British Columbia Hansard — Tuesday, February 26, 1974 — Afternoon Sitting (30th Parliament, 4th Session)
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British Columbia — Debates (Hansard)
1974 Legislative Session: 4th Session, 30th 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)
TUESDAY, FEBRUARY 26, 1974
Afternoon Sitting
[ Page
509 ]
CONTENTS
Routine proceedings
Oral questions
Increased quotas for Okanagan broiler growers. Mr. McClelland — 509
Preservation of the Birks Building. Mr. Wallace — 510
Broiler permits in Okanagan. Mr. McClelland — 511
Cheque from Seattle City Light. Mr. D.A. Anderson — 512
Can-Cel recovery plant. Mr. Curtis — 512
Civil service superannuation fund. Mr. Wallace — 512
B.C. Hydro assets. Mr. McClelland — 512
B.C. Fishermen under provincial jurisdiction. Mr. D.A. Anderson — 512
Committee of Supply: Department of Agriculture
Hon. Mr. Barrett — 513
Hon. Mr. Stupich — 513
Mr. Phillips — 513
Hon. Mr. Stupich — 515
Mr. Curtis — 516
Hon. Mr. Stupich — 517
Mrs. Jordan — 518
Mr. D.A. Anderson — 523
Hon. Mr. Stupich — 525
Mr. Curtis — 530
Mr. Fraser — 531
Hon. Mr. Stupich — 533
Mr. McGeer — 535
Hon. Mr. Stupich — 538
Mr. McClelland 539
Hon. Mr. Stupich — 540
Mr. Gardom — 540
Mr. Lewis — 541
TUESDAY, FEBRUARY 26, 1974
The House met at 2 p.m.
Prayers.
MR. SPEAKER: Hon. Members, before we start today I'd like to
point out a practice that was followed, unfortunately, the other day.
When the Hon. Member for South Peace River (Mr. Phillips) rose to table
some further documents, he made the statement to the House:
"Mr. Speaker, I have no other recourse but to ask
leave of the House to file additional information related to my
statements in the House that leaks have been characteristic of the
business initiative of this government."
Now, the Clerks are unable, without reading documents, to find out
what they relate to when they are tabled. Therefore it's essential that
Members state explicitly what the document is that they are tabling, so
that it may be noted properly in the Journals of the House. I would ask Members to co-operate in that regard so we can do that. Thank you.
HON. N. LEVI (Minister of Human Resources): Mr. Speaker,
sitting on the floor of the House is Mr. Kenneth Proposki, who is the
MLA for Edmonton-Kingsway and the chairman of the Alberta government's
task force dealing with health and welfare, and he introduced the
concept in a bill regarding community health and social services. I met
him last week when I was there. I'd like the House to welcome him.
Mrs. Louise Paproski is sitting in the ladies' gallery.
MR. C.S. GABELMANN (North Vancouver–Seymour): In the gallery
this afternoon are two members of the North Vancouver Teachers
Association executive, who are over here today to see the Member for
North Vancouver–Capilano (Mr. Gibson) and myself. Their names are Cliff
Boldt and Klaus Spikermann, and I'd like the House to make them welcome.
HON. L.T. NIMSICK (Minister of Mines and Petroleum Resources):
Mr. Speaker, I'd like the House to welcome a couple from Grande
Prairie, Alberta, Mr. and Mrs. Tachit. I understand that they're here
to see if they could join with British Columbia. (Laughter.)
MS. R. BROWN (Vancouver-Burrard): Seated in the gallery are a group
of tenants from the beautiful constituency of Vancouver-Burrard, and along with
them is a Mr. Bolton who today is celebrating his 90th birthday. We live very
long in Vancouver-Burrard. I'd like the House to join me in saying "Happy
birthday" to him and welcome to the other members of his group.
MR. C. LIDEN (Delta): Mr. Speaker, we have in the House today
the skipper and the prominent crew man of the Western Warrior, two
people who were very hospitable to the group from the Legislature and
who took the Premier out fishing last summer. I'd like you to welcome
them here today.
MR. R.T. CUMMINGS (Vancouver–Little Mountain): Mr. Speaker,
on behalf of the Second Member for Vancouver–Point Grey, who isn't
here, I'd like to welcome everyone who hasn't been welcomed.
Introduction of bills.
Oral questions.
INCREASED QUOTAS FOR
OKANAGAN BROILER GROWERS
MR. R.H. McCLELLAND (Langley): My question is to the Premier.
With regard to broiler growing in the province — and I hope you enjoyed
your bacon and eggs this morning, Mr. Premier — did you suggest or
order that two broiler growers in the Okanagan area be given quotas of
20,000 birds per year and that a committee be struck to decide which
two of the 11 producers in the Okanagan be given those increased quotas?
HON. D. BARRETT (Premier): Mr. Speaker, I did not order
anyone to be given any quotas related to broilers. There is dispute in
this area, as there is in the egg-producing area. I met in my office
with some MLAs, the Minister and some staff, and I said: "Gentlemen,
please work out some solution to this problem." Earlier, as I reported
to this House, I said that the Egg Marketing Board were acting like
children. I've long ago given up marital counselling, and I regret that
I attempted it again recently.
MR. D.A. ANDERSON (Victoria): It's the first time I've learned that children get married in the Province of British Columbia. (Laughter.)
HON. MR. BARRETT: Many children do. As a result they end up in divorce.
MR. D.A. ANDERSON: Anyway, I will not, of course, comment on
that as a bachelor. May I ask the Premier whether he did direct or
propose that a committee of three be appointed to allocate the broiler
production permits for 11 producers in the Kamloops-Okanagan area in
the amount of 20,000 birds per year?
[ Page 510 ]
HON. MR. BARRETT: Mr. Speaker, I did not direct that a
committee of three be struck to allocate broiler quotas. I understand
that the Minister of Agriculture (Hon. Mr. Stupich) was dealing with
that particular problem.
MR. D.A. ANDERSON: Further supplementary, Mr. Speaker. In the
light of a statement sworn by affidavit by Mr. W.H.L. Brunsdon, and
contained in this morning's paper, may I ask the Premier whether he
stands by his statement to the House today?
MR. SPEAKER: Order! I ask the Hon. Member to look at page 148
of the rules that bind us hereto on parliamentary questions, where it
says that you are not to impugn the accuracy of information conveyed to
the House by a Minister, or that you are to refer to answers to
questions of the current session, and you are doing just that.
MR. D.A. ANDERSON: Mr. Speaker, on a point of order, I am in
no way impugning that the Premier did not tell the truth to this House.
My request was only whether, in the time that has passed since his
previous reply to my question, there is any other information that has
come to his knowledge. I only ask, Mr. Speaker, whether he stands by
the statement, as stated by him yesterday, that the members of the Egg
Marketing Board were not asked or ordered, or suggested to be ordered,
to do anything. It's in no way a suggestion that any Minister in this
House has said anything but the truth. I just asked whether or not new
information is available.
HON. MR. BARRETT: I wish to answer the question. The Member
refers to an affidavit of which I do not have a copy. But I read the
copy in this morning's paper, and after every
section in the affidavit,
it claims to have said that such and such was said, or words to that
effect. Now, I cannot be responsible for what someone's opinion is of
what was said or words to that effect.
I have conversations with many people. But I recall distinctly in
this issue, which is a very emotional one, that I made no order, or did
not order any solution. I suggested that they were acting like
children, and apparently they are continuing to act like children. I
suggested that they get together with their lawyers and see if they
could work out some solution. That is what they did. I did not order,
as I said yesterday, any solution.
MR. McCLELLAND: Mr. Speaker, on a supplementary question, I'd
like to get back to the broiler growers for a moment. The Premier
hasn't accused them of acting like children — as yet, anyway.
HON. MR. BARRETT: They're swinging their scythes, though.
MR. McCLELLAND: But, Mr. Speaker, the question I'd like to
ask is that during the meeting which the Premier refers to with the
Member for Shuswap (Mr. Lewis) and other Members of the Legislature —
of the NDP caucus, at least — at any time was there any threat made to
demand the resignation of the Agriculture Minister if you did not
intervene personally to establish these new quotas?
HON. MR. BARRETT: Mr. Speaker, I am not familiar with any
threat to demand the resignation of the Minister of Agriculture. I said
at that meeting that I am not familiar with the subject — of
agriculture, and because I pleaded ignorance at that meeting, I
suggested that the Minister go back to his office and try to work out
some solution for this problem.
MR. McCLELLAND: You never intervened directly, then.
HON. MR. BARRETT: Mr. Speaker, I did not, I have not and I
will not order any solution to the egg and chicken war in the Province
of British Columbia.
MR. SPEAKER: The Hon. Second Member. On the same subject?
MR. D.A. ANDERSON: I think so. A further supplementary.
HON. MR. BARRETT: Can we just blow a few more feathers around and get on with it?
MR. D.A. ANDERSON: It's the feathers I'd like to comment on. (Laughter.)
In view of the contradiction in the sworn testimony, may I ask the
Premier whether he intends to take action for the libelous remarks that
have been printed in the Vancouver Province this morning, also last
week, and further whether he intends to take legal action against the
people concerned.
MR. SPEAKER: Order, please. That question is quite improper. What anyone does outside the House is their own business.
PRESERVATION OF THE BIRKS BUILDING
MR. G.S. WALLACE (Oak Bay): Mr. Speaker, if I could change
the subject, I'd like to ask the Provincial Secretary whether he has
given any consideration to using the provisions of the historic sites
protection Act to preserve the Birks Building in Vancouver?
[ Page 511 ]
HON. E. HALL (Provincial Secretary): Mr. Speaker, no consideration has been given.
MR. WALLACE: Just a supplemental question, Mr. Speaker. Could
I inquire if the Minister has received any communication from Vancouver
City Council on this subject?
HON. MR. HALL: Not recently, Mr. Member, as my memory serves
me, but I'll certainly look into it. I remember having something, oh,
it must be 18 months ago now, from a committee, In fact one or two of
my colleagues were, I think, pictured next to the clock. But I'll
certainly look into my correspondence of the last couple of days.
ICBC HANDLING OF DAMAGED VEHICLES
MR. H.A. CURTIS (Saanich and the Islands): Mr. Speaker, to
the Minister of Transport and Communications: Is the Minister now in a
position to announce plans with respect to handling of damaged vehicles
after March 1 — with that deadline less than three days away.
HON. R.M. STRACHAN (Minister of Transport and Communications):
I haven't got the details with me, but there are claims centres, there
are phone numbers and so on, that I understood we were going to start
publicizing about today. As I say, I haven't got them with me here.
MR. CURTIS: A supplementary, Mr. Speaker. Is it the
Minister's intention to use in any way the motor vehicle testing
stations which are established in some parts of British Columbia on an
interim basis for this purpose?
HON. MR. STRACHAN: I'm trying to recollect. It seems to me
there's one motor vehicle testing station — I can't remember which one
— which is on the cards for being used. But only the one; I think the
rest are completely separate sites.
MR. CURTIS: A supplementary. The Minister cannot tell us just where that one is. Is it in Vancouver or Victoria?
MR. SPEAKER: Let's not start a guessing game.
HON. MR. STRACHAN: It's not in Victoria, as I recollect it.
BROILER PERMITS IN OKANAGAN
MR. McCLELLAND: My question is to the Minister of
Agriculture. Would the Minister advise the House if he approved a
policy outlining the establishment of 11 new growers in the Okanagan
with initial permits for 5,000 broilers in the first year to be
increased by 5,000 per year for 5 years? Was that policy approved by
you and your department?
HON. D.D. STUPICH (Minister of Agriculture): The policy was
discussed by me and my department with the broiler board and the
broiler board agreed to adopt that policy, except the figure is not 5,
it's 8; 11 permits at 8,000 for production and then secondary permits
of a further 5 when the processing plant becomes ready for process.
