sold without any provincial involvement, going to stand on their own two feet for the first time, Mr. Speaker. Then we have about $30 million out in loan guarantees to all the little tiny fish plants. Where, Mr. Speaker?

In rural Newfoundland. The Leader of the Opposition, how well he knows his geography! Come By Chance: I do not think that there are ten Newfoundlanders today, who, if the facts were explained to them on the Come By Chance hospital, the old cottage hospital - here is what the government is doing now. We have a big area around the Come By Chance area. The service center is where? Clarenville. Do people go from Come By Chance and Southern Harbour and Norman's Cove and other places down in Southern Arm to Clarenville to see the dentist or is there a dentist in every community?

Is there a road there now or are we talking about like Red Island when there were no roads, no nothing? Does anybody from Come By Chance ever come to St. John's? What a foolish kind of example to use of hidden resettlement, when we are spending $15 million to $20 million to do what, Mr. Speaker? To build a hospital centrally located, a ten times better hospital, fifteen times better hospital, to take in L33 March 18, 1986 Vol XL that whole catchment area and to provide them with servic~s so that instead of having to drive to St.

John's to see a specialist they will drive the twenty miles to Clarenville, in rural Newfoundland SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: - a specialist they cannot get in Come By Chance with that kind of facility. They are going to be going there shopping anyway, Mr. Speaker. At the same time, though, Mr. Speaker, we will still maintain a clinic in Come By Chance. The people in Bay d'Espoir have to drive ninety-something miles or more to Grand Falls to a hospital, the people in Come by Chance have to drive twenty miles. That is the difference.

So that is foolishness for the Leader of the Opposition to get on with, a hidden agenda on resettlement. Look what we just did in Baie Verte, Mr. Speaker, or in Port aux Basques or anywhere else, and the fishery and our Northern cod policy. What are we trying to do through the middle distance fleet? Where are we going to get the fish, Mr. Speaker? The Leader of the Opposition should go and get briefed on the fishery. This past year we caught 70,000 metric tons of our inshore allocation, when our inshore allocation is 120,000 metric tons.

Since that allocation policy came in by the federal government, we have never caught our 120,000 metric tons and the Nova Scotians and New Brunswickers &ld Prince Edward Islanders and Northern Quebecers are saying, 'Mr. Siddon, these Newfs down No. 1 R33

there, sure they are not catching their allocation. Give it to us. As Mr. Trudeau said, fish swim. This is a national resource. ' If we are not careful that is where it is going to go, like some of the fish has already gone in the last few years. It started in 1976. Before that there was none. So where is the fish going to come from for the middl~ distance fleet? The difference between the 70,000 and 120,000 - 50,000 metric tons of fish out there swimming around with Newfoundland marked on it and nobody catching it, Mr. Speaker, and the unemployment rate at 20 per cent. SOME HON. MEMBERS: Hear, hear!

PREMIER PECKFORD: 'Where is the money going to come from for the vessels • , the Leader of the Opposition asked? From the Government of Newfoundland and Labrador, because interested in the rural Newfoundland. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: we fishery are and Kr. Speaker, if you look in the Throne Speech, almost on every page as it relates to our resource industries, and that is why the Leader of the Opposition never spoke about it, we are doing the right things in forestry, we are doing the right things in the inshore and offshore fishery. The proof is there.

We are doing the right things in the mining industry. The proof is there. any ore around, we find it. If there is are going to L34 March 18, 1986 Vol XL MR. FLIGHT: Yes, sure you are. MR. SPEAKER: Order, please! PREMIER PECKFORD: If there is no ore, you cannot have a mine. Now the member for Buchans (Mr. Flight) should know that. If he does not, then I would say he has rocks in his head, not ore. You cannot do it. So, Mr. Speaker, if you look at those basic things we have done, then .they are working, there is no question.

Our unemployment rate has been going down for the last three months, in the worst season of the year. SOME HON. MEMBERS: Oh, oh! MR. SPEAKER: Order, please! Hon. members know very well they just cannot interrupt. I know there were interruptions on the left, now there are interruptions on the right. I would ask for silence while the member is speaking. PREMIER PECKFORD: Those are working, Mr. Speaker, and, at the same time, we have to be very careful, as the Throne Speech says, on our health programmes, on our social services programmes, on our cronic care. We have to continue to do that.

