Newfoundland and Labrador Hansard — Statements by Ministers; Petitions — 25 May 1999 (44th General Assembly, 1st Session, Vol. XLIV No. 29)

1999-05-25

Newfoundland and Labrador — Debates (Hansard)

Newfoundland and Labrador Hansard — Statements by Ministers; Petitions — 25 May 1999 (44th General Assembly, 1st Session, Vol. XLIV No. 29)

1999-05-25

Newfoundland and Labrador — Debates (Hansard)

May 25,

HOUSE OF ASSEMBLY PROCEEDINGS

Vol. XLIV No. 29

The House met at 2:00 p.m.

MR. SPEAKER (Snow): Order, please!

Before we begin the routine proceedings for today, there are

a couple of things the Chair would like to do. I would first of all like to

welcome ten Journalist students from Lawrence College. They are accompanied by

the their instructor, Mr. William Callahan, also a former Member of the House of

Assembly.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: It is also my pleasure today to preside over

a ceremony which on three previous occasions had to be postponed because of

certain events that took place in this Chamber. In fact, I must apologize to the

former Sergeant-at-Arms in that we have not been able to honour him properly

before this time; however, he is here with us today.

As members who have served during previous General Assemblies

will remember, of course, he was our Sergeant-at-Arms from 1981 to 1997. For new

members of the Assembly, and for visitors to the gallery today, I would like to

take a few minutes to give you a little on the background of Mr. Kirby.

He was born in Lamaline on May 26, 1916, which means that

tomorrow he will be celebrating his 83rd birthday.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: We certainly want to wish him many happy

returns of the day.

He is the son of the Reverend H. and Mrs. F. Kirby and was

educated in Lamaline, Port Rexton and Harbour Grace. The former Sergeant-at-Arms

enlisted with the First Volunteer Contingency Royal Artillery and sailed for

England on April 14, 1940. Like many of his peers, of course, he served us well

and indeed helped preserve many of the freedoms that we enjoy today in this

democracy, in this country, and indeed in this Parliament.

He served in the 166th Newfoundland Royal Artillery and

fought with the British in North Africa and in the Italian Campaign. He is

married to the former Thelma Marper of Sheffield, England. They have three

children, and it is my pleasure to welcome them here today. They are sitting in

the Speaker's gallery. I want to welcome Ms Thelma Kirby, son Philip, and Debra

and Pamela, his two daughters.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: As well I would like to recognize, sitting

in the public galleries today, commissionaires who worked with Mr. Kirby when he

was the Sergeant-at-Arms here: Mr. Doug Parmiter, Bill Tucker, Ladd Bursey, Bill

Mitchell and Ralph Clarke.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Mr. Kirby was involved in many community

activities, including the past Commanding Officer of the RCSCC Terra Nova .

He served on the executive council of Branch 56, the Royal Canadian Legion. He

started to serve in his position as Sergeant-at-Arms here in 1979 as an

understudy to the then Sergeant-at-Arms, Mr. Hemmons. He took over his full

responsibility in the fall of 1981, and was with us until 1997.

Mr. Kirby served us well during his years as

Sergeant-at-Arms. To recognize his service, and on behalf of all members, I ask

the present Sergeant-at-Arms to escort Mr. Kirby to unveil his portrait. We will

hang it next to the former Sergeant-at-Arms, Mr. Hemmons, on the wall in the

side corridor next to the Chamber.

I would like for the Sergeant-at-Arms now to escort Mr. Kirby

to the floor of the Chamber, and we will unveil the portrait.

SOME HON. MEMBERS: Hear, hear!

[Unveiling of portrait.]

Statements by Ministers

MR. SPEAKER: Order, please!

The hon. the Minister of Municipal and Provincial Affairs.

SOME HON. MEMBERS: Hear, hear!

MR. MATTHEWS: Mr. Speaker, it was with much sadness and

regret that we learned of the passing of Irene Catherine Woodford, wife of the

hon. Rick Woodford, Minister of Works, Services and Transportation.

Irene Woodford died on Saturday, May 22nd following a

difficult and courageous battle with cancer. She was fifty years of age.

On behalf of all hon. members, I wish to extend our deepest

sympathy and condolences especially to Rick and his daughter, Tanya, and indeed

to all members, relatives and friends of the Woodford family. Our thoughts and

prayers are with all of them during this period of great sorrow.

Irene Woodford was a person who was loved, admired and

respected especially by those whose lives she touched during her teaching

profession. She will be sadly missed by all who had the good fortune and

privilege to know her. Today, Mr. Speaker, we mourn the loss of a truly great

person.

I wish to advise all hon. members that a Memorial Service

will be held for the late Irene Woodford at 3:00 p.m. on Thursday at the St.

George's Anglican Church at Cormack.

Mr. Speaker, out of respect for Irene Woodford, I understand

that arrangements are being made for members of both sides of the House to

attend this Memorial Service and have an opportunity to pay their personal

respects to the Woodford family.

With leave of the House, I would ask that the Clerk be

directed to send an appropriate letter of condolence to extend our sympathies to

the Woodford family.

Mr. Speaker, at the conclusion of any other remarks

associated with this expression of sympathy, I would ask that all hon. members

stand for a minute and observe this moment of silence out of respect for the

memory for the late Irene Woodford.

Thank you, Mr. Speaker.

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

MR. E. BYRNE: Obviously, Mr. Speaker, my colleagues and I

on this side of the House would like to be associated with the remarks by the

Minister of Municipal and Provincial Affairs. Mr. Woodford, Minister of Works,

Services and Transportation, has a great many friends in all parts of the House.

I can only reiterate what you have said: that we, through the Speaker, through

the House of Assembly, pass on every member's personal regrets and sympathies to

Mr. Woodford and his daughter, Tanya. We look forward to seeing Mr. Woodford's

return to the House, and we will see he and his family and friends Thursday in

Cormack.

Thank you, Mr. Speaker.

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

Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

I would like to join with the minister and the Leader of the

Opposition in acknowledging the great sadness that we all feel today at the loss

of a member's spouse.

As indicated, the minister has a great many friends in this

House, as well as his wife. My own spouse and I visited them at their home on

occasion and enjoyed their hospitality and company. It is especially poignant to

know that this has happened, and it is with great sadness that I join in this

moment and ask to share with others the sentiments of this House in a formal

condolence to the member and his family for their great loss.

MR. SPEAKER: I would ask all hon. members to rise.

[Members observe a moment of silence.]

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

Employment.

SOME HON. MEMBERS: Hear, hear!

MS BETTNEY: Mr. Speaker, I am very happy to tell everyone

today about two related initiatives to help low income families in Newfoundland

and Labrador.

Earlier today, I announced the details of the Newfoundland

and Labrador Child Benefit, the Province's 1999 National Child Benefit

provincial reinvestment, and the Newfoundland and Labrador Family Benefit which

are both part of the redesign of the Department of Human Resources and

Employment's income support program.

The Government of Newfoundland and Labrador is dedicated to

developing and maintaining supports and programs that directly respond to the

serious issue of child poverty. Over the past year we have implemented a number

of initiatives that ensure children and families of the Province have access to

resources that will help provide a healthy and productive lifestyle. Initiatives

such as the Strategic Social Plan and other components of our income support

program have directly influenced the well-being of children and families within

the Province. The Newfoundland and Labrador Child and Family Benefits continue

the mandate set out by government and will significantly improve the lives of

approximately 42,000 children in the Province.

The Newfoundland and Labrador Child Benefit ensures low

income families, whether on social assistance or not, receive ongoing support

for their children. The NLCB will be provided to all low income families with a

net income below $20,921 based on the previous tax year. Families are eligible

if they have at least one dependent child under the age of eighteen. The amount

of support provided by the benefit will correspond with the number of dependent

children in a family. The Newfoundland and Labrador Child Benefit will be

combined with the Canada Child Tax Benefit, in one monthly federal-provincial

payment, beginning in July.

This benefit is designed to provide benefits to various types

of families eligible for social assistance, including single parent families,

two parent families, and families without children. Beginning in August, the

redesigned Family Benefits, which consist of four new rates, will replace the

existing basic social assistance allowances. The Family Benefit will be based on

the number of adults within a family and their living arrangements. These

changes in social assistance allowances will not have an effect on other income

support components such as allowances for single persons, rent, mortgage and

drug cards.

Details of the specific rates under the Child and Family

Benefits have been provided to House members to review at their convenience.

The Newfoundland and Labrador Child and Family Benefits

directly respond to the needs and concerns of the children of families of

Newfoundland and Labrador. These new initiatives provide incentives to join or

rejoin the labour market while continuing to support families while they make

this transition.

I hope that members of the House will share my enthusiasm

over these programs and agree that these initiatives are a wonderful step

forward in supporting low income families and ensuring that our children grow up

in a safe and stable environment.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MS S. OSBORNE: Thank you, Mr. Speaker.