MR. McCLELLAND: That policy has been approved by the board.
HON. MR. STUPICH: By the board? Yes.
MR. McCLELLAND: By your department?
HON. MR. STUPICH: My department has no authority to approve
or disapprove. My department does have the authority to talk to the
board, to discuss with them the advisability of increasing production
in various areas of the province where there is some production or
where there is no production. We certainly have the authority to
discuss this with them, but as far as approving the policy or even
arriving at the specific policy, this is still the prerogative of the
board.
MR. McClelland: A supplementary, Mr. Speaker, if I may. Is it
not true that either you or your department sent a telegram to the B.C.
Broiler Marketing Board on December 22, telling them that those
established figures were cancelled, and ordering new quotas for the
industry?
HON. MR. STUPICH: My department, as I recall, did send a
telegram asking them to hold back on certain orders they had issued
until we had an opportunity to discuss with them the possibility of
establishing a broiler production industry in the Interior of the
province. I don't recall the wording of the telegram, but I do know
that word did go to the broiler board that we wanted them to withhold
issuing further permits in the Fraser Valley until we had an
opportunity to discuss the Interior production.
MR. McCLELLAND: Just one further short supplementary, Mr.
Speaker, if I may. I just want to ask the Minister if he had any
intervention from the Premier or the Premier's office on this question
— ordering that telegram or any other action with regard to quotas in
the Interior?
HON. MR. STUPICH: I don't recall any discussion with the Premier around that time about this
[ Page 512 ]
question. I know it's a question that came up in
the fall session — several questions were raised about it then. I know
then I indicated to the House it was departmental policy and government
policy, indeed, that there should be broiler production in the Interior
of the province.
When we discussed with the broiler producers the processing plant,
when we were talking about a processing plant in the Interior, we
realized there would have to be production in the Interior. I don't
recall the Premier being involved in any way in December. I'm not
denying there was some discussion, but I just don't recall any
discussion with the Premier at that time.
CHEQUE FROM SEATTLE CITY LIGHT
MR. D.A. ANDERSON: To the Minister of Lands, Forests and
Water Resources: may I ask whether the latest rental cheque from
Seattle City Light for Skagit Valley land rental has been cashed?
HON. R.A. WILLIAMS (Minister of Lands, Forests and Water Resources):
It's my understanding, Mr. Speaker, that it has not been cashed.
MR. D.A. ANDERSON: May I ask, Mr. Speaker, as a
supplementary, whether the British Columbia government is holding this
cheque; whether it's been returned to the State of Washington officials
or Seattle City Light officials, or whether it's been placed in some
trust account?
HON. R.A. WILLIAMS: I'll have to take that as notice, Mr. Speaker.
MR. G.F. GIBSON (North Vancouver–Capilano): A supplementary,
Mr. Speaker, to the previous question. Could the Minister outline what
steps have been taken to terminate the contract, what legal steps,
either working with Seattle City Light or with Ottawa?
HON. R.A. WILLIAMS: Well, we keep trying to unravel Ottawa's position, Mr. Speaker, that's part of the complications.
MR. GIBSON: It's the position of the government I'm asking about, Mr. Speaker.
HON. R.A. WILLIAMS: I think public statements in the past
have indicated the position of the government. I don't think that's
changed in any substantial way.
MR. SPEAKER: This sounds too large for a question period, more in the form of a Minister's statement.
CAN-CEL RECOVERY PLANT
MR. CURTIS: Mr. Speaker, to the Minister of Lands, Forests
and Water Resources: The question of the recovery plant at the Can-Cel
operation in Prince Rupert, could he indicate when this work will be
completed and the recovery plant in operation?
HON. R.A. WILLIAMS: I would have to take that as notice, Mr. Speaker.
CIVIL SERVICE SUPERANNUATION FUND
MR. WALLACE: Could I ask the Minister of Finance, in light of
recent purchase of further B.C. Telephone Company shares, has the civil
service superannuation fund made any representations to achieve
position on the board of directors of B.C. Tel?
HON. MR. BARRETT: Not to my knowledge, Mr. Member.
B.C. HYDRO ASSETS
MR. McCLELLAND: I'd like to ask the Minister of Municipal
Affairs (Hon. Mr. Lorimer) whether he's had time yet to check into the
problem with regard to disposal of surplus B.C. Hydro assets, whether
he's come up with any solutions? The question stands that we want to
have the contract called off if possible and the bids go out to tender.
HON. J.G. LORIMER (Minister of Public Works): Yes, I've taken the matter up with Hydro and I hope to be able to give you an answer within the next two or three days.
B.C. FISHERMEN UNDER PROVINCIAL
JURISDICTION
MR. D.A. ANDERSON: Mr. Speaker, I would ask the Minister of
Labour what steps he has taken to have the British Columbia fishermen
taken under the British Columbia law with respect to labour disputes
and in particular ex-parte injunctions.
HON. W.S. KING (Minister of Labour): Well, Mr. Speaker, the
fishermen are not excluded from the provincial labour code and it's a
matter of federal jurisdiction in that instance. If the United
Fishermen and Allied Workers are prepared to petition the federal
government to give jurisdiction to the province, then the province
would be prepared to support that petition.
MR. D.A. ANDERSON: A supplementary, Mr. Speaker. May I take it from the Minister's answer that
[ Page 513 ]
he himself and the government has initiated, has
taken no steps or initiated any action to bring these people under
British Columbia legislation?
HON. MR. KING: This is a matter for federal government policy
rather than provincial government policy. We are prepared as a
government to support the inclusion of the fishermen under provincial
jurisdiction, but that jurisdiction now resides with the federal
government. If the union seeks to have the federal government transfer
jurisdiction, then certainly we are prepared to support that move.
MR. D.M. PHILLIPS (South Peace River): Point of order.
MR. SPEAKER: What is your point of order?
MR. PHILLIPS: Approximately two weeks ago, the Minister of
Lands, Forests and Water Resources (Hon. R.A. Williams) took as notice
a question I asked regarding the supplying of newsprint to The Victoria Express .
I'm just wondering how much longer I would have to wait before that
Minister would be able to give me an answer, or should he hire some
more executive assistants to assist him with his work?
MR. SPEAKER: I would point out to the Hon. Member that that would be an improper point of order. As you know, if you look in Beauchesne , you can ask a question but you can't demand an answer.
MR. PHILLIPS: I'm realizing that, Mr. Speaker. I've asked several questions in this House.
MR. SPEAKER: Just continue looking hopeful.
House in Committee of Supply; Mr. Dent in the chair.
ESTIMATES: DEPARTMENT OF AGRICULTURE
On vote 3: Minister's office, $74,516.
HON. D. BARRETT (Premier): I ask the Members to address
themselves to the form in which the Agriculture estimates are being
presented this year. It is the only department that is approaching it
this way, and we are doing it as an experiment. Other jurisdictions are
experimenting with this form; if the House finds it useful, then, of
course, we will slowly change into that direction. If the House doesn't
find it useful, we will not change. I ask the House to go along with
the experiment with this Minister (Hon. Mr. Stupich) and this new form.
Perhaps the Minister himself will explain further as a member of the Treasury Board.
HON. D.D. STUPICH (Minister of Agriculture): Mr. Chairman, I thought it was going to go by, but someone wants to ask a question.
Just perhaps a little further on the form...the idea is to try to
make the vote more appropriate to the subject under discussion, to try
to channel the discussion in more with particular votes rather than
having everything under one special vote.
The actual number of votes has been reduced. If there are any
questions in the minds of the Members as to which or where last year's
votes are in this year's estimates, I would be quite pleased to answer
those.
If you turn to page N26 of the estimates — it is actually the last
sheet of the estimates — it will give you a detailed description of the
votes and the codes. At the heading of each of the votes, of course,
there is a general description as to what is included in each one of
these particular votes. I think with that I will leave it to respond to
the questions raised by the Members.
MR. D.M. PHILLIPS (South Peace River): I appreciate the
Minister's remarks with regard to the form, but he didn't explain to me
the meaning of what was happening on page N18, where there is no
breakdown in salaries in the Minister's office.
The cost of the Minister's office has been increased by some 35 per
cent, but I'm not sure just who's getting what. The Minister's salary
is not broken down as it is in all other departments, nor is the salary
of the executive assistant or the salaries of any clerks. If this is
going to be the form throughout that is going to be adopted, I don't
think that I could support it. However, maybe the Minister will answer
that question when he has the opportunity.
Mr. Chairman, during the last spring session of the Legislature and,
indeed, again last fall, we heard a tremendous amount of talk about the
agricultural industry in the Province of British Columbia. If you will
recall, in the spring session one year ago there was a great bill
brought into this House: the infamous Bill 42, the purpose of which was
to preserve farmland for the agricultural industry.
At that time the Minister of Agriculture said, first of all, that to
preserve the agricultural industry we must preserve agricultural land;
so we are going to tie the farmer to his land and we are going to see
that the land is not alienated for any other use.
Then the Minister went on to say that "in the fall session of the
Legislature we will bring in legislation which will make..." I don't
wish to misquote him but I think he said something to the effect that,
"Now that we have preserved the land for agriculture, we will make
agriculture a viable economic industry in the Province of British
Columbia, which will give as much return to the farmer as if he had a
similar investment in any other industry."
So last fall we had legislation which was
[ Page 514 ]
introduced, supposedly, to do that. Some of the
legislation was brought in because of recommendations by the
agricultural committee which travelled throughout the province checking
into the industry, talking to various segments of the industry.
We had in the fall session past three main pieces of legislation. There was the Agricultural Credit Act , certain changes to the Agricultural Land Development Act and certain changes to the crop insurance Act. The other two main Acts were the Farm Income Assurance Act and the Farm Products Industry Improvement Act .
When this Legislature passed these three pieces of legislation, they
actually gave the Minister of Agriculture the power to do just about
anything that he desired to do to help the agricultural industry — to
spend any amount of money. There were no shackles put on him.
I remember arguing this in the fall session that there should be
some limitations put on the amount of money. However, as I look at the
budget, I find that maybe that wasn't necessary after all. The Minister
of Agriculture seems to have changed his mind sometime between the end
of the fall session and the bringing down of the budget.
Actually, we gave the Minister of Agriculture the keys to the vault
— right into the Minister of Finance's office without even knocking —
and the right to take any amount of money to support this industry in
this province that he desires.
Now when the budget came down, I noticed that there was very little
said in the budget about the agricultural industry, very little indeed.
There was a little bit on page 15 and another paragraph on page 16. But
the total for the entire agricultural industry, including two special
amounts of money of $10 million apiece, which were not in the regular
budget or in the regular estimate (it's to be taken out of surplus), a
total for the agricultural industry in British Columbia — a total! — of
$35 million, 1.6 per cent of the entire budget, including the special
appropriations.
I would have thought, Mr. Chairman, with all of the talk and all of
the legislation that was passed in the spring and fall sessions of the
Legislature, that this government would have put some money into the
agricultural industry. But I guess that I am going to be left with the
feeling, unless the Minister can change it, that it was all a great
deal of talk.
Just how much has this government that was going to do so
much...just how much has it done for agriculture? Ten million dollars —
not really in the budget, but a special appropriation — $10 million for
farm income assurance.
As far as I can gather, the dairy subsidy alone is going to require $16 million. That leaves already a deficit of $6 million.
Where is the money going to come from to stabilize prices in the fruit industry?
Where is the money going to come from to stabilize prices in the vegetable industry?
Where is the money going to come from to stabilize prices in the hog industry?
Where is the money going to come from to stabilize prices in the cattle industry in British Columbia?
Does the government have another method of stabilizing these industries?
I would like to ask the Minister of Agriculture, indeed, to answer
me: does he plan on stepping in and partially taking over these
industries like he is doing with the broiler industry? Is this the
intention of the government? Of course, if he does that, you really
don't have to come to the Legislature; you just make an announcement
outside that you are going to set up a business, go into business with
some of the growers. You are going to look after processing their
product, and you are in business.