The Minister for Housing (Mr. Dinn) just recently pulled off one of the better deals ever pulled off in social housing. Where is most of the money from this government that does not care, that has no social conscience, going in housing in 1986? To the working poor, under our social No. 1 R34

hqusing programme of $25 million. Where are our community development projects? Mr. Speaker, we are trying. As it relates to the Offshore Development Fund we have to be very careful and wise. I would like to see any other jurisdiction, not only in Canada but around the world, if it had $300 million in its pocket for the last year and half be as cautious and wise about it as we have, I will tell you - $34 million gone now. And, as the Speech says, we are not going to do it just on an economic basis for industrial things.

If in the area to be effective a new hospital has to be bull t, various studies have to be done to show the social impact, we will provide the money through the Offshore Dev~lopment Fund. We will do that as we have done in the past. You always have to strike in Newfoundland that kind · of tidy balance because we are always looking to the Mainland and our expectations are equal to what the person in Ontario's expectations are, - yet their ability to meet their expectations are a lot greater than ours.

That is where the gap comes in, that is where the problem comes in in trying to meet that gap, which is very difficult to do. Hr. Speaker, we are not ashamed to spout what we are doing and to articulate what the Throne Speech is saying, we are not at all. We are very proud of where we have come from through some very difficult times, and we are very proud that the kind of things that are in the Throne Speech today is the proper course for Newfoundland and Labrador.

Balance, economic growth, international trade, social development, cultural integrity, putting those kinds of L35 March 18, 1986 Vol XL things in place and doing it on a base of financial stability which is one of the worst in Canada. Hr. Speaker, the good thing about it from our point of view and the sad thing about it from the Opposition's, is that it is going to work and they are going to see it work. SOME HOM. MEMBERS: Hear, hear! PREMIER PECXFORD: It is going to work, Mr. Speaker, because through all the recession we fought hard.

When the members opposite told us to go and sign the Nova Scotia agreement, go up and let them close down Harbour Breton, Ramea and Burin, a whole bunch of them over there wanted to do that at the time, we held on and now we see that all of that holding out has paid off in the fishery, it has paid off in the offshore, it has paid off with .corner Brook, it has paid off with St. Lawrence. We are on the move, Mr. Speaker, and there is not one thing the Opposition can do about it but whine.

The facts will speak for themselves and the people once again, as they did eleven months ago, will return us to power knowing that we are on the course that is right for Newfoundland. SOME HOM. MEMBERS: Hear, hear! MR. SPEAKER (McNicholas): It is moved and seconded that a Select Committee be appointed to . draft an Address of thanks to be presented to His Honour in Reply to the Gracious Speech with which He has been pleased to open the present Session of the House of Assembly. Those in favour "Aye", those against "Nay". No. 1 R35

SOME HON. MEMBERS: Aye. MR. SPEAKER: The motion is carried. Notices of Motion DR. COLLINS: Mr. Speaker. MR. SPEAKER (McNicholas): The hon. the member for st. John's South. DR. COLLINS: Mr. Speaker, I give notice that I will on tomorrow move that the House resolve itself into Committee of the Whole on Supply to consider certain resolutions for the granting of Interim Supply to Her Majesty. MR. TULIC: Mr. Speaker. MR. SPEAKER: The hon. the member for Fogo. MR. TULK: Mr. Speaker, I give notice that I will on tomorrow ask leave to introduce the following resolution:

WHEREAS relations between the Government of Newfoundland and Labrador and its employees have deteriorated to a dangerous level; and

WHEREAS a combination of arrogance and high-handedness on the part of the Government of ·Newfoundland and Labrador is a major contributing element in the escalating decline in labour relations in this Province; and

WHEREAS the sweeping, arbitrary and discretionary provisions of L36 March 18. 1986 Vol XL Bill 59 are unduly weighted in favour of Government, have been condemned by the International Labour Organization, and are viewed as totally unacceptable by the members of the Newfoundland Association of Public Employees; and