I would like to thank the minister for providing me with a

copy of the statement. Any improvement in the lives of the children in this

Province, and indeed in the lives of the family in this Province, is welcome.

It is interesting to note that one year ago today the

minister stood in this House and announced that the National Child Tax Benefit

would not be clawed back from families who were on social assistance. I would

like to think that was because of the pressure that was put on by this side of

the House on more than one occasion when petitions were presented. I am glad to

see that this year the minister sees the benefit of that and the good it is in

fact doing for the families out there.

Any improvement, as I said, of this 3 per cent or 4 per cent

is certainly welcome, because 27 per cent of the children in Newfoundland live

in poverty, and in single parent families 72.1 per cent of children live in

poverty. That is by far leading the national average by a country mile.

I am really glad that there is some improvement. I have not

had a chance to go over the figures yet and see what the comparison is in the

new figures, but as I said before, any improvement in the lives of children and

families in the Province is welcome.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

The readjustment of these rates and basically reorganizing

the deck chairs does not do a lot to improve the situation of what the minister

herself says. There are 42,000 children in this Province who live in families in

poverty, and therefore qualifying for the Child Benefit.

The situation here is that the institutions and structures

that create and maintain equality are not being changed at all. In fact, the

minister with her targeted program is not meeting the universal standard that is

required. For example, these individuals who are working and making up to

$18,000 to $20,000 are paying taxes. The minister is taking those taxes and

giving some of it back to them. Instead, the minister and her government should

be working towards reducing the amount of taxes that individuals at low incomes

have to pay.

I note that the single individual adult on social assistance

still receives a shocking and scandalous $129 per month maximum. Although the

minister is changing the names of some of these programs, readjusting the way

the benefits are calculated, we still have a shocking state of provision of

basic services for the people in need in this Province, including children and

families.

MR. SPEAKER: Order, please!

The hon. member's time is up.

The hon. the Minister of Mines and Energy.

MR. GRIMES: Thank you, Mr. Speaker.

In March of this year, the Department of Mines and Energy

issued a call for proposals under the Mineral Act respecting the mineral rights

to 250 hectares at Deer Cove near the town of Ming's Bight on the Baie Verte

Peninsula. The 250 hectares covered a previously discovered deposit of talc as

well as a small gold deposit. The call for proposals was advertised

internationally with a deadline of May 15, 1999 for the receipt of proposals.

Today I am pleased to announce that we have accepted a

proposal from WMC International Ltd. for the further exploration and evaluation

of the talc and gold deposits at Deer Cove. WMC International Limited is a

Canadian subsidiary of the Australian-based corporation WMC Limited, one of the

world's largest resource companies and a significant producer of both gold and

talc. It is also the world's third largest nickel producer and has major

interests in copper, alumina, uranium, silver and fertilizer with total assets

valued at $9 billion Australian in 1998.

WMC has proposed a multi-phased approach to evaluating the

mineral deposits at Deer Cove with an initial focus on the talc potential of

this particular property. This will result in the expenditure of approximately

$300,000 and will lead to test mining and a pre-feasibility study for the

project. The initial work will begin this summer, and if successful will move to

the next phase quickly.

WMC currently owns 50 per cent of Europe's second largest

talc producer, Mondo Minerals Oy, and also operates a major talc mine in

Australia itself. We are confident that WMC has the technical and marketing

expertise to properly evaluate the true potential of the talc resources at Deer

Cove as well as the small gold deposit located adjacent to this talc deposit.

It gives me great pleasure to announce the awarding of the

mineral rights at Deer Cove to WMC International and to welcome WMC, one of the

world's largest mineral and metal producers, to its first project in

Newfoundland and Labrador. I wish WMC every success in this project, which, if

successful, could lead to another important mining development for our Province.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Baie Verte.

MR. SHELLEY: Thank you very much, Mr. Speaker.

Indeed, it is good news that such a reputable company known

worldwide is going to have its first experience in this Province on the Baie

Verte Peninsula. It certainly has a great potential. Many geologists over the

years have said that it is one of the areas of the Province where we could see

some major mining resource developments over the next little while. This is the

type of activity we need. Because like Voisey's Bay, like anywhere else, we have

to have the investors and we have to have the people to come in to look for

these minerals. It only bodes well for the future of not only the Baie Verte

Peninsula but anywhere when a company of this stature comes into our Province.

I also noticed too that it also has a major interest in

copper, of which there have been some developments in the Baie Verte Peninsula,

and in Central Newfoundland, as of late. We hope that this type of activity will

continue and that indeed we will see this first phase proceed very quickly

throughout the summer. I say to the minister that even the amount for this

summer, that little bit of activity alone, certainly of course stirs people's

interests again. It certainly is an injection of good faith that we see in

mining in this Province again. Hopefully we will see something positive in the

near future.

Thank you, Mr. Speaker.

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

MR. COLLINS: Thank you, Mr. Speaker, and I would like to

thank the minister for an advance copy of his statement.

Also, I rise in support of the statement. I think it is good

news. This is a very large international corporation, the third largest producer

of not only nickel but of gold as well. This is a company that is operating in

nineteen countries around the world. They are also involved in - as it said in

the statement - uranium and the chemical industry. It is positive when a large

corporation with a reputation such as WMC decides to invest and pursue

opportunities in our Province. It has nothing but good news for us.

Also, Mr. Speaker, I would like to say that in the latest

copy of Voisey's Bay News there are many other activities taking place in

the mining industry in the Province today, and hopefully they will have

significant payoffs for us as a province as well.

Thank you.

MR. SPEAKER: Order, please!

The hon. member's time is up.

The hon. the Minister of Intergovernmental Affairs.

SOME HON. MEMBERS: Hear, hear! Hear, hear!

MR. NOEL: I hope you will get in the habit of that kind

of response when I speak in the House.

Mr. Speaker, as members know, hundreds of thousands of

Kosovars have been displaced by the tragic conflict in Serbia. The Government of

Canada has agreed to accept 5,000 Kosovo refugees under an emergency

humanitarian evacuation program. These people are granted refugee status on

arrival in our country and may remain permanently as landed immigrants. About

one hundred of the refugees are being allocated to our Province, consistent with

targets set under the national refugee resettlement program, and are expected to

arrive by mid-June. The Government of Newfoundland and Labrador is pleased to

assist the federal government in settling these people in Canada. Some may

remain with us permanently, others may eventually choose to return to their

homeland, or move to other parts of our country.

Citizenship and Immigration Canada has initiated a Joint

Assistance Sponsorship Program which will meet the needs of refugees through

partnerships between the federal government and private sponsorship groups.

Under this program, basic financial needs, including start-up costs and living

allowances, will be paid by the federal government, while sponsorship groups are

being asked to facilitate integration by providing orientation and emotional

support to the refugees. Sponsoring groups will therefore not be required to

make any financial commitment.

The Government of Newfoundland and Labrador encourages

citizens in our Province to provide the refugees with the support they require.

with emotional support and orientation about life where they take up residence.

A number of local religious, service, and humanitarian groups already hold

Sponsorship Agreements with the federal government and have had successful

experience in resettling refugees. However, five or more individuals can form an

ad hoc group for the purpose of sponsorship, providing they first affiliate

themselves with an existing organization which holds a sponsorship agreement

with the federal government.

We urge people to seriously consider assisting in this

effort. Interested potential sponsors should contact local groups experienced in

refugee sponsorship and refugee serving organizations as soon as possible.

Further information may be obtained by calling the Kosovo Hotline at

1-888-410-0009, or the coordinator for our Province, Ms Marlene Power, at

754-4122.

While the formal sponsorships are requested from groups,

there are also many opportunities for individuals to help. Those able to do so

should promptly contact refugee service organizations which are looking for

volunteers to assist in integrating the refugees into our community.

Canadians, continuing our tradition of humanitarian

assistance, are opening our doors to these unfortunate people in their time of

great need. I know the people of our Province will generously and

enthusiastically share responsibility for easing the burdens of these refugees.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MR. SULLIVAN: Thank you, Mr. Speaker.

I certainly join with the minister in urging people to get

involved in this humanitarian effort. The people here in Newfoundland and

Labrador have certainly played their part within the context of Canada in moving

forth and being able to provide assistance for the allocation of one hundred

refugees to this Province, and encourage groups; and through the various ones

that already have an affiliation with sponsorships there, I encourage people to

get involved. Because Newfoundland and Labrador has to do its part. It is an

emergency on a worldwide scale. I am sure the minister stands in need of us

playing our

part in this Province to assist in that process. We certainly

encourage that, and hopefully people in this Province will respond like they

always do on matters of humanitarian interest.

SOME HON. MEMBERS: Hear, hear!

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

Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

I am very pleased that the minister's first ministerial

statement in the House as Minister for Intergovernmental Affairs is on such an

issue of broad international significance, and underscores the humanitarian role

that Canada has played internationally for many years. I, too, wish to join in

encouraging individuals and particularly groups in this Province to get involved

in assisting with the refugees from Kosovar.