Another $10 million in the budget for the industry improvement fund;
$2.5 million of this is going to pan-ready poultry. Maybe it will be
Colonel Sanders next.
There is $1.5 million going to be required for the alfalfa dehy
plant in the Peace River area. My understanding is that there will be
at least three more plants needed, which would cost another $4.5
million.
Where is the money going to come from for the proposed fruit-packing house amalgamation in the Okanagan Valley?
Where is the money going to come from for the rapeseed processing
plants that are recommended to be established in the Peace River area?
And how many more secondary manufacturing plants are needed in the province to process agricultural products?
Anyway, Mr. Chairman, I'll have to give credit where credit is due,
and that's a small start. It was nothing like we anticipated because of
all of the talk and all of the promises, but we passed another bill
last fall. That other bill was one that would have really done
something for the individual farmer, and I refer to the Agricultural Credit Act .
What, indeed, did the Minister of Agriculture say when this Act was
being passed through the Legislature? I would just like to refresh the
memory of some of you who were in the House when this very important
piece of legislation, known as Bill 44, was being passed.
Before I quote some of the Minister's remarks, I would like to point
out to the House why I feel this is probably one of the most important
pieces of agriculture legislation that was passed last fall. It is the
one piece of legislation that would allow a farmer to become more
independent. The application of the
[ Page 515 ]
Agricultural Credit Act was that a farm operator would be entitled to receive agricultural credit for any purpose
"relating to the purchase of livestock; or the
clearing, breaking, irrigating, draining, dyking, or fencing of land;
or the construction, alteration, or improvement of farm buildings; or
the purchase of agricultural implements and farm machinery."
Another very important one is the
"consolidation or other rearrangement
of debts or liabilities; or the purchase of lands or buildings; or the
development of a water supply; or such other purposes, including the
purchase of plant materials and supplies, the purchase of production
quotas, and the acquisition of working capital, relating to the
establishment, development, or operation of farms as the
Lieutenant-Governor in Council may prescribe."
Now, this is the one piece of legislation, Mr. Chairman, that would
allow a farmer who had previously been having trouble to become
established, to become independent, and to assure production of future
foodstuffs in this province. Yet I have gone through the estimates time
and time again and I can find no money for this very important Act.
So I must be left with the thought that maybe this government is not
interested in making the farmer independent. It is not interested in
the farmer purchasing land or buildings. Through the other Acts, the
government is going to have their fingers into the operation, but the
very piece of legislation that would help the individual farmer to
become more independent, to improve his own operation, receives not one
red nickel.
This isn't what the Minister of Agriculture said last fall. He said in Hansard :
A need that was expressed more often by farmers in the
community coming before the select standing committee, more often by
farmers writing to me and by their representatives in making
submissions to me is the need for some rational way of handling the
question of farm credit. With that in mind, believing that we have
introduced very forward thinking with this particular bill before us
now, Mr. Speaker, I move second reading of Bill 44.
By the Minister's own words, he has said that there were more
requests for this particular piece of legislation than any of the other
bills that he brought into the House. Now tell me, Mr. Chairman, why
there is no money made available for this very, very important piece of
legislation.
MR. CHAIRMAN: Order. I would draw the Hon. Member's attention to May , page 766, with regard to the administrative action of the estimates under consideration:
"The administrative action of a department is open to
debate, but the necessity for legislation and matters involving
legislation cannot be discussed in Committee of Supply."
The Hon. Member may refer to legislation in discussing the
administrative aspects, but he should not discuss the legislation
itself, nor reflect upon it.
MR. PHILLIPS: Well, that's quite a ruling, but we are
discussing, as far as I am concerned, the Minister of Agriculture's
estimates. I want to know why there is no money in the budget to look
after this very, very important piece of legislation which, in the
Minister's own words, was one that he received more requests for than
any other piece of legislation brought in!
The purposes of the bill are very, very clear-cut. I certainly hope
that the Minister will be able to offer some explanation because there
are, in the province today, many farmers who need assistance in the
form of low-interest, long-term money to make their operation more
viable.
The reason for this, Mr. Chairman, is quite simple. The price of
farm products, and the return from farm operations in this province
and, indeed, in Canada has been at an all-time low for the last 10
years. Farmers are not able to go to the regular credit sources to
obtain this money. The whole purpose of the legislation was to allow
the farmers to get some long-term, low-interest money to improve their
farming operations.
There certainly is a need, and it certainly is a good piece of
legislation, one of the best pieces of legislation that has been
passed, and yet there is no money for it — no money in the budget, no
money in the estimates.
I know right now, Mr. Chairman, of people in the cattle industry,
particularly in my area, who are having to sell off their cattle at
reduced prices in order to keep their farms going. They have been told
by the Department of Agriculture to go to the bank and get short-term
money and high-interest rates. Why pass legislation if you are not
going to back it up with some dollars?
I am not at this time going to go into anything further in the
departmental estimates until the Minister has had an opportunity to
advise me and advise the House why there is no money for this very,
very important piece of legislation.
HON. D.D. STUPICH (Minister of Agriculture): Perhaps I can
just answer the one question. The Member's remarks might better have
been directed to votes, except that in this case he didn't find the
right vote, apparently. To comment first on the total amount allocated
to Agriculture, you might throw percentages around and say that there
isn't much increase. As I look at the figures, there was $11
[ Page 516 ]
million last year and $35 this year, which is a
substantial increase in the period of one year. So you might say it is
1.6 per cent of something — I'm not sure of what — but from $11 million
up to $35 million is a substantial increase in the period of one year.
I think to ask the department to try to gear itself up to spend more
than that in the course of one year would be to ask the department to
spend money simply for the sake of convincing people that we are
spending more, rather than trying to do a job for agriculture.
Very briefly, on the agricultural income programme, I just want to
correct the Member's phraseology, if you like. It is certainly not the
way I phrased it, and not the way I hope he's phrasing it in discussing
it when he talked about stabilizing prices.
There has been too much stability of prices when it comes to selling
farmers' products, and not enough stability of net income. Then again,
the Act itself was called the Agricultural Income Stabilization Act ,
with reference in the discussion of it to net income. We don't want to
stabilize prices, we don't want to fix prices, we want to improve the
farmers' net income position.
With respect to the amount of money available under the Agricultural Credit Act
for direct lending, and we will discuss this perhaps when we get to the
vote, there is some money in vote 7. You will recall that the
legislation itself did call for guarantees as well as direct lending.
Without getting further into it now, the policy, at least in the first
year of operation, will be more for guaranteeing than direct lending.
But there is the amount in vote 7 — $2.5 million available for direct
lending.
MR. H.A. CURTIS (Saanich and the Islands): Mr. Chairman, with
respect to the vote before us now, I would like, through you, to assure
the Minister of Agriculture that this party will not do as it did
approximately one year ago — that is, move a motion of non-confidence
in the Minister and to reduce his salary to $1.
AN HON. MEMBER: $1.49.
MR. CURTIS: A number of us have had an opportunity, through
the agriculture committee — I'm prejudiced, I realize — which I believe
has been one of the more active committees of this Legislature since
prorogation last spring, to see the Minister show a very genuine
concern for individuals engaged in various aspects of agriculture. As
far as his
schedule would permit, he certainly attended the committee
hearings and the committee tours whenever and wherever that was
possible.
He travelled into Washington state with the agriculture committee
just a matter of a few weeks ago to examine the tree fruits industry in
the Yakima and Wenatchee areas.
I have the feeling that in terms of a Minister assigned a specific
task — in this case agriculture — a number of men and women engaged in
the field, whatever it may be — in ranching, in tree fruits, in
vegetables, in dairying and so on — are under the impression that the
Minister is genuinely interested in their problems. He is approaching
those problems and attempting to find solutions to the problems to the
best of his ability, and he is also encouraging his department to get
involved in a similar thrust.
I think that the Minister has put together a pretty good
departmental staff. Certainly when we travelled we met a number of men
and women — mainly men — who were attached to various sections of the
Minister's department. They seemed to be enthusiastic; they seemed to
be willing to try innovative programmes....
Interjection.
MR. CURTIS: I'm not through yet, Mr. Minister. The rest is coming. Yes, the word "however" will creep into this sooner or later.
You inherited a good staff and you are building on that good staff.
However, I think that it is appropriate, Mr. Chairman, at this point to
question the Minister...
HON. MR. STUPICH: You can turn him off now.
MR. CURTIS: ...with respect to his executive assistant, Mr.
Alex McLellan, particularly with regard to a statement which he made in
Prince George some time just prior to November 24 of last year. It was
reported in the daily press in Victoria on November 24, 1973. I'll
quote it in part or, if you permit, in its entirety. It's a fairly
brief article.
The headline is "No One Should Own Land."
"The executive assistant to Agriculture Minister Dave
Stupich says no one should have the right to own land in British
Columbia. Alex McLellan was greeted with boos Thursday when he told a
farmers' meeting of the chamber of commerce here that, in his opinion,
nobody should own land. A retired appliance dealer from Nanaimo,
McLellan was appointed in May.
"McLellan said that when Bill 42, the Land Commission
Act, was introduced to preserve farmland, people were upset. 'I don't
think there is anyone today who is against Bill 42.' He was again booed
by the predominantly farmer-rancher audience.
"He suggested the government could buy farmland from people in the 60s and 70s who, want out and lease it to young farmers who
[ Page 517 ]
want to get into the business."
I hope the Minister will take as much time as is permitted and
necessary this afternoon, Mr. Chairman, to tell us if that reflects his
opinion or the opinion of his government. Or does he disassociate
himself from the reported remarks of Mr. McLellan?
I would like to know whether the Minister was aware in advance that
such a statement would be made by Mr. McLellan anywhere in the
province. Did the Minister discuss the statement, or reported
statement, with Mr. McLellan after November 22? And was Mr. McLellan
reprimanded or in anyway corrected after he made that reported
statement?
It's interesting to note that on orders of the day for February 4,
when I asked in a written question about Mr. McLellan "Was Mr. McLellan
selected as an executive assistant from among a group of applicants or
candidates?" the Minister replied in writing, "No."
"If the answer to number one is yes, did the Minister conduct
interviews with any other applicants or candidates prior to the
appointment of Mr. McLellan?" The answers to (2) and (3) were "No."
"What is Mr. McLellan's previous experience or background in
agriculture or related activities?" And the answer from the Minister in
orders of the day, "Nil."
I suggest, Mr. Chairman, through you, that while the professional
staff, the career staff, of the Department of Agriculture is doing a
generally commendable job, and in some instances doing an outstanding
job, this kind of reported statement from a newly engaged executive
assistant will not help the Minister in developing faith and good
relationships between the people engaged in agriculture, in all its
facets, and the Minister and his department.
I also hope that the Minister will talk to us briefly, if he can,
about what I sense is a conflict between his department and one, if not
two, other departments of government. It may be that this is an
historic conflict — that it is something which has not developed since
September of 1972; but I am concerned about the relationship between
the Minister's department and the Department of Recreation and
Conservation and the Department of Lands, Forests and Water Resources.
I wonder if the Minister is getting the kind of cabinet understanding
and support for a number of the programmes in which he believes — and
which many people involved in agriculture in this province believe —
are vital if the industry is to flourish and grow.
I suggest, through you, Mr. Chairman, that this is one of the vital
departments of government in any province, and particularly in British
Columbia. We are eating more than we produce; that is well known. I
would hope the Minister would agree that the food crisis in years to
come could make the energy crisis look like a passing minor irritant.
But if this government and succeeding governments and succeeding
Ministers of Agriculture are to assist the industry and to make sure
that it is producing more, then we need the assurance that he is
winning these battles which inevitably must occur with those who would
conserve large tracts of land for wildlife purposes, the parks people,
who feel that large areas should be set aside for wilderness parks and
that domestic animals, as an example, should be kept out.
