Newfoundland and Labrador Hansard — Petitions; Oral Questions — 4 December 2001 (44th General Assembly, 3rd Session, Vol. XLIV No. 42)

2001-12-04

Newfoundland and Labrador — Debates (Hansard)

Newfoundland and Labrador Hansard — Petitions; Oral Questions — 4 December 2001 (44th General Assembly, 3rd Session, Vol. XLIV No. 42)

2001-12-04

Newfoundland and Labrador — Debates (Hansard)

December 4, 2001 HOUSE OF ASSEMBLY

PROCEEDINGS Vol. XLIV No. 42

The House met at 1:30 p.m.

MR. SPEAKER (Snow): Order, please!

Statements by Members

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

MR. MERCER: Thank you, Mr. Speaker.

It gives me great pleasure to inform this hon. House that Paula Power of

Corner Brook has been recognized by her peers for a service in promoting

literacy by being awarded the first ever Susie Day Laubach Literacy Award for

Volunteers.

Over the past twelve years, Paula has held executive positions with a large

number of literacy related groups including the Humber Literacy Council, the

Books for Babies Advisory Council, the Newfoundland and Labrador Literacy

Council, the editorial board for First Time readers, and the Summer Reading for

Fun trainer Program, to name a few. But, most of all, Mr. Speaker, she has kept

literacy in the forefront of public attention.

Paula is passionate about literacy. In a recent

article in The Western

Star she is quoted as saying: "When I see people who cannot read,

something inside of me wants to help them. Reading has so much to do with people's

lives - their work life, their social life, their family life - it is not just

helping one person."

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

congratulating Paula Power of Corner Brook in receiving this prestigious award

and her day-to-day commitment to literacy.

Thank you.

SOME HON. MEMBERS: Hear, hear!

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

MR. TAYLOR: Thank you, Mr. Speaker.

I rise today to acknowledge and extend congratulations to Herbert and Elsie

Pittman of Englee, who celebrated their 50 th wedding anniversary on

October 17. Last night they were joined by their six children, thirteen

grandchildren, three great-grandchildren, and a wide circle of family and

friends to mark the occasion.

Mr. Speaker, like most people of their generation, Mr. and Mrs. Pittman are

strong individuals with a deep sense of community, a strong work ethic, and a

great commitment to family.

While they are both remarkable individuals, I would be remiss if I didn't

mention something significant about Mr. Pittman, and that is that at the age of

nine he lost the lower part of his arm in an ice crusher. Today, on the Northern

Peninsula, that would certainly be a bit of a challenge to live and provide for

your family with part of your arm gone, but sixty years ago it was much more of

a challenge. In spite of that, Mr. Pittman and his family lived a very good

life. He fished and sealed and was quite well known throughout the Northern

Peninsula and all over the Northeast Coast. Some time ago Land and Sea

did a show on Mr. Pittman, and he was well known for carrying on and providing

for his family in spite of the challenge that he was presented with.

Today, Mr. Speaker, I am sure everybody in this House would like to extend

sincere congratulations and best wishes to Mr. and Mrs. Pittman on their 50 th

wedding anniversary, on October 17.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

I wish to bring to the attention of the House of Assembly a historic legacy

of the Gibbons Family on being involved with the postal service in Red Bay for

over 100 years.

On March 10, 1899, James Gibbons of Red Bay received a letter from the then

Postmaster General of Newfoundland, Mr. J.O. Fraser to the effect that he was to

take charge of the winter mail in that community.

Red Bay has been settled by fishermen and their families mostly from

Carbonear during the mid 1800s. Petitions to improve mail service to the

Labrador Straits region and to establish a proper year round post office at Red

Bay "in a convenient place with facilities for the registration of letters

and the issuing of money orders..." were sent to both Fraser and Governor

Herbert Murray during 1899.

A permanent post office was finally established at Red Bay in 1906. James

Gibbons became Postmaster and retained that position until about 1920, at which

time the position was filled by his daughter-in-law Eliza. She served as

postmistress at Red Bay for over forty years. Her grandson, Walter, became

Postmaster after she retired in 1961, at the age of seventy. Walter retired from

that position in 1977 and his wife Linda has been Postmaster for the past

twenty-two years.

Mr. Speaker, I ask all members to join with me in recognizing the legacy of

services to the post office in which the Gibbons family has shown for over 100

years.

Thank you.

SOME HON. MEMBERS: Hear, hear!

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

MR. MANNING: Thank you, Mr. Speaker.

On Saturday, November 24, I had the opportunity to attend the fire department's

annual dinner and dance in Placentia, Mr. Speaker. It was a celebration of

another great year of fire prevention and fire protection for the Placentia

area.

I had the opportunity also to present awards for long-term service to seven

of the firemen on behalf of the Minister of Municipal and Provincial Affairs and

the Fire Commissioner's Office. Terry O'Keefe, one of the firemen, received

a thirty year award, Jim O'Keefe, Val Careen, Gerard Wilson, and Frank Coombs

were all presented with twenty year certificates.

Mr. Speaker, also very interesting on that night we found that the fire

department had accepted their first lady, first woman, as a member of their fire

department this year, in the name of Edna Traverse.

SOME HON. MEMBERS: Hear, hear!

MR. MANNING: I thought this was a great opportunity to bring forward

those issues here today and to say congratulations to Chief Wayne Power, and all

the members, for a job well done in creating peace of mind in the Placentia area

in relation to fire prevention and fire protection.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Port de Grave.

MR. BUTLER: Mr. Speaker, I want to recognize in the House of Assembly the

achievements of the Bay Roberts Sea Lions Swim Team in winning their seventh

consecutive provincial championship.

The Bay Roberts Sea Lions Swim Team is made up of ninety-nine swimmers, ages

seven to eighteen, who come from the area of Roaches Line to Upper Island Cove.

Along with winning this competition, many members of the team also set

provincial records in this event. Also, many of the swimmers posted personal

best times and were awarded awards and ribbons for their efforts.

Sports in an important part of the physical and social development of our

young people. I had the opportunity to travel with this team to their

competition in Gander earlier this year and witness first-hand their enthusiasm

and commitment. The approximately 400 swimmers from all over the Province who

participated and gave their best deserve to be recognized in this House of

Assembly.

Mr. Speaker, I ask all Members of the House of Assembly to join with me in

congratulating the Bay Roberts Sea Lions on winning this, and the past six

provincial championships, and also to recognize the efforts of all who

participated in this sporting event.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MR. COLLINS: Thank you, Mr. Speaker.

I am happy to inform people in the Province that plans for the first ever

come home year for Labrador West are progressing well. The committee is hard at

work, with help from many volunteers, to make sure everything will run smoothly.

Mr. Speaker, July 20 to July 27 promises to be the biggest event ever to

occur in Labrador, and probably the largest come home year that has ever been

held anywhere in our Province.

Since our website, labwest2002.net, was posted on March 17 of this year, a

little more than eight months ago, we have had, as of this morning, over 40,683

visitors to the site, all of whom are residing or have resided in Labrador West

for some portion of their lives.

This overwhelming response, Mr. Speaker, demonstrates the great sense of

pride and attachment current residents and former residents have for Labrador

West. People who live in Labrador West, and even those who left, by choice or

otherwise, always refer to their years spent in the North as the best of their

lives.

Mr. Speaker, we are eagerly waiting for July 20 to July 27 when we will

welcome, from many countries around the world and every province in Canada, old

friends, former co-workers, and classmates back to Labrador.

In closing, I would like to thank the committee for all the work they have

done to date, and I am certain our come home year will be an astounding success.

Thank you.

SOME HON. MEMBERS: Hear, hear!

Oral Questions

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

My questions today are for the Premier. Yesterday, in response to a question

to the Premier on whether debate would be held in this House of Assembly before

a deal was finalized on Voisey's Bay, the Premier shocked some of the Members

of this House of Assembly and indeed the people of Newfoundland and Labrador. He

made a statement, and I will repeat it, "If we have a debate in this

Legislature, and if the government has already commited to the deal, which has

twenty-eight seats, and if we bring it in here and vote for it, regardless of

how the Opposition votes, it will pass in this Legislature. That is the

practicality of how this Legislature operates."

That was the Premier's quote. In other words, why bother to bring it in

here? Why have hon. members opposite talk about it or debate it? Why bring it

before this House?

I would ask the Premier: Does twelve years in power breed the arrogance and

disrespect that you now show no respect for this House, for the members of this

House, and indeed the people of Newfoundland and Labrador?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

I appreciate the level of indignation shown by the Leader of the Opposition.

The fact of the matter is this, Mr. Speaker: I tend to be honest and

straightforward with the people of Newfoundland and Labrador and the people in

this Legislature.

I do not recall, and I stand to be corrected, when an arrangement was made to

start the mine in Bell Island, which contributed greatly to the economy of

Newfoundland and Labrador, that the deal that was struck to have the company

come here and invest came to this Legislature as a pre-condition of the mine

opening.

I do not recall an arrangement in Labrador West, where we still have a great

iron ore operation continuing in Labrador City and Wabush, whereby the

arrangements and the negotiations that went on in providing the mining lease,

that there was a pre-condition that no deal should be entered into unless it was

debated in the Legislature first. I have never said, Mr. Speaker, that it will

not be debated in the Legislature. It is being debated in the Legislature today.

It was yesterday; it was last week; it was six months ago; it was five years

ago. It will be debated everywhere in Newfoundland and Labrador but as a

precondition, Mr. Speaker, the Leader of the Opposition, as a business person,

knows that you cannot negotiate an arrangement which has a private company

looking for a mining lease. That is what they are looking for, and as a

condition of it, that they would then be bringing in some $2 billion in

investment that we would make an arrangement and say: We will accept your

investment. We will grant you the mining lease on these conditions, but I must

tell you, I cannot tell you for sure as the government, even though we are the

government of the Province, that we might have to go to the Legislature and

change half the arrangements. That will never work. That will never get you a

deal. That will never be the way any negotiations occur, Mr. Speaker. The Leader

of the Opposition knows it. The people of Newfoundland and Labrador know it. It

is a nice try at representing feign and fake indignation, Mr. Speaker, but it is

not the way things operate.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

The Premier is being cute with his words. The Premier knows that the people

of Newfoundland and Labrador have every right to debate the future of their

Province.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Mr. Premier, outside this House last week your Deputy

Premier said: I think this place in here - referring to the House of Assembly -

can be used to do almost anything we want it to. Doesn't that statement

reflect an arrogance and a disrespect for this House which is reflective of your

own attitude, which you have already shown us?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

PREMIER GRIMES: Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Mr. Speaker, I appreciate the questions - as shallow as

they are, in my view. There is no arrogance, no indignation with respect to this

side of the House, Mr. Speaker. We tend to expect and believe that the people of

Newfoundland and Labrador understand and recognize honesty and sincerity in a

straightforward approach, when they see it. Mr. Speaker, I do not believe for a

minute that the Leader of the Opposition would suggest that a business

negotiation, which this is, with respect to Voisey's Bay, what the government

is being asked to do is to grant a mining lease. That is what we are being asked

to do. Pretty simple. What we are trying to do is find out what benefits we can

guarantee will accrue to Newfoundlanders and Labradorians before we grant the

mining lease, Mr. Speaker.

