1983 Legislative Session: 1st Session, 33rd Parliament

Hansard

The following electronic version is for informational purposes only.

The printed version remains the official version.

Official Report of

DEBATES OF THE LEGISLATIVE ASSEMBLY

( Hansard )

THURSDAY, JUNE 23, 1983

Afternoon Sitting

[ Page

1 ]

CONTENTS

Election of Speaker –– 1

Routine Proceedings

Speech from the Throne –– 2

An Act To Perpetuate A Parliamentary Right (Bill). Hon. Mr. Smith.

Introduction and first reading –– 8

Filing Reports –– 9

The House met at 2:05 p.m.

This being the first day of the first session of the 33rd

Legislative Assembly of the Province of British Columbia for the

dispatch of business, pursuant to a proclamation of the Hon. Henry P.

Bell-Irving, Lieutenant Governor of the province, hon. members took

their seats, after having taken the prescribed oath and having signed

the parliamentary roll.

His Honour the Lieutenant Governor, having entered the House, took his seat on the throne.

HON. MR. CHABOT: Members of the Legislative Assembly, I am

commanded by his Honour the Lieutenant Governor to announce that he

does not see fit to declare the cause of his summoning you at this time

and will not do so until you have chosen a Speaker to preside over your

honourable body. His Honour the Lieutenant Governor hopes to be able to

declare, during the afternoon, his reason for calling you together.

His Honour the Lieutenant Governor retired from the chamber.

HON. MR. GARDOM: Mr. Clerk, I move, seconded by the member

for Skeena, that Kenneth Walter Davidson, Esquire, member for Delta

electoral district, do take the Speaker's chair and preside over the

meetings of this assembly.

CLERK OF THE HOUSE: It is moved by Hon. G.B. Gardom, seconded

by Mr. Howard, that Kenneth Walter Davidson, Esquire, member for Delta

electoral district, do take the Speaker's chair and preside over the

meetings of this assembly. Are there any further nominations?

There being no further nominations, I declare Kenneth Walter

Davidson, Esquire, member for Delta electoral district, duly elected as

Speaker, and that he do take the chair to preside over the meetings of

this assembly.

MR. SPEAKER: Hon. members, permit me to return my humble

acknowledgments to the House and express my grateful thanks for the

great honour you have been pleased to confer upon me by choosing me to

be your Speaker.

Hon. members, as tradition dictates, I now declare a short recess

while I leave, to return robed in the appropriate attire. I ask you

please to keep your seats, and I will return as quickly as possible.

The House took recess.

Prayers.

MR. SPEAKER: Hon. members, I am asked, following my

consultation with the House Leaders, that unanimous consent be sought

to permit the hon. second member for Vancouver–Little Mountain (Mr.

Mowat) to vote on divisions in this House and in any committee thereof

during the duration of this thirty-third parliament by raising his

right hand.

Leave granted.

CLERK-ASSISTANT:

June 1, 1983

Mr. Ian Horne, QC

Clerk of the House,

Parliament Buildings,

Victoria, B.C.

Dear Sir:

RE: General Election, May 5, 1983

His Honour the Lieutenant-Governor, by his proclamation issued

on the seventh day of April, 1983, was pleased to dissolve the Legislative Assembly

of the province, and it was necessary to hold elections to fill vacancies caused

by such dissolution.

The elections were duly held pursuant to the provisions

of the Election Act.

I transmit herewith a certificate of the chief electoral

officer and registrar-general of voters, setting forth the names of members

who have been elected in the electoral district indicated on the certificate.

Yours very truly,

Norman Spector,

Deputy

Provincial Secretary

Office of the Chief Electoral Officer

and Registrar-General of Voters

Victoria, B.C.

V8V IX4

May 31, 1983

Dr. Norman Spector

Deputy Provincial Secretary

Parliament Buildings

Victoria, B.C.

V8V IX4

Dear Sir:

Re: Provincial general election, 1983

The thirty-second Legislative Assembly of the Province of

British Columbia was dissolved on April 7, 1983, and writs were issued on that

date calling for a provincial general election. The writs were returnable on

or before May 30, 1983.

April 22, 1983 was designated as the day for the nomination

of candidates, and May 5, 1983 was designated as polling day.

Requests were made under

section 122(l)(

c) of the provincial

Election Act for partial or complete rechecks in six electoral districts, namely:

Comox

Burnaby–Willingdon

Dewdney

Maillardville–Coquitlam

Surrey

Vancouver–Little Mountain.

The rechecks were performed in conjunction with the final

count. Because of the rechecks and-or a delay in the final count completion

in certain instances, writ return dates were amended for the following electoral

districts:

Electoral District

Writ Return

Dewdney

May 31, 1983

Maillardville–Coquitlam

June 3, 1983

North Island

May 31, 1983

Okanagan South

May 31, 1983

Surrey

May 31, 1983

Vancouver East

May 31, 1983

Vancouver–Little Mountain

May 31, 1983

Because of a request made under

section 130(

l) of the provincial

Election Act for a judicial recount, the date of writ return for the electoral

district of Maillardville–Coquitlam cannot be established at this time.