I'm concerned about the battle between grazing and park use. I'm
concerned about the wildlife preserves in parts of the province, and
the fact that those bottom lands in many instances could be put to
extremely productive use in terms of producing more food for British
Columbians and others nearby.
There may be some other comments a little later on as we deal with
these estimates. But I do want to again emphasize that while there is
general satisfaction with the man doing the job, there is concern about
the conflicts he may be encountering within his cabinet, and there is
most certainly very, very serious concern about statements from his
executive assistant such as the one I cited a few moments ago.
HON. MR. STUPICH: I think perhaps there's more concern in the
mind of the Hon. Member for Saanich than in anyone else's mind. I
almost forgot it until he raised it on the order paper. I answered it
immediately, thinking it might settle that matter for the time being.
I didn't know in advance what Mr. McLellan was going to say in
answer to a question from the floor, when he was asked not to give
party opinion, or the Minister's opinion, but to give his personal
opinion about a particular situation. I had no way of knowing in
advance and perhaps lie didn't know himself, not being able to
anticipate.
No reprimand was required under the circumstances. I would not
reprimand anyone for having a personal opinion, or for giving that
personal opinion when the situation calls for it.
Correction: I would not attempt to correct anyone's personal opinion
of anything. I might try to persuade them otherwise. But in this
particular instance he was not speaking for the government; he was not
giving government policy; he was not giving my policy. He was simply
giving his own answer to a question as he was asked to do under those
particular circumstances.
I'll remind the Member that he is not a member of the professional
or career staff, as he described the others. He is the Minister's
assistant, and his job is to assist the Minister in ways that the
Minister wants that assistance and that is precisely his responsibility
and there it ends. And of course, the Minister is responsible for
everything that is done or said by that member. I think that's about
all I can say on that.
As far as cabinet support: I think the fact that we have been able to get through the legislation, some of
[ Page 518 ]
which was described by the Hon. Member for South
Peace River (Mr. Phillips) ; the fact that we have been able to get
this legislation introduced and passed in the fall session; the fact
that substantial moneys have been set aside in this year's estimates
waiting for House approval right now — the fact that we've been able to
do all that; the fact that we have embarked on an income assurance
programme with respect to one commodity group and are seriously
discussing it with another, I think these are examples of tangible
evidence that the Minister does have cabinet support for everything
he's trying to do on behalf of the agricultural industry. There are
areas of conflict; there are bound to be. There are limited resources.
I've forgotten now who it was who said with respect to land that they
aren't making any more of it.
AN HON. MEMBER: Will Rogers.
HON. MR. STUPICH: There are bound to be conflicts for these
limited resources. There are bound to be discussions in cabinet as to
whether a particular area should best be used by wildlife, by
agriculture or for forests.
We are a mature people; we are discussing these conflicts. We have
task forces in some areas looking into these areas of conflict. In some
cases, no doubt, we'll arrive at a decision that they should be
entirely for one resource user, in other cases, combined. But we are
looking at these things. We're studying them and trying to arrive at a
logical conclusion with respect to each one of these questions rather
than simply flying by the seat of our pants or letting it be decided on
the basis of which Minister has most cabinet support for whatever he
wants to do.
Let's look at the areas of conflict. Let's try to decide them in the
interests of the people of the province as a whole, today's and
tomorrow's, and decide what is the best thing to do with these
resources. That's the way we are trying to work at it, and every one of
these committees will be looking into things. There are representatives
from the various departments that are involved; the various resources
users are on all of these committees. They're looking at them; they're
recommending them. The environment and land use committee of cabinet
will be considering all these programmes and recommendations. And
cabinet itself may be called upon to make the final decisions in some
cases, or possibly the Legislature will be required to legislate. But
in any case, we're trying to look at them sensibly and come up with
answers that we believe are sensible answers.
MRS. P.J. JORDAN (North Okanagan): Mr. Chairman, I appreciate
the Minister's comments. I would just add that while we appreciate you
are trying to come to, through discussions, logical conclusions in all
areas of your agricultural policy, I would suggest to you, Mr.
Minister, through you, Mr. Chairman, that the concern of the public and
the concern of the producer is that while you're busy trying to come to
logical conclusions, it's the producer who is paying the shot. It is
the producer who is caught in the squeeze between what you have said
you want to do and these logical conclusions that you're going to come
to — in terms of dollars and cents and frustration in what his future
is and insecurity in his own industry. Perhaps the Minister, during his
estimates, will be prepared to tell us some of the logical conclusions
to which he has come.
The Premier asked on behalf of the Minister about the format that is
used for the Department of Agriculture estimates this year. I've looked
through them very carefully, Mr. Minister. In discussing these with my
colleagues and also with people in the agricultural industry I would
suggest that it might be an accountant's dream, but it's an
agriculturist's nightmare, and it's a legislator's nightmare.
There has been concern with your government about the number of
orders-in-council it is passing, but with its continual programme of
removing authority for spending, and programming outside the
Legislature, if you were to adopt this format as a regular procedure, I
would suggest this would just compound the concern.
It's very difficult to examine this. For example, in areas where
you're increasing your staff, the type of staff that you're hiring. For
example, there's an obvious need for more highly qualified research
people in your department, and more funds for research in the
agricultural industry. Yet it's difficult to decide of your new staff
whether this commitment and need is being fulfilled.
I would suggest that the explanatory notes are very interesting.
Perhaps they are very helpful. I myself would like to see you go to a
more detailed breakdown of your spending next year and also include the
explanatory notes.
Mr. Minister — and I would invite your comment back on this
suggestion — one of the other concerns that I would like to elaborate
on is the amount of money that appears to be or not to be allotted to
your various Acts which are to be a boost to agriculture in British
Columbia. We're not concerned that your voice isn't heard in cabinet,
but what we are concerned about is whether or not you have told your
cabinet colleagues and the Minister of Finance the potential cost of
many of these programmes that the government is committed to — many of
which are very good programmes.
I would speak, for example, in terms of credit loans — the Agricultural Credit Act
— for which I believe you have put $2 million this year. Yet, Mr.
Minister, you know and I know that in your office, some of which are
from my own area, you have an
[ Page 519 ]
abundance of applications to take advantage of that
Act, which in themselves...the one I'm holding right now is worth
$400,000. There is no way that the money allotted to you for the
carrying out of this Act and the potential good that this Act can do
will meet even the most meagre means and requests.
The one I have here is for a dairy industry. Two families in their
30s, aggressive, experienced in the dairy industry — and with their
farm buildings, et cetera, they'll need $200,000. Their livestock and
dairy herd will be $50,000; their production quota will be $70,000;
their improvements on their farm buildings and facilities will be
$45,000; their contingency working capital will be $ 10,000. So even if
they had $100,000, which would be one-quarter of the required capital
on their own, I would suggest that you can only handle a maximum of
eight of these applications. Yet you have applications for developing
in the fruit industry, and you have applications in the vegetable
industry and many other areas.
So I would ask whether you have intentions to go back to the
Minister of Finance and have an increase of at least another $10
million added to this fund.
Another complication which I wonder if you are aware of is that
while you have basically been talking about this credit assistance to
help people to get into the agricultural industry or to expand their
operations, there's been no action forthcoming. What is happening is
that many people are becoming interested in agriculture. They're taking
options on land, they're looking at viable operations.... When the
Minister's finished waving to his friends in the gallery, I wonder if
he would listen to what I have to say.
HON. MR. STUPICH: I haven't missed a word, Pat!
MRS. JORDAN: Well, I hope, Mr. Minister, that we get some
action because what's happening on this issue is that you, through your
discussion of this Act and your failure to produce the money of the
Act, are creating an inflationary reaction on agricultural land.
HON. MR. STUPICH: Do you want to sit down?
MRS. JORDAN: No, Mr. Minister. I'll sit down in good time and I hope there'll be some answers.
This very project that I'm talking about, and it's before your
department, had an option on land which had to lapse because there was
no indication from the department as to whether it would be accepted or
not. Now the developers are in bidding on the land, another farmer is
in bidding on the land, and this farming group wants to have the land.
This long period of delay that you've allowed to happen has put
farmers in a competitive position with each other, which is great for
the fellow who is trading over the land, but has done nothing for
agriculture in terms of helping new people get into the agricultural
industry or expanding their present holdings. I would ask the Minister:
on that line are you prepared to adjust what would be your original
acceptance of a loan in light of this inflation that your own words
have helped create?
Mr. Minister, I'd like to talk a little bit about the fruit industry
in the Okanagan. An industry that you've expressed a great deal of
interest in and which, again, in spite of your efforts, or your
attempted efforts, is suffering because of indecision on your part or
else, in fact, lack of support from your cabinet colleagues.
You, Mr. Minister, entered into a dialogue for the construction of
controlled-atmosphere storage which appears to be a very desirable
aspect for the industry. But you didn't give the industry any
opportunity or any assurance that, in fact, you would be participating
as a government in this programme.
And what we had happen at this year's convention.... Incidentally,
Mr. Minister, on the convention, I was asked to express their extreme
disappointment that you did not see fit to be there. This is a very
sensitive industry in which you have laid down some very strong
regulations to which they are reacting very strongly. They felt that
the least you would have done would have to be there to answer some of
their concern. Maybe the Minister would like to explain to us why he
wasn't there.
But back to the convention: what happened was that your staff and
the board were put in a most embarrassing position. They had to go
before a convention of delegates from the fruit industry with this type
of proposal, discussing the controlled-atmosphere storage.
I'd like to read it into the record, Mr. Minister, so perhaps you'll understand. They say:
"The estimated cost of controlled atmosphere expansion
in Kelowna, which is to be located adjacent to the existing facility,
will cost an estimated $1,361,700; the estimated cost of the proposed
expansion of the location is $886,000 — a total estimated cost of
expanding both facilities of $2,247,700.
"The industry has filed applications with the federal
Minister of Agriculture (Hon. Mr. Whelan) for financial assistance
under the Produce Storage Construction Grant. This assistance
programme, which was initiated in 1973, provides assistance of
one-third of the total cost of construction or $500,000, whichever is
the lowest. Purchase of lands, sites, development, engineers' fees,
grading and handling equipment and excess roadways or rail
[ Page 520 ]
spur lines may be included in the total cost. We would expect
that government acceptance of the two applications would result in a total grant
of approximately $750,000."
Fair enough.
"The federal department has not officially allocated a
grant but there is reason to believe that our applications will be
favourably received."
Now that's from the federal government, Mr. Minister. They had
figures with which they could deal. While they had no commitment from
the federal government in fact, they had a strong indication that they
could work on these figures and what assistance would be involved and
where the assistance would apply.
What did they have to say about the provincial government?
"The provincial government has also been contacted for
financial assistance on our proposed CA expansion. Although there has
been no firm commitment from the provincial government, the industry
will make an application under the Farm Products Industry Improvement Act . "
That's all, Mr. Minister, and your own staff had to get up and
answer questions which you were unwilling to give and which they were
unable to give. You should further know, because you weren't at the
convention, Mr. Minister, and I want to read this for your information:
"The industry officials represented on the board of
directors of B.C. Tree Fruits Ltd., and the executive of BCFGA, in the
interest of time have authorized B.C. Tree Fruits to assign an
engineering firm to develop the working drawings for the CA expansion.
Accordingly, Food Industries Research and Engineering of Yakima,
Washington, were engaged last fall to develop the working drawings."
Mr. Minister, let me advise you what they had to say to their delegates about time, without any commitment from you.
"The plan of action should approve for the CA
expansion, be received by the BCFGA convention, and would be as
follows: working drawings starting November 15, 1973, completion,
January 15, 1974; tendering, starting January 18, 1974; site clearance,
starting January 18, 1974, completed by January 31, 1974; site
preparation and foundations, starting March 1, 1974; storage building
completion, July 1, 1974; equipment installed and tested, completion,
August, '74; facility completed, September 20, 1974."