WHEREAS the announcement of 30-day suspensions to workers currently on strike, and the threat of further suspensions by the President of Treasury Board are an aggravation and a provocation preventing a settlement; and

WHEREAS the Province's Minister of Labour has declined an active role of conciliation and mediation during the life of the current dispute; and

WHEREAS the Premier has abdicated his responsibility; and

WHEREAS Government • s refusal · to extend parity as between various sectors of public employees is a central issue in this dispute; and

WHEREAS Government's tactics of reclassification for select civil servants, its granting of outrageously high car allowances to Deputy Ministers, Assistant Deputy Ministers, Executive Assistants to Ministers and Members of the Premier • s personal staff, and matters such as · the one-half million dollar refurbishing of the Premier's Office and continuous government expenditures on political propaganda make a mockery of Government's restraint program, and, are, in the context of the current dispute, extremely provocative measures; BE IT THEREFORE RESOLVED Government, as a sign of faith, lift all suspensions, Ho. 1 that good and R36

threats of suspensions or firings; ~d BE IT FURTHER RESOLVED that Government immediately indicate a willingness to return to the bargaining table with a proposal offering parity to workers involved in the current dispute, subject to workers returning to work; and BE IT FURTHER RESOLVED that Government immediately return to the bargaining table with a proposal to eliminate the provisions of Bill 59, which improperly take away the right to strike; ~d BE IT FURTHER RESOLVED that Government agree to establish, on the earliest possible occasion, ~ industrial inquiry into labour relations in the public sector . in Newfoundl~d ~d Labrador; ~d BE IT FINALLY RESOLVED that the Premier instruct the President: of Treasury Board to undertake these ~d all other reasonable steps to bring the current dispute to a negotiated conclusion.

SOME HON. MEMBERS: Hear, hear! MR. SIMMONS: Mr. Speaker. MR. SPEAKER (McNicholas): The hon. the member Fortune Hermitage. MR. SIMMONS: Mr. Speaker, I give notice that I will, in the absence of my colleague · for St. Barbe (Mr. Furey), ask leave tomorrow to introduce the following resolution:

WHEREAS there has been in recent months a major decline in the L37 March 18, 1986 Vol XL world price of oil; ~d

WHEREAS the price constimers in Newfoundland ~d Labrador pay for gasoline, home heating oil ~d electricity should be directly related to the world price of oil; ~d

WHEREAS the cost to consumers in Newfoundland and Labrador of gaso·line, home heating ~d electricity is amongst the highest in c~ada; ~d

WHEREAS these costs are a crushing burden to the great number of consumers in Newfoundl~d ~d Labrador, namely those on marginal or fixed incomes, especially the senior citizens of Newfoundl~d and Labrador; BE IT THEREFORE RESOLVED that government commit itself to passing on, as they occur, the full benefits deriving from the decline in the world price of oil to reduce the cost of gasoline, home heating oil ~d electricity to Newfoundl~d ~d Labrador consumers; ~d BE IT FURTHER RESOLVED that government specifically renounce ~Y intention to take up, in whole or in part, any benefits to the Newfoundland consumer, by . way of taxation, resulting from the decline in the world pric~ of oil; and BE IT FURTHER RESOLVED that government undertake an investigation to determine whether the full benefits resulting from the decline in world prices in the areas of gasoline, home heating fuel and electricity have been passed on without delay to the Newfoundl~d and Labrador consumer by the oil comp~ies ~d Newfoundland Hydro, ~d; No. 1 R37

BE IT FINALLY RESOLVED that government undertake a study to determine the impact of home heating costs on those citizens of Newfoundland and Labrador on fixed incomes, particularly senior ei tizens and, contingent upon the findings of such a study, devise proposals of assistance for senior citizens. SOME HON. MEMBERS: Hear, hear! MR. BAIRD: Mr. Speaker. MR. SPEAKER: The bon. the member for Humber west. MR. BAIRD: Mr. Speaker, I give notice that I will on tomorrow ask leave to introduce the following resolution:

WHEREAS the Report has Nielsen Task Foree. recommended the Federal subsidies coastal ferry elimination of on gulf and services; and