That discussion, as the Leader of the Opposition knows, where a private

company is about to invest $2 billion of their shareholders' money in

Newfoundland and Labrador so that we can benefit, cannot take place in a

business environment in the public. He has been a businessman, he knows that he

did not do any of his deals in the public, even though he made a great speech

yesterday about thinking that all of the negotiations should happen in the

public.

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: That is very different from debating legislation or the

Constitution or rules of general application.

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: This is a serious business deal and we take it very

seriously, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

Mr. Speaker, my business belonged to me. The government does not belong to

(inaudible).

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Premier, I can tell you that if I was in your seat I would

make sure that the people of Newfoundland and Labrador had a full debate on this

issue before any deal was ever signed.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: That would be my guarantee and commitment to the people of

this Province.

Mr. Speaker, when I was elected to represent the good people of Humber West I

understood that my role in this Legislature would be to debate issues of

importance to the people.

Premier, why are you denying the members of this House the right to debate an

issue of such importance to the people of this Province? What are you trying to

hide?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

Contrary to trying to hide anything, what we are trying to do, Mr. Speaker,

is come to an arrangement with a private company that is looking at investing $2

billion in Newfoundland and Labrador, so that we can maximize some benefits for

the people of Newfoundland and Labrador from a natural resource that belongs to

all of us. Very simple and very straightforward.

Mr. Speaker, there is nothing to hide because, unfortunately, for five years

now we have been unable to come to any level of satisfactory benefits agreements

with that company, that we would recommend to the people of Newfoundland and

Labrador or that we would sign on their behalf. The only commitment that the

people of Newfoundland and Labrador have from us is twofold: First and foremost,

that they will know every single detail of any arrangement that we enter into,

after we enter into it.. We have to enter into something first before you can

tell them what it is.

Mr. Speaker, I do not spend my time speculating about what might happen or

what if, and what if the sky falls and so on. Every single detail of an

arrangement that we will enter into, because we are empowered to do so - and

there might be some suggestion of a difference of opinion from the Opposition

but we certainly do not buy into that - will be known to everybody in

Newfoundland and Labrador.

Mr. Speaker, the second part of the twofold commitment is that we will only

were given in two elections, and that we maximize the benefits for

Newfoundlanders and Labradorians.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

Premier, you seem to be awfully concerned about the $2 billion that Inco is

going to spend. What about the $50 billion-plus asset that you are going to

negotiate away on behalf of the people of Newfoundland and Labrador? That is

what we are concerned about on this side of the House, not about what Inco does.

We do not care what Inco does; couldn't care less.

MR. SPEAKER: Order, please!

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

MR. WILLIAMS: Premier, in the past, bad deals have been negotiated - we

have had some deals - bad deals have been negotiated on behalf of this Province.

The Lower Churchill is a gleaming example.

MR. SPEAKER: Order, please!

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

quickly.

MR. WILLIAMS: Thank you, Mr. Speaker.

We have seen deals that have not been debated in this House: Lower Churchill;

Friede Goldman is another good example. I would ask you, Premier: If the Friede

Goldman deal had been brought before this Legislature, do you -

MR. SPEAKER: Order, please!

I want to remind hon. members, when they are asking questions, questions

should be directed to the House through the Chair, not to individual members.

The hon. the Leader of the Opposition.

MR. WILLIAMS: Thank you, Mr. Speaker.

Mr. Speaker, I would ask the Premier: Would he not agree that if the Friede

Goldman negotiation had been brought before this House, perhaps some of the hon.

members in this House, either on this side or that side, may have realized that

was a flawed agreement and would not have agreed to give it away for $1, and

would put a safeguard in that contract that would protect it against possible

bankruptcy? Wouldn't that be a useful exercise?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Mr. Speaker, again we can see that the Leader of the

Opposition would like to deal with the past and a bunch of what ifs. Mr.

Speaker, the fact of the matter is this: everybody who was involved with the

Friede Goldman deal, as an example, understood what the choices and the options

were in Newfoundland and Labrador at the time. The choices and the options were

for the government, which I understand the Opposition would do, I understand

that the Opposition would still have the government running the shipyard and

losing $50 million a year. The government of the day, Mr. Speaker, decided that

was not an option.

MR. SPEAKER: Order, please!

PREMIER GRIMES: The government was not going to take taxpayers' money

and try to run a shipyard and lose $50 million a year. I understand the

Opposition would do that, unless he is going to change his speech from

Marystown; because in Marystown that is what he said, Mr. Speaker. In fact, the

choices at the time were to close the yard and have nobody doing anything, close

it and mothball it, or sell it to the only interested bidder at the time which

was Friede Goldman, and we tried to have another provision put in.

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: They said, if you put in other provisions we will not buy

it and you can go ahead and close it.

Everybody knew that there were two options at the time, Mr. Speaker, not ten

or twelve or fifteen or twenty options, just two options (inaudible).

MR. SPEAKER: Order, please!

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

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

What I did say in Marystown, Mr. Speaker, was that I looked at that contract

and I would have picked up the fact that there was no protection there on a

bankruptcy. I can tell you that, Premier, and I did say that publicly.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

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

MR. WILLIAMS: Mr. Speaker, we also have another glowing example of a

situation where the will of the Cabinet and the will of the Premier were being

imposed on the people of this Province. That was the privatization of

Newfoundland Hydro.

Mr. Premier, isn't it a fact that if this issue had not been debated in

this House, and the views of the members and the people of this Province had not

been heard, that a government of which you were part would have given away one

of the jewels in the crown of this Province and given away a big asset?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Mr. Speaker, the Leader of the Opposition mixes up two

very different circumstances. There was a circumstance with respect to

Newfoundland and Labrador Hydro, which is a provincially owned Crown

corporation, in which to change the mode of operation for it, it required

legislative approval. Required, because the law of the land, which only this

Legislature can do, needed to be changed.

There was a full debate and the government - not because of any amendments

proposed by the Opposition - decided to change its direction and keep the Crown

corporation as it is today. We have committed to keeping the Crown corporation

as long as we are the government. They can decide to put forward another

position if they would like. There is no requirement and no law that needs to be

changed with respect to a mining lease; there was no law that needed to be

changed with respect to Labrador West; there was no law that needed to be

changed with respect to Bell Island, and there was no law that needed to be

changed with respect to Buchans. Mr. Speaker, we are talking about a mining

lease.

With respect to an earlier representation by the Leader of the Opposition -

MR. SPEAKER: Order, please!

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

PREMIER GRIMES: Yes, Mr. Speaker.

Voisey's Bay is very valuable to Newfoundland and Labrador if, and when, it

gets developed. If somebody does not come forward with a couple of billion

dollars to develop it, it will always be of some value but worthless if it just

sits there in the ground.

MR. SPEAKER: Order, please!

PREMIER GRIMES: Mr. Speaker, we are trying to encourage someone to come

forward and invest now rather than later.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: I understand from your answer, Premier, that if you did not

have to bring it before this House then you would have given away that jewel. Is

that correct? That is what you are saying, Premier.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

MR. WILLIAMS: Mr. Speaker, my question for the Premier is this: Isn't

it true, Premier, that the people in this House, and that the people of this

Province, want to have this matter debated, even some members of your caucus.

Some members of your own caucus do not even know what the deal is, just like we

do not know what the deal is. We have no idea what the deal is. Isn't it true

that some of the members want to debate it? Wouldn't it be proper, Mr.

Premier? What is wrong with a full and open discussion in this House, by an open

and accountable government like you say you have?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

We have been completely open, Mr. Speaker. There is nothing to be open with,

with respect to a deal on Voisey's Bay because, unfortunately, we do not have

one.

With respect to debating in this Legislature; let us understand one thing,

there has been one opportunity here about ten days ago in a private member's

debate about research and development of Voisey's Bay; which the Leader of the

Opposition said is the most important issue here. He never, ever stood in his

place to engage in the debate. The people of the Province do understand that a

research and development component for hydromet may possibly be part of the

deal. That is what Inco is interested in. The Leader of the Opposition is

opposed to it, just like he is opposed to anything to do with this deal because

he is frightened to death that we might inflict some prosperity on the people of

Newfoundland and Labrador, and he will not be able to suggest that it is a gloom

and doom; it is all a disaster; it is falling apart. There is nothing happening,

Mr. Speaker. Nothing can be further from the truth. When there is something to

let the people know about, including in this caucus, we will let everybody know

what the deal is, if and when we get one.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

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

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

I am at a loss to understand why the hon. Premier is the champion of Inco. He

is so concerned about the $2 billion that they are going to spend, and he wants

to give them a gift of another $100 million from the federal government.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Mr. Speaker, I will ask the Premier: Brian Tobin, John

Efford, and Paul Dicks were opposed to unprocessed or semiprocessed ore leaving

this Province, why have you and your party been so keen to see this deal happen

since you were elected Premier by your own party? Why are you trying to ram this

deal down the throats of the people of Newfoundland and Labrador without full

and open debate?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

I would suggest that maybe the Leader of the Opposition knows something about

a deal that I, or any of us, don't know.

Mr. Speaker, let me say again clearly for the people of Newfoundland and

Labrador: The government has no deal with Inco. Mr. Speaker, we would like to

reach an arrangement that does - and I have spelled out, as has the Minister of

Mines and Energy on several occasions, these fundamental components, that all of

the nickel ore that is in the ground in Labrador over the life of the project

will be turned into a finished nickel product in Newfoundland and Labrador. I

think everybody in Newfoundland and Labrador understands that, Mr. Speaker, and

I believe they see that as a full attainment of the mandate that this government

was given if we can accomplish it. We haven't been able to accomplish it yet,

which is why we don't have a deal.

Secondly, Mr. Speaker, we are going to try to maximize each and every single

benefit that we can for Newfoundlanders and Labradorians during that process.

Mr. Speaker, if we can reach that deal, which the Leader of the Opposition

thinks we have and we are trying to ram down somebody's throat, then we won't

have to do any ramming of anything. What will happen is, if we reach those

fundamentals, the people of Newfoundland and Labrador will gladly see a project

go ahead, will gladly see the development occur and will recognize that we have

reached our full mandate, and I believe they will support us and applaud us in

finding a way to do something that governments for five years have not been able

to successfully accomplish.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. MANNING: Thank you, Mr. Speaker.

My questions today are for the Minister of Mines and Energy, and they also

will deal with the Voisey's Bay development.

I would like to ask the minister: As part of a deal -

SOME HON. MEMBERS: Oh, oh!

MR. MANNING: This is a very important issue, I say to the members

opposite.

I would like to ask the minister: As part of a deal, will there be an

absolute enforceable guarantee that all of the nickel concentrate from Voisey's

Bay will be processed to a finished nickel product at Argentia? Mr. Speaker,

will there be an absolute enforceable guarantee?

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. MATTHEWS: Thank you, Mr. Speaker.

I think the Premier has already dealt with that question amply, but for

greater certainty: Any arrangement that we will make with respect to the

development of Voisey's Bay, that falls short of a certainty that all of the

nickel that is in the ground in Voisey's Bay over the life of that project is

developed in Voisey's Bay, anything that falls short of the commitment that it

will all not be developed in Voisey's Bay, will not be a deal and will not be

signed.

We are committed to seeing 100 per cent of all of the nickel that will come

out of that ore body in Voisey's Bay, over the life of the project, processed

into a finished nickel product in this Province, through a refinery in this

Province that will do that processing. That is our commitment, that is our

marker, and we are striving to reach a deal that will give a surety and clarity

and certainty with respect to finished nickel product processing in the

Province.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Member for Placentia & St.