I hereby certify that the following members have been elected

to represent their respective electoral districts as set out hereunder:

Alberni

Robert Evans Skelly

Atlin

Alan Lawrence Passarell

[ Page 2 ]

Boundary–Similkameen

Jim Hewitt

Burnaby–Edmonds

Rosemary Brown

Burnaby North

Eileen Dailly

Burnaby–Willingdon

Elwood Veitch

Cariboo

Alexander Vaughan Fraser

Central Fraser Valley

Bill Samuel Ritchie

Chilliwack

Harvey Wilfred Schroeder

Columbia River

James R. Chabot

Comox

Karen E. Sanford

Coquitlam–Moody

Mark Rose

Cowichan–Malahat

Barbara Brockman Wallace

Delta

Walter Davidson

Dewdney

F C. Austin Pelton

Esquimalt–Port Renfrew

Frank John Mitchell

Kamloops

Claude Harry Richmond

Kootenay

Terry Segarty

Langley

Robert H. McClelland

Mackenzie

Don Lockstead

Nanaimo

David Daniel Stupich

Nelson–Creston

Lorne James Nicolson

New Westminster

Dennis Geoffrey Cocke

North Island

Colin Stuart Gabelmann

North Peace River

Anthony J. Brummet

North Vancouver–Capilano

Angus Ree

North Vancouver–Seymour

John Jack Davis

Oak Bay–Gordon Head

Brian Ray Douglas Smith

Okanagan

North Don Campbell

Okanagan South

William Richards Bennett

Omineca

Jack Joseph Kempf

Prince George North

John Herbert Heinrich

Prince George South

Bruce Strachan

Prince Rupert

Graham Richard Lea

Richmond

James Arthur Nielsen

Rossland–Trail

Christopher D'Arcy

Saanich and the Islands

Hugh Austin Curtis

Shuswap–Revelstoke

Clifford C. Michael

Skeena

Frank Howard

South Peace River

Donald McGray Phillips

Surrey

Rita Johnston

Surrey

Bill Reid

Vancouver Centre

Emery Oakland Barnes

Vancouver Centre

Gary Vernon Lauk

Vancouver East

David Barrett

Vancouver East

Alexander Barrett Macdonald

Vancouver–Little Mountain

Grace Mary McCarthy

Vancouver–Little Mountain

Douglas L. Mowat

Vancouver–Point Grey

Garde B. Gardom

Vancouver–Point Grey

Patrick L. McGeer

Vancouver South

Russell Fraser

Vancouver South

Stephen Rogers

Victoria

Robin Kyle Blencoe

Victoria

Gordon William Hanson

West Vancouver–Howe Sound

John Reynolds

Yale–Lillooet

Thomas Manville Waterland

Yours very truly

Harry M.

Goldberg,

Chief electoral officer and

registrar general of voters for

British Columbia

HON. MR. CHABOT: Mr. Speaker, I move that the letter of the

Deputy Provincial Secretary and the correspondence of the chief

electoral officer of the result of the election of members be entered

in the Journals of the House.

Motion approved.

His Honour the Lieutenant Governor re-entered the chamber and took his seat on the throne.

MR. SPEAKER: May it please Your Honour, the House of Assembly has elected

me as their Speaker, though I am but little able to fulfil the important duties

thus assigned to me. If in the performance of those duties I should at any time

fall into error, I pray that the fault be imputed to me and not to the assembly,

whose servant I am, and who, through me, the better to enable them to discharge

their duty to the Queen and country, humbly claim all their undoubted rights

and privileges, especially that they may have the freedom of speech in their

debates, access to Your Honour's person at all seasonable times, and that

their proceedings may receive from Your Honour the most favourable

interpretation.

HON. MR. CHABOT: Mr. Speaker, I am commanded by His Honour

the Lieutenant-Governor to declare to you that he freely confides in

the duty and attachment of the House of Assembly to Her Majesty's

person and government, and not doubting that their respective

proceedings will be conducted with wisdom, temper and prudence, he

grants, and upon all occasions will recognize and allow, their

constitutional privileges.

I am commanded also to assure you that the assembly shall have ready

access to His Honour the Lieutenant-Governor upon all seasonable

occasions, and that their proceedings, as well as your words and acts,

will constantly receive from him the most favourable construction.

SPEECH FROM THE THRONE

HON. MR. BELL-IRVING: Mr. Speaker, and members of the

Legislative Assembly, I extend greetings to you all, on behalf of our

sovereign, on the opening of this first session of the thirty-third

parliament of British Columbia. May I express the wish that your goals

and aspirations and the needs of the people you represent will be met

in the course of your service as individual members and as the

Legislature of our magnificent province.

In March of this year, all British Columbians were honoured by the

presence of Her Majesty Queen Elizabeth II and His Royal Highness the

Duke of Edinburgh. Our memories of the royal tour were enriched by the

grace of the royal family on their visits to various communities in the

province and by the warm reception our people accorded them.

My government was especially pleased that Her Majesty took the time

to extend an invitation to some 156 nations to participate in Expo 86,

a world's fair and international celebration on the themes of

transportation and communication. About 35,000 people participated in

this ceremony. We were all thrilled to hear 7,000 student voices fill

the new domed stadium at B.C. Place, opened officially this past

Sunday, with sounds of the Royal Anthem and O Canada.

It is gratifying that in the course of your most difficult

deliberations during the past session you took time to pause and

remember those who have gone before you and who have now departed.

You noted the passing last April of Mrs. Isabel Dawson, who sat as a

member of this assembly through the years 1966 to 1972. You also marked

the death last May of Dr. Lorenzo Giovando, who served our people as an

assembly member from 1952 to 1956.

In August of last year a third former member of this House passed

from us. He was William Campbell Moore, who served our people from 1952

to 1956. We were saddened at the passing in July of last year of Mrs.

Shirley Owen, widow of our late honoured Lieutenant-Governor, the Hon.

Walter Owen. And in February of this year we learned of the deaths of

two former members — Lydia Arsens, who served from 1953 to 1956, and

Leslie Harvey Eyres, who served from 1937 to 1941 and from 1945 to 1949.

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Since we last met, the people of British Columbia have elected this

new parliament. It is appropriate at this time for me to offer my

congratulations to the members who now sit in the assembly. I want

particularly to welcome those who are seated here for the first time,

as I am certain their knowledge will benefit the deliberations of this

House. I would also like to thank those no longer here who served their

province in the thirty-second parliament.

I am advised that the most severe international recession since the

1930s plagued the international economy in 1981 and 1982. Total

production in the major industrialized countries is estimated actually

to have declined in 1982. The Canadian economy was particularly

hard-hit with real GNP declining by 4.8 percent and employment by 5.1

percent.