I know a number of groups in the Province have a lot of

experience, such as the Association for New Canadians and others, in helping to

integrate newcomers to Canada and to Newfoundland and Labrador who have come

here under extreme circumstances to integrate, to learn the language, and to

find the kind of emotional community support that they need. I hope and I know

that people will come forward in these circumstances to assist the refugees to

become citizens, if they wish, or to return to their homeland, if that is

possible, in the near future.

Oral Questions

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

SOME HON. MEMBERS: Hear, hear!

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

My question today is for the Minister of Mines and Energy.

About a year ago, on March 8, 1998, there was a rather significant public press

conference held in Labrador with respect to a negotiated framework or an

understanding related to the possible development of the Lower Churchill. Since

that time, we have been promised a number of updates related to what was

included in that framework: financing; the diversion of both the Romaine and the

St-Jean Rivers; the possible development of Muskrat Falls, as well as Gull

Island; the possibility of a line from the Labrador portion of our Province to

the Island portion of our Province. Much of that was discussed at the time but

little information coming forth. Recently we have seen a confirmation of what

was included in that framework agreement with respect to winter availability,

which essentially will keep CF(L)Co solvent.

I would like to ask the minister today, with respect to the

transmission line to the Island portion of the Province: Based upon the public

comments made by the Premier at that time and subsequent to that time, are there

any negotiations still ongoing with the federal government vis--vis the

financing of an in-feed or a line specifically from the Labrador portion of the

Province to the Island portion of the Province?

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

MR. GRIMES: Yes, Mr. Speaker, that issue is still being

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

Opposition.

MR. E. BYRNE: You wonder why people are sceptical. One of

the most important public policy debates that is not taking place in the

Province today is with respect to the development of the Lower Churchill

agreement. Not only that, not only the development of Lower Churchill, but also

any form of redress on the Upper Churchill.

AN HON. MEMBER: (Inaudible).

MR. SPEAKER: Order, please!

MR. E. BYRNE: If the Minister of Fisheries would like me

to ask him a question, when I am finished with the Minister of Mines and Energy

I will ask you a question and you can stand up and answer as well.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

MR. E. BYRNE: Mr. Speaker, I would like to ask the

minister: Could he provide any more detail in terms of discussions? How serious

are they? Is the federal government willing to look at the possibility of

financing this? What are the costs associated with it? We have heard costs

around the vicinity of $1.5 billion. Could the minister confirm that? Could he

provide any more detail to the people of the Province, through this Legislature,

on actually that aspect of the discussions between the federal government, the

provincial government, and the proposed partner, Hydro Quebec?

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

MR. GRIMES: Thank you, Mr. Speaker.

Maybe the hon. member is getting a bit excited in making his

speeches and so on but there is no proposed partner, Hydro Quebec, with respect

to an in-feed from Labrador to the Island for purposes of electric power. That

is an initiative of the Government of Newfoundland and Labrador, hopefully with

Hydro Quebec or the Government of Quebec. There were a number of different

components to what was announced on March 9 of last year - not March 8 - and the

discussions have been proceeding.

With respect to redress, my understanding at least of what

was in the Blue Book during the election some few months ago now was that if the

members opposite were the government they were going to go to Ottawa and ask for

some money for the fact that there was no transmission line, no corridor,

through Quebec thirty years ago and there has not been one for that whole period

of time. That was their plan.

We have decided not to do that. We have addressed the issue

directly with Hydro Quebec and the Quebec government, and we have already

indicated that on two fronts, with respect to the recall of power, we achieved

$30 million in the year just past that otherwise would not have been available

to the people of Newfoundland and Labrador. Over the life of the contract, that

will improve the value of the existing contract for Newfoundland and Labrador by

in excess of $1 billion over the life of the existing contract.

Also, with the winter availability that the Leader of the

Opposition mentioned, over the life of the contract that would improve matters

in Newfoundland and Labrador by a $1.5 billion.

Already, in two discussions that we have had with Hydro

Newfoundlanders and Labradorians by $2.5 billion, somewhat of a significant

improvement.

The transmission issue, the in-feed to the Island, is a

matter solely to be done by the Government of Newfoundland and Labrador and

Newfoundland and Labrador Hydro, hopefully with some assistance from the

discussions.

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

Opposition.

MR. E. BYRNE: The minister danced around the question. I

will ask him more directly. My information has told me that the Government of

Canada are not willing to participate in an in-feed to the Island. Can the

minister confirm that, please, or deny it?

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

MR. GRIMES: Thank you, Mr. Speaker.

I have no idea who his sources are. I can tell you that we

have a full negotiating team functioning on behalf of the people of Newfoundland

and Labrador with respect to the Labrador Hydro project, all aspects of it,

including the in-feed to the island. All of the options are still being

examined.

We are hoping to be at a point some time in the

not-too-distant future where we can come forward in a very public fashion and

explain fully to everybody in the Province what has transpired in the last year

or so, aside from the fact that without starting anything with respect to new

developments in Labrador we have already negotiated $2.5 billion worth of

improvements in one year. That is substantial and significant progress.

If we can get the other pieces to fall together as well as we

have managed to negotiate those two pieces that have contributed $2.5 billion of

new value to Newfoundland and Labrador in the next few months, we will be only

too glad to explain the whole case scenario to the people of the Province.

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

Opposition.

MR. E. BYRNE: Mr. Speaker, last year - about this time,

actually - in this Legislature we discussed the financing arrangements with

respect to the possible development or eventual development depending on a

successful conclusion to the negotiations that are ongoing, because all we have

right now is a Memorandum of Understanding or a framework. The successful

conclusion of that has not yet taken place.

Can the minister update the House in terms of the financing

component, in view of the fact that it is apparent that the diversion of the

St-Jean River is now off, or is in jeopardy in terms of bringing extra capacity

into the Smallwood reservoir, which would flow down through the Lower Churchill?

In view of that fact, has that impacted upon the approximately $900 million of

borrowing that must take place though CE(L)Co and also through the Province in

some form or another?

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

MR. GRIMES: Thank you, Mr. Speaker.

The general nature of it has not changed at all from last

year. The whole proposition that was put forward to the people of the Province

by the Premier, and also concurred in with Premier Bouchard at the time, was

that any new developments in Labrador that are being discussed will finance

themselves over the thirty-year life that will be expected to pay for all of the

construction costs, whether that construction includes one or two diversions, an

Upper Churchill reconfiguration, a Lower Churchill, Muskrat Falls, an in-feed,

any or all of those components.

Whichever components are finally agreed upon and announced

will finance themselves and pay for all of the borrowing that is done by

ourselves and the Province of Quebec over a thirty-year period and will generate

significant profit and returns to the people of the Province forever; otherwise

there will not be an arrangement entered into.

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

Opposition.

MR. E. BYRNE: Mr. Speaker, everybody knows the general

nature has not changed. What I am after are some of the specific nature, the

specifics related to the deal.

My understanding is that the Province, on about $300 million,

with respect to the diversions into the Upper Churchill, with respect to the new

generators required to handle the increased capacity, then on the new

arrangement on the Lower Churchill, on Gull Island specifically, that the new

partnership owned two-thirds - or proposed owned two-thirds by the Province,

one-third by Hydro Quebec - that we will have to borrow; in other words, that

the Province will have to guarantee in some way, shape or form in excess of $500

million to $600 million. I know that bond rating agencies and money markets have

met with the Department of Mines and Energy, Department of Finance, et cetera.

AN HON. MEMBER: (Inaudible)?

MR. E. BYRNE: I know a lot more than you do, Minister.

That is all I will say to you right now.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

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

MR. E. BYRNE: The question is this. Are you in a position

today to elaborate fully on exactly what we will be exposed on, what we have to

borrow, and what the Province will have to guarantee with respect to the Lower

Churchill?

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

MR. GRIMES: No, Mr. Speaker, other than to give this

assurance. The sale of the new electric energy generated by the project that we

will at some point, hopefully, agree to build in Labrador, the sale of the

energy will finance of and by itself any borrowing the Province has to incur.

There will be no risk to the Province outside of that for other kinds of

borrowing that we would have to do to maintain programs and functions of the

government generally in services.

This is a business proposition. There will be enough new

electric energy generated in Labrador that the sale of that energy alone will

justify, merit and warrant the construction of the new facilities and will pay

for every bit of it of and by itself without any further jeopardy to the normal

borrowing of the Province, in terms of taking care of the services that people

have come to expect on an annual basis from their government.

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

Opposition.

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

If the minister can stand in this House today and

emphatically say that the sale of the new energy will more than finance it, then

he must know what the financing costs are going to be.

I will ask the minister my question again. He has just

indicated that the sale of energy will more than cover the cost so the Province

will not be left exposed, but he did not answer the question. I have two

questions. One, what will we have to guarantee as a province? Two, if he can

stand in this House today and say that the sale of energy will more than cover

the cost, then, Minister, release the financing cost. You must know it if you

can stand in the House and emphatically say that today.