Mary's.

MR. MANNING: Mr. Speaker, I would like to ask the minister: If the

hydromet process is proven to be unsuitable for processing nickel concentrate

from Voisey's Bay, will the contract -

AN HON. MEMBER: (Inaudible).

MR. SPEAKER: Order, please!

MR. MANNING: Mr. Speaker, I would like to ask the minister: If the

hydromet process is proven to be unsuitable for processing nickel concentrate

from Voisey's Bay, will the contract with Inco contain an absolute enforceable

guarantee that Inco will build a traditional smelter refinery at Argentia to

process Voisey's Bay nickel concentrate to a finished nickel product?

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. MATTHEWS: Mr. Speaker, I think it is clear to everybody, including

the brightest and the best minds in the industry, and in the area of new

technology for processing hydrometallurgical type activities, that the hydromet

process is the way to go. We are looking forward to getting a research and

development opportunity in the Province that will allow us to prove up hydromet

and continue to operate to do other proving up processes on an R and D basis for

a long time in the future. In essence, it is sort of a small, new industry, in

and of itself, aside from the commercial plant that we will have over the thirty

year life of the project. For greater certainty, whether or not hydromet can be

proved up to the extent that it can be used as a technology to process through a

commercial plant in our Province is the question we are trying to answer.

MR. SPEAKER: Order, please!

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

MR. MATTHEWS: If we for some reason find out, if the technology for some

reason falls short of the expectation and does not work, I can assure the hon.

member that there will be, in any event, full processing in this Province of

nickel to a finished product by some other type of technology.

MR. SPEAKER: Order, please!

I ask the hon. the minister to take his seat.

SOME HON. MEMBERS: Hear, hear!

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

& St. Mary's.

SOME HON. MEMBERS: Hear, hear!

MR. MANNING: Thank you, Mr. Speaker.

I ask questions today because I believe the people in Newfoundland and

Labrador want guarantees before the Voisey's Bay deal is signed. I want to ask

the minister: Is he afraid to bring the contract on Voisey's Bay to this House

of Assembly before it is signed? Is the minister afraid to bring it here because

the guarantees I have asked him about today are not and will not be part of the

contract on Voisey's Bay?

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. MATTHEWS: Thank you, Mr. Speaker.

I would suggest that we would have to rename the member, the member with the

great crystal ball, because he seems to know with certainty and with clarity in

his own mind, between his own ears, what will be in a deal that we hope we will

reach with Voisey's Bay.

The fact of the matter is, Mr. Speaker, that the hon. member does not know

what a deal will contain and will not know until, in fact, we arrive at one.

What the people of the Province can be sure about is that any deal we reach will

be faithful to the commitment that they have entrusted to us with respect to

obtaining full processing in the 1996 and 1999 elections. It will remain

faithful to the commitments that I have given. It will remain faithful to the

commitments that the Premier has given with respect to ensuring that we will get

full processing of 100 per cent of the nickel over the life of the project, and

that anything short of that will not constitute a deal.

SOME HON. MEMBERS: Hear, hear!

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

MR. COLLINS: Thank you, Mr. Speaker.

My question is for the Minister of Justice. As the minister is aware,

councils in Labrador West have been requesting a 911 service be extended into

Labrador West. The minister has stated that this is not under active review by

his department. Mr. Speaker, the St. John's area and the Corner Brook area

have a 911 service funded by government, and 911 is known throughout the world

as an emergency response number.

According to a Ministerial Statement in this House on March 21, 1995, the

then minister stated that he was pleased to announce today that Cabinet has

given approval in principle for the establishment, on a Province-wide basis, of

an enhanced 911 emergency telephone system.

I ask the minister: What will he do to ensure that residents of Labrador, and

the Province in general, will have the services of a 911 emergency response

number?

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. PARSONS: Well, Mr. Speaker, I certainly cannot speak for the minister

five years ago but I will speak for myself. The hope is to eventually have a 911

service throughout this Province. It is obviously a resourcing issue. I met, in

fact, yesterday with Mr. Letto and representatives of the Combined Councils of

Labrador. They are in the gallery again today. That was not one of the

priorities that was discussed.

Policing issues are very important to Labrador, and we have been successful

in the last two year, I would say, very successful, in addressing policing

safety issues in Labrador. We have added additional constables in Cartwright,

also in Makkovik, and also in Goose Bay, and, no doubt, with the road

improvements that this government is making in Labrador, we will need additional

resources to police those roads; but, the actual issue of 911 did not come up

from the councils yesterday. We would like to have it eventually, but it is a

matter of money. If the money is there, eventually, we would certainly like to

have it.

We only have it right now in St. John's and Corner Brook. In fact, there

are still some technical difficulties being encountered with the system which we

are reviewing as well. Given the insurgence of people who use security systems,

for example, and the number of false alarms that impact upon the use and cost of

911, we are actively investigating that matter as well.

MR. SPEAKER: Order, please!

MR. PARSONS: Not only is it a case where we do not know how far we can

go; we have to re-evaluate where we have gone now, in fact, and the impact that

it has had.

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

SOME HON. MEMBERS: Hear, hear!

MR. COLLINS: Thank you, Mr .Speaker.

If I understand the minister correctly, now we have to be grateful for good

policing in our communities.

I want to say to the minister, and I want to ask the minister, Mr. Speaker:

Nova Scotia, P.E.I. and other provinces in Canada have 911 as a province-wide

emergency number to respond. I want to say to the minister that this is an issue

in Labrador West and it is an issue throughout this Province. I want to ask the

minister: Is he willing to commit to take a leading role and meet with groups

throughout the different regions of this Province to see how 911 can be

installed?

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

SOME HON. MEMBERS: Hear, hear!

MR. PARSONS: Mr. Speaker, first off, the people of Labrador West do not

have to feel grateful because they have policing service. They deserve and will

get the same level of policing services as everyone else in this Province.

SOME HON. MEMBERS: Hear, hear!

MR. PARSONS: Secondly, I am accessible to meet with anyone in this

Province, at any time, who wants to discuss a policing issue. My door is never

closed, and will never be closed.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Question Period has ended.

Presenting Reports by Standing and Special Committees

MR. SPEAKER: In accordance with

Section 273(3) of the Elections Act,

1991, I hereby table the Annual Report Of The Chief Electoral Officer On

Election Finances, for the period January 1, 2000 to December 31, 2000.

In accordance with

Section 35 of the House of Assembly Act,

Part II, Conflict

of Interest, I hereby table the Annual Report of the Commissioner Of Members'

Interests covering the period April 1, 2000 to March 31, 2001.

The hon. the Member for Bonavista South.

MR. FITZGERALD: Thank you, Mr. Speaker.

Yesterday I raised a couple of issues in debate here in the House. I brought

forward certain incidents that happened on a forestry resolution debate that

happened here with names of people that were charged under the act, which I

thought were charged in an improper way.

MR. SPEAKER: Order, please!

I ask the hon. member to take his seat.

AN HON. MEMBER: (Inaudible).

MR. SPEAKER: Order, please!

Is the member on a point of order?

AN HON. MEMBER: I want to table some information, Mr. Speaker.

MR. SPEAKER: Order, please!

The chair knows that private members do not have the right nor the obligation

to table reports in the House or table documents. That has been ruled on for

many years.

MR. FITZGERALD: On a point of order, Mr. Speaker.

MR. SPEAKER: Order, please!

The hon. the Member for Bonavista South, on a point of order.

MR. FITZGERALD: Mr. Speaker, yesterday the Deputy Premier asked me if I

would table information -

MR. SPEAKER: Order, please!

The chair just ruled on tabling of reports. The chair is not going to deal

with this point of order.

Answers to Questions for Which Notice has been Given

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

SOME HON. MEMBERS: Hear, hear!

MR. BARRETT: Mr. Speaker, I would like to table today answers to two

questions that were on the Order Paper.

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

MS FOOTE: Mr. Speaker, I am tabling today answers to a question from the

Member of Harbour Main-Whitbourne; a detailed breakdown of the cost of producing

and airing the Read and Succeed television advertisement. The answer, in fact,

covers the total cost of the program.

Petitions

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

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

Today I rise to present a petition on behalf of a number of people on the

Northeast Avalon regarding the Torbay Bypass. I would like to read it into the

record:

To the hon. House of Assembly of Newfoundland and Labrador, in Legislative

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

Labrador;

WHEREAS the population of the Northeast Avalon in the Towns of Pouch Cove,

Bauline, Flatrock, Torbay, Logy Bay-Middle Cove-Outer Cove is growing rapidly;

and

WHEREAS the traffic on Torbay Road has increased to significant and dangerous

levels, approximately 12,000 vehicles per day, and is growing daily; and

WHEREAS the Torbay Bypass route has been decided and land acquisition has

taken place; and

WHEREAS the Torbay Bypass was a significant part of the Department of Works,

Services, and Transportation roads agenda and would alleviate the concerns of

residents on the Northeast Avalon regarding traffic flow;

WHEREFORE your petitioners urge the Government of Newfoundland and Labrador

to make the Torbay Bypass a part of their New Road Construction Plan and put

funding in place to start the construction of the Torbay Bypass as soon as

possible; and as in duty bound your petitioners will ever pray.

Mr. Speaker, last week I presented a petition from a number of people in the

Pouch Cove and Flatrock area with respect to the same issue. Today, there are a

number of names on this petition from Logy Bay-Middle Cove-Outer Cove and some

from Pouch Cove, and I expect in the near future we will be receiving more

petitions from the area of the Northeast Avalon with respect to this very

important issue.

Mr. Speaker, I support this petition. I have signed the petition, of course.

You have to do that when you present a petition in this House of Assembly. This

proposed Torbay Bypass affects thousands of people on the Northeast Avalon. As I

said before, Mr. Speaker, it affects people from Logy Bay-Middle Cove-Outer

Cove, through Torbay, Flatrock, Pouch Cove, Bauline, and people living on Torbay

Road - and in Portugal Cove, because now we have some people coming across the

Indian Meal Line and out Torbay Road. It is a very serious situation.

The traffic on Torbay Road, Mr. Speaker, is horrendous. It is growing rapidly

every year. As a matter of concern, as recently as today I received a letter

from a former mayor of the Town of Flatrock concerning the conditions of the

roads in that area in the wintertime. It is a strange happening, every year we

see that the Torbay Road is done fairly well. I have to compliment the

Department of Works, Services, and Transportation, as far as the north side of

Torbay, through Torbay to the WindGap - where the WindGap leaves Torbay Road

goes down through Flatrock and goes back onto the Pouch Cove highway. From

Gallows Cove - that intersection of Gallows Cove Pond and that intersection of

the WindGap - from that area of the Pouch Cove highway right to Pouch Cove, down

through Flatrock, the WindGap, there always seems to be not enough salt and sand

put on that stretch of the roads.

In Torbay, of course, we have the Pipperstock Hill and the North Side Hill.

The Department of Works, Services and Transportation, the people at the White

Hills, are always saying every year that I contact them - the same issue - there

is not enough salt and sand put on the Pouch Cove highway -

MR. SPEAKER: Order, please!

The hon. member's time is up

MR. J. BYRNE: By leave, Mr. Speaker. Just to clue up.