The British Columbia economy has not remained immune from the

effects of the international recession, as was the case during the

milder recession of 1980. The downturn began in the third quarter of

1981, when labour-management disputes shut down our province's forest

industry. It deepened as factors beyond our borders reduced foreign

demand for our forest and mineral products, and it intensified as

excessively high interest rates caused a decline in business investment

and housing construction in the province. Mortgage rates threatened

homeowners, interest rates plagued businesses and employment declined

severely.

The revenues of my government plummeted and continue to be

depressed, putting maximum stress on the ability to deliver essential

services at the very time such services are most in demand.

Individuals, families and communities are being tested as they have

seldom been before.

I am advised that our people are extending a helping hand to the

weakest members of our society, and that my government has been in the

lead in this regard. Although government revenues were severely

curtailed by recessionary forces, Health expenditures increased last

year by 13 percent and Human Resources by 32 percent.

My government has undertaken strong, positive measures to deal with

the effects of the international recession. It has demonstrated

leadership in fostering economic recovery in Canada by introducing a

comprehensive restraint-on-government program, including a Compensation

Stabilization Act that has served as a model for other jurisdictions.

The maintenance of existing jobs and creation of new ones requires

that our national government demonstrate economic leadership. My

government believes that federal-provincial cooperation is essential,

and calls upon the federal administration to convene at an early date a

first ministers' conference on the economy.

Despite the strong policies pursued by my government, the severity

of the international recession necessitated borrowing in the past year

to meet essential obligations. I am advised that this transpired in a

year in which my government had the lowest overall increase in spending

of any government in Canada, and in which actual expenditures were

lower than had originally been forecast.

I am advised that since the introduction of the

restraint-on-government program some progress has been achieved in

restoring the fundamental prerequisites to economic health and

prosperity. And it is most gratifying to be able to report to this

Legislature that we are now witnessing the advent of several positive

signs in the resumption of economic activity.

Inflation in British Columbia has been cut by more than half and is now below

the national average. In recent months mortgage rates have been reduced by about

seven points and housing starts have increased both in Canada and in the United

States. Interest rates have been lowered by more than five points and we have

witnessed actual declines in the cost of living. Recent reports indicate that

there has been a perceptible increase in the level of consumer confidence. Above

all, I am pleased to report to the members of this House that since January

67,000 jobs have been created in British Columbia.

As we begin to emerge from the winter of our adversity, I am pleased

to observe that British Columbians are proving equal to the challenge.

Rather than sinking into despondency and pessimism, our people are

demonstrating pride, resilience and strength. Our institutions are

withstanding the strain, and British Columbians are today beginning to

exude a cautious optimism. We are witnessing a restored sense of the

cooperative spirit and a renewed recognition of the rewards of working

together. Both are fundamental for economic recovery.

For those who are employed and those on fixed incomes, declining

inflation and other signs of economic progress to date are welcome

news. However, for those without employment — especially those whose

unemployment insurance benefits have expired — continued progress is

essential.

The foundations of enduring economic recovery are being laid by my

government. A continuation and intensification of these bold policies

is required if the recovery gains we have achieved to date are not to

be lost and if British Columbians are to reap the full rewards of

economic prosperity. Our task at this time is twofold: to preserve

existing jobs and to create the environment within which new jobs can

be created. Members of this assembly will be asked to approve many of

these policies as part of the budget to be considered during this first

session.

The prospect of continuing deficits looms for the next several

years. The task at this stage is to manage our expenditures so as to

restore balance over time within our financial affairs.

The mandate entrusted to my government by the people of British

Columbia is to pursue economic recovery through restraint on the public

sector and encouragement of the private sector. It is a mandate to

downsize government by eliminating some programs that may be desirable

but are not essential, and by transferring other activities to the

private sector. It is a mandate to reduce the duplication of government

activities — including the multiplicity of boards and commissions that

surround government — and to strive for maximum efficiency and

effectiveness in delivering programs. It is a mandate to improve our

industrial relations so as to foster greater productivity and

international competitiveness — the only sure ways to preserve existing

jobs and create new employment. And it is a mandate to encourage

private-sector confidence — by eliminating regulatory roadblocks,

allowing greater scope for the free play of market forces and creating

a stable investment climate so that business small and large — and

existing and new industries — can create permanent jobs in our province.

My government will continue to pursue job creation in the public

sector by accelerating highway construction, bridge replacement and

diking and drainage projects. These projects convey a continuing

economic return to our people, and it is good business to undertake

them at this time.

In addition, several short-term job-creation activities are

continuing, and training programs will be emphasized during this period

of high employment [sic]. British Columbians must have the necessary

skills, both in the traditional trades

[ Page 4 ]

and in new technology, to contribute to the prosperity of our province and to their own individual and family satisfaction.

My government believes, however, that it is only through

private-sector investment that existing employment can be secured and

permanent jobs created. During the course of my government's mandate

you will be asked to approve measures that will maintain a stable

environment for private sector activity.

Continued restraint on government spending — a hallmark of my

government's management — is essential if economic health is to be

restored and the progress we have seen to date not lost. My government

believes that an intrusive and overweight public sector, far from being

part of the solution to our economic difficulties, is in fact part of

the problem.

Members of this assembly have shown leadership in restraint. And I

am advised that over the past year my government has put in place the

most stringent controls on ministerial travel and expenses to be found

anywhere in Canada.

My government remains committed to the principles of the

compensation stabilization program introduced last session. I am

advised that considerable progress has been achieved in moderating

public-sector wages in a fair and equitable manner. It is gratifying to

note that, in contrast to other jurisdictions, collective bargaining is

continuing within the public sector in British Columbia, and that to

date all settlements under the CSP have been achieved through the

voluntary guidelines.

However significant these achievements, a great deal remains to be

accomplished if British Columbians are to benefit fully from the

economic recovery that is within our grasp. Accordingly, you will be

asked to approve amendments to the Compensation Stabilization Act to

reflect the restrained ability of the taxpayer to support public

services.