As it must be if it's to be of any value in next year's production and sales problems.
They went on to say:
"This is a very tight
schedule for construction of
such large facilities" — which it is — "and it will be necessary to
take advantage of all the time that is available between now and
harvest to complete construction.
"We therefore propose that the industry's
controlled-atmosphere facilities at Kelowna and Oliver be expanded to
provide additional capacity of approximately 30,000 bins, making use of
the best financial arrangements possible."
Making use of the best financial arrangements possible.
Mr. Minister, what you did by not giving any directions to that
board or to your own staff was, in fact, to get the growers to vote for
a pig in a poke. If they follow the programme as outlined here, without
any assistance from the provincial government, then they must finance
on a 10- to 12-year basis, and they will have to finance at a higher
interest rate. But if you are involved, Mr. Minister, and there is a
grant from the provincial government, then it's presumable that they
can finance on a 20-year basis.
The problem here is that no delegate who is truly cognizant of his
responsibilities as to what he is voting for and how he should be
voting could in clear justification vote for a project like this that
was so bare in figures and facts. If the Minister had just indicated to
the board, so that they could indicate publicly that there is likely to
be a capital grant in terms of one-third of the capital cost and what
would be included in the way of cost-sharing actions, or whether it
would be a long-term interest loan, then those delegates could have
voted with a much clearer conscience.
What they've had to do, Mr. Minister, is vote for, as I say, a pig
in a poke — an embarrassment to them when they go back to their own
locals to try and explain what they voted for. They can't give any
estimates on what that's going to cost per pound of apples to each
grower. There are no figures which a producer can work with. All he's
got is a generality that they have to have CA storage, and it may cost
this or it may cost that.
The other matter that concerns them, Mr. Minister, is that you have
not come to final agreement, or hadn't to my last knowledge, on the
income assistance programme. What they want to know is: are you going
to use a loan for the CA storage as a club over their heads? Are you
going to use this loan as a club over their heads on income assistance?
Are you going to use it as a club over their heads when it comes to
possible amalgamation of packing houses?
That's just one concrete example, Mr. Minister, of where your
concern expressed a year ago, which has not been followed by action,
has left them in a more confused and insecure state than ever.
[ Page 521 ]
They know, Mr. Minister, what the situation is in terms of marketing
their own products and the increasing competition that's coming from
other sectors. Why couldn't you have indicated to them? You had no
hesitation in announcing your participation in the chicken factory, you
had no hesitation in announcing your participation in the
alfalfa-cubing plant. Why did you hesitate for a group of producers in
the fruit industry?
Another matter, Mr. Minister, that came out of that discussion which
they'd like to know is: if this controlled-atmosphere storage plant, or
the plants, are developed with provincial funds, if they are
forthcoming — and I would like to recommend to you on that subject, by
the way — will you accept a capital grant rather than a long-term loan?
Give them one-third of the capital cost and don't burden them with more
loans. They're already burdened with so many loans they don't know
which way to turn. Give them a capital grant; then let them assume the
operating costs.
But because they're receiving government money, are those plants going to be required to operate under the Fair Employment Practices Act ?
And will they be required to hire only union labour? On this subject,
when it comes to income assistance assurance, because it's government
funds, are farmers eventually going to be forced into the position
where they have to hire unionized labour only?
If this is the long-term intention of the government, then it should
be clearly spelled out now, so that the right of choice is theirs. If
the producers want to participate, then they know the ground rules of
the game. But don't encourage them to involve themselves in government
assistance if the ground rules are going to be changed.
I'd like to ask the Minister his views on one aspect at this time of
the Hudson report, and that is in relation to the amalgamation of the
packing houses, or packing services. I'd like to know the Minister's
view as to how this should be brought about. I recognize there's a
committee studying this, but we have got a record now from this
government of committee recommendations being thrown out and the
committee being sacked for not sharing the philosophy of the Minister.
We certainly hope that this is not going to happen here, and we hope
the Minister will give that assurance this afternoon.
But, Mr. Minister, what do you propose to do in terms of
amalgamation? What type of a settlement do you propose to consider for
those packing houses that have less capital debt than others? The
Minister must surely be aware that there are a number of packing houses
in the Okanagan which are free of capital debt, but because of this
they have been paying their own producers less over a period of years
where they were amortizing that capital debt, and that there are other
packing houses which in fact are paying their producers more in terms
of direct returns to the pound, but in fact are carrying a heavier debt
load. I'd like to know, and I'm sure the industry would like to know —
not just the executives, but the producers would like to know — how the
Minister intends to equalize this situation.
When the final report is in from the directors of the committee
studying the potential amalgamation of packing houses, is the Minister
going to do as he was recommended by Allied Growers? He has a letter on
this. Is there going to be a vote of the members of each packing house?
Is there going to be a vote on an industry-wide basis?
If there is an amalgamation of certain packing houses, is the
Minister going to make funds available so that a concerted study can be
done of each facility to find out whether the present facilities and
which present facilities are capable of renovation and expansion? Or is
he going to embark on a programme of major new construction?
What is he prepared to do if he finds that these current buildings,
if that is his approach, that are capable of renovation and addition,
are gathered in one central area? Is he prepared to recommend to the
industry that producers truck their fruit as far as perhaps 60 miles?
If so, is he prepared to compensate for that type of extra cost to
those producers? Or must it be borne by the industry itself?
Another matter of concern is the management of packing houses. I
would ask the Minister if he has considered — and if he hasn't, I would
recommend that he consider incentives to encourage young, qualified
people or potentially qualified people to specialize, if you can
specialize in the area of packing-house management. I believe that such
a programme on a reciprocal basis could be carried out with the
University of Washington, that the government should make these
arrangements, and that the government should make available
scholarships to anyone of a reasonable age who has a background in the
fruit industry and in marketing, or in any of these areas, to take such
a programme of training, and perhaps have experience in some of the
packing houses, so that they would be available, and we could upgrade
the future management in our packing houses.
Speaking of packing houses and the fruit industry, I would like to
know the Minister's views on the Dr. Hudson report in relation to the
restructuring of the industry.
One point of interest would be the full-time government-appointee
chairman. I'm asking the Minister's assurance today for the industry
itself, that this chairman, if he is a government appointee, basically
be someone recognized by the industry as an acceptable individual on
the basis of ability, in the terms of management, in terms of chairman
ability, and in terms of knowledge of the industry, and that it
[ Page 522 ]
have no relation to any political affiliation.
I bring this up because the Minister stated quite clearly under the Land Commission Act
that he would be appointing political people to that board because he
felt it was essential that the Land Commission directors be
philosophically compatible with the objectives of the government. I
caution you, Mr. Minister. I warn you, that if you try any hanky-panky
in the way of political appointments in the food industry you will live
to regret the day, and you will have the MLAs from the North Okanagan
(Mrs. Jordan), Central Okanagan and South Okanagan (Mr. Bennett) to
contend with.
AN HON. MEMBER: Central Okanagan?
MRS. JORDAN: That's a threat.
HON. MR. STUPICH: Where are they now?
MRS. JORDAN: Mr. Minister, they want to know why you weren't
at the interior vegetable growers' convention, and they want to know
why you weren't at the B.C. fruit growers' convention. What were you
doing, Mr. Minister? Tell us. You're so vitally concerned about this
industry.
MR. PHILLIPS: He made it to the boat sale, though.
MRS. JORDAN: Mr. Minister, I would repeat that we don't care
what the political affiliations of the individuals involved are in
terms of their own private affairs, but don't you meddle in this
industry with political affiliations of a partisan nature.
As I say, I have a lot of questions, but I would like to hear the
Minister's own views on this recommendation, and I would also on this
point ask the Minister if he doesn't think it just a little bit
irrelevant that the agriculture committee, which has basically been a
good committee, should be at this time passing judgment on the one-desk
selling agency when, in fact, the members of the industry have already
had a vote. If that isn't getting you confused in the chicken-and-egg
warfare, I don't know what is. I recommend, Mr. Minister, that you
delete that from the terms of reference, because that committee has no
business adjudicating this marketing system immediately after it has
been voted on by the members of the industry.
Interjection.
MRS. JORDAN: Well, if you'd listen, Mr. Minister, instead of having tea with the Minister of Public Works (Hon. Mr. Hartley)....
Interjection.
MRS. JORDAN: The referendum, yes.
HON. MR. STUPICH: That was passed in the Legislature last fall. Do you want me to change those now?
MRS. JORDAN: I think you should delete the point on passing
adjudication on the selling agency, in view of the fact that the
democratic process has already taken place.
HON. MR. STUPICH: A retroactive amendment.
MRS. JORDAN: Well, Mr. Minister, judging by your answers, I
can only assume, and those in the industry can only assume, that you
are trying to play both sides of the fence.
HON. MR. STUPICH: I'm not trying to play both sides.
MRS. JORDAN: They had a vote on whether or not they would
support the one-desk selling agency, and now you are trying to ask the
committee of the Legislature to adjudicate this. I suggest you should
get off the fence.
MR. CHAIRMAN: Order, please. I would request that the Hon. Member address the Chair.
MRS. JORDAN: Mr. Chairman, how could I miss you? Mr.
Minister, I have a number of other questions, but I'll ask them later,
except for one point, and this is in relation to the point brought up
by the Hon. Member and apple eater for Saanich and the Islands (Mr.
Curtis), when he referred to your executive assistant.
I would assure you, Mr. Minister, and ask you for assurance in
return, that there is considerable concern, as I mentioned, not only
whether or not your colleagues are fully aware of the overall potential
cost of the programmes you are embarking on, but also, Mr. Minister, as
to who really is speaking for your department. There is continual
complaint from various delegations that visit with you that in fact
you, yourself, are not making commitments. In fact you, yourself, are
not talking. One person suggested that you have become the Charlie
McCarthy of the agricultural industry, and that Edgar Bergen may well
be your executive assistant. This is causing considerable concern.
They want to know whether or not you are prepared to adjust
assessments on leased Crown lands for agricultural purposes, as one
example. We want to know what your policy is in terms of assessment of
agricultural land — not as you say it, but as you are being supported
in the cabinet.
I would ask one more question, Mr. Minister. Why
[ Page 523 ]
have you changed the policy when major agricultural
representatives come to their annual cabinet hearing, not to be heard
by the full cabinet? I would recommend to you that in fact they should
be heard by the full cabinet.
Four Ministers are not enough. Agriculture encompasses nearly every
department of this government from Consumer Services to the Minister of
Finance (Hon. Mr. Barrett) to the Minister of Education (Hon. Mrs.
Dailly) to the Minister of Lands, Forests and Water Resources (Hon.
R.A. Williams) to the Minister of Transport and Communications (Hon.
Mr. Strachan) to the Minister of Municipal Affairs (Hon. Mr. Lorimer),
and if ever one industry should have a full hearing by the cabinet at
this crucial time, it is the agricultural industry. I hope the Minister
will not give us some excuse of why it wasn't a full cabinet, but will
give this House assurance today that in future they will be heard by
the full cabinet.
I hope, Mr. Chairman, that the Minister can answer some of those
questions and give us some reasonable explanations, and also help allay
some of the concerns that I have expressed, and I will wish to ask some
more questions in the future.
MR. D.A. ANDERSON (Victoria): Do you want to answer those questions first?
HON. MR. STUPICH: No, go ahead. I'll get some reasonable ones first.
MR. D.A. ANDERSON: You may have to wait a long time.
HON. MR. STUPICH: Well, I might have to wait beyond you, yes.
MR. D.A. ANDERSON: Yes, you might have to wait a long time.
Mr. Chairman, we have here the vote 3 of the Minister's office, and
there are a number of things which I am interested in on that very page
itself — page N-18 — as well as some more general remarks I would like
to make with reference to the whole question of agriculture in the
province.