MR. SPEAKER: Order, please!

Does the hon. member have leave?

MR. TULK: No leave.

MR. SPEAKER: No leave.

MR. J. BYRNE: Just let it be known that the Deputy Premier is refusing

leave to speak on this very important issue, Mr. Speaker.

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

MR. FITZGERALD: Thank you, Mr. Speaker.

I stand today to present a petition. The petition reads:

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

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

Labrador;

WHEREAS the speed limit of 80 kilometres an hour along the residential

section of highway situated on Route 230 in Lethbridge between the depot of the

Department of Works, Services and Transportation and a business known as Blundon's

Esso is too high;

WHEREFORE your petitioners urge the Government of Newfoundland and Labrador

to immediately reduce the speed limit in this area from 80 kilometres an hour to

50 kilometres an hour, as in duty bound your petitioners will ever pray.

Mr. Speaker, this is a petition that has been circulated by the eighteen

residents who live on Route 230. They have school children accessing a bus stop

on this particular route where the speed limit right now is 80 kilometres an

hour.

Up until this year, all the elementary students in this particular area -

their parents would take them to school because they lived less than a kilometre

from the school in Lethbridge. This past year seen the Lethbridge elementary

school closed. Now the students in this particular area have to be bused to

Anthony Paddon Elementary in Musgravetown. In order to access the school bus,

they have to walk and wait on the side of Route 230. The parents there have

written the minister and have raised it with the Department of Works, Services

and Transportation in Clarenville, and their efforts up until now, have not been

attended to, if you would, in having the speed limit reduced.

Their concerns are very real. It was only yesterday that I received a call

from a parent who happened to be at the side of the road waiting for the school

bus with their children when a tractor-trailer came by, driving the normal speed

limit of 80 kilometres an hour, with a load of wood on - sixteen cord of wood -

and had to try to stop. Everybody here knows what trying to stop a

tracker-trailer is like on a busy highway driving 80 kilometres an hour. You

just cannot stop it on a dime.

What the people are asking is for the minister to direct his officials to

lower the speed limit from 80 kilometres an hour to 50 kilometres an hour on

this particular

section of road. It is not uncommon. It has been done in other

sections of the same highway. They are asking that their area, the residential

area of Route 230 by Lethbridge, that the speed limit be reduced to 50

kilometres an hour, as it is in other places on the highway, for the safety of

their children. They have to go there every morning; have to be dropped off

every evening; have to walk the side of the road, and have to wait by the side

of the road of this busy highway. That is what they are asking for. They are in

fear for the safety of their children.

MR. SPEAKER: Order, please!

The hon. the member's time is up.

MR. FITZGERALD: I would ask the minister if he would take this petition

into consideration, and I also fully support the recommendations and suggestions

put forward by the residents.

Thank you.

SOME HON. MEMBERS: Hear, hear!

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

MR. T. OSBORNE: Thank you, Mr. Speaker.

I have another petition today that I will present on behalf of the residents

of Shea Heights who wish to petition the hon. House of Assembly to address the

need for wheelchair accessible housing units in the Shea Heights area. We are

asking government to consider the fact that people with disabilities and their

families need to be able to utilize the support of family and friends within the

community of Shea Heights. If persons are forced to live in units outside the

community, it compromises the help and support families so vitally need.

We are asking that serious consideration be given to the construction of

wheelchair accessible units in the Shea Heights area so families with physical

disabilities may avail of essential support networks.

Mr. Speaker, I would start today by congratulating the minister responsible

for housing. Over a year ago I spoke to the minister requesting money for

wheelchair accessible housing units. He told me he was working on the funding

for $30 million. I congratulate him, I know he worked hard on that funding.

SOME HON. MEMBERS: Hear, hear!

MR. T. OSBORNE: Mr. Speaker, I hope that he will listen to the pleas of

the people of Shea Heights when they ask for wheelchair accessible housing units

for that area.

In addition, Mr. Speaker, throughout the Province there is a need for

additional housing units, which is the reason for the funding, obviously. There

is a need for single housing units and so on, but the issue today - and this

petition that I am presenting - is for wheelchair accessible housing units.

Families in the Shea Heights area, who are living with a disability, are forced

to move from their community, the community that they grew up in, the community

that their families live in, the communities that they have lived in all their

lives. They are being asked to move from that community into a community where

they do not have the support network available to them, where family members

have to travel - because in some cases the persons with disabilities are unable

to travel, so families would have to travel considerable distances in some cases

because of the location of wheelchair accessible housing units, to be able to

help the family member with the disability.

This is a very serious issue. It is a very reasonable request by the people

who are signing the petition and I ask, Mr. Speaker, that very serious

consideration be given to allow wheelchair accessible housing units to be

constructed in the Shea Heights area.

Thank you.

SOME HON. MEMBERS: Hear, hear!

Orders of the Day

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

MR. LUSH: Order 17, Mr. Speaker, Bill 41,

An Act Respecting The

Protection Of Farm Practices In The Province.

Motion, second reading of a bill, "An Act Respecting The Protection Of

Farm Practices In The Province." (Bill 41)

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

SOME HON. MEMBERS: Hear, hear!

MR. SMITH: Thank you, Mr. Speaker.

I am pleased today to rise to introduce Bill 41,

An Act Respecting The

Protection Of Farm Practices In The Province.

This new legislation is aimed at protecting farm operations from court action

relating to nuisance complaints from farming activity. I guess from time to time

all of us in this hon. House have heard reference to situations where farming

operations, that have existed for years, found themselves in conflict because

people built homes in the vicinity of the farming operation, then afterwards

they raise some objections as to concerns with regard to the farming operation.

To address that, the main element of the act that we are debating in the House

today is the Farm Practices Review Board. This new board will help mediate

disputes between farmers and their neighbours. The board will consist of at

least five members representing municipalities, the farming community, and the

general public.

The intent of the legislation is to provide for a more effective and quick

way to resolve public complaints due to farm practices. The board will be

responsible for hearing and ruling on complaints about such things as odors,

noise, dust, smoke, and light. Concerns of any other nature will continue to be

addressed by the appropriate government departments or agencies. The act does

not affect the rights and powers of municipalities to enact their own

regulations related to farming activity.

Our focus, in this act, is to deal solely with nuisance complaints which have

increased over the last few years. Concerns of any other nature will continue to

be addressed by the appropriate government departments or agencies. We are

confident that this comprehensive legislation will meet the need to protect

farms that operate in an acceptable manner from court action, while at the same

time ensure the rights of those who live near farming operations, make sure that

these rights are not compromised.

The new legislation will contain new environmental guidelines for farm

management practices. These guidelines, Mr. Speaker, were developed in

consultation with the Departments of Municipal and Provincial Affairs,

Environment, Government Services and Lands, and the Agrifoods industry. They

will be key to the review board in determining whether a farm is complying with

the required guidelines when a complaint is issued. Government is committed to

ensuring farming operations follow all environmental and health guidelines. I

want to stress that only farmers whose operations fully comply with necessary

guidelines will be protected by this legislation. We want to ensure that there

is a balance between safeguarding family practice operations and protecting the

public from unacceptable disturbances from farming activity.

This new and important legislation, Mr. Speaker, was developed in

consultation with the Newfoundland and Labrador Federation of Agriculture and

the Newfoundland and Labrador Federation of Municipalities. Both groups are

supportive of this legislation.

We believe this piece of legislation is long overdue in our Province. In

fact, Newfoundland and Labrador is the only Province in Canada that does not

have, at present, some form of farm practices protection legislation. Mr.

Speaker, we are confident that this legislation will enable us to more

effectively strike a balance between protecting farming operations and

addressing public complaints.

It is well for the hon. members of this House to remember and recognize the

importance of the farming industry to the people of this Province. At the

present time, there are some 700 farming operations in the Province with an

additional 100 companies that are doing some further processing and value-added

production, for a total industry value in excess of $500 million.

Mr. Speaker, this legislation serves to strike a balance, first of all in

protecting this very valuable industry and also allowing a mechanism to deal

with situations where citizens and communities may feel aggrieved and feel they

have a concern. I think the review board will serve a very useful purpose, and I

certainly commend this legislation to the hon. members of the House and suggest

a speedy passage.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. HUNTER: Thank you, Mr. Speaker.

It is a pleasure for me today to rise and say a few words on Bill 41, the

Farm Practices Protection Act. I am certainly in support of this act. It is

legislation that we have been waiting for, for many, many years. With respect to

our farming community, they have certainly been encouraging government and

lobbying government to get this act in place and passed through the House. Mr.

Speaker, I am certainly in favour of it and support it, and I would like to say

a few words on it.

It is

an act that certainly would eliminate some of the nuisance complaints

that could end up in court, through court injunctions and court actions, and

that could be drawn out for many years. Mr. Speaker, this act will certainly

make these things a lot easier to deal with, these nuisance complaints.

We find in our farming community, in this Province especially, that

acceptable farming practices differ from areas and regions throughout the

Province. We must recognize that the guidelines that are prescribed by the

minister would have to be under consultation with all the stakeholders involved

in the farming industry in this Province.

The policies and these consultations have been done. They have be done

through consultation with the Federation of Agriculture and the Federation of

Municipalities who certainly would support this legislation, and they are

representing the different people within the Province, especially the Federation

of Agriculture who represents the poultry producers, the dairy producers, the

egg producers in the Province, who see a lot of problems arising from their

operations, particularly when it comes to different times of the year when they

have to use pesticides, storage of manure, and spreading of manure.

We have to realize, too, that we have to create an environment in our farming

community where it does not create problems, especially with respect to

stockpiling manures and spreading manures, and we do not create a situation that

is similar to what happened in Walkerton, Mr Speaker. It is too important to the

residents who live near farming communities, that we do it right. If there is

some discretion in the way that these practices are carried out, then there is

an avenue which the public can go to make their complaints known. It will be

dealt with through the board of review and will be done in a timely manner so

that these situations do not end up in court. This legislation will prevent a

lot of hardship for not only farmers but residents who live near farms.

We are supporting this legislation and we are behind the Federation of

Agriculture and the department, to see that this runs smoothly and that the

consultation does involve the guidelines prescribed by the different

stakeholders. That is very important, Mr. Speaker, that the people who are in

the industry do have a say, and I encourage the minister to implement the

guidelines that they have. Having said that, Mr. Speaker, I am certainly proud

to say that we do support this legislation and hope that it does make the

industry a lot easier for the farming community.

Thank you, Mr. Speaker.

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

MR. HARRIS: Thank you, Mr. Speaker.

I would like to say a few words about the bill before the House, Bill 41, An

Act Respecting The Protection Of Farm Practices, at second reading.

Second reading is approval in principle of a bill, and I have to say that

wholeheartedly I endorse the thrust of the bill, the intention of the bill, to

provide protection for farmers and farm operations from nuisance actions for the

things that the minister outlined: odour, noise, dust, vibration, light, smoke.

Those are normal aspects that form the basis of nuisance actions, and the

situation that he described, of people who live in one place, moving into a

farming area and then deciding that it should be like an urban area, that they

should not have to put up with the smell of manure or the other aspects of

normal farm operations.