You will also be asked to approve amendments to this act to enlarge

the scope of productivity bargaining in the public sector. While

restraint will continue to be the overriding principle of public-sector

management, productivity must be given equal significance now and in

future years if our taxpayers are to be well served.

Many of those working in the private sector have been subject to

marketplace controls — bankruptcies, unemployment, layoffs, low or

non-existent wage increases — and in many cases actual decreases. And

the weakest members of our society have been sheltered as far as

possible through the provision by my government of essential social

programs.

On the other hand, those working in the public sector have been

largely sheltered from the impact of the recession. While wage

increases have moderated, it is evident that taxpayers and the

unemployed can no longer support the level of public services,

including attendant employment levels, that has grown up in the last 30

years.

My government has developed a plan for reducing the size of the

public service in the next few years. It is the intention to develop a

leaner, more productive government which can meet the needs of the

people of British Columbia at a lower cost. You will be asked to

approve legislative measures to realize this objective. Individual

public servants will be expected to do more with less, but strong

efforts will be made to simplify procedures and eliminate obstacles to

higher productivity. The result should be a greater level of job

satisfaction as well as improved service to the public.

My government has given careful attention to the successive layers of agencies,

boards and commissions that have grown up around governments within the last

15 years. Measures will be introduced to streamline the operations of some of

these bodies, eliminate those whose functions have become unnecessary in light

of market conditions, better define the respective responsibilities of agencies

and the courts, and introduce restraint measures where such bodies continue

to exist.

As part of the general effort to increase efficiency and encourage

the growth and development of the private sector, my government will be

proposing opportunities for transferring to the private sector

activities currently undertaken by the public sector. A wide range of

commercial functions and many government-produced services which are,

or could be, produced privately will be candidates for privatization.

The promotion of a leaner, more affordable and more productive

public service is not restricted to internal operations. My government

will continue to seek the commitment to restraint of those in the

education and health systems, municipalities, school boards and all

agencies that spend taxpayer dollars either directly or indirectly.

Strong measures have been pursued by my government to induce

restraint on the part of all those who spend tax dollars, and these

measures have home fruit. My government will produce at this session a

bill to revise the system of property assessment and taxation in the

province. The legislation produces a more locally sensitive and

equitable method of financing municipal services, and permits

municipalities in 1983 to hold the line on property taxation for

general municipal purposes. These measures will prevent a recurrence of

the large and unacceptable shifts in tax burden caused by fluctuations

in property values in the past few years.

I am pleased to note that my government's policies in regard to

education financing have enabled school boards, too, to hold the line

on school property taxation in 1983.

For those who are unemployed there are no quick fixes, no magical

solutions. My government believes that we must earn our way out of the

recession, because we cannot spend our way out of it. And my government

believes that the road to recovery lies through the private sector. Our

markets are external, and we must compete against other suppliers if we

are to protect existing jobs and create new ones. In order to compete

successfully, moderate demands and increased productivity are

absolutely essential.

As British Columbia and the rest of Canada begin to emerge from the

depths of one of the most severe economic recessions experienced in

modern times, my government is undertaking a number of bold and

innovative endeavours to ensure that our province leads the country in

economic recovery.

My government will emphasize balanced economic growth in all areas

of the province, enhanced encouragement for manufacturing and

processing companies with concentration on high-technology

opportunities, increased trade and export activity and substantial

support for the small business sector. Those goals will be achieved in

the context and spirit of the restraint program, through a judicious

reallocation and rededication of existing resources.

To keep British Columbia manufacturers competitive in a rapidly

changing technological world, my government will be implementing

significant new initiatives to encourage the development and expansion

of high-technology industries in British Columbia.

In the northern sector of the province, development of mines, rail lines, the new community of Tumbler Ridge and

[ Page

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all related infrastructure is progressing on

schedule. In these difficult times, the only megaproject underway in

Canada will be providing 2,230 permanent operating jobs in mining,

transportation and port-handling, as well as creating thousands of

additional supply and service jobs throughout the province and the rest

of Canada. I am advised that the construction of this mammoth project

is providing 13,000 man-years of direct employment, with a peak

workforce of 6,800 on the job this year. This represents over 12

percent of the total construction workforce in British Columbia. I am

pleased to note that the first coal deliveries will be shipped from the

northeast later this year.

In the southeastern sector of our province, massive investment in

rail capacity upgrading is planned. This investment — which is crucial

to the future of British Columbia as a trading province and which would

dwarf investment in northeast coal infrastructure — is on hold pending

resolution of the Crowsnest Pass freight-rate issue. You will be asked

to give your unanimous approval to a resolution expressing British

Columbia's interests in this matter.

Members of the House will be aware that a number of other major

industrial developments will be assisting the economic recovery of

British Columbia. For example, Toyota Motor Co. of Japan will be

constructing an aluminum alloy wheel manufacturing plant that will

supply their Japanese assembly works and the North American

after-market. In the initial stage,100 people will work in this

facility when it is completed.

The small business sector is vital for the prosperity of British

Columbia. It accounts for about 98 percent of all registered

enterprises and employs half our workforce. As part of my government's

strategy for small business, the recently announced LIFT program has

already elicited inquiries from over 12,000 business people or

potential entrepreneurs. The nearly 700 projects currently being

evaluated will help create or preserve 7,800 jobs.

The vitality of this province's economy, employment levels and the

high standard of living enjoyed by our people are directly and

inextricably linked to the ability of our industrial sector to export

its goods and services. Canada, together with other developed nations,

is becoming increasingly dependent on international trade to maintain

its economic well-being. British Columbia, as one of the premier

trading provinces, has a growing portion of its workforce engaged in

producing for the export market. To keep these and other British

Columbians gainfully employed on the road to economic recovery, we must

enhance our cost-competitiveness and ensure that the major driving

force — our ability to increase export sales — is encouraged to the

greatest extent possible. To this end my government will continue an

aggressive and coordinated program of export development activities,

with particular emphasis on the countries of the Pacific Rim. This not

only will maintain markets for British Columbia goods and services, but

will also act to counter any moves towards protectionism that could

threaten access to our traditional markets.