SOME HON. MEMBERS: Hear, hear!

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

MR. GRIMES: Thank you, Mr. Speaker.

I do not understand. I have admitted before being very stupid

at times, and this is maybe one of them. I do not even understand why the

question would be raised, or the concern that the Leader of the Opposition is

trying to get at.

If there was a proposition being put forward where the normal

borrowing capacity of the Province to sustain programs and services in health

care, education, transportation, communication, that people have become to rely

on, and if that was in some way going to be jeopardized by additional borrowing

to build a hydro project, I could understand some concern. Ever since March 9 of

last year it has been clear to everybody who has read any of the documentation,

without any specific numbers, that this project will only proceed between the

partners - being Hydro-Quebec for the parts that are shared, Newfoundland and

Labrador Hydro on behalf of the Government of Newfoundland and Labrador, and

Newfoundland and Labrador Hydro on behalf of the government and the Government

of Canada for the in feed - if they pay for themselves, based upon the new

energy generated and transmitted.

There is no issue in terms of a concern for financing. So the

number in that context is absolutely irrelevant, because if it is $1 and it is

all covered by a sale, or if it is $1 billion and it is all covered by a sale,

it does not matter in terms of the fiscal capability of the Province to raise

the money, or the ability of the Province to run all the other programs and

services that are expected of it.

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

Opposition.

MR. E. BYRNE: If the minister has not gotten the drift of

the question, it is simply this. We could be in this Legislature today and for

the past three weeks debating the merits and demerits of a concrete proposal.

Government has said on at least three occasions that they would provide updates

to the people of the Province and to the House.

In terms of financing costs, Minister, people in this

Province have no other choice but to either adopt and endorse your `trust me'

approach. That is what we are talking about, because that is what you are asking

people to do: trust me, trust this government. That is the issue. I will leave

that up to the people of the Province to decide.

MR. SPEAKER: Order, please!.

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

his question.

MR. E. BYRNE: I am not going to speculate one way or

another on what they want to do, if they trust you or not. I will say this. As

Leader of the Opposition, on behalf of the people of the Province -

MR. SPEAKER: Order, please!

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

MR. E. BYRNE: - I'm not going to trust the government

until I see what is in the proposal. That is what we are asking for today. That

is all we are asking for.

Final question, Mr. Speaker.

SOME HON. MEMBERS: Oh, oh!

MR. E. BYRNE: It is called doing your job, Minister.

Maybe you can take a lesson from it.

Mr. Speaker, this is a final question to the Minister of

Mines and Energy. We have seen publicly that there is a problem with respect to

Aboriginal concerns on the Quebec side of the border with respect to the

diversion of the St-Jean River. Are there any other parts of that framework

agreement that are not as they were announced on March 9, 1998, that have

changed a year later? Could you inform the House if there are any other changes,

fundamentally, to the principles on which that framework was announced and sold?

Could you tell us today?

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

MR. GRIMES: Thank you, Mr. Speaker.

If there are to be changes, and some have been openly

speculated about by ourselves as the government, there may be a single diversion

instead of two diversions. That is not yet finally decided. There may or may not

be a re-configuration at the current Churchill Falls plant to install new

turbines. The other option being explored is whether or not we just take the

current plant and operate it at a higher rate of capacity.

Those issues, none of them have been finally determined

between the partners who are looking to build this project: basically the

Government of Newfoundland and Labrador and the Government of Quebec, except for

the in feed which is the Government of Newfoundland and Labrador and the

announced a year ago in March, they will be announced when they are decided.

There have been no changes decided upon. There are a number of examinations

occurring.

With respect to whether or not people should have some

confidence that things are going fairly well to date, there have been two

accomplishments that I will remind people of again. As a part of this discussion

and negotiation we have achieved an extra $1 billion over the life of the

current Upper Churchill contract for the people of the Province through the

recall provision, and through the Guaranteed Winter Availability Contract we

have achieved an additional $1.5 billion that will benefit the people of

Newfoundland and Labrador that otherwise would not have existed.

Even before we get down to the details of exactly what we

will build, how many rivers will be diverted, whether it will be transmitted to

the Island or not, we have already enhanced a lot of Newfoundlanders and

Labradorians by $2.5 billion. I would expect there is some reason for the people

of the Province to have some comfort and confidence that so far this negotiation

is going fairly well.

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

MR. SULLIVAN: Thank you, Mr. Speaker.

My questions today are for the Minister of Health and

Community Services.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This past year the Newfoundland and

Labrador Medical Association signed a MOU with this government that acknowledges

that the NLMA is the sole and exclusive negotiator for physicians in this

Province.

Government, however, has unilaterally implemented a block

funding arrangement for St. John's emergency room physicians. The NLMA, in a

letter last Thursday to their membership, stated that they were only advised of

this by receiving a copy of the letter that went from your department to the

Health Care Corporation of St. John's. The president in that letter stated he

believes that this unilateral action will have serious repercussions and create

further instability in the health care system.

I want to ask the minister this. Minister, why did you

violate the very MOU that you signed just a few months ago?

MR. SPEAKER: The hon. the Minister of Health and

Community Services.

MS J.M. AYLWARD: Thank you, Mr. Speaker.

Whenever you have any sort of an arrangement when not all

parties can agree, there is a process put in place that allows one party or

another to go through that process to find resolution. When all three parties -

and there are three parties involved - in particular -

SOME HON. MEMBERS: Hear, hear!

MS J.M. AYLWARD: Mr. Speaker, when all three parties

involved, including the Health Care Association, my department, and the NLMA,

cannot come to an agreement - on this particular case, where the money is coming

from - then we refer to a process whereby the outcome is decided by that

process. It is no different than any other appeal process. That is what will

happen in this case.

With respect to it being an issue made only known over the

last number of days, that issue that we presented has been known for a number of

weeks as the process has been worked through. As pointed out, because not

unanimous agreement was reached the process then follows whereby it goes to an

independent person to identify the outcome.

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

House Leader.

MR. SULLIVAN: Thank you, Mr. Speaker.

Last year, when I asked about provision of doctors pulling

service out of nursing homes you indicated it has to go through the Medical

Association. It had to be negotiated. Now you are taking a different stand, I

say to the minister.

The NLMA stated in their letter that they have written you

condemning this unilateral action and they are calling for a return to the

bargaining table. The NLMA, in the president's letter, says: this will increase

the cost of providing emergency room services and government has not

acknowledged the obligation to fund these costs.

There was not enough money there in the beginning Minister,

and they go on to say that -

MR. SPEAKER: Order, please!

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

his question.

MR. SULLIVAN: - to reach parity with Atlantic Canada -

and the NLMA board has consistently stated that progress in one area could not

be achieved by taking money from another.

I want to ask the minister if she will tell the House if that

is the case or is there new money being provided, for example through the

Contingency Reserve Fund, as is happening with the hiring of new nurses in the

Province?

MR. SPEAKER: The hon. the Minister of Health and

Community Services.

MS J.M. AYLWARD: Thank you, Mr. Speaker.

It is good to hear the member opposite identify the new money

made available for the hiring of new nurses but particularly -

SOME HON. MEMBERS: Hear, hear!

MS J.M. AYLWARD: Mr. Speaker, with respect to the

specific question in terms of money available, the money identified has been

identified through existing block funds. That is the issue under dispute that is

going forward to have a decision made on whether or not the money is there by

the part of the process outlined in the MOU.

There are three parties involved with this particular case.

My department has identified block funding by which this money can be achieved.

Mr. Speaker, not all parties are in agreement, so that will be sent to an

independent process to identify if in fact that is the outcome.

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

House Leader.

MR. SULLIVAN: Thank you, Mr. Speaker.

This is exactly what the Medical Association feared, it is

rob Peter to pay Paul. Minister, you know it is difficult to attract emergency

room doctors in rural parts of this Province. There are several areas of this

Province now that cannot recruit. There are locums coming in, in Gander and

Corner Brook. There is not one full time emergency room doctor in Clarenville,

for example. How do you expect to solve the shortage in rural Newfoundland,

particularly in emergency departments - not to say here in the city alone - when

you are paying doctors $17 an hour less to do service in rural Newfoundland

emergency departments than you are doing here in the city? You reached that

unilaterally, I might say to the minister. Why the discrimination between rural

and urban Newfoundland?

MR. SPEAKER: The hon. the Minister of Health and

Community Services.

MS J.M. AYLWARD: Thank you, Mr. Speaker.

I think it is very important, for the record, to clarify that

this is not robbing Peter to pay Paul. This is not taking money out of rural

Newfoundland and putting it in urban Newfoundland. It is important, because many

days in this House there is so much misinformation and it is important to set

the record straight, that there is no reallocation of money from rural

Newfoundland into urban Newfoundland. This is an amount of money that has been

identified from existing block funds. Let me also say that we have been working

with groups of physicians, individually and collectively, about putting together

all kinds of new payment schemes and new approaches to alternate payment, and

the invitation stands.