I have no difficulty at all with the provision of the act. I think, as

previous speakers mentioned, and as the minister mentioned, there have been a

lot of complaints about that, some of them taking the form of demonstrations. I

know we have had them in Conception Bay South, in the Avalon, and in other

places as well, where the urbanization of a rural farm area has caused problems

for people moving in there, who all of a sudden decide they do not like the

odour that emanates from an agricultural operation. I recognize that this is a

sincere attempt by government to do something about it.

I have some concerns that I want to put on the record here. I am not really

sure how this is going to operate, and I have to say that we are dealing with a

very serious measure here. We are actually saying that individuals have no right

to the courts, that individuals have no access to the courts, for matters that

are covered under this act. When we talk about odour, noise, dust, vibration,

light and smoke, I have no problem, but there are three more words after that, I

say to the minister, and they appear in a number of sections of the act. It

says: or other disturbance.

When we look at the

definitions that are contained under the farm operation,

a farm operation includes applying fertilizers, manure, pesticides, or

biological control agents. We are going beyond the normal odours, the

application of manure, the smell of manure, the light that might emanate when

somebody is working late at night or has lights on for growing their crops or

tomatoes, or whatever it happens to be, or noise at certain hours of the night

or day because farm machinery or equipment needs to be operated. These are the

kinds of things that might give rise to a nuisance, a public nuisance type or

private nuisance type, application to the court. When we are dealing with issues

like biological agents or fertilizers, pesticides and that, we get into an area

where there is a different order of magnitude of problems that are created

there, and issues that relate to perhaps a neighboring farm or a neighboring

property which is trying to operate an organic farm.

If you are trying to operate an organic farm on your property and the

fertilizer of one type or another, pesticides of one type or another, actually

emanate from one farm property to the next one by airborne measures, by wind, by

an over spray, or spraying too close to the area, or by water coming into an

adjoining farm, then I think you have serious problems. Some people also have

particular sensitivities to this type, whether it be biological agents,

pesticides or fertilizers. I say to the minister, these are matters that are of

great controversy in many circles, and there are different farm practices that

may apply.

When we look at, how do we deal with that, well, the farm practices are

either established by the minister, which is not necessarily with the approval

of anybody else.

Section 17.(1) says, "The minister may prescribe

guidelines known as the farm practices guidelines and may issue policy

directives for acceptable farm practices." Now we have the minister saying

what is or is not the method whereby a person can be denied access to the

courts. I think we are going a bit too far when we start giving that kind of a

discretion.

When we look at the board itself, it has three representatives of the

agricultural community, two members from the Federation of Municipalities, and

one additional member who does not carry on a farm operation. So, half of the

members are from the agricultural community. The Federation of Municipalities

has two people - or one, rather, which is nominated, and one from the public, so

three, one, and one. In fact, the Farm Practices Review Board consists of a

majority of people from the farming community.

I would submit, Mr. Speaker, we have the basis for problems and for

controversies between what might be an acceptable farm practice from people in

the agricultural community and what might be a problem for people with an

adjoining property who do not want to have fertilizers, pesticides, biological

control agents, or other matters seeping onto their property, flowing onto their

property, or affecting their own operation.

I think we have a problem there. I do not have a solution for the minister.

It seems to me that we have too broad a definition when we talk about, or other

disturbance. I know we do have, as the minister has indicated, this matter being

subject to the Environmental Protection Act, but we are not talking about the

Environmental Protection Act here. We are talking about an individual who may

own an adjoining property, who, for their own reasons, may not want to have

chemical fertilizer, pesticides, or other chemical applications - biological

control agents is another one mentioned - encroaching on their property because

simply they do not want this to interfere with their use or operation of their

own land. That is principally what a nuisance application is all about.

I think the minister ought to have a closer look at this legislation. I

realize we are at a second reading at this point, but we have a situation where

the majority of this board will be farmers, or people representative of the

agricultural community. We have a situation where the minister may or may not

impose guidelines or policy directives that relate to farm practices. We have no

actual requirement that they are going to be acceptable - I think they prefer

the term acceptable farm practices related there. What may be acceptable in one

place, as the act recognizes, may not be acceptable in another.

It seems to me, Mr. Speaker, that we have legislation here that is open to a

fair amount of arbitrariness on the part of a particular board. I do not think

that the act itself quite properly states out the nature of the conflict. If the

conflict is between an expectation by someone moving a residential use very

close to an agricultural one, and objecting to the kinds of odours or noise and

vibration and other things like that, I do not have a problem with that. When we

get into the area of the potential for pesticides, for other chemicals,

fertilizers being overblowing onto someone else's property or going onto

someone else's property, then I think the courts are the ones that have had a

traditional role in determining whether certain types of encroachment on someone

else's property are acceptable or not. I think that those guidelines, if there

are any, have to look after that. There is no indication whatsoever in the act

that that is being attended to.

I think the intention is good, the principle is good, that we cannot have

people moving into a farming community in Kilbride, for example, and saying: I

do not want to have to smell manure. We cannot have that, because that prevents

a farm operation from operating. In a sense, they were there first. It was a

rural community. It was the operation of a farm, in fact, that grew that

community in Kilbride, in Conception Bay South, in the Codroy Valley, in Cormack

and many other areas of the Province where we have farming communities which

grew up as a result of people's interest in farming as a way of life and to

make a living. We do need to prohibit or protect people from being driven out of

business, as it were, by the fact that somebody moves in next to them, buys a

piece of land, builds a house and then expects not to have to deal with the fact

that there is a farm nearby.

When we get to the area of chemicals and pesticides, biological control

agents is another one used, these are things that can encroach on other people's

property whether they be other farm properties, in the case of an organic

farmer, or whether they be residential properties, that there should be a

different regime for. While it may well be an acceptable farm practice to

extensively use pesticides and fertilizers and biological control agents, that

may be a matter of choice for a particular farmer

whereas the adjoining property

may want to have a different type of farm operation and may want to be protected

from being encroached on by a neighbor, whether it be through runoff, whether it

be through wind blow, or whether it be through an application of a particular

agent that does not stay on one property and in fact affects the others.

With those qualifications, Mr. Speaker, I want to say that we support, in

principle, the legislation that would protect farm practices but we see some

significant problems in how it might be applied through the use of guidelines

that may or may not be prescribed by the minister, and by the fact that there

are considerable controversies within the agricultural community over the

variety of farm practices that might be chosen by individuals but that might

cause problems for others within the farming community or outside the farming

community if these disturbances are permitted on other people's land without

them having the right to take action in the court. I want to underline, that is

what we are doing here. The Legislature is being asked to prevent people from

access to the courts to have a dispute of this nature resolved.

The other thing I see, Mr. Speaker, and perhaps the minister could address

this: there is no appeal for this. There is no appeal. You have a five person

board, three of whom are from the agricultural community, one from the

municipalities, and one member of the public, and if you do not like the

decision, there is no appeal. There is no appeal to the court, there is no

appeal to the minister, there is no appeal to anybody. That seems, to me, to be

a wrong principle, that we are giving a board this kind of power without having

any appeal to the court if they do not like the decision that has been made.

I think these are serious problems with the legislation. I don't doubt that

there is legislation of this nature in every other province, but I would be

surprised, Mr. Speaker, if every other province had a situation where a board is

given this kind of power to exclude people from going to court on a nuisance

application without there being any right of appeal.

As I say, the principle is good but I think the legislation itself is flawed

and I would not want to see it passed without having serious amendment.

MR. SPEAKER: The hon. the Member for Kilbride.

SOME HON. MEMBERS: Hear, hear!

MR. E. BYRNE: I would like to make a few comments on it. Let me preface

my remarks by saying, Mr. Speaker, that I live in the District of Kilbride,

married and raising my family there. About 25 per cent of the milk that people

consume in the Province of Newfoundland and Labrador is produced within the

district that I have the privilege and honour of representing.

Again, the district that I represent has significant farming activity, both

from a dairy producer's point of view, root crops, and people who, through the

winter months, through greenhouses, et cetera, grow a variety of plants, a

variety of flowers. For example, Lester's on Brookfield Road has a retail shop

where many of these products are sold, and elsewhere, along the side of the

road. If you drive in through Kilbride or on the Ruby Line or on the Back Line

through different seasons of the year, particularly in the summer months and

fall months, even now, you will see much of the produce that is grown in that

district for sale in that district.

I think we need to question why this piece of legislation is necessary to get

a true understanding of why government has felt it important to bring it

forward. The Member for Signal Hill-Quidi Vidi briefly mentioned, particularly

in the more urban areas of the Province, the encroachment of land development on

what has traditionally been, up until this point, agricultural land. It has been

a big issue. It is a huge issue.

In reading through the bill, when it was first tabled in the House, every

section of the bill I could identify with, because I have dealt with it. I have

dealt with homeowners' concerns and complaints as related to legitimate,

bonafide farming practices in terms of spreading of manure and a variety of

other matters that the Member for Signal Hill-Quidi Vidi mentioned.

The issue of encroachment is a big issue, from two points of view. The issue

of encroachment upon traditional agricultural land and its ability to continue

to contribute to the Province is a very big concern for people who are involved

in the agricultural community, whether in the root crop industry or in the dairy

industry. It is a legitimate concern. I mean, after all, I think it needs to be

said, that if there is a component of our economy that definitely offers the

most attractive and the best growth potential to create jobs in this Province

today it is the agriculture and agrifoods industry, bar none. It is not Voisey's

Bay, although that is important in terms of growth development, employment and

revenues to the Province. It is not the fishing industry in terms of what it

represents in terms of jobs in the processing sector, from those who are in the

harvesting sector, while it is important. In terms of growth potential, it does

not even come close to offering the type of economic spinoff, direct jobs,

indirect jobs and secondary processing jobs that the agrifoods and agricultural

industry represents, or has the potential to represent.

When you talk about the agrifoods industry, it was a $2 billion industry in

Newfoundland and Labrador last year; $2 billion. Of everything that we consume

as individuals in the Province, from what we eat to what we drink, to what we

buy in the grocery stores, to what we buy at the corner stores - I mean it is a

shocking statistic - less than 10 per cent of what we consume ourselves we

actually produce. We have to import much of what we consume. And it is directly

related to the bill.

I know it is probably a little stretch, and I appreciate the minister and the

Government House Leader allowing me just that little bit of latitude, because it

is important in terms of the backdrop to why this legislation has come about.

Recently there was a project supported by the Deputy Premier's department,

Development and Rural Renewal, in Lethbridge, for example; talked about a

farmers' co-operative and the cold storage facility. That is where we need to

go.

The Minister of Tourism is the former Minister of Agriculture. When you hear

the vice-president of Sobeys, for example, talk about: Why wouldn't we enter

into these agreements with farmers' cooperatives when they can give us a

ready, steady, supply of root crop vegetables? The only reason that we have been

unable to provide huge outlets, like Sobeys and other huge chains, supermarket

chains and other chains, with those types of ready supply of root crop

vegetables, as an example, because we have not had the necessary infrastructure

in any part of the Province to be able to guarantee that over a period of years.

So we get fluctuations on the market. During the summer months, after it is

produced, bang; there is a flood of local product and produce in the

marketplace. This time of year, come December, January, February, October, there

is no local produce. So we have not been able to level out the supply, which has

created unusual demands. It is basic economics.

MR. HARRIS: (Inaudible) commercial root cellars.

MR. E. BYRNE: Yes, commercial root cellars. That goes for many other

parts of the agrifoods business. It is important to mention how important the

agrifoods business is to the Province.