The agriculture and food industry continues to be a stable and

dependable force in our provincial economy even in these very difficult

times. The industry in British Columbia has fared better than

agriculture in Canada as a whole. I am advised that the gross value of

agriculture production in British Columbia increased by 5 percent and

continued to outpace growth in Canada as a whole. I am also pleased to

note that over the past decade the number of British Columbia farmers

has increased and farmland under cultivation has been expanded at a

faster rate than in the rest of Canada. My government is committed to

build on this strength in future years.

British Columbia's financial sector continues to perform strongly,

and Vancouver has become an important international financial centre.

The raising of venture and risk capital is becoming increasingly

competitive and is fundamental to economic recovery, job creation and

the development of high-technology industry.

The mining industry — a backbone of the provincial economy — has

experienced severely depressed markets. However, I am advised that the

stable investment climate resulting from the recent election will

translate into one of the most active exploration years ever in our

province.

Markets for British Columbia's gas are also depressed. My government

recognizes fully the need to explore alternative markets such as that

for liquefied natural gas in the Pacific Rim. Public hearings

concerning the Vancouver Island pipeline will also take place during

this session. My government is exploring alternative strategies and

mechanisms for increasing sales of British Columbia gas in export

markets and will continue to work with the Alberta and federal

governments in exploring alternative pricing arrangements that could

increase sales abroad.

The forest industry is vital for the economic health of our

province, and the key market for our lumber is the United States

residential construction industry, which normally consumes

approximately 60 percent of production. For the second consecutive year

United States housing starts barely exceeded one million units in 1982,

compared to a cyclical peak of more than two million units in 1978. The

prolonged recession in the United States housing market led to numerous

sawmill shutdowns on both sides of the border.

I am advised that the severity of the downturn contributed to a

concerted effort by a relatively small group of United States lumber

producers to have a countervailing duty imposed on Canadian softwood

lumber imports into the United States. The imposition of a significant

duty would have had a devastating impact upon the British Columbia

economy and upon employment in the industry. I am pleased to report

that my government played an active, measured and responsible role, in

cooperation with industry and the federal government, to ensure that

the threat of the duty was not realized.

The decline in United States interest rates which commenced in

mid-1982 is now fueling the beginnings of an upturn in our forest

industry. To date the impact on lumber producers has been felt mainly

in the interior, with coastal mills still operating well below

capacity. The consumption of pulp and paper lags many sectors and is

closely tied to the overall level of economic activity. As a result,

the demand for British Columbia newsprint and market pulp is still

weak. It will be several years before the forest industry recovers from

the staggering losses it has suffered in the recent past.

My government is committed to the goal of realizing the maximum

contribution of available forest resources, now and in the future,

toward the social and economic well-being of British Columbians. The

fulfilment of this goal requires the identification of development

opportunities. A surplus of available pulpwood and wood residues in

southeastern British Columbia has been identified. To promote the

utilization of this fibre, my Minister of Forests has designated this

area a new pulpwood area and has invited development proposals.

Proposals will be considered from both new companies and

[ Page 6 ]

companies already engaged in the wood-processing business.

A full and enduring economic recovery, the preservation of existing

jobs and our future economic strength depend vitally on sound

labour-management relations, a cooperative environment, improved

productivity and enhanced cost-competitiveness. Accordingly, you will be

asked to consider measures to improve the state of industrial relations

in our province.

In the area of housing, consumer confidence has reached an extremely

high level, and the market factor is taking hold. Moreover, I am

advised that vacancies in the rental market are at a level that has not

been seen in several years.

The B.C. Home Program, introduced in September last year and

launched a month later, has attracted widespread public interest, and

applications have poured in from all areas of the province. The program

provides supplementary mortgage interest payments for those suffering

the effect of high mortgage rates. In the first six months of the

program, 50,000 homeowners received $40 million in loans, which were

transferred by electronic mail directly into individual bank accounts.

I am advised that substantial progress has been made this year in a

major land development project in Coquitlam. In the first of three

development phases the Riverview Heights subdivision will provide 160

single-family lots, a townhouse complex and two apartment sites. The

first offering of single-family lots was well received by the public in

February.

When the Riverview Heights project is completed in three years'

time, it will provide 1,050 housing units, a school site and a 65-acre

park. The park, with a land value of $2 million, will be donated to the

people in Coquitlam for public recreation as a gift from my government.

For seniors, my government has announced 18 new projects to provide

595 housing units throughout the province, with an emphasis on small

communities where no suitable rental accommodation exists. This new

construction will allow our seniors to continue to live in the

communities in which they have grown up and still have friends and

family.

For the disabled and handicapped, my government has announced a

program of 230 housing units to be provided through non-profit

societies. This is part of my government's commitment to

deinstitutionalize those people who can lead productive lives within a

community setting.

I am advised that significant progress has been made this year in

the release of crown land for agricultural purposes, principally in the

Prince George and Fort Nelson areas.

Four new provincial parks have opened last year, including Mount

Terry Fox — a towering peak in the Rocky Mountains named after that

courageous young man who came to mean so much to us all. And the

province's newest wilderness park, the Valhalla Provincial Park,

contains 50,000 hectares of natural wilderness on the western edge of

the Kootenays.

Two smaller parks were established: East Pine Park, which provides

boating access to the beautiful Pine River as well as the Peace, and

McDonald Creek Park located on the Arrow Lake system.

I am advised that our provincial parks are gearing up to handle an

anticipated 16 million people this year, up from last year's record of

15 million.

Tourism's proliferating benefits and its vital contribution as an

economic and employment stabilizer during these difficult economic

times are well recognized. Confidence in the future of our

third-largest industry is demonstrated by the inauguration of flights

to Vancouver by two additional international carriers — West Germany's

Lufthansa and Hong Kong's Cathay Pacific. My government welcomes these

airlines to British Columbia skies and is encouraged by the provision

of direct, scheduled air service from two of our fastest growing

markets.