I think for the information of the House it is important to

note as well that we have a new arrangement about to start in Bonavista, as well

as in the Clarenville area, with a new alternative pay schedule, this very

arrangement that we are talking about here. I am glad to hear that the member

opposite is happy that the urban issue has been resolved. As well, we are also

working again with another proposal around the Springdale area to also address

issues around money, around how physicians are paid. We are open to any of

those.

So again, I say, Mr. Speaker, trying to link what is

happening here with other issues again is one more example, I believe, of trying

to instil fear in people when we are open to all kinds of new arrangements and

funding arrangements.

MR. SPEAKER: Order, please!

I ask the hon. minister to conclude her answer.

MS J.M. AYLWARD: Any party is entitled to make their view

clear. Obviously the view of the NLMA is that they would like to see new money

but, Mr. Speaker, we just reached a $32 million agreement by which we believe -

MR. SPEAKER: Order, please!

I ask the hon. minister to conclude her answer quickly.

MS J.M. AYLWARD: - that there is existing monies

available to pay for this new arrangement.

SOME HON. MEMBERS: Hear, hear!

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

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

My questions are for the Minister of Environment and Labour

regarding the former Argentia naval base and the clean up currently being

conducted at that site.

I would like to ask the minister where the contaminated

materials from that site are going. Who, if anybody, conducts testing on the

materials that are removed? How often are those tests done?

MR. SPEAKER: The hon. the Minister of Environment and

Labour.

MR. LANGDON: Thank you, Mr. Speaker.

It is my understanding that the federal government is in the

process of preparing a site to look after the contaminated material that is in

the Argentia area.

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

John's South.

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

They are preparing a site, but does the Province conduct any

auditing of the materials that have been taken from that site to date, for

example contaminated liquids, to ensure that what is removed is accounted for?

Can the Province account for the quantity of material removed? Can they account

for what happens to the material once it is removed from that site?

MR. SPEAKER: The hon. the Minister of Environment and

Labour.

MR. LANGDON: Thank you, Mr. Speaker.

We have the inspectors from the department that monitored the

site at Argentia regularly. I cannot tell you all the details here now, but when

I go back to the department I will get it and give it to the hon. member

tomorrow.

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

John's South.

MR. T. OSBORNE: Mr. Speaker, I ask the minister: Are

there any contaminated materials such as oil or oily water being dumped at the

Robin Hood Bay site? Can the minister give us a breakdown of the amounts that

are being dumped, the hydrocarbon content, and who is doing the dumping at that

site? Table the findings.

MR. SPEAKER: The hon. the Minister of Environment and

Labour.

MR. LANGDON: Thank you, Mr. Speaker.

As I suggested to the person earlier, I want to check with

the inspectors when I go back this afternoon. Tomorrow I will give a briefing to

the member opposite as to what is happening in the Argentia site.

The inspectors are there regularly. In fact, I have had some

of the contractors tell me that the inspectors have spent more time in Argentia

than elsewhere. I will check it out and find out.

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

MR. FITZGERALD: Thank you, Mr. Speaker.

My question is to the Minister of Fisheries and Aquaculture.

Minister, less than one month ago you stood and read a prepared ministerial

statement stating how happy you were that after a long, hard lobby with the

federal government, your cousins, that finally S.C.B. Fisheries would now be

allowed to import all female diploid steelhead trout, which are more

commercially viable. You went on to say how this was good news for S.C.B.

Fisheries and other aquatic operations in Bay d'Espoir.

I ask the minister if this is now a done deal. Are there any

problems with S.C.B. Fisheries importing this strain of fish in the numbers they

require?

MR. SPEAKER: The hon. the Minister of Fisheries and

Aquaculture.

MR. EFFORD: There is no change, Mr. Speaker.

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

Bonavista South.

MR. FITZGERALD: Thank you, Mr. Speaker.

Minister, it is my understanding that this struggling

operation may have to wait another twelve months before they are allowed to

import the quality of diploid fish that they now need. In fact, Minister, the

20,000 eggs that were imported have now reached the stage that they should be in

ocean cages, but remain at Jeddore Lake because of your department not being

prepared to allow the transfer to happen. I ask the minister if this is his way

of helping this particular industry to succeed.

MR. SPEAKER: The hon. the Minister of Fisheries and

Aquaculture.

MR. EFFORD: None of that is correct, Mr. Speaker.

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

Bonavista South.

MR. FITZGERALD: Mr. Speaker, this is not what I am

hearing, I say to the minister.

Minister, it is also my understanding that the problem of

importing the diploid strain of steelhead trout into this Province now lies with

your department and not the federal government.

Will the minister admit here today that the decision to delay

the importing of female diploid fish is due to his department's decision to now

do an environmental study, which shows that his very own department was not even

ready for the very thing that he was lobbying the federal department to accept?

MR. SPEAKER: The hon. the Minister of Fisheries and

Aquaculture.

MR. EFFORD: Mr. Speaker, there is no delay in bringing in

the diploid fish. Here is what happens, for the hon. member does not know, and

if he would search out the answers instead of listening to the news media and

drawing his questions from that, he would know more about it.

First of all, you have to import the eggs. Then you put the

eggs into the hatchery. Then they grow into what we call smolts. Then you take

that and you put them into the lake. Then they grow into steelhead trout. Then

we ship them out of the Province. Before we do that, before that can be done, it

has to go through an environmental process. Until you bring in the eggs you

cannot go through the environmental process.

There is no delay. Everything is on

schedule and will be on

schedule. What was talked over on CBC radio this morning is not correct. There

is absolutely no delay. It stated that Minister Anderson had delayed it for

another year? That is wrong.

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

Bonavista South.

MR. FITZGERALD: Mr. Speaker, I say to the minister that

if that information is wrong, and the minister stands here and continually says

the dollars that are put into this operation are for research and development -

there were 20,000 diploid eggs and 20,000 triploid eggs put in Jeddore Lake. The

triploids are now in ocean cages, the diploids sit in Jeddore Lake,

whereas the

minister will not give permission for them to transfer from freshwater

surroundings into salt water surroundings. Why?

MR. SPEAKER: The hon. the Minister of Fisheries and

Aquaculture.

MR. EFFORD: Mr. Speaker, first of all, we are not going

to go repeating the mistakes that were made in S.C.B. Fisheries in the past. We

have come through a total review of S.C.B. Fisheries. There were some mistakes

made, and that was the reason why it is not up to a financial situation today

where it can make some profits.

Now it is easy enough to say: Let's take the diploid fish out

of Jeddore Lake, put them in the ocean, and then we will probably bring a

disease into the ocean and destroy all the fish that are there. Until we are

absolutely sure where the proper place is to put them, the diploid fish will not

be moved until we go through the environmental process and we are satisfied.

It has absolutely nothing to do with the money that was put

in last year, and it has absolutely nothing to do with the operation of S.C.B.

Fisheries in the future. Bringing in a new strain of fish will enhance the

ability of S.C.B. Fisheries to be successful in the future, but to jump and do

it without going through the proper procedures would be repeating the mistakes

of the past. I am not going to do that.

MR. SPEAKER: Order, please!

Question Period has ended.

Notices of Motion

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

MR. TULK: Mr. Speaker, I give notice that I will on

tomorrow ask leave to introduce a bill entitled, "An Act To Amend The Internal

Economy Commission Act," Bill 19.

MR. SPEAKER: The hon. the President of Treasury Board.

MS THISTLE: Mr. Speaker, I give notice that I will on

tomorrow ask leave to introduce a bill entitled, "An Act To Provide An

Accountability Framework For Public Bodies," Bill 20.

MR. SPEAKER: The hon. the Member for Harbour

Main-Whitbourne.

MR. HEDDERSON: Mr. Speaker, I give notice of the

following private member's resolution:

WHEREAS parents, students, teachers, administrators, school

board members, school councils and others throughout the Province had for many

weeks been demonstrating their deep concern over the impact of the proposed

reduction in 1999-2000 of 182 teaching positions will have on the quality of

education available to students in their areas;

AND

WHEREAS the Minister of Education has challenged the

Opposition and the people of the Province generally to show the government the

impacts the pending teacher cuts will have on schools, programs and students;

AND

WHEREAS the Minister of Education and her colleagues in

Cabinet have dismissed the concerns of parents, students, teachers and officials

that have been reported to the House of Assembly by the Opposition caucus

committee on education, but the ministers has provided no similar means for the

public to express to government in an open forum their concerns about the

impacts of teacher cuts on their schools;

AND

WHEREAS the continuing protests and demonstrations

throughout the Province indicate public concerns have not been diminished by the

minister's approach to the situation;

THEREFORE

BE IT RESOLVED that this hon. House urge the

Minister of Education and her colleagues in Cabinet to immediately appoint a

task force chaired by an independent non-partisan commissioner to hold public

hearings throughout the Province to order to give parents, students, teachers,

administrators, school board members, school councils and others a public forum

in which they can express to government their information and concerns about the

impact on schools, programs and students of the proposed reduction in teaching

positions and where people can also discuss generally the kind of education

system they want for their children.