Mr. Speaker, the dairy industry alone, for example, in this Province directly

employs a little over one thousand people and is worth $100 million to the

provincial economy this year, and each year and every year. Next year and in

subsequent years, because of what the dairy industry themselves - aided and

supported, to some extent, by the Department of Agriculture and Agrifoods - have

been able to negotiate on a federal agreement, for example, with the industrial

milk quota, provides us, for the first time, with the opportunity to get into

huge secondary processing and potentially could employ another thousand people.

Think about that; another thousand people could potentially be employed as a

result of it. But one of the challenges associated with that, that we have to

overcome, is what is in this legislation, and that is the ability for the

industry to grow and have access to more land, and then how that industry is

able to live side-by-side or in harmony with its neighbours in the community who

are not involved in traditional farming practices or in the industry.

Now, the bill itself, in trying to accommodate and trying to put in place -

essentially what it is, is that we have defined a dispute resolution mechanism.

That is what we have done here. We have set up parameters - not unlike what we

have done, for example, on a workers' compensation appeal tribune. We have set

up a process where, if somebody feels aggrieved, whether it is the individual or

a group of individuals who are involved in a legitimate, bonafide exercise in

terms of agriculture, or whether it is a neighbour who is not but feels as a

result of living next to a farming operation, that they have some serious

concerns and issues, and feel that their home, their land, and them living

adjacent to it, that they may feel they should not be in those circumstances, or

the set of circumstances that they have been presented with, are somehow not in

keeping with provincial law,

an act respecting the environment, or any other

associated stature or act of the Province.

Mr. Speaker, let me say up front that this legislation, in my view, is a good

piece of legislation. I support it wholeheartedly. What it does is set up

independently, of the ministry, a body that if somebody feels aggrieved a

process is immediately kick started. It is outlined in the legislation so that

either a legitimate farm enterprise who may feel aggrieved because of a

complaint lodged against it by a neighbour, they can aggrieve to it, or the

converse is true, that a neighbour... So it outlines, a board is going to be

established to deal with it that essentially, in keeping with the practice, I

suppose, and tradition, but most importantly the law and statue of the Province

and other associated acts, particularly the environment that may be involved,

that they have an independent process to appeal to, and legitimate and bonafide

complaints - I say legitimate and bonafide complaints - can be heard in a very

unpolitical sort of way, but in a way that allows concerns to be put forward

without anyone feeling that, because they have put their complaints forward or

concerns forward, they are, in some way, shape or form, going to be jeopardized

because they have done it.

I think that is what is important about it. I do share, and it must be said

that I do share the concerns on one level raised by the Member for Signal

Hill-Quidi Vidi, and it was one of the things that struck me in first reading

the legislation. When we talk about the freedom of information legislation that

was debated in second reading here yesterday, one of the things that government,

in presenting the bill in second reading, was so proud to say about the

legislation - and I am not going to get into debate on that because we have done

that - but one of the things they highlighted was the ability to appeal, once a

decision was made to allow an opportunity to appeal that decision to another

body. Now, whether we do that directly to the courts, to the Trial Division or

Civil Division, or whether we allow another opportunity for appeal once a

decision is raised, I think it is a legitimate concern.

I ask the minister and the people within the department to look at that

section seriously, or the lack of it there. The opportunity for everyone to

appeal a decision, essentially, is a basic right. I think it is something we

assume and we see it in all sorts of legislation. We see it in freedom of

information, we see it in the act respecting workers' health and safety

compensation commission, with respect to not only internal review but the chief

adjudicator, the single adjudicator system that we are into now with - who is

the chief review commissioner now? - Mr. Eric Gullage, former member of the

House, but that mechanism was put in place. From that point of view, I think it

must be said to the minister, on the issue of appeal, that we should take it

seriously.

I would like him to consider this. Maybe we can talk about it once second

reading is done, because there are two other stages of the bill that we have to

go through yet. One is Committee stage where we have an opportunity, as members

in the House, to make amendments or to suggest additions to the bill, that maybe

he give some consideration to the notion of appeal, when speaking with officials

today, so that once we get to the Committee stage of this bill, which may be the

latter part of this week or certainly next week, that we may be able to rectify

or come up with a - and there is no need to reinvent the wheel. There are lots

of examples of an appeal process and procedure contained already in many acts

that we have talked about in this House. So, I would like to recommend to him

that maybe, between us all - the Member for Signal Hill-Quidi Vidi, who has

raised it, myself and the critic, Mr. Hunter from his district, and yourself -

that maybe between us all we can rectify or come to some conclusion how we can

best handle the notion of appeal in this act.

Mr. Speaker, let me conclude my remarks by saying that I think there has to

be a realization today, not only by members in the government, individual

members, but by the community at large, that when it comes to the agricultural

industry and agrifoods industry, the significance of that industry for growth,

the potential for growth, is tremendous, is great, is exponential, is real, and

it can happen very quickly.

I recall being involved, for example, in a project that really did not get

off the rails but involved Newfoundland turnip. Just a quick story. Most members

probably wouldn't realize, but for food connoisseurs around the world, I

suppose, Newfoundland turnip is probably the best turnip in the world - and I am

not speaking off the top of my head - simply because of a couple of reasons:

one, climatic conditions. Because of our climate, the weather systems, and the

nature of our soil, it produces a very sweet product - a true story. As a result

of that, and I want to get to a point of a project that almost went that didn't

go, that should have, as a result of that we had an opportunity some time ago -

a gentleman by the name of Eric Williams, who has passed away now but was a

significant contributor to the agricultural community in the Province and in

Canada, was involved in a project that was looking for some assistance about

exporting turnip to markets outside the Province, particularly in Toronto and

the larger areas. He had actually some booths set up, I believe, where

Newfoundland turnip - did you ever see those taste-test booths that you go into

if you go down to, say, the Price Club or into Sobeys or Dominion, or any other

store - IGA, wherever it may be. Now and then you will have the -

AN HON. MEMBER: Sampling.

MR. E. BYRNE: Pardon me? I cannot hear you.

AN HON. MEMBER: Sampling.

MR. E. BYRNE: Sampling, yes, or taste-testing or whatever. Sampling, I

guess it is.

Some of this was actually set up in some outlets in Toronto and the

surrounding greater metro area, where actually turnip was boiled and then fried

with garlic and butter, and they were giving samples. Because of the lack of

funding, I suppose, and investment in a possible market opportunity, or lack of

funding and foresight through a number of agencies, and I am not pointing

fingers at anybody, I am not trying to do that, or trying to provoke debate. The

point was that we lost an opportunity to export significant amounts of

Newfoundland-grown turnip, the best turnip in the world, because again of our

climatic conditions, the nature of our soil, and the place where we live.

These are the types of opportunities that we have to start winning on,

identifying in a small way, building and expanding and making it happen, because

it is only at that point, if we do that, that we can begin to turn around that

stat which is 90 per cent of what we consume we import, 10 per cent of what we

consume we grow here. At some point, some government - it could be this one or

any future government - has to look at what needs to be done in the industry as

a whole because of the potential that it has.

I would say to you that in the last number of years, as a result of times we

have lived in, we have lost sight of that and we need to get back to some basics

when we look at this industry because it does represent some very significant

opportunities for economic development all over the Province and truly year over

year create full-time sustainable opportunities for Newfoundlanders and

Labradorians, not only to work in an industry, Mr. Speaker, but at the same time

to become entrepreneurs and leaders in an industry. I think that is where we

need to go, but unless we understand that has that potential, unless we work

towards putting together a long view, long-term plan to make that happen, and

then step by step and systematically implement it, then somebody ten years from

now will stand in this Legislature and probably give the same sort of speech

that I have just given.

With that, I will conclude my remarks. I appreciate the opening remarks made

by the minister, and I look forward to the possible resolution on an appeal

procedure.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

he speaks now, he will close debate.

SOME HON. MEMBERS: Hear, hear!

MR. SMITH: Thank you, Mr. Speaker.

I thank the hon. members opposite for their input in this debate. Certainly I

have listened with interest to the suggestions that have been made opposite and

I assure them that I will certainly take it under advisement with my officials

and we will pursue that as we move forward in debate on this particular piece of

legislation.

Mr. Speaker, as has already been pointed out, and all members have agreed,

there is no difficulty with this legislation in principle. It is something that

is intended to protect and promote the agriculture industry in this Province. It

is interesting to hear the hon. Member for Kilbride reference the fact that he

lives in the district. Well, when I am not residing in the beautiful community

of Lourdes on the Port au Port Peninsula, I also have a residence in the

wonderful community of Kilbride and I am delighted to live there for part of the

year. Those of us who do, do recognize that when you go in there - I remember,

it strikes me, Mr. Speaker, my first visit to Quebec some years ago. Traveling

through rural Quebec, there were some large dairy farms, and we were driving by

with the car windows open. This was back before we had air conditioning in our

vehicle. I might say, Mr Speaker, the impact was certainly significant,

significant and sustained, I might say. I do recall it continued for many, many

miles because their industry was much more established than ours. Someone

remarked to me at that time, and I guess I have heard it referenced in terms of,

we have had the same thing with the fishing industry as you would relate in some

of the areas of your district where you have fish processing operations.

Sometimes people who visit the area complain about the odours that emanate from

there. I think what we have to remind ourselves at all times is, that is the

smell of prosperity.

The industry we are speaking of here today, the agriculture industry, as has

been recognized in this House, is a very important industry as it exists today.

More importantly, we also need to remember that it is an industry that has

tremendous potential. I feel that this progressive piece of legislation that is

presently before the House will serve to enhance the industry and will serve to

promote the industry.

Having said that, Mr. Speaker, it is my privilege and pleasure right now to

move second reading.

On motion, a bill, "An Act Respecting The Protection Of Farm Practices

In The Province," read a second time, ordered referred to a Committee of

the Whole House on tomorrow. (Bill 41)

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

MR. LUSH: Motion 5, Mr. Speaker, Bill 47.

I move that the House resolve itself into a Committee of the Whole to

consider certain resolutions relating to the advancing or guaranteeing of

certain loans made under The Loan and Guarantee Act, 1957. (Bill 47)

On motion, that the House resolve itself into a Committee of the Whole, Mr.

Speaker left the Chair.

Committee of the Whole

CHAIR (Mercer): Order, please!

Bill 47, speaking to the resolution.

A bill, "An Act To Amend The Loan And Guarantee Act, 1957." (Bill

47)

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

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

I am very pleased today to introduce an amendment to The Loan And Guarantee

Act, 1957. This amendment will provide the legislative authority for new loan

guarantees and for revising those that are currently existing. It is a regular

item in the financial administration of the Province.

Mr. Chair, this amendment again is basically a housekeeping matter, as the

act requires that all guarantees approved and issued be ratified by the House of

Assembly through an amendment to the act's schedules. Once these guarantees

are ratified, all guarantees that may have to be honored as a result of a

default would become statutory payments. Under the Loan and Guarantee Act, and

subsequent to the approval of the Lieutenant-Governor in Council, the Minister

of Fisheries is authorized to provide guarantees on behalf of the private sector

and Crown corporations covering a variety of financing requirements, the most

common being operating and term financing credits. Government provides loan

guarantees to both public and private corporations in order to achieve its

policy objectives and benefit regions of the Province.