WHEREAS the Nielsen Task Foree Report recommends these services be governed by a User/Pay System; and

WHEREAS this would cause undue economic hardship for all Newfoundlanders and Labradorians; BE IT THEREFORE RESOLVED that this Honourable House go on record as opposing any elimination or reduction of Federal ferry and coastal boat subsidies for the Province of Newfoundland and Labrador through the User/Pay Concept. SOME HOM. MEMBERS: Hear, hear! L38 Karch 18, 1986 Vol XL MR. LUSH: Mr. Speaker. MR. SPEAKER (McNicholas): The hon. the member for Bonavista North. MR. LUSH: Mr. Speaker, I give notice that I will on tomorrow introduce the following resolution:

WHEREAS unemployment remains the number one problem effecting the Province of Newfoundland and Labrador; and

WHEREAS it is every day more apparent that the problem requires as part of a total solution initiatives that are innovative, aggressive and original; and

WHEREAS certain areas of the Province are much more deeply afflicted by the problem of unemployment than the Province in ~ general; BE I~ THEREFORE RESOLVED that this House deplores government's business as usual approach to critically high unemployment; and BE IT FURTHER RESOLVED that government, upon identification of those areas of Newfoundland and Labrador most seriously ravished by unemployment, proceed to the designation of those areas as reduced , tax zones for the purpose of providing extraordinary economic stimulus where it is most needed; and BE IT FURTHER RESOLVED . that government, as a means of direct stimulus to the provincial economy and as an encouragement to small business in the creation of jobs, immediately move to a reduction in the provincial sales tax.

No. 1 R38

SOME HON. MEMBERS: Hear, hear! MR. PATTERSON: Hr. Speaker. HR. SPEA.I<ER: The bon. the member for Placentia. HR. PATTERSON: Hr. Speaker, I give notice that on tomorrow I will introduce the ·following resolution:

WHEREAS disadvantaged Newfoundlanders and Labradorians continue to suffer the indignity and ravages of real poverty; and

WHEREAS poverty is oftentimes a cyclicai inherited problem amongst our disadvantaged; and

WHEREAS the increasing cost-of-living continues to be an insurmountable burden and places poverty stricken families at a level below subsistence; and

WHEREAS poverty contributes to a host of social ills affecting the entire community; and ~ our National Income Security Programs are administered on an equal universal basis which fails to address the greater need amongst our disadvantaged citizens; THEREFORE

BE IT RESOLVED that this bon. House urge the National Government to review its present policy of universality in the administration of the income security programs with a view to channelling a greater proportion of funding to those in real and urgent need. MR. FLIGHT: Mr. Speaker. L39 Karch 18, 1986 Vol XL MR. SPEAKER (McNicholas): The bon. the member for Windsor Buchans. MR. FLIGHT: Thank you, Hr. Speaker. I give notice that I will on tomorrow ask leave to introduce the following resolution:

WHEREAS the office of the Auditor General, under the Parliamentary system is the safeguard over, and the watchdog of , the expenditure of public money; and

WHEREAS the Auditor-General is an officer of the House of Assembly, not a functionary of government; and

WHEREAS the independence of the Auditor-General is central and critical to his performance; and ~ clear, specific and detailed statutory definition of the Auditor-General's duties and prerogatives is essential to h;s independence; and ~ collisions between Newfoundland's current Auditor-General and this administration appear to threaten his independence and function; and

WHEREAS the duties and prerogatives of the Newfoundland Auditor-General embedded in Administration Act; are the currently Financial BE IT THEREFORE RESOLVED that government introduce current session of the Assembly a new Act, exclusively with the duties and prerogatives Auditor-General, and in the House of dealing office, of the BE IT FURTHER RESOLVED that this Act give to the Auditor-General No. 1 R39

to perform comprehensive or - value-for-money to ensure that his government spending the duty auditing, auditing, reports on have the informational citizens of Labrador, and highest possible significance for the Newfoundland and BE IT FINALLY RESOLVED that this Act contain a provision enabling the Auditor-General to conduct direct audits on all provincial Crown Corporations of this Province. SOME HON. MEMBERS: Hear, hear! MR.. WOODFORD: Hr. Speaker. MR.. SPEAKER: The bon. the member for Humber Valley. MR..