My government is planning a top-calibre exposition that will focus

the world's attention exclusively on our province for at least six

months. At least 15 million visits are expected at Expo 86, creating

thousands of jobs in the process. Three years prior to the event, 16

nations have already indicated they will participate in the world's

fair, a major highlight of which will be a World Festival of cultural

presentations. Expo 86's theme of transportation and communication will

be highlighted by a fully functioning rapid transit system in Vancouver.

I am advised that following Expo 86 Vancouver not only will be

regarded as one of the world's most picturesque cities, but also as a

world cultural centre, meeting place, vacation destination and gateway

to the fascinating and exciting outdoor experiences available

throughout our province.

The tourism industry is capitalizing on the many opportunities this

world's fair offers all regions of our province by enlarging and

intensifying its marketing efforts. At the same time, the ministry is

working with the industry to improve and expand its services and

facilities as more and more tourists are today insisting on value for

money. Warm hospitality and comfortable amenities are essential if we

want to benefit from repeat visits.

Safe, reliable and efficient transportation systems are vital for

economic recovery. Accordingly, you will be asked to approve measures

to maintain the free flow of people and goods by way of the province's

transportation facilities and services.

My government's enhanced highway program will include the completion

of the new access highway to the northeast coal development, major

upgrading of the highway and bridges affording access to the southeast

coal mining areas in the Elk Valley, and continuation of major projects

in the Coquihalla and at Annacis Island.

New projects throughout the province will include vital bridge

replacements as well as repaving and reconstruction of important

sections of existing highways. These activities will not only provide

needed jobs at this time but will reduce future road maintenance costs

and provide the fully efficient highway system needed to achieve our

economic recovery.

Opening of the Liard Highway from Fort Nelson to Fort Simpson in the

Northwest Territories is scheduled for June 1984. The provincial

section will be completed to an all-weather standard in the current

year, and completion of the federal

section in the Territories will

follow. This highway route will attract traffic to the B.C. Railway

terminus at Fort Nelson from as far north as the Mackenzie River in the

Northwest Territories.

A reinvigorated economy and restored prosperity are fundamental if

we are to meet the needs of our people. My government believes that a

sound economic policy is the best means available to secure our social

services. My government realizes that it has no money of its own and

that its programs depend on the ability of the taxpayer to finance

them. In this period of fragile and tentative economic recovery, the

task at hand is to husband our resources in such a way as to preserve

essential services.

[ Page 7 ]

British Columbia's education system — already among the finest in

Canada — has been undergoing a period of transition. In the years

ahead, greater emphasis must be placed on early technological and

computer literacy in order to provide our children with the skills that

will be required to function successfully in the information society.

New directions in education must be pursued within the context of

fiscal restraint and enhanced productivity. My government will be

seeking maximum flexibility and cooperation on the part of all

participants in the education system.

In the space of one generation, a single institution concentrating

on undergraduate teaching has grown into a university system consisting

of three public institutions with international reputations for

scholarship and research. British Columbia scholars now play a

prominent role in the intellectual life of the country and the cultural

life of our community. I am pleased to note they continue to receive

more than their proportionate share of national honours.

I am advised that our universities have been especially cooperative

during these times of restraint. My government will continue to

encourage the universities to realign their priorities so as to place

greater emphasis on programs that are integral to our development. To

this end, my government will make available funds to permit the

construction of engineering facilities at the University of Victoria,

and will also assist in the establishment of a pulp and paper research

institute at the University of British Columbia.

However difficult may be our fiscal situation, my government's

commitment to maintaining first-class health care services is absolute.

I am advised that spending in this area increased last year at almost

twice the rate of overall provincial spending, and that health care

will continue to be the largest single component of the province's

budget. Prudent management, realistic demands, efficient delivery and

maximum cooperation are absolutely essential if health services are to

be maintained.

I am advised that British Columbia continues to be at the forefront

of medical progress, and that the installation of digital radiography

at the Victoria General Hospital marks a world innovation. This new

hospital represents one of the most advanced designs to be found

anywhere and is an accomplishment to which all British Columbia can

point with pride.

The completion of several new facilities across the province

demonstrates my government's commitment to quality health care. These

facilities include the new 150-bed extended-care facility at Cedarview

on the North Shore, the new eye-care clinic at Vancouver General

Hospital, the new Victoria General Hospital, phase one of St. Paul's

Hospital and the new Children's-Grace Hospital.

I am advised that my government will continue significant capital

replacement in hospitals in order to ensure up-to date equipment is

available to our health-care providers and their patients.

My government wishes to assure our senior citizens, who have done so

much to build British Columbia, that budgetary allocations will

continue to provide for their health-care needs. In the coming year

provision will be made for 456 long-term care beds. These beds are in

addition to the services already provided to more than 46,000 senior

citizens through the long-term care program.

One of the most significant responsibilities of government is to

provide for those who are most in need. At the same time, the role of

the family and individual responsibility are cardinal features of our

society. My government will institute measures to ensure that separated

and divorced people bear their proper responsibility through regular

payment of child and spouse support.

My government believes that economic development is consistent with

protection of our environment; with new waste, wildlife and overall

environmental legislation in hand, my government will continue to

provide leadership, and will address new areas such as the handling of

special wastes.

The heavy flooding of recent years underlines the dependence of many

parts of our province on flood protection. My government has initiated

an accelerated program to increase the security of those living in

floodplain areas and protect the environment.

My government continues to assign high priority to the cultural and

recreational life of our people and to programs which encourage the

cultural diversity of our province and enable members of all

communities to share the richness of our life in British Columbia. This

year the Premier's sports award program, administered until recently by

the late Harry Jerome, will sign up its 100,000th participant. This

grassroots program teaches basic athletic skills to young children and

helps to set early patterns in active participation that will serve

individuals and the province well in the years to come. My government

will introduce a new fitness program this year that will encourage

British Columbians to partake of regular physical activity to maintain

good health and well-being. This program will have an indirect

beneficial impact on productivity across all sectors of society.