Mr. Chair, I am pleased to inform the hon. House that the use of the

government guarantees as a means of providing financial assistance has declined

significantly since the early 1990s. Bill 47 speaks to each of the various

guarantees that are outlined here in the bill. They are very clearly explained,

with the amounts included here, the expiry dates, as well as minor amendments to

the act to allow these in some cases to be increased, and in other cases just a

listing of the amount that was approved this year to be ratified in the House of

Assembly.

Thank you, Mr. Chair.

CHAIR: The hon. the Member for Ferryland.

MR. SULLIVAN: Thank you, Mr. Chairman.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: With reference to those guarantees; there is listed in this

particular bill, I believe, several different companies mentioned here. In

certain cases there has been a change in the guarantee of the amount here. I am

just wondering also - maybe the minister might comment on those. Would these -

who are looking for an increase in their guarantee - be companies that have

needed to utilize, I would assume, beyond that amount? Is it for just a portion

of the year when their cash flows may not be as such to do business that they

might need more, but at other points they are not calling any of that guaranteed

amount? I am just wondering, has the status changed? Because in certain

instances companies may have a fair amount of receivables at certain times of

the year, and they may need a guarantee at a certain point, and then their cash

flow improves and they do not need that; or is this an amount that is sealing

what this government has, in addition to any of the guarantees the company has,

and they might be utilizing this guarantee on an ongoing basis? That could

certainly change in instances. For example, a company may be guaranteed by

government, or a loan guaranteed with the bank on their credit, and they may

have large sales in July and August. Let's take a fishing company, for

example, it might have large sales in July and August - or any months of the

year - and they may have receivables in the millions of dollars and may need a

certain guarantee so they can operate and do business through their banks, that

they are not going to stop-payment on cheques, and then later on they may be

into a surplus situation.

Some of these things, I think, are important for us to have a knowledge here

in the House of exactly how they operate; if the guarantees are being utilized

fully or only during certain short periods of the year. Overall, I know our

opposition have not been opposed to guarantees in certain circumstances. We have

not been opposed to that. One thing we have stated, and I stated on record here

- where I have been opposed in the past is guarantees to companies to go out and

compete against other companies, and they can't do it on a level footing. That

to me is bad for business. It gives a crutch to businesses and does not promote

efficiency in business; and that can be very detrimental. That is the last thing

we want to see, aiding one company at the expense of another. I don't think,

to be honest with you, that that is the case here. I do not know all the

details. I do not wish to ask all the minute details indicated here in the House

at all. We are not asking for that, I say to the minister.

For example, I see one like Torngat Fish Producers Co-operative Society. I

think traditionally in certain parts of our Province, and especially in that

area, it has not always been easy to get competition to go into certain areas;

and the cost of doing business in more remote areas is very expensive. Sometimes

that is needed, in many instances, to be able to carry on business there. I

understand that - probably in that case - maybe they are not utilizing even the

guarantee; that they may need it just for certain short-term periods. That may

very well be the case here in this instance too, but that has been, to my

knowledge, of that one generally.

We do have certain guarantees here in Item 1. We have one for the Consumer

Protection Fund for Prepaid Funeral Services. I do know legislation came before

the House on that particular one there. Anybody who prepays - we do need to have

protection for these people. Right now with the legislation that came into this

House - I think it was just this past year, about a year ago - we have

protection now for prepaid funerals - into a trust where that is set aside to

the satisfaction of government, where that money is going to be there when

someone eventually passes away, because eventually we are all going to die. In

the cases of people who do, that their money is protected there. I think a

particular instance arose in the past which really necessitated, I think even

making it retroactive to protect that, at that particular time. So those types

of things protect the public, and you know they are positive in that regard.

We have to be very careful overall, I say to the minister, with guarantees

generally here in our Province. Guarantees should be used to enable companies to

operate and employ people and to do business in our Province where it would be

difficult to do otherwise, and where they are not given an unfair advantage to

that company over another competing company. That would be one of the conditions

or bases upon which we should give guarantees.

I would like to hear from the minister here in Committee on whether these

increased amounts, for example, are because a company - just to make it clear -

at a certain point, had a cash flow problem, but that problem was only

temporary, therefore they needed a little lift to get them over that difficult

period, or is it because they have been drawing the full extent of that

guarantee basis and now they need to have that increased? We would like to know

the answer to that.

I know in one particular company here - I will not specify. I think it is

public knowledge anyway, because the bill is tabled. There is a reference here -

there is an ongoing dispute that might put that company in a difficult situation

in the short term, and it does employ a large number of people. The last thing

we want to see are companies having to stop doing business here, that employ

people in our Province and contribute to our economy. We certainly do not want

to see that happen. I do not think, in this case, there is any competing factor

with other companies in this regard. The minster should be able to clarify that

particular point too, so we can rest assured that in the use of public money and

using guarantees, that the public interest is protected. Just because a

guarantee is there does not mean it is used; and it may cost this government

nothing. If it doesn't, that is great. Even if it never has to be called in -

but there are ones that had to be called in. The banks called in the loans and

this Province had guarantees in the millions, and tens of millions of dollars in

guarantees and loans because companies eventually went into receivership or they

called in the loans and companies are still operating today. That has happened

in a lot of cases.

We just want to make sure that the guarantees given are going to a very

productive use; are going to continue to employ people here in a positive way

and not in a competitive way with other companies that are doing similar types

of business here in our Province.

With that, Mr. Chairman, I conclude my comments on Bill 47. I certainly would

like to hear the minister's response on some of those points.

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

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

I am happy to provide further clarification and explanation of these loans

guarantees. I can start first of all, by the Consumer Protection Fund for

Prepaid Funerals Services. As the member opposite identified, we brought in

legislation in the last sitting of the House to assure people that when they did

their prepaid funerals, they would have every confidence that the money would be

there when they need it. As you know, we had one instance in the West Coast of

the Province which raised a significant amount of concern and put the whole

issue of prepaid insurances in jeopardy for the people of the Province. This is

a loan guarantee for that purpose. Of course, this has not been called obviously

because it is in the process of being set up.

Moving on to the next one, Torngat Fish Products Co-operative Society

Limited; the increase in this is related to the consolidation of both the Nain

and Makkovik operation. In addition to that, I can say, that this organization

is strong. It has made all the payments and is not in any jeopardy, as far as we

are concerned.

The third loan guarantee, Newfoundland Ocean Enterprises Limited, was

increased because of environmental concerns and issues in Marystown, as you

know, which consisted of lead paint, as well as asbestos. Those panels had to be

physically removed, cleaned, repainted and replaced. As a result of that, it

cost a significant amount of money.

Moving on to the next one, as you mentioned, I prefer not to mention the name

of the company because of the potential court implications but it is a huge

employer in a regional part of our Province. We made a decision to increase the

loan to help them with a cash flow basis until they can rectify this hopefully

outside of court, but quite possibly within the judicial system.

The next loan guarantee is for the Newfoundland Symphony Orchestra. This is a

really an operating line of credit, more or less, for them because they are in

the process of fund-raising. It is a very strong cultural part of Newfoundland

and Labrador, and one that we felt was safe, inasmuch as they are actively

fund-raising but they are having a cash flow difficulty.

Marble Mount Development Corporation is another one which has increased from

$1.1 million to $1.45 million. Last year, I think particularly, was a difficult

year because of operations and snow at the beginning of the year, and that is

increased again. It is a huge employer. It is a huge regional attractive

employer with a lot of spinoff industry, and that was increased for that reason.

The last one is the Newfoundland and Labrador Heritage Corporation, as

pointed out in the note, which resulted from additional costs and construction

to a fairly significant project, and as a result of that increase in the amount

of a loan guarantee.

So, that covers all of the ones outlined in the bill. Again, if there are any

questions, I would be happy to answer them, but basically what we are doing is

tabling these, as you know, in compliance with the recommendation of the

Financial Administration Act, and also recommendations of the Auditor General to

do so in a timely way.

CHAIR: The hon. the Opposition House Leader.

SOME HON. MEMBERS: Hear, hear!

MR. E. BYRNE: Mr. Chairman, Bill 47, as mentioned, is,

An Act To Amend

The Loan And Guarantee Act, 1957. I guess what is provided here is a

schedule of

amounts that the Cabinet have decided, you know, for decisions that were made to

provide additional amounts of money to groups, organizations, businesses, et

cetera.

We are in what we call the Committee stage, which allows us to have an

exchange of information, I suppose, similar to Question Period. You can make a

few points, ask some concerns.

I would like to deal with, "Clause 2 of the Bill would amend the

Schedule to the Act, as enacted by

chapter 31 of 1987 as follows: (

a) by

increasing the loan guarantee of Newfoundland Ocean Enterprises Limited from

$1,250,000 to $4,850,000 as authorized by Order in Council 2001-185...".

This specifically deals with the Marystown Shipyard. "After the province

sold the assets of Marystown Shipyard and assumed $70.9 million of the $72.15

million operating loan guarantee in place at that time, a $1.25 million line of

credit was left to cover environmental and other divestiture costs."

I wonder if the minister could take a few moments, when I sit down and she

rises, to talk about what environmental costs were outlined. Obviously there was

a $1.25 million line of credit provided for, what is called here, to cover

environmental and other divestiture costs associated with the sale of those

assets. It goes on to say, "This increase to $4.85 million was approved to

cover additional costs for which the province is responsible at the site. The

loan guarantee has no Expiry Date."

I wonder if the minister could talk about that $4.85 million to cover

additional costs. What were those additional costs of almost $5 million

associated with this divestiture? Also, the $1.25 million line of credit which

the Province left in place to cover environmental and other divestiture costs. I

wonder if the minister can expound and explain, in more detail, what those costs

actually were?

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

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

Your colleague, the Member for Ferryland, just asked a similar question, and

what I explained at that point in time - and I can certainly elaborate in more

detail, just to give you an idea - the $1.25 million was deemed insufficient

because the environmental concerns were of such a nature that they required a

significant amount of manual labour to correct them.

As I have pointed out, in addition to asbestos there was also lead paint on

the panels of the shipyard. So they had to be physically removed, asbestos taken

out, lead paint removed, and then reapplied manually. So it was quite a

labour-intensive and, as far as I know, still is a labour-intensive process

which continues. That is for the most part. I guess it is not just the painting,

it is all the extra precautions that are required in the removal of asbestos, in

the removal of lead paint, and then human resource requirements to do that and

replace it with an acceptable product, an acceptable paint, and then to replace

the panels on the building.

CHAIR: The hon. the Opposition House Leader.

MR. E. BYRNE: In clause 2, Mr. Chairman, it does say that the $1.25

million for the line of credit was left to cover environmental - I guess you

just answered the question, over and above that - and other divestiture costs.

What has been defined as other divestiture costs associated with that $1.25

million? What would be those other costs that you talked about in clause 2 of

this particular piece of legislation?

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

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

I would confer with my colleague, the Minister of Industry, Trade and Rural

Development, on the actual other divestiture costs, but I know around the

environment, to the best of my knowledge, the most significant amount of this

money was in cleanup of the environment as it relates to lead and asbestos. The

other actual divestiture costs, again I would defer to him for that part of the

agreement, and I am sure he would be happy to answer that.

The very bulk of this amount of money is a very labour intensive, very

specialized job of dealing with the asbestos, as well as the lead. Any further

divestiture components I would certainly defer to my colleague, the Minister of

Industry, Trade and Rural Development.