SOME HON. MEMBERS: Hear, hear!

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

MR. TULK: Mr. Speaker, if I could have the attention of

the Opposition House Leader. There is standard motion there which just says that

the Public Accounts Committee be authorized to consider and report upon evidence

taken by the Committee during the Third Session of the Forty-Third General

Assembly. I wonder if I could ask leave to give notice of that now and still

move it?

Mr. Speaker, I would move that the Public Accounts Committee

be authorized to consider and report upon evidence taken by the Committee during

the Third Session of the Forty-Third General Assembly.

MR. SPEAKER: All those in favour of the motion, `aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: Those against, `nay'.

Motion carried.

Answers to Questions

For which Notice has been Given

MR. SPEAKER: The hon. the Minister of Municipal and

Provincial Affairs.

MR. MATTHEWS: Thank you, Mr. Speaker.

The hon. Member for Cape St. Francis asked five specific

questions in the House on Friday with respect to the move of the Newfoundland

and Labrador Housing Maintenance Division from Hallett Crescent and from Mount

Pearl to one new location on Blackmarsh Road.

While the information that I provided him in the House was of

a general nature, I undertook to give him some specific details or to report to

the House on specific details of the leases that have been put in place; the

cost associated with the new facility that we are going into; the basis upon

which acquisitions were made for goods and services, labour and materials, that

sort of thing; and what the projected savings would be, given a ten-year time

frame and assuming renewal of a five-year option for a second five-year period.

Mr. Speaker, I am tabling in the House today, for the

information of the hon. member and for the information of the House, specific

answers in some detail to all of these questions. I hope they will be

satisfactory to the member.

If he has additional questions with respect to this

particular issue then I would be happy to entertain them and provide for him the

information in the House in as timely a fashion as I can, if indeed we cannot

provide it immediately during the Question Period exercise.

Thank you, Mr. Speaker.

MR. SPEAKER: The hon. the President of Treasury Board.

MS THISTLE: Thank you, Mr. Speaker.

I would like to respond to a question asked by the hon.

Member for St. John's West last week. It was in reference to Executive Council

Estimates and pertained to 2.8.01, Women's Policy. The question was about the

budget for $317,500 in the Salaries section, 01, revised to $348,000. The answer

to that question is that it reflects the removal of the funding for the

twenty-seventh pay period provided in 1998-1999.

I might also add that under Professional Services, 05, that

budget was forecast to be $82,600 but only $40,000 was spent, which means that

$40,000 of that - or less than that - was moved up to Salaries, which reflects

the transfer of Professional Services funding into Salaries for a contractual

employee. I might also note that the Professional Services projected was less

than budgeted for the same reason.

Under the heading 2.8.02, Provincial Advisory Council on the

Status of Women,

section 10, Grants and Subsidies, there was a question as to

the amount there: $203,800 and reduced to $201,200 for this coming year. The

reason for that is that it reflects the removal of funding for the

twenty-seventh pay period for council staff provided in the 1998-1999 budget.

Thank you.

Petitions

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

MR. FITZGERALD: Thank you, Mr. Speaker.

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

To the hon. House of Assembly of the Province of Newfoundland

in legislative session convened, the petition of the undersigned residents of

Newfoundland;

WHEREAS Route 235 from Birchy Cove to Bonavista has not been

upgraded since it was paved approximately twenty-five years ago; and

WHEREAS this

section of Route 235 is in such a terrible

condition that vehicles are being damaged, including school buses serving

schools in the area, and school children are finding their daily trips over the

road very difficult;

WHEREFORE your petitioners urge the Government of

Newfoundland and Labrador to upgrade and pave the five kilometres of Route 235

from Birchy Cove to Bonavista.

As in duty bound your petitioners will ever pray.

Mr. Speaker, this is another petition brought forward by the

residents of the Port Union, Bonavista, Birchy Cove, Newmans Cove, Upper,

Middle, Lower Amherst Cove area, again putting a plea to government to ask them

if they would look at this particular

section of roadway that the residents of

those five communities travel over every day of the week.

We have had petitions presented here, signed by

schoolchildren. We have had petitions signed by parents. We have had petitions

signed by people who do not even live in the area but have seen the condition of

this particular strip of road and have said: By God, we are going to do our part

and send a letter to the minister as well.

I understand the minister's office is getting faxes and

letters. In fact, over 600 letters have been sent to the Acting Minister of

Works, Services and Transportation. I understand the minister's deputy, in turn,

is sending them probably on to Clarenville where the superintendent of that

particular district has been receiving them and has answered some of them, so he

takes it very seriously.

In conversion with Mr. Goodman, who is the area

superintendent there, or the administrator of the eastern area, the

Clarenville-Bonavista area - if somebody took the time to write and have a chat

with Mr. Goodman, I think he would be very quick off the mark if you asked him

the question of where is the worst

section of road in the district that he

serves. He would certainly tell you that the worst

section of road is between

Birchy Cove and Bonavista. The

section of roadway which he gets the most

complaints from, or the area under his jurisdiction where he gets the most

complaints from, would certainly be from the Birchy Cove, Upper, Middle, Lower

Amherst Cove, Newmans Cove area.

Those people, the residents in this particular area, have

written the minister. They have been calling the minister's office, they have

been holding public meetings, and they have been calling me. What they are

asking for is to have this particular

section of Route 235 upgraded and paved.

They have identified 2.5 kilometres of the five kilometre stretch between

Bonavista and Birchy Cove. They have said: Look, even if we could get that 2.5

kilometres upgraded and paved, that would satisfy our immediate need.

It is not the point of, we want a super highway. All we are

asking for is a decent highway that we can drive over safely, so the children

can get aboard the school bus and travel to and from school safely, so that we

can go to Bonavista and access our health care facility there, access the only

doctors in the area, and access the only government buildings in the area,

Bonavista being the service centre of the whole area in that particular part of

the Bonavista Peninsula.

The plea has been coming through here, through me. They have

been using my voice in the House of Assembly to bring forward their concerns to

the decision-makers in this Province, and hopefully this year - even though I

understand the capital works budget has already pretty well been precluded - the

Department of Works, Services and Transportation might be able to find funding

in their maintenance budget to at least look after the worst

section of this

particular roadway.

As the petition states, this particular

section of highway

was built over twenty-five years ago. It has continued to deteriorate. The

situation now is that we are doing patches on top of the patches. The sides of

the road, the shoulders of the road, have all fallen away. A lot of the times

you are driving along and in order to get away from a hole existing in the

pavement you have to go out on the shoulder of the road, and that in turn offers

more potential to have an accident.

When this particular

section of road was built, the standards

were certainly not as high as they are today. Even back in those days, I am not

so sure if anybody realized -

MR. SPEAKER: Order, please!

The hon. member's time is up.

MR. FITZGERALD: - that this particular

section of road

would have to last twenty-five years or would have to contend with the amount of

traffic and, I suppose, the type of traffic that travels it every day.

It is a plea to the House once again to have this particular

section of roadway upgraded and paved.

Thank you.

Orders of the Day

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

MR. TULK: Mr. Speaker, I would move first reading - and I

will do those, if I can, all in one bunch - of Motions 4, 8 and 10. They are:

"An Act to Amend The Income Tax Act". (Bill 6);

"An Act To Amend The Public Tender Act". (Bill 16);

"An Act To Amend The Jury Act". (Bill 17)

Motion, the hon. the Minister of Finance to introduce a bill,

"An Act To Amend The Income Tax Act", carried. (Bill 6)

On motion, Bill 6 read a first time, ordered read a second

time on tomorrow.

Motion, the hon. the Minister of Works, Services and

Transportation to introduce a bill, "An Act To Amend the Public Tender Act",

carried. (Bill 16)

On motion, Bill 16 read a first time, ordered read a second

time on tomorrow.

Motion, the hon. the Minister of Justice to introduce a bill,

"An Act To Amend the Jury Act", carried. (Bill 17)

On motion, Bill 17 read a first time, ordered read a second

time on tomorrow.

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

MR. TULK: Mr. Speaker, before moving on to introducing

further Orders of the Day, I think it is appropriate for us to announce that the

House will sit on Thursday morning starting at 9:00 a.m. and go to 12:00 noon.

That is so we can make arrangements for hon. members to attend the funeral of

the late Irene Woodford in the afternoon.

Mr. Speaker, I call Order 5, Bill 10, "An Act To Amend the

Denturists Act".

Motion, second reading of a bill, "An Act To Amend Denturists

Act". (Bill 10)

MR. SPEAKER: The hon. the Minister of Health and

Community Services.

MS J.M. AYLWARD: Thank you, Mr. Speaker.