First, there is an increase of $19,548 with just one increase in
staff positions, and I congratulate the Minister that he has only got
one increase. Most of his colleagues are far more extravagant in hiring
new staff. I would like to know whether that extra amount of money is
directly for that extra person, whether that person is Mr. Alex
McLellan or not, and if not, precisely who it is.
The reason I'm asking this is because this is the first Minister
we've had to question, and it seems to me there may well be built into
some of these estimates possible increases in salary scales in the
future. If there are I would like to know, because it makes our
analysis of last year, as opposed to this year, a little different if
we realize they have already worked in salary increases.
HON. MR. STUPICH: I'll answer that one.
MR. D.A. ANDERSON: You'll answer that one. That's reasonable? Okay.
I wonder whether the Minister also — and I know this is not the
first time it has been requested — would like to comment on the
commodity group negotiations. We passed legislation which, as you know,
Mr. Chairman, and as the Minister also knows, we in this party opposed
because it was essentially blank-cheque legislation. I'm not going into
the aspects of this again, but the fact of the matter was that there
was unlimited financial power under that bill. There were unlimited
powers to make agreements with commodity groups. As yet we have seen
very little in terms of success in working out arrangements with the
commodity groups.
Now, I'm quite sure that the Minister's staff is working hard,
arguing hard, and I'm quite sure the commodity group people are doing
precisely the same thing, but the reason given by the Minister time
after time for getting that legislation in such a sweeping and absolute
form — what we even felt was anti-democratic form — was that he had to
have the opportunity to move quickly, he needed total power, total
money, total everything else so that he could get going. And we haven't
seen any results.
I would like him to report on what results there have been, because
our only hope of comments on this type of legislation, our only hope of
legislative control, is if the Minister at this particular time of the
year, once a year, makes a real, sincere and honest effort to give the
full information on what's happening.
If we don't get it at this time, the Legislature, as far as a
control mechanism goes, as far as a forum for the people to discuss how
their money is being spent goes, just simply ceases to exist.
Mr. Chairman, the British Columbia Federation of Agriculture
presented a brief to the cabinet, or at least to a cabinet committee,
on December 17 of last year. I was pleased to see that the first point
they mentioned was the question of the relation between agriculture and
energy. We have an energy crisis of some sort or another in existence
in the world at the present time. While B.C. Is in the fortunate
position of being virtually excluded from any effects so far, this will
not continue in the future.
The B.C. Federation of Agriculture requested that the government
give every consideration to the needs of the agricultural industry in
relation to energy and, to this end, that agriculture be given top
priority.
I thought the Minister might comment on that in
[ Page 524 ]
his opening remarks; but as he has not, I would
simply ask if he would indicate to this House what steps he has taken
since the last session, and since the energy crisis became a crisis, to
deal with this particular point.
On this, Mr. Chairman, I would like to digress for a couple of
minutes — and I'm sure the Minister will listen with close attention —
and read a few lines from a letter I received, and a few lines from an
article that accompanies that letter, dealing with food production and
the energy crisis. There is no question that there are going to be real
changes in store for British Columbia in agriculture as well as for
British Columbia industry generally because of shortages of fossil
fuels in the future. This letter reads
"Dear Sir.
"I am enclosing a copy of an
article in a recent edition of the American Journal of Science ,
which you may find of interest. The article, which is a patient and
detailed examination of energy costs of modern agricultural practice,
with special reference to growing corn, is a good example of the result
of importing environmental costing into the economic description of a
conventional practice."
He goes on to say:
"I think it has not yet been realized at all just how
devastating will be the change of attitude and resource allocation
decisions when these costs, energy costs and environmental costs, are
fully appreciated and quantified."
He goes on:
"I request that you read it through and consider
whether it is not the time that environmental costing be introduced
into the cost-benefit ratios of the chemical bombers who proliferate in
the Department of Agriculture."
Clearly he has a bias there.
But the
article is not particularly biased, as I see it. It's an
article which describes the tremendous use, in North American
agricultural practices, of energy, and the tremendous dislocation that
will result, far more so that in fact any other country, if energy
costs increase.
It's great for us in North America, Mr. Chairman, to talk about the
productivity of agriculture per man. But it's almost entirely based on
energy sources and the use of fuels, fossil fuels in particular, which
makes it possible to have fewer men and more machinery. If you create a
situation where the cost structures are thrown out of whack — which is
occurring at the present time — there is no way in the world we are
going to be able to proceed with our present agricultural practices.
The very interesting remarks of many people in the agricultural
industry, talking about the need for greater efficiency — which is
essentially cutting down on labour costs — will be rather outdated and
altered if we have substantial prices in agricultural energy. I think
that if the Minister has got some information on this and if he could
indicate to the House what studies are going on on this particular
point, it would be of value to us.
There is no way that we can continue the general trend of cutting
down on manpower in agriculture and increasing the use of mechanization
and automation if we are going to be faced with energy costs which
simply wipe out the cost savings, or, indeed, reverse the cost savings
and turn them into cost liabilities, because of the increased energy
costs.
There is no question — and I am referring to this
article at this stage:
"There is no question that the most important element
in the great yields in North American agriculture are simply because of
energy use, and in the country (it's the United States they are talking
of) energy use has doubled during the past 20 years. In some types of
agricultural production the rate of energy use has increased more than
threefold during the same period."
He talks about the energy required to create the raw product, the
actual tractors, the energy used in fertilizers — creating them as well
as distributing them. But then he goes on to say, "Large amounts of
energy are consumed as the raw product is transported to centres to be
processed, when they are frozen, canned, dehydrated, ground, baked and
so forth. Farmers process little of their own food, and are dependent
themselves upon the food-processing wholesaling and retailing
industries."
The farm support in the food-processing industries may use more energy than farming itself.
Mr. Chairman, I strongly urge the Minister to have a look at this
thing and to indicate to us whether he has people in his department
considering this particular point. It is really of little value for the
B.C. Federation of Agriculture and ourselves in this House to talk
about whether or not $3 million is going into rural electrification
programmes on an annual basis, as they have in their brief, if at the
same time the whole structure of energy and its relationship to
agricultural production is undergoing fundamental changes.
I would most strongly urge that the Minister indicate to the House
precisely what steps he's taking: first, in the short run to protect
our agriculture from too fast, too severe dislocations; and secondly,
in the long run to adapt our agriculture to the new type of energy and
agricultural community which has been indicated in articles such as the
one I read and, of course, a good number of others as well.
Returning, Mr. Chairman, to the brief of the federation, it strikes me as curious that at this stage
[ Page 525 ]
they have to have a lengthy passage in their brief
on rustling. There is no question that this is a crime; there is no
question that this is theft. When you think of the number of relatively
marginal producers in dollar terms in the cattle industry, and you
think of the fact that any cattle lost through rustling is just
straight off-the-top profit lost to those people, you realize it's a
serious matter.
I understand, from discussions with members of the industry, that
the RCMP unit is to be reorganized. One man is retiring, two are going
to other jobs, and it's going to be a little while, perhaps, before
they are as effective as they even are now. But I would like to know
what the Minister has been doing on this and what his department feels
can be done, and where he feels improvements can be made. Clearly, it's
pretty heart-breaking for ranchers in the Interior to work and sweat
away to produce beef and then to find it simply stolen from them
shortly before they would have taken it to market.
Mr. Minister, you did not say anything earlier about the elimination
of the leases on Crown land, the Crown grazing leases. We know that the
Select Standing Committee on Agriculture has indicated that these
should be eliminated. But perhaps your own views are more important
than those of the committee. I think perhaps it's time that you gave
them not only to the Members of the committee who are in this room, but
also to the industry itself.
How can a man plan? How can he improve his own ranch? How can he
improve the property, buildings, equipment when he is at the present
time ranching on Crown leased land as well as his own, and when he does
not know, on a year-to-year basis, whether he's going to be able to
continue that practice?
Obviously he's going to put up his improvements on his own property.
But if he's relying upon lands in the future for cattle grazing, he is
going to be reluctant to put up major improvements when he simply does
not know what's going to happen. I wonder whether the Minister would
like to give us a few words on that, because it's a matter of
considerable concern. One way or another, it should be settled as soon
as possible.
The Minister has often heard me in this House complaining bitterly
about the Minister of Mines (Hon. Mr. Nimsick) and the lack of
certainty in his legislation and in his proposals. We have had exactly
the same problem here. The industry simply doesn't know what the
Minister's views are. And it's about time they did.
They don't know whether the committee views are going to prevail,
whether the previous practices are going to prevail, or whether we are
going to have something completely different.
I'd like to say a word, Mr. Chairman, on the new farms that are
being purchased. I am thinking in particular of the farms down in the
valley, down near the Boundary Bay Airport. We saw in the paper that
something over half-a-million dollars was spent on the purchase of
agricultural land in that area.
I'd like to know how this new agricultural land which the government
is taking over is going to be handled. Is it going to be leases based
on, say, a 10-year tenure, or will it be a shorter period? Will it be
perhaps on a straight tenancy basis under the management of the
Department of Agriculture, or will they perhaps run it themselves? Who
knows what this will be? At the present time I understand the previous
owners are still on the land. It's about time we decided how we're
going to handle land which is acquired — agricultural land — by this
government.
I should quickly point out that there's plenty of other land in that
category — all the reserves, the industrial reserves, the back-up of
Roberts Bank. The discussions we had on that in this Legislature
indicate there is plenty of other land as well. It's time we had some
clear policy statements, which I hope will come forward in the next day
on how the government intends to handle the agricultural land which it
owns at the present time.
Mr. Chairman, I wonder also whether the Minister would like to
comment at this stage about the recommendation of the B.C. Federation
of Agriculture and the request of the B.C. Federation of Agriculture
with respect to the Mineral Land Tax Act
and the minerals under agricultural land. It's an obvious problem for
the agricultural community. They've made their views clear on this. I
realize that the legislation is there, I realize it's quite clear what
the government intends to do, but if there's to be any changes in this,
I think that once again we should know just as soon as possible. It's
quite possible, Mr. Chairman, through you to the Minister, for the
government to confiscate land by way of taxation. It's perfectly
possible to slap on tax after tax after tax and to make sure that it's
impossible for a person to continue to own land. We feel that this
objective of taxing land for the purposes of forcing people to sell,
which is behind some of our assessment changes, we understand,
according to the assessors, which may well be behind this Mineral Land Tax Act should be settled one way or another by some sort of statement of policy by the Minister.
Mr. Chairman, I have other comments on the line by line of the
Minister's department, but perhaps he would like to comment on the
points that I have raised.
HON. MR. STUPICH: I'll touch first on the question of salary
that the Hon. Member raised, and it was also raised by the Hon. Member
for South Peace River (Mr. Phillips). There's certainly no change. You
could look at the other departments and get the answer, but the
Minister's salary will be, as in other cases, $24,000. The executive
assistant will be,
[ Page 526 ]
as for other Ministers, $17,628. The balance of
$23,388 are for the secretary and clerical staff. As you say, the total
of the three was last year's total as well.
However, there was substantial upgrading in these positions that
took place just about the time of last year's estimates, after
estimates were printed, and there was just no time to reflect them in
the estimates. There's the reason for the substantially larger total.
Interjection.
HON. MR. STUPICH: Well, at this time of year there's always a provision for salaries to be negotiated.
MR. D.A. ANDERSON: Mr. Chairman, through you to the Minister,
is there anticipation in the figures we're given here? In other words,
have you added on a few dollars?
HON. MR. STUPICH: There's no anticipation in this figure. But
as you know, negotiations are probably underway right now and there is
a vote under the Finance Minister for that provision.
The question of the income programme. Again, this really would come
under vote 7. I think it's fairly widely known that we have gone far
enough with the dairy plan. It's in operation and applications have
gone out and some may even be in by now. At least there's been time, I
think, if they replied by return mail, for some of them to be back in.