CHAIR: The hon. the Opposition House Leader.

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

I will await the return of the minister. I know he is here and I can ask him

those questions.

With respect to the liabilities, I guess, associated with the sale of the

Marystown Shipyard or Newfoundland Ocean Enterprises Ltd., the minister alluded

to the costs associated with what they thought was going to be $1.25 million and

has increased to $4.85 million to cover environmental and other divestiture

costs.

Is the minister, Mr. Chairman, in a position to tell us: Have all of those

environmental concerns been alleviated to date? If not, what is left that the

Province and the Crown, in other words all of us, still liable for? Would she be

able to expound upon that? In other words, I guess: Have all of those

environmental concerns identified at the time of sale or transfer of the assets

of Marystown Shipyard to Friede Goldman been met? If not, are we likely or are

we still liable for any outstanding environmental concerns in terms of the

present situation? Is it likely that the expenditure that you talked about here

of $4.85 million - could you indicate categorically that the amount, from $1.2

million to $4.8 million, will that meet any outstanding liabilities or will we

be in a position where this time next year, possibly, we could be looking at

another bill,

An Act To Amend The Loan And Guarantee Act, where we actually have

to increase the line of credit or loan guarantee to it, because the outstanding

environmental concerns and our associated liabilities, the amount of money that

you are talking about, was not there and was not enough to meet those? Could you

expand upon that, please?

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

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

Obviously, the member opposite is very aware, as most of us in this room and

anybody listening knows, that whenever you are dealing with an environmental

cleanup it is always a tenuous situation, because you never quite know what you

will deal with. As you can see from the loan guarantee, it has been increased

from $1.25 million to $4.85 million. That is the best assessment and evaluation

we have at the moment of the cost, because of its labour-intensive nature.

Again, if you were to say to me last year, would we have a consumer

protection fund for prepaid funeral services as a new item, I would have said

no. So I cannot predict what will be on the paper next year but I can clearly

speak to the items that are on the paper this year. I can say that is our best

estimate of what the environmental cleanup will cost us based on the

labour-intensive nature of this cleanup.

Again, this increase to $4.85 million is again done - it is not my number, it

is not the Minister of Industry, Trade and Rural Development's number; it is

given to us on the best advice of the environmentalists who are out there

cleaning up the place.

Whenever you look at cleaning up a site, it is always a case of the deeper

you dig oftentimes the more you find. I can honestly say that this our best

assessment of what we will need. I hope we will not need to bring any more

forward next year. What you have here is all the information we have with

respect to potential environmental cleanup, Mr. Chairman.

CHAIR: The hon. the Opposition House Leader.

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

I appreciate the answer provided by the minister. I understand that, as a

Minister of the Crown or any member, you make decisions based upon the best

possible advice you are given. Then it is up to each one of us, I suppose, to

either choose to accept that advice, modify it, or reject it completely out of

hand.

With respect to the environmental concerns, it is my understanding - and

please, if I am incorrect in any way, let me know immediately - once the

transfer of assets took place, or the assets were sold by the Province or

transferred to Friede Goldman, the amount initially set up to cover our

liabilities as identified in the contractual arrangement entered into by the

government was $1.25 million. That is what you are saying here.

What you are also saying is that as a result of the time that has elapsed

between the actual transfer and now that there was an additional, we had to top

that $1.25 million for environmental considerations and liabilities on behalf of

the Crown, plus other divestiture costs.

The question I ask is: My understanding is that after the sale took place,

there was then a study done about what the impact or what the scope of the

environmental concerns were. Based upon that study then, a course of action was

outlined. Based upon that course of action, I suppose then, a cost was

attributed to living up to our responsibilities under that contract.

I guess what I am asking is: If that study has been done, which I am led to

believe it is, a course of action must have been identified and, in identifying

that course of action, you must have put a dollar figure to it. Assuming all of

that was done, and it should have been done, and I understand that it was done,

at what point now are we in that plan of action? Are we 75 per cent there, 85

per cent there, 100 per cent there, is it all done, or are there still - just on

the environmental concerns - are there still outstanding obligations and

liabilities to the Crown, in other words to the people of the Province, with

respect to the environmental considerations and concerns surrounding the

transfer of assets of Marystown Shipyard and Cow Head fabrication facilities to

Friede Goldman?

CHAIR: The hon. the Minister of Industry, Trade and Rural Development.

MR. TULK: Mr. Chairman, let me, if I could, first deal with the question

that the hon. gentleman has put forward in terms of the Environmental

Remediation Program, that was required.

As I understand it - and I can get the exact details for him, and I will, no

problem at all - when the deal was signed to transfer the assets of Marystown

Shipyard, to sell them to Friede Goldman, as I understand it, the Province

accepted the environmental responsibility. A study was done to see what the

environmental responsibilities were, and this year, as a matter of fact, I think

we spent the extra funds that were necessary - I do not have the exact figures,

but I will get them for you - we spent the necessary funds to ensure

Environmental Remediation, in other words, an environmentally clean bill of

health. If you are going to try to sell the thing to somebody else, obviously

that is one of the things that we were responsible for under the contract and

now, as far as I understand, the place has a clean bill of health when it comes

to the environment.

Can I answer another question there for you?

MR. E. BYRNE: Yes, there are a couple more.

CHAIR: The hon. the Opposition House Leader.

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

In asking an earlier question to the Minister of Finance, the initial sum of

money associated with the divestiture of $1.25 million, what this bill has asked

us to do is to approve an Order in Council, which Cabinet has already done, and

the money is already allocated, but it is asking for the approval of the

Legislature to confer, or to say yes, that the money that you allotted, the

$1.25 million, had to go up to $4.85 million and the explanation in the bill,

under clause 2, says that is for environmental and other divestiture costs.

In asking the question to the Minister of Finance and President of Treasury

Board, I asked her: What would the other divestiture costs be? Then she said I

can only defer that to you, as the Minister of Rural Development, so I ask the

question to you then. What were those other divestiture costs associated with

that? Could you provide more detail than just saying other divestiture costs?

What exactly were those other costs? What could they entail? The big question, I

guess, is: Are we presently in any situation, or are we presently in any way, do

we have any outstanding liabilities associated with the contract we entered into

to Friede Goldman, with respect to the sale of the Marystown Shipyard? Do we

still have, as a Province, contractual obligations to Friede Goldman? So, two

questions in

summary: What are those other divestiture costs that you refer to?

Secondly, do we still have outstanding obligations, contractual obligations, or

any liabilities associated with the sale of, or the transfer of assets of, the

Marystown Shipyard?

CHAIR: The hon. the Minister of Industry, Trade and Rural Development.

MR. TULK: Mr. Chairman, the name of the project escapes me. Marystown, as

I understand it, and I will get the figures for the hon. gentleman, I will give

him his answer, I will call over now and get them. The name of the project that

was undertaken by the Marystown Shipyard escapes me, but there was a liability

that occurred -

AN HON. MEMBER: (Inaudible).

MR. TULK: I do not want to name it until I am exactly sure, because I am

not sure whether it was the Quest or there was another one, too, in terms

of liability that was incurred by the Marystown Shipyard. That was a liability

that the Province incurred because the Province was the owner of Marystown

Shipyard at the time that project -

AN HON. MEMBER: (Inaudible).

MR. TULK: Pardon me?

AN HON. MEMBER: (Inaudible).

MR. TULK: No, at the time the shipyard was owned by Marystown Shipyard. I

will get the exact details. As a matter of fact, I will go out and ask my deputy

to dig it out for me now and bring it in before the House closes this evening,

for the hon. gentleman.

As far as I am led to understand, there are no additional liabilities that we

have, as a Province, to anybody in terms of liability owed by Friede Goldman or

owed by the former Marystown Shipyard. I am almost absolutely certain. I will go

out and check that for you, but I want to make absolutely certain that what I

say is the truth, that the liabilities have all been cleared up, and the

Province is free and clear of any liabilities for the Marystown Shipyard with

regard to Friede Goldman. I will go, get the information for the hon. gentleman,

and get back to him.

Is that it?

MR. E. BYRNE: I have a couple of more, and then you can go and get it. I

will get onto another clause after that, and then you can go and get it for me.

CHAIR: The hon. the Opposition House Leader.

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

I appreciate the frankness by the Deputy Premier. I would like to ask this

question. Obviously, given the current environment, these are legitimate

questions and the people have a right to know. They are here for us to debate;

that is the purpose of the bill.

In terms of outstanding liabilities, it is my understanding as well that it

may be that the project you are talking about refers to - I believe the Minister

of Mines and Energy already indicated in singing out the Quest , which was

a federal contract, I believe -

AN HON. MEMBER: (Inaudible).

MR. E. BYRNE: Okay, fair enough, but in terms of outstanding liabilities

that the yard presently holds, have there been any discussions, either between

your department, the Department of Intergovernmental Affairs, or the Department

of Finance, with respect to outstanding liabilities possibly owed to the federal

government, and the possible impact of those liabilities on the future sale or

any future arrangements that you may make or hope to make or, to use your words

in the Legislature last week, an attempt to broker a sale of the Marystown

Shipyard? Have there been any negotiations with the federal government or any of

its agencies or departments associated with outstanding liabilities which that

yard has to them associated with the Quest ? Again, if the question I am

asking is wrong, certainly I do not think it is, based upon my own sources where

it has come from, I just leave that open with respect to the shipyard. Have

there been any ongoing negotiations with the federal government, again, any of

its agencies or departments, associated with the brokering of a deal of the

Marystown Shipyard?

CHAIR: The hon. the Minister of Industry, Trade and Rural Development.

MR. TULK: The hon. gentleman and I made a commitment to each other just

now that, before the week was over, we would put each other on television,

again, before the week was up. That is the kind of question, I can tell him,

that is not related to the bill. Any negotiations that are ongoing with regard

to the Marystown Shipyard - and I am not going to get into it, to be frank with

you - anything that is owed by Friede Goldman to any other partner or anything

that Peter (inaudible) wants to get into at this point. I will be frank with

him, I am going to maintain the same stance in regard to the negotiations that I

have maintained until they are done, and as soon as they are done they will be

readily available for all and sundry to either say: Job well done, or we do not

agree and we want to be very critical of the agreement that you have reached

with Friede Goldman or anybody else that is out there negotiating for the sale,

takeover, or running of the Marystown Shipyard.

I say that for a reason, not to be a secret. I have no desire, and I will go

out - this is obviously something that is pass, that has been done, that was

part of the negotiations for the previous sale of Marystown Shipyard. It is a

very legitimate question because this is on the Order Paper. I will go out and

get the details for the hon. gentleman immediately. As soon as the ink is dry on

the paper, for the sale of Marystown Shipyard to anybody in the world, if I do

not walk into this Legislature, if it is not open, I will call a press

conference and announce it to the world, lay out the plan, and I will tell you

what: I will even go so far as to say that for my friend from Kilbride, I will

send him an autographed copy. That is the best I can do for you at this

Document details

CollectionNewfoundland and Labrador — Debates (Hansard)
Citation2001-12-04
Typehansard
Volume / chapter2001-12-04
Languageen
Formathtm
SourcePROVINCIAL
Identifierc6f55e19bfaf4c9b1303352c5cdf173100787b85

Source file is stored in the law ingest library (htm).