This is a bill that was on the Order Paper last session and

is back again this session. It is a bill in agreement by both the dentists and

the denturists which would allow basically denturists to do partial dentures as

opposed to - many of them are doing it now - the practice of doing it, but this

would allow them the legislative ability to do it for legal purposes as well as

for liability purposes.

Again, this is something that has been worked through with

both parties, the denturists as well as the dentists. Again the definition

speaks very clearly to it, that it is a removable, fabricated substitute and is

not anything to do with fixed appliances whatsoever.

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

MR. SULLIVAN: Thank you, Mr. Speaker.

The Official Opposition do not have a problem with allowing

denturists, under the Denturists Act, to make partial dentures. I am sure it

only allows them to be able to perform commensurate with the basic skills they

have, and hopefully give the public access so there is not a larger bite come

out of the pockets of consumers and so on. It gives the opportunity to

denturists as well as dentists.

AN HON. MEMBER: (Inaudible).

MR. SULLIVAN: Yes, at least they can get their teeth into

it. It is something that does not - certainly, if anything, it enhances the

competitive aspect basically to allow this particular partial denture to be

made. I do not see any negative, adverse effects to the public or to the people

involved and affected directly by this particular act.

Thank you, Mr. Speaker.

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

Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

I want to express my support and the support of the NDP for

this amendment. I know it has been a matter of some controversy when the

Denturists Act first came in, that denturists were only given the right under

the legislation to manufacture full dental plates.

Of course, the technology of dental work and the provision of

dentures is such that there are lots of other ways of meeting the needs of a

patient without the provision of a full plate.

This is something that seemed to me at the time to be an

unnecessary restriction on denturists. The same technology, the same

methodology, seemed to be in use to produce the partial plate as well as a full

plate, at least in certain circumstances. I am not fully familiar with all of

the techniques and technology required, but it certainly seems to me that this

is a forward step for the denturists to permit them, within their level of

expertise, to provide dentures of a partial plate nature as well as a full

dental plate.

It seems to me that this is something that can be supported

by all members of the House. The fact that we have not heard any complaints from

anybody else about it is obviously an indication that this is legislation whose

time has come and we wish to offer our support as well.

MR. SPEAKER: The hon. the Minister of Health and

Community Services. If she speaks now she will close the debate.

MS J.M. AYLWARD: Thank you, Mr. Speaker.

I move second reading of Bill 10, "An Act To Amend The

Denturists Act".

On motion, a bill, "An Act To Amend The Denturists Act" read

a second time, order referred to Committee of the Whole House on tomorrow. (Bill

10)

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

MR. TULK: Mr. Speaker, before calling the next order of

business, I would like to move that the House not adjourn at 5:00 p.m.

MR. SPEAKER: It is moved and seconded that the House do

not adjourn at 5:00.

All those in favour, `aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: Those against, `nay'.

Motion carried.

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

MR. TULK: Mr. Speaker, Order 6.

AN HON. MEMBER: We will close at 4:00 p.m. if you are

going to talk, Harvey.

MR. TULK: Well that is entirely up to the Opposition,

what time we close. They usually keep us here until about 11:00 or 12:00 at

night.

"An Act To Amend The Tobacco Control Act". (Bill 11)

Motion, second reading of a bill, "An Act To Amend The

Tobacco Control Act". (Bill 11)

MR. SPEAKER: The hon. the Minister of Health and

Community Services.

MS J.M. AYLWARD: Thank you, Mr. Speaker.

This bill again is "An Act To Amend The Tobacco Control Act".

It is one whereby more onus and responsibility will be placed on those who sell

cigarettes, particularly to minors, in such manner that those who sell to

persons under the age of nineteen would have increasing fines laid upon them,

with the eventual loss of their licence to sell tobacco.

Each of those in the process of selling would have to obtain

a licence without any charge, and that licence again would be allowed to be held

as long as the holder of the licence sold cigarettes to those who were over the

age of nineteen.

Again, we see this as the beginning of an ongoing campaign,

one whereby we have committed a significant amount of money in conjunction with

many other groups to begin to very much target and monitor sales of tobacco and

also target younger people specifically.

The fines are set out in this piece of legislation. As well,

it is very clear the age limit, being age nineteen, and that the onus again of

responsibility is placed on the vendor/seller of cigarettes to minors.

This piece of legislation is one again that we have been

working on for a period of time and have been very much consulting with the

various stakeholders including the Canadian Cancer Society, Newfoundland Heart

and Lung, physicians' groups, the Newfoundland respiratory group -

AN HON. MEMBER: Tobacco companies?

MS J.M. AYLWARD: No, not tobacco companies.

It is interesting to note, though, that the day before we did

introduce this into the House of Assembly, a representative group of tobacco

companies conducted a public relations campaign, in my very own district I might

add, to allocate a very small portion of money again to enhance the whole issue

of tobacco sales. Even though to a government like ours the amount might be

significant, to those in the tobacco industry it was a very minor contribution.

When you compare the revenue they receive from young people starting to smoke,

particularly when we know that cigarette smoking is more addictive than heroin.

We see that in the increasing numbers, particulary of youth, who have begun to

smoke across this country, but more specifically in our own Province. Every two

years we have a survey which indicates that we are seeing an increase in the

number of young people smoking, particulary young women.

We are very pleased to move forward with this piece of

legislation. We know that very soon to follow we will have another piece of

legislation that we believe will go hand in hand with this one, allowing a more

firm approach so that governments may sue tobacco companies for the damages done

to a person's health.

Again, all of the information is contained in the bill, and I

would be only to happy to answer any questions. We do know that this piece of

legislation has the support of the community at large, all of the various

advocacy groups, and those that have been working for years to try to address

the hazards of smoking so that it can be prevented before it has to be cured.

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

MR. SULLIVAN: Thank you, Mr. Speaker.

I certainly stand in support of this particular bill. We are

all aware that it is a major growing concern today with increasing smoking among

particularly young people, and young people getting access. Anything that would

limit access has to help the problem. It may not solve it completely, but it has

to help it and reduce the incident rates.

It is a concern here when people nineteen and over are out

purchasing cigarettes. I know you can go into schools today and pay so much and

get a cigarette. People sell them and peddle them around schools. Some of them,

I guess, could be nineteen years of age at schools today, it is not uncommon.

That is a major concern too.

I say to the minister that it is positive to take action on

people who are selling these, to limit access to young people. We also have to

be cognizant of people who are buying them for others, the same as they buy

alcohol and give it to young people. That is a serious offense. I know there is

provision, I guess, under the law on cigarettes, I would think, under some other

aspect of legislation. I am sure my legal colleagues might be aware of that, but

anybody who gives beer to minors can be charged with an offense. I was just

wondering, with reference to tobacco, if someone buys cigarettes and gives

cigarettes to them, is there anything in our laws that would -

AN HON. MEMBER: (Inaudible).

MR. SULLIVAN: No, I am not aware of it.

AN HON. MEMBER: (Inaudible).

MR. SULLIVAN: Yes, that is right. I am not aware of that.

The minister confirms that and my colleague too, the legal profession. That is a

concern too, to have people out there today - a nineteen-, twenty- and

twenty-one-year-old - buying cigarettes and selling them or giving them to

younger people too. It is a major problem and concern.

I encourage the minister to have an aggressive anti-smoking

campaign and accelerate this particular program within our school systems. It is

important. People get the impression at an early age when they see people

smoking on t.v. and figure it is the cool thing to do. Cigarette manufacturers,

while they are out certainly supporting certain aspects of limiting that, are

also today becoming increasingly more involved in the production of movies.

Private companies out producing movies today, major motion screen pictures

today, financing for these has to come through the basic company that is

producing it. To take money from cigarette manufacturers and tobacco companies,

to have the person driving a car and smoking a cigarette, that is creating

impressions on people that it is the fashionable thing to do, it is in vogue, it

is cool to do that. That is a back door supporting of smoking.

Those type of things, too, we need to have tough legislation

on. I know a lot of these major movie productions emanate in the United States,

but some are in Canada also. We have to be cognizant of that because you can

never take too strong an action, I suppose, to discourage or to hinder access to

cigarette smoking. Because it is costing untold dollars on our health care

system today. It is probably the largest contributor, I think, today to health,

circulatory diseases - in particular heart -, and respiratory problems

associated with smoking, not to mention cancer itself. Many people think smoking

and cancer are the main - but it is not the main effect, cancer from smoking.

The main problems are heart and circulatory in nature.

So I certainly support the legislation here. I am sure there

is an ample period - that it will come into effect September 1, 1999, that all

people will give at least three months' notice, sent out in the regular manner,

to all people that are licensed. Because you have to be licensed now and there

is no fee for it, thank God. There is not another tax on this one. At least they

have to register and they will get their appropriate notice and appropriate

warnings. If they did not follow the proper procedures to be able to identify

people who purchase cigarettes - and these little notes from parents and notes

from other people to give my little Johnny or Mary, twelve- or thirteen-years

old, cigarettes to bring home. Those types of things have to be avoided because

they are not always authentic, those little notes that people get in stores.