Some meetings have been held where an opportunity has been available
for the dairymen to meet with members of their own organization and
with members of the staff to discuss the details of the programme.
The applications have gone out, applications will be coming in and
we hope that in the first week in March at the latest the payments for
December, already negotiated, will go out to the dairymen. Of course,
the figures change slightly. I don't have the figures here, but I could
get them. The figures for January and February are higher than they
were for December because certain costs have gone up and we've been
renegotiating these costs as we've been going along. So the dairy is in
effect, and by order-in-council — I'm sure that the Members know about
these things, as they're public — some $3.75 million has been provided
for the first three months of the programme, December, January and
February.
As far as the fruit industry is concerned, discussions have been
going on. There are several meetings here in Victoria, with the next
meeting scheduled for March 8 in Kelowna. A good deal of progress has
been made, but a good deal is still to be made. I understand there has
been substantial agreement on the actual cost figures except in one
area, that of labour which, of course, involves how much one man or one
family can look after efficiently. That's one question.
Another is how the packing costs and the selling costs and all these
will be apportioned to the various grades of fruit. There are still two
areas that have to be worked on in the fruit.
I'll just say that we anticipated earlier that the fruit would be
the first one on line, and I know that the people involved in the fruit
industry expected they would be first. Likely they would have been, had
not there been sort of a runaway situation in the dairy industry with
respect to cost. It just snowballed in the fall, and the effect of that
was that the formula that provided for increases in producer prices
fell badly behind.
When costs were going up gradually it was something the farmers
could live with. When costs were going up very rapidly, as they were
from summer on, it just became an impossible situation — almost a
desperate situation in the dairy industry. Milk production was going
down in the province, something that had never happened before, so it
became necessary to concentrate the department activities on not only
the income programme, as opposed to the farm credit plan.
The Member for South Peace River asked why we had fallen behind so
badly on implementation of the farm credit programme. Now, the farm
credit programme was my top priority. I don't think there's any
question about it and I think the Members of the select standing
committee would have agreed with the remarks that were quoted by the
Hon. Member for South Peace River. The most important thing to get
going on was the farm credit programme. However, this emergency did
develop. The income assurance programme was something new, so it meant
that pretty well all of the senior members of staff had to pull
themselves out of everything else they were doing and concentrate on
this one programme. Having got one programme under our belt and moving,
we were then in a better position and we had some idea of how to go
with the others. But it did mean a terrific concentration of the top
members in staff and it stalled everything else in the department.
Later on in the estimates you'll note that in some areas there's
been substantial increase in staff. The total increase in staff for the
department is 41 proposed, but in some areas it's a very substantial
increase and it's for new programmes such as this.
The fruit is being very seriously discussed at the next meeting on
March 8. There has been some discussion with representatives of the hog
industry. There has been correspondence with the vegetable producers.
That's the extent of our negotiations so far.
If I could just say something more about the urgency for the legislative programme that I
[ Page 527 ]
introduced last fall — and I did also say then that
we wanted to be able to fit in with whatever programme the federal
government came up with — at that time I had reason to hope that I
would know what the federal government was going to do before the
spring session of the Legislature. As time went on, it was obvious that
we weren't going to find out.
The latest word from the federal Minister of Agriculture (Hon. Mr.
Whelan) and this came — I'm not sure when we had our last conference
with them — last September, I guess was the last one. No, it was
January. Just immediately prior to the House opening there was the
Outlook Conference. At that time the Minister promised us that very
early in the new session of parliament — the new session that's to
start tomorrow, I understand — there would be two pieces of legislation
introduced that would be of great importance to the farmers all over
the country and two pieces that B.C. had been pressing for. One was
something in the way of an income assurance programme, and the other
was something in the way of farm credit.
Interjection.
HON. MR. STUPICH: Okay, but in his speeches he certainly
indicates that what he's thinking about is net income. Those are the
two areas and he told us that this legislation would be down early in
the session. Once we see that legislation, we'll have a better idea of
how far we can move, how fast we can move, and exactly what direction
we will be moving.
MRS. JORDAN: You said in the last session you were prepared to go it alone.
HON. MR. STUPICH: We are alone. I'm not sure if the Member
was listening. We are alone right now in the dairy programme. We're
hoping the federal government will come in with it. We're a long way
along the road with the fruit discussions. We've started discussions
with the hog, and we've had correspondence with the vegetable.
For a long time in this session we missed the sort of sweet
bitterness from the Member for North Okanagan (Mrs. Jordan). It's sort
of back to normal today. She's back to her usual style and it makes it
all seem....
MRS. JORDAN: Don't be so paranoid about women. I ask the
Minister to withdraw those comments. If he is not prepared to answer
questions that the industry is concerned about, then he should not
indulge in personal insults. I don't give a hoot what he thinks of me
personally, but I do care about the industry and I do care that he
assume his responsibilities and commitments as a Minister.
HON. MR. STUPICH: The Member asked me if I'm not prepared to answer questions. I am prepared to answer questions and I am proceeding to.
MR. CHAIRMAN: Order, please! I would ask the Hon. Members first of all that we restore our usual spirit of goodwill in the House.
MR. PHILLIPS: It's estimate time!
MR. CHAIRMAN: Secondly, when individual members have
questions that they would like to put to the Members, I would ask that
they don't put them just out of the clear blue while sitting in their
seats, because it confuses the Hansard
staff when they're trying to record these things. I would ask them to
wait until the Minister is finished and put their questions. I would
ask the Hon. Minister to proceed.
Interjection.
MR. CHAIRMAN: Order, please! I have asked the Hon. Members to return to their normal spirit of goodwill. That, I trust, will be done.
Interjection.
HON. MR. STUPICH: Did you not base it on my willingness to answer questions? I am willing to answer, so if that's the case there's no need to
On the energy crisis, I think the Member was getting a bit far
removed from my particular responsibility as Minister of Agriculture
when he starts talking about the long-range policy with respect to
energy. I'm informed by someone who isn't here, my Associate Deputy
Minister, that as far as agriculture is concerned we are a very
efficient user of energy in Canada.
Relative to other industries, we use eight per cent of the energy
used, the fossil fuel energy in this country. But we're very efficient
compared to many other industries.
I know that's not answering the question; I know we've got problems;
I know everybody in the world is having problems now with energy. All
I'm saying is that as far as this year is concerned, we know we can
handle our problems. But they're not just the problems you discussed.
They're the problems of all the supplies.
When you're talking about energy, you're also talking about
fertilizer; and this is a much more pressing concern this year than the
availability of fossil fuels to run the tractors, for example. We've
had a good deal of correspondence on this subject with the federal
Minister. We've urged them on occasion to divert supplies from
munitions manufacture to fertilizer manufacture. We've asked
[ Page 528 ]
them not to export nitrogen to the extent that they
have been exporting it. They say, "Well, we have to maintain our
nitrogen exports, our commitments, in order to maintain our phosphate
import."
It's a problem; it's something that we're very much aware of. We've
had representations from many Members in the House and from many
sections in the industry about this concern about fertilizer. On top of
all this, of course, everybody wants to use more of it. Everybody
recognizes the need for it.
Interjection.
HON. MR. STUPICH: Well, golly, when you see all the things
that are happening in the States these days, it's not hard to imagine
that we'd be much better than them.
The question of rustling: really, I wish, as Minister of
Agriculture, I could do something about rustling. It's to the
Attorney-General (Hon. Mr. Macdonald), I suppose, that you should be
directing....
MR. CHAIRMAN: Order, please. I would ask the Hon. Members if they would be a little more formal in their procedures. It is confusing to the Hansard staff.
HON. MR. STUPICH: Let's not be too formal.
MR. CHAIRMAN: Not too formal...at least formal enough that we can be understood.
HON. MR. STUPICH: I know, especially this year, that with
higher meat prices there has been a lot more rustling than there has
been in the past. I know one producer, for example, who told me his
losses were in excess of $50,000. Even for a fellow than can afford it,
that's a terrific....
MR. A.V. FRASER (Cariboo): Why didn't you pay him for it?
MR. CHAIRMAN: Order, please. I would appreciate it if only one person would speak at a time.
HON. MR. STUPICH: As far as the leasing programme is
concerned, leasing of land for the cattle industry, and the possible
difference in opinion between the select standing committee and myself,
I think what the select standing committee recommended was
misunderstood quite generally.
As I understand the recommendation coming from that committee, it
was not that we go to a simple one-year permit throughout. What they
were trying to say was that there should be a review.... They called it
permit, that's true. What they were talking about was that there should
be security in tenure, but that the security depends upon good
husbandry of the land that was being leased. I think that's the message
they were trying to get across.
They didn't sell it too well from a PR point of view, because there
was concern out there. For example, at the meeting I attended in
Quesnel there was real concern that we might be going this route and
that the livestock people would not be able to plan any more than one
year in advance. So that concern is out there.
I tried to convince the people there, for example, that, in the
first place, the committee didn't mean that and, in the second place,
we weren't going to go that route. We know that you can't possibly
build up a cattle industry — and there is need to do that in this
province — if you can't plan any more than a matter of months — that
is, within a year — ahead as to what range you're going to have. So
certainly that is not the answer.
There has to be sufficient security of tenure so that the ranchers
will be induced to improve the grazing, so that it will be more
productive. That's the direction in which we're working, the resource
committee. As I suggested earlier, we're working on this and that's the
goal that we want. We want to identify the areas of the province where
there should be ranching, either by itself or in conjunction with other
resource users. But we want to take some areas of the province where we
can increase the productivity so that we can increase our cattle
production in this province.
Mines: I think I'll let you ask your question of the Minister of
Mines (Hon. Mr. Nimsick) when his turn comes. He wasn't here when you
raised that — perhaps when his estimates come up.
Land purchased by the Land Commission: the method of handling land
purchased by the Land Commission may vary. At the present time land
purchased by the Land Commission, if it's agricultural land, will be
administered by the Department of Agriculture. The proposal at the
moment, our thinking at the moment, is that it will be out on
long-enough-term leases so that the people operating it will be able to
plan, will be able to build buildings where this is necessary. But
certainly they will be able to plan to use the property properly from
the point of view of long-range agricultural production.
We have no intention of getting involved in farming — relatively small farms. That was one of your concerns, I believe.
If I could get back to the Hon. Member for North Okanagan (Mrs.
Jordan), who is back now — research staff not included: I think she
realizes that to a very great extent, research in the province is
conducted and has been accepted as the responsibility of the federal
government, They've fallen down badly on the job. We've been urging
them to increase their
[ Page 529 ]
research facilities, personnel and everything else
in the province, hoping that they would. And we've been laying some
plans for doing more of it ourselves. Our concern is that if we move
into that field, the federal government may move out quicker than ever.
However, it may be necessary to do that, and certainly that is being considered very strongly right now.
The other thing is that we're increasing our co-operation with the
university. We are making more money available for specific programmes
of research.
As for the estimates themselves, your comment on the estimates, I
think if you look.... Well, just take vote 5, for example: under
"activity" there isn't any sort of breakdown to indicate what kind of
staff we're talking about. But when you get down to the expenditure
classification, then there is an indication of the sort of employees we
have in mind. For example, under vote 5, under expenditure
classification, we show that six of the people employed will be
executive and senior management, but then when they get into
professional and technical, it's 234.
In presenting the estimates in this form, it's my opinion that it
matters little to the people opposite and adds little in the way of
information as to whether they're agriculture 4,5 or 6. The fact that
they are in this grouping and the fact that there are executive and
senior management people involved with them, I think, is the concept
that we're trying to sell in presenting the estimates in this form. It
will indicate what they'll be doing and indicate how many they will be.
We'll try that on and see how that form of presentation works.