I am advised that the B.C. Games continue to set new records for

participation and achievement. In fact, they are now the largest event

of their kind in North America, involving at various stages of

competition more than 250,000 athletes. Initiated by my government in

1978, the Summer and Winter Games bring together people from all parts

of the province and provide an excellent example of the volunteer

spirit that is alive and well in British Columbia. In 1983 the Summer

Games will be held in Maple Ridge, and the Winter Games in Fort St.

John.

Recent events have once again confirmed how fortunate we are in

British Columbia to benefit from the democratic system of government.

These events also have made evident the numerical bias that exists in

the system at present. Hon. members will be asked to consider measures

to improve the representativeness of our electoral process.

I am advised that my first minister and his colleagues across the

country met recently to discuss the question of native rights and that

some progress was achieved on this complex issue. In order to implement

the terms of an accord signed by first ministers, you will be asked to

consider a resolution authorizing a constitutional amendment to give

effect to an ongoing process, the equal status of native men and women,

clarification of the term "treaty rights," and guaranteed consultation

in the event of future constitutional change affecting native people.

Hon. members, you now begin a most important and demanding session.

Our people are coming through very painful times, yet there is

considerable distance still to travel. I pray that in carrying out your

duties you will reflect fully on the example of your decisions and

their effect on the people of our province and country. The

difficulties our people face

[ Page 8 ]

today must be viewed as opportunities for continued progress.

Through the continued leadership of my ministers and the work of

this assembly, you must strive to build a stronger British Columbia.

May Divine Providence attend your deliberations. In our Sovereign's

name I thank you.

His Honour the Lieutenant-Governor retired from the chamber.

[Mr. Speaker in the chair.]

MR. SPEAKER: Hon. members, in order to prevent mistakes I have obtained a copy of His Honour the Lieutenant-Governor's speech.

Introduction of Bills

AN ACT TO PERPETUATE A

PARLIAMENTARY RIGHT

HON. MR. SMITH: Mr. Speaker, it is my honour to carry out a

tradition that reaches back almost four centuries in asserting and

preserving the supremacy of parliament, and in that regard I ask leave

to introduce a bill intituled

An Act to Perpetuate a Parliamentary

Right.

Leave granted.

Bill 1 introduced, read a first time and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

HON. MR. BENNETT: Mr. Speaker, I move that the speech of His

Honour the Lieutenant-Governor be taken into consideration at the next

sitting of the House and that this order have precedence over all other

business, except introduction of bills, until disposed of.

Motion approved.

HON. MR. CHABOT: Mr. Speaker, I move that the Votes and Proceedings

of this House be printed, being first perused by Mr. Speaker, and that

he do appoint the printing thereof, and that no person but such as he

shall appoint do presume to print the same.

Motion approved.

HON. MR. BENNETT: Mr. Speaker, I move that the select

standing committees of this House for the present session be appointed

for the following purposes:

(1) On Standing Orders and Private Bills;

(2) On Public Accounts and Economic Affairs;

(3) On Agriculture;

(4) On Municipal Affairs and Housing;

(5) On Labour and Justice;

(6) On Health, Education and Human Resources;

(7) On Transportation and Communications;

(8) On Environment and Resources;

(9) On Crown Corporations; which said committees shall severally be

empowered to examine and inquire into all such matters and things as

shall be referred to them by this House, and to report from time to

time their observations and opinions thereof, with power to send for

persons, papers and records; and that a special committee be appointed

to prepare and report, with all convenient speed, lists of members to

compose the above select standing committees of this House under

standing orders 68(

l) and 72A(l), said committee to be composed of

Hon. G.B. Gardom, Hon. J.R. Chabot, Hon. H.W. Schroeder, and Messrs.

Reid, Segarty, Veitch, Howard, Cocke and Hanson.

MR. HOWARD: Mr. Speaker, this affords us an opportunity to

suggest there may be a deficiency on the part of the government in

considering subject matters that should be dealt with and should be

examined. I want to move an amendment in that regard, seconded by the

hon. second member for Victoria (Mr. Blencoe), that the motion be

amended by adding "

(10) On Ethics in the Banking Industry."

Interjections.

MR. HOWARD: And if government had any ethics it wouldn't treat such a serious matter so lightly.

Some time ago a very well regarded and well respected Social Crediter said:

"It doesn't matter who controls the government. What counts is who

controls our money." The lending institutions and the banking industry

in this province and in this nation not only control our money, but they also

control our government. They end up with excessive profits when interest rates

are moving upwards; they end up with excessive profits when interest rates are

moving down. No matter which way interest rates go, lending institutions reap

the benefit and the general public reaps the misery. They reap this benefit

by way of adjusting and juggling the spread between what they pay on interest

for deposits and what they charge for money that they lend out, the attempt

being to make that spread as wide as possible.

High interest rates affect us even more than do low interest rates,

obviously, because the average wage earner and average person has to

pay out more under a high interest rate program than under a low

interest rate program. It's interesting in that regard that just a few

years ago the Premier of this province advocated that the federal

government follow a high interest rate policy and endorsed and lauded

the federal government and the Bank of Canada for following that route.

The result was that a number of homeowners — and I'm only going to talk

about homeowners and people who have mortgages, although it affects as

well other consumers who deal with credit found themselves locked into

mortgage rates in the 20, 21, 22 percent range. Interest rates having

moved downward, many of those people find they're in an awkward

position, being unable to get out of the locked-in position with the

high interest rate and having to pay penalties for seeking to rewrite

the mortgage at the lower or current interest rate.

I think, Mr. Speaker, it is inexcusable for government in this

province to remain silent about that difficulty and the problems faced

by people who can least afford to pay the consequences of high interest

rate policies. There's an opportunity for us to show some leadership in

that direction. I submit to you that the establishment of a committee

of this Legislature would afford the opportunity to conduct studies in

public, to receive information from people affected by usury, and be

able to make recommendations as to how we

[ Page 9 ]

can alleviate the situation. The general public deserves our support

in this trying time, more than in any other set of circumstances, and I

suggest that unanimity of the House with respect to this amendment

would be a most delightful move.