WOODFORD: I give notice that I tomorrow ask · leave to the following resolution: will on introduce ~ the Upper Churchill contract is blatantly unfair to the Province of Newfoundland and Labrador; and

WHEREAS positive changes contract are desirable Province is to be treated in this nation; and in that if our equally

WHEREAS it is desirable to have future Labrador hydro electric projects proceed with a spirit of fairness and equity between the Province of Newfoundland and Labrador and the Province of Quebec; and

WHEREAS the Newfoundland and Quebec discussions have with Province of the Province of again begun respect to the L40 March 18, 1986 Vol XL above matters; and

WHEREAS the canada is inclined Prime Minister of on record as being to facilitate a resolution of the above matter; BE IT THEREFORE RESOLVED that this honourable House go on record as encouraging all these Governments to continue their efforts to correct inequities in the current Upper Churchill contract and to work out a co-operative and equitable framework for future hydro electric projects in Labrador. SOME HON. MEMBERS: Hear, hear! MR. FENWICK: Mr. Speaker. MR.. SPEAKER: The bon. the member for Menihek. MR. FENWICK: Thank you, Hr. Speaker.

I give notice that I will on tomorrow ask leave to introduce a b.ill entitled, ''An Act· To Amend The Public Service Collective Bargaining Act, 1973," this bill to be titled Bill No. 100. MR. KITCHELL: Mr. Speaker. MR. SPEAKER: The bon. the member for LaPoile. MR. KITCHELL: Thank you, Hr. Speaker. I give notice that I will on tomorrow ask leave to introduce the following resolution:

WHEREAS recent developments in the field of aquaculture, especially Atlantic Salmon Farming, show that a major new industry is developing No. 1 R40 ..

worldwide; and

WHEREAS this Province is blessed with abundant unpolluted sites for aquaculture and has a work force with many of the basic skills needed for aquaculture; and

WHEREAS the Government of this Province has already started to develop an aquaculture programme; BE IT THEREFORE RESOLVED that this Hon. House go on record as encouraging the Province, on a priority basis and in co-operation with the federal government, Rural Development Associations and other interested parties, to develop a major program of aquaculture development for salmon, mussels and other species sui table to our waters as a key program to create long term suitable employment opportunities in rural areas of the Province. MR. W. CARTER: Mr. Speaker. MR. SPEAKER: The hon. the member for Twillinga,te. MR. W.

CARTER: Mr. Speaker, I give notice I will on tomorrow ask leave to introduce the following motion:

WHEREAS the Unemployment Insurance Act,.. as it applies to fishermen, is discriminatory and contravenes

Section 15 ( 1) of the new Charter of Rights; and

WHEREAS no other Canadian other than a fisherman is denied benefits when he or she is unemployed subject to the normal waiting period and relevant requirements; and

BE IT RESOLVED that the Government ' Lol\1 March 18, 1986 Vol XL of Newfoundland and Labrador encourage and financially assist the fishermen of this Province to challenge the validity of the Unemployment Insurance Act as it applies to fishermen; and BE IT FURTHER RESOLVED that the Government of Newfoundland and Labrador ask the courts to strike down that

section of the Act which contravenes the new Charter. MR. WARREN: Mr. Speaker. MR. SPBAICER: The hon. the member for Torngat Mountains. MR. WARREN: Mr. Speaker, I give notice that on tomorrow I will introduce . the following resolution:

WHEREAS several European countries have shown a desire to locate defence personnel in Labrador; and WHBRBAS there is a strong desire by the vast majority of people in Labrador to have NATO partners established in the area; and

WHEREAS the federal and provincial governments have · taken the necessary steps to protect the environment and the health of the people living in Labrador and are most sensitive to their concerns; and

WHEREAS the Province of Newfoundland and Labrador has the highest rate of unemployment · in Canada; and

WHEREAS the proposed increase in the military presence will result in excess of 1,000 civilian jobs; BE IT THEREFORE RESOLVED that a Committee, representing Canada, No. 1 R4l

Newfoundland and Labrador and the private sector, be set up to promote the positive aspects