Credit — not enough money: I thought I had answered that when I was
answering the questions from the Hon. Member for South Peace (Mr.
Phillips). There are $2.5 million in the estimates, not the $2 million
figure that you suggested. But beyond that, the main thrust will be
guarantee rather than direct lending. We've already had discussions
about this with established lending agencies. We're going the route
that by giving a guarantee we will be able to get long-term lower
interest; and beyond that, we propose to give the borrowers a lower
effective rate even than they can get by simply guaranteeing it.
The actual rate I have not gone to cabinet with up to this point. I
can't give you that information because I don't have it. But I am
proposing, and have already had some discussions about this with
cabinet, that it will be a lower rate than they can get even with a
government guarantee from an established lending agency. So as far as
the amount of money available is concerned, that's not the important
thing if we're going the guarantee route as opposed to direct lending.
In some instances, direct lending may be the route.
Re CA storage: what have we done? We've indicated from the beginning
that we've agreed that this programme had to go ahead. At the
convention.... I make no apologies for not attending the BCFG
convention.
I'm not complaining about the fact that I arrive regularly in my
office at 7:45 in the morning, and leave very late regularly. I enjoy
it. I wouldn't be doing it if I didn't like it. I'm not complaining
that I'm there on most weekends, and I wouldn't do it if I didn't like
it. I don't think the Member for North Okanagan (Mrs. Jordan) should be
complaining too much if I take a 13-day holiday in the course of a year.
With respect to the BCFG convention, when I was invited to that
convention, I told them that I had already had reservations to take a
holiday at that particular time. I received a letter back from the
president of the organization asking whether or not it would be
possible for my Deputy to attend since I wasn't going to be there, and
saying also that, in view of the circumstances, he didn't think it was
that necessary that I attend this year. He certainly understood that I
was in need, as he put it, of a much-deserved rest. So he doesn't agree
entirely with the point of view taken by the Hon. Member for North
Okanagan.
Interjection.
HON. MR. STUPICH: I didn't hear what you said. Try again, and I'll try and take a longer breath.
As far as the cold storage facilities were concerned, I had written
a letter to them expressing my support for this programme, which, while
it wasn't a cabinet commitment, certainly indicated to them that there
would be assistance available under the Farm Products Industry Improvement Act — guaranteed loans at relatively low interest.
They've discussed it with me since and they said, "We have to know
that the interest rate is before we can calculate our costs, in the
event that it is going to be all borrowed money." I recommended to them
that, while I haven't gone to cabinet on this yet, they calculate it on
a rate of something around 8 per cent — just a little less than 8 per
cent — and they used that for calculation purposes. They went back home
happy. They used that figure of 8 per cent in their calculations.
Certainly as I get the reports back, and from the conversations I
had with the people in the fruit industry, they were pleased to get
that letter, which they read out at the convention.
There was a good response at this convention from this report,
Pretty well all the senior members of my department were in attendance
at that convention. This is the first time that anyone has complained
to me about my not being in attendance at that convention personally.
[ Page 530 ]
The Hudson Report: will there be a vote by members of each house?
The Member knows, I think, that each one of the houses is owned by the
producers who are members of the organization that owns that house. I
think there are four privately owned houses. The other 24 are
co-operatively owned. Before anyone can do anything with the physical
facilities, the members owning that plant would have to take
part in
the decision. That answers the question of whether or not they would
vote. It doesn't answer the total overall thing.
There might be a vote upsetting the whole thing, I don't know. I am
not sure what the report is going to be, but I do know that there is a
committee working on it and I am not going to try to undo or undercut
or forecast what that committee is going to do by telling him at this
time what my reaction will be in the event that they come in with a
report, one way or the other.
I am satisfied that the committee is trying to do a good report on
behalf of the industry, and I am quite prepared to wait until that
report comes in and discuss it with the industry when the report is
available. I think the industry feels some confidence that when they
bring that report in, we do want to move in a way that will help the
industry generally. I feel that the industry has that confidence, even
though the Member opposite me may not have that confidence.
As far as packing house managers are concerned, right now we have 28
too many and generally too-small packing houses. I certainly hope we
will — and I predict we will — end up with a few, if not one — at least
a small number of relatively large and efficient organizations. When
you have that type of organization, then you are very likely to command
good managers.
When you have 24 small organizations, you can't get good managers.
The good managers will be available. I think we won't have to wait for
a government bursary programme to train these managers, because I hope
we will need them much sooner than a government programme to train them
could possibly make them available.
The matter of a government chairman: I have had no discussions with
the industry about this except from some individuals who say that they
are not really enamoured of this idea of there being a government
chairman. Frankly, neither am I at this point. I am not ruling it out,
but I am not particularly inclined towards that solution.
Am I prepared to amend assessments? Well, Mr. Chairman, I think the question
should be asked of the Minister of Finance (Hon. Mr. Barrett). I have no authority
to amend assessments. I did give people advice, and that advice has been reported
and has been used in advertisements. But I have no way of amending assessments
as Minister of Agriculture; that's beyond him.
I think that answers all the questions that I made note of. If I have missed any, try them again.
MR. CURTIS: I would like to explore just a couple of things a
little further with the Minister, particularly the conflict between
cattle and wildlife. In spite of his earlier reassurances, Mr.
Chairman, I'm not at all satisfied that he can win that battle in the
cabinet, or perhaps in the caucus, although I would suspect that he
would have more difficulty in the cabinet.
I admit and understand that the cabinet has supported a number of
programmes dealing with the financing of various aspects of the
agriculture industry. But when it comes down to the crunch as to
whether this land is most suitable for cattle, or most suitable for
wildlife, for open space, untouched, uninterfered with, I don't have
the assurance that he is going to win.
I think that the lobby on the other side, if I may put it that way —
the lobby from the conservationists, the lobby from the people who like
to get out and hike or ride, or whatever it might be — will exercise a
greater degree of strength than the relatively small number of people
in B.C. who are engaged in ranching.
I submit that this conflict can best be handled through the
Department of Agriculture in consultation with the Department of
Recreation and Conservation and the Department of Lands, Forests and
Water Resources. I think, again, we saw that there can be more than
single use of a given piece of land, particularly in the Kamloops area.
We saw that irrefutably, and surely that could be pointed out as an
example to those people who would have us believe that a particular
piece of ground must be set aside for wildlife and nothing else. We saw
a happy marriage, I think, between the forest and ranching industry in
the area north of Kamloops, and I would like the Minister to take us
just a little further on that particular point.
Also, in spite of the fact that there are programmes to assist the
dairy industry, I think it would be regrettable today if we did not ask
the Minister to comment specifically on the Vancouver Island dairy
industry, which is of concern to a good number of people who believe
that this industry, which has been here for many, many years, is
deserving of staying in operation, deserving of all the help and
support it can get.
At a meeting in Duncan very late last year, sometime in November,
the president of the Vancouver Island Farmers' Institute said that
unless the government takes immediate action to improve the situation,
this will be the death of the Vancouver Island dairy industry. A little
further on there is a quote: "I am beginning to wonder about our
[ Page 531 ]
situation, and while milking my cows I think about
such things. Does the government intend to keep the farmer as a slave
to the land so there will be cheap food for the consumer, or is it
really interested in helping the farmer?"
Now I say this realizing that dairy programmes are in existence. But
surely the Vancouver Island industry, faced with some pretty massive
competition from the Fraser Valley area of the province, is in need of
all the help, all the expertise, all the initiative that can possibly
be given to one particular segment of a very important industry.
Again, the question to which I'm sure the Minister has addressed
himself in the past: I would hope that he would comment on the business
of getting younger men and women to the farm or, in some cases, back to
the farm. We've heard in our committee travels and heard in our
individual contracts that the average age of persons engaged in
agriculture is very high, and younger people just don't seem to have
the interest in agriculture for a variety of reasons — not least of
which, of course, is economic.
The Minister will perhaps remember the appearance before the
agriculture committee in Cloverdale on December 4 of a Mr.
Szembratovics, who is a hog producer. He gave us a very careful outline
of the situation that he faces in terms of the hog industry and lack of
support for the industry.
With respect to wages he said in part:
" On the other hand the wages, the income...myself and
most farmers feel very bad, feel shame, when we have paid $2 or $2.50
for labour, and at the same time.... In my case I have full-time help
and I pay him $2.75 today. His younger brother in Safeway is getting $5
an hour just for sweeping the floor and carrying out packages. I don't
know. It makes me feel bad because if his brother is worth $5 an hour,
he's worth $7 or $8 an hour. And I even have to borrow this $2.75 to
pay him."
So may we hear from the Minister on those three points: the conflict
on land use, the Vancouver Island dairy industry and, again, the means
he has in mind to attract younger people either to the farms or back to
the farms?
MR. FRASER: As the Member for Cariboo, I am interested in
agriculture because we have quite a bit of it, but the largest is the
beef production. In the Cariboo, William's Lake, for instance, is known
as the bull-shipper capital of the world, and the Premier knows this
from being there last summer. I don't think he'll ever come back, by
the way, and do what he did.
HON. MR. STUPICH: I didn't get an invitation.
MR. FRASER: That's right. I'd like to comment, Mr. Chairman,
to the Minister about the layout of his department's estimates. I don't
like it one little bit. I like the old form. You know, we are not all
chartered accountants, Mr. Chairman. I'd like to see it go back there.
I'll probably be ruled out of order for some of the things I bring up
here, in view of the fact of the way they are laid out, Mr. Chairman,
but I'm going to try.
Bill 42: I want to mention some of the effects of it. It has
progressed along; it's law. The reserves that were set up... I
understand the maps that were used, Mr. Chairman, to the Minister, were
15 and 20 years old, and these are causing a lot of problems in the
Cariboo riding, in view of the fact that subdivisions actually exist
where the agricultural land reserve is.
Also the agricultural land reserve has been placed on gravel pits
and so forth. It's really difficult for the citizens there to sort out
where they're at. Also as the MLA I'm not worried about that, but it's
hard to keep track and to follow up: it was in the environment and land
use committee, it's now in a process of going over to the B.C. Land
Commission, and eventually to the cabinet. I only hope that this....
Interjection.
MR. FRASER: Mr. Minister, I don't believe it has. I believe it has left the Cariboo...to the B.C. but nothing has been done about it.
I was interested in the remarks on Bill 42, Mr. Chairman, of the
Minister of Industrial Development Trade and Commerce (Hon. Mr. Lauk)
when he's quoted in a prior press release that it wasn't really for the
preservation of all the farmland. I refer to the problem that he has
with the Tilburg Island situation. That's very interesting.
Another observation I have referring to the cattle industry and in
reference to grazing which I want to have a bit to say about to the
Minister is this task force that's presently operating now to look into
grazing: there isn't one farmer on it. They are all public servants on
there and, I think, of high calibre. But you mean to say that you are
going to accept this. I realize it isn't your department, but this is
effecting the Agriculture department, believe me. If they come in with
recommendations on grazing.... We've had no input; apparently it isn't
public. I think that somebody has really made a mistake, and it's
probably the Minister of Lands and Forests (Hon. R.A. Williams) who's
done it. But I think the Minister of Agriculture should have picked
that up when that task force was set up and made sure that some
agricultural people were on it.
Regarding cattle — and I'm referring to beef cattle now — and the
environmentalists: this is a discussion going on and it will for a long
time. But I want to tell
[ Page 532 ]
you, Mr. Chairman, through you to the Minister,
what has actually happened in the year of 1974, February 1974. The Gang
Ranch, one of the largest cattle ranches in the western world, have
just got through hauling 2,000 head of cattle, reducing their basic
herd from 9,000 to 7,000 head. And do you know why Mr. Chairman?
Because they cannot get the range for this cattle. This is what happens
when you get a headline in a paper and you get a reporter — in this
case Moira Farrow — who flies out there in a helicopter and lands on
one swamp where a few cattle were, and then everybody gets all up