On the amendment.

HON. MR. BENNETT: In rejecting the amendment, I would advise

that the government is not unsympathetic, but it cares very much about

the concerns people have with financial transactions. However, the

government feels there will be ample opportunity in the coming session

for members to make their positions clear, and the government rejects

this amendment.

MR. BARRETT: Mr. Speaker, we're dealing with the

establishment of a separate committee. I understand that the

government's position is that there are enough committees already, or

that there will be opportunities in future debate to deal with the

subject. I ask for the government's reconsideration of its position.

This special committee is focused on one single area, and one single

area alone.

The fact is, Mr. Speaker, as there has been more and more demand for

public funds raised from the taxpayers, there has been a subtle but

insidious development in the private banking system that has allowed

the private banking system to now be a competitor for those tax

dollars. Rather than dealing with the root cause, as this committee

would do, governments have been responding to high interest rates with

such programs as subsidizing those rates, or giving loans through those

rates, and allowing the banks to make excessive profits not only

directly out of the loans to a homeowner or to a small business person,

but also making profits out of the general revenue of taxpayers per se.

In a time of restraint and a time of recession, when there are

competing demands from health care, welfare and from public spending,

the last place public funds should go is in the area of subsidizing

bank profits. This is an opportunity for this government to demonstrate

an examination of legislation that is already on the books of this

province to enable us to go into a near banking system on the public's

behalf. It's also an opportunity to examine the fact that a draw on

taxpayers' money to subsidize private banks is not acceptable by any

taxpayer, particularly at this time.

So I ask on behalf of the people of this province, who are the

taxpayers, that we now examine openly, honestly and fairly, after an

election campaign, whether or not we wish to see taxpayers' money going

to subsidize banks while our people are hard pressed to pay their own

taxes.

Amendment negatived on the following division:

YEAS — 20

Macdonald

Barrett

Howard

Cocke

Dailly

Stupich

Lea

Lauk

Nicolson

Sanford

Gabelmann

Skelly

D'Arcy

Brown

Hanson

Lockstead

Barnes

Mitchell

Passarell

Blencoe

NAYS — 33

Waterland

Brummet

Rogers

Schroeder

McClelland

Heinrich

Hewitt

Richmond

Ritchie

Michael

Pelton

Johnston

R. Fraser

Campbell

Chabot

McCarthy

Nielsen

Gardom

Smith

Bennett

Curtis

Phillips

McGeer

A. Fraser

Davis

Kempf

Strachan

Mowat

Veitch

Segarty

Ree

Reid

Reynolds

Division ordered to be recorded in the Journals of the House.

Motion approved.

HON. MR. GARDOM: Mr. Speaker, I move, seconded by the hon.

member for Skeena (Mr. Howard), that William Bruce Strachan, Esq.,

member for Prince George South, be appointed Deputy Speaker for this

session of the Legislative Assembly.

Motion approved.

HON. MR. GARDOM: Mr. Speaker, I move that on each Tuesday and

Thursday of this session there shall be two distinct sittings, one from

10 a.m. to 12 p.m. and one from 2 p.m. to 6 p.m.; and on each Monday

and Wednesday one sitting from 2 p.m. to 6 p.m.; and on each Friday one

sitting from 10 a.m. until 1 p.m., unless otherwise ordered.

Motion approved.

HON. MR. GARDOM: Mr. Speaker, I move that report no. 9 of the

Select Standing Committee on Standing Orders and Private Bills adopted

by this House on February 27, 1973, relating to oral questions be

adopted by this House for the present session.

Motion approved.

Presenting Reports

The following reports were presented:

By Hon. Mr. Gardom:

The second annual report of the Ministry of Intergovernmental Relations as at March 31, 1982.

By Hon. Mr. Chabot:

The annual report of the Ministry of Provincial Secretary and Government Services for 1981-82.

The annual report of the British Columbia lotteries branch for 1981-82.

The annual report of the British Columbia lotteries branch for 1982-83.

The Public Service Labour Relations Act report for 1982.

The First Citizens' Fund administration's approved applications from January to December 1982.

[ Page 10 ]

The annual report of business done in pursuance of the Legislative

Assembly Allowances and Pension Act,

part 2, for the year ended March

31, 1982.

The annual report of business done in pursuance of the Pension (Public Service) Act for the year ended March 31, 1982.

The annual report of business done in pursuance of the Pension (Municipal) Act for the year ended December 31, 1981.

The annual report of business done in pursuance of the Pension (College) Act for the year ended August 31, 1982.

The annual report of business done in pursuance of the Pension (Teachers) Act for the year ended December 31, 1981.

The annual report of business done in pursuance of the Public Service Benefit Plan Act for the year ended March 31, 1982.

The annual report of the British Columbia Heritage Trust for 1982-83.

The annual report of the British Columbia Buildings Corporation for 1982-83.

The Pacific National Exhibition report and financial statements as at March 31, 1982.

By Hon. Mr. Fraser:

The annual report of the Ministry of Transportation and Highways for the fiscal year 1981-82.

The annual report of the British Columbia Railway for 1982.

By Hon. Mr. McGeer:

The annual report of the Knowledge Network of British Columbia as at June, 1982.

The annual report of the Ministry of Universities, Science and Communications for 1981-82.

By Hon. Mr. Heinrich:

The 111th annual report of the Ministry of Education as at June 30, 1982.

By Hon. Mr. Hewitt:

The 70th annual report of the superintendent of insurance, 1981.

By Hon. Mr. Waterland:

The annual report of the Ministry of Forests for 1981-82.

By Hon. Mr. Phillips:

The annual report of the Ministry of Industry and Small Business Development for 1982-83.

The annual report and financial statements of the B.C. Cellulose Company as at December 31, 1982.

Hon. Mr. Gardom moved adjournment of the House.

Motion approved.

The House adjourned at 3:34 p.m.

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