So anything that would discourage people from smoking and

prevent people from getting access to it, we support, and we support this

particular piece of legislation.

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

Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

I rise to speak at second reading on the amendment to the

Tobacco Control Act. I believe that these amendments are certainly helpful in

the attempt to decrease the number of young people with access to tobacco.

I note that a number of years ago when the Tobacco Control

Act was brought in and the age was raised to age nineteen for the procurement of

tobacco, and at the same time the prohibition of selling loose cigarettes was

introduced or strengthened, there were hearings held in this House and a

legislative committee - which was active in those days; they appear to be

totally inactive now - actually held hearings and heard evidence from people

involved in the control of tobacco who had serious concerns about the approaches

being taken by the tobacco companies in their efforts to recruit new smokers,

particularly young people, and how they worked both nationally and

internationally.

It is astounding that these companies who produce these

products are increasing their market around the world. I read something the

other day - I'm not sure I can get the exact quote - but it appears that what is

happening throughout the world is that the number of deaths related to

communicable diseases is going down, and the number of deaths related to issues

such as tobacco and other... I hesitate to call them lifestyle issues, but the

number of deaths related to preventable types of diseases that come from things

like tobacco are going up, to the point where in a very few years we are looking

at probably the most significant cause of death in the world will relate to the

use of tobacco, alcohol and other drugs.

So I think we have a very serious problem on our hands. We

are sort of having a bash at it, I suppose, with this type of legislation. We

really have a worse problem here and I guess it is coming down to a moral

problem. There is a group of individuals who are producing tobacco for a profit,

and that product that they produce has serious addictive consequences to

individuals, or most individuals I suppose, who use these products. They have

very serious, deleterious health effects on those very same people, resulting in

premature death.

What is particularly reprehensible is that these companies

are actively recruiting new entrants to the smoking of their products through

advertising, through sponsorships, through product placement. As the Opposition

House Leader said, you see a movie, and a particular cigarette or tobacco

product would be associated with a movie star. You walk into a convenience store

and what do you see in many cases behind a counter? A vast row right in your

face, a whole panel or two panels of cigarette products right in your face. They

are not allowed to advertise but they can stick their products in your face and

make it appear that these are totally acceptable products from a consumer's

point of view when, in fact, they are addictive, toxic substances that will

cause premature death, poison your system, destroy your health, cost innumerable

dollars to the health care system, and yet we continue to permit this activity

in our midst and permit companies to make a fortune producing and selling these

products.

I would be more interested in finding ways to prevent these

products from being sold. I will say that one thing this Province has done, for

the most part, with the exception of the Labrador circumstance which is, I

suppose, a special case, is that when the Canadian government reduced the taxes

on tobacco, our Province refused to pass those along to people. One of the most

significant deterrents to young people smoking - the evidence we heard in our

committee - was that the price of tobacco to young people continues to be a

deterrent.

If you can keep the price up, I suppose, attempting to force

tobacco retailers not to break up packages and sell cigarettes one at a time,

that is one way of providing some deterrent. Obviously, people who have access

to these products - young people themselves, if they get access to the products

- they can sell them or resell them on an individual basis, but price continues

to be an important factor in preventing recruitment of new smokers to the

companies who want to make money on this poison in our society.

Mr. Speaker, the minister talked about the other part of the

government's program. We first heard about this in June of 1997, during a

federal election. During a federal election in June of 1997, the Premier spoke

about an effort on behalf of this Province and other Atlantic Provinces to

tackle the tobacco companies through court action. The next time we heard

anything about it was during the last provincial election, almost two years

later. The next time we heard a peep out of this government about tackling the

tobacco companies was during the previous election in February of this year;

almost a two-year wait to hear anything about it.

We keep talking about legislation that could be used to make

it easier to sue tobacco companies. I hear noises being made but I do not see

any legislation. The Government of British Columbia introduced that legislation

some two years ago. They have already issued a statement of claim. They are

actively pursuing this matter in terms of litigation. The way has already been

paved by the Americans. A number of American states and the American federal

government have pursued legal action.

This is not something that takes a tremendous amount of time.

It is not quite a no-brainer when it comes to taking this type of action because

you are dealing with a very serious matter and considerable amounts of money.

The path has already been beaten in Canada and in the United States, and it is

not something that we would have to do a tremendous amount of work in taking any

particular leadership role in this matter. The way has been prepared and it is

time for us to start taking that action.

I did note some talk during the election campaign that the

government was considering putting out some sort of a plan whereby lawyers could

participate in suing the companies on a contingency basis. I did notice

something about that in the campaign of the government as part of their way of

funding lawsuits against tobacco companies. When I heard that, I was very

surprise that in a situation where the way has already been paved by other

provinces and states of the United States in pursuing the companies, that

government would even consider not taking on this action by itself. I do not

think any other jurisdiction has done that.

I would certainly think that the government has competent,

capable lawyers able to initiate a lawsuit of this nature against the companies.

I would certainly hope that the government would do that, and if they did not

have capable and competent counsel experienced in that field, surely such could

be acquired very easily either from our own profession or Bar here or in other

parts of Canada.

I would hope that we would not expect, if the government was

suing for the recovery of the health care costs associated with looking after

people who are victims of tobacco, cigarette smoking and addiction, I would hope

that the taxpayers would recover that.

I have never ever heard before of a government considering a

contingency legal action. That is done for people who cannot afford to take the

risk involved, who cannot afford to pay for legal counsel and have to have a

contingency arrangement because they cannot afford the cost of litigation. That

is not something that government should be doing.

That sounded very odd to me, that government would even be

contemplating - that the Minister of Health would even contemplate - sharing the

recovery of health care costs with members of the legal profession operating on

a private basis. I would be very surprised if government would actually pursue

that. I have never heard of any government ever doing that, but wonders never

cease in this government.

I would hope that existing government lawyers in the

Department of Justice are capable and competent in carrying out such litigation.

If they need assistance from other counsel, whether they be in the private Bar

here in the Province or with other governments - I am sure the Government of

British Columbia who has already passed the legislation, who has already

initiated legal action, would be prepared to assist by seconding someone to this

government for a few months to help with this process or share their knowledge

and experience with the lawyers working for the government here in this

Province. That progressive British Columbia Government who has already changed

their legislation, making class action suits possible; who has already changed

their legislation to allow this litigation to go forward; who has already

initiated legal process in the court, I am sure they are prepared to share that

knowledge and expertise and research information with the Government of

Newfoundland and Labrador.

If there are any difficulties in that regard, I would be

happy to write the Premier of British Columbia and ask him to do that.

AN HON. MEMBER: (Inaudible).

MR. HARRIS: Sure, I would be happy to write and ask him

to share the expertise of the British Columbia Government, because there seems

to be a danger that this government does not feel that they have the ability to

do it themselves. They want to give it out to private lawyers outside of the

government.

MR. TULK: A point of order, Mr. Speaker.

MR. SPEAKER: Order, please!

On a point of order, the hon. the Government House Leader.

MR. TULK: Mr. Speaker, the hon. gentleman must know that

within two weeks the NDP Premier wrecked the economy of New Brunswick. I suspect

that he would do it down here in one day, with the size of our economy.

MR. SPEAKER: Order, please!

There is no point of order.

The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Mr. Speaker, I am glad to see and say that

the progressive Government of British Columbia has taken the initiative in

changing their legislation to allow a proper action against the tobacco

companies. They have already initiated court action in British Columbia. I know

that the government is talking about following the lead of the NDP government in

British Columbia in that regard.

I am suggesting that there could be a level of cooperation

here. If the spade work has already been done, if the research has already been

done, if they have taken this lead, I am sure that the lawyers in the Justice

Department are quite capable and competent in following up on that lead and

pursuing legal action without the government having to say to private lawyers

outside of government: We will give you a piece of the action if you will take

some of the risks. I do not know if there is any risk.

I think that the result of this litigation is a foregone

conclusion. In the United States, for example, many states have reached

agreement - including the federal government in the United States - with the

tobacco companies for a significant amount of restitution of the costs of

looking after people whose health has been destroyed by the use of tobacco.

I am sure that our government, if they are prepared to be

aggressive - a two-year wait, so far, does not appear to be very aggressive, but

- if they are prepared to be aggressive, I think we can achieve some results in

saving, in recouping some of the money that our health care system has been

spending and will continuously spend in looking after people who unfortunately

have become addicted to tobacco and whose use of tobacco has caused very serious

problems to their health, has resulted in premature aging, premature diseases,

and premature death in many instances.

I think it is one of the modern scourges, a scourge of our

times, the consequences of tobacco use. I say this as someone who smoked for a

number of years myself - many years. I started as a young teenager, just barely

a teenager. It took a long time; it is a very difficult addiction to break.

I encourage anybody who has succumbed to that addiction to

work very hard and get motivated to stop because it is obviously going to

lengthen your life if you do so. I cannot emphasize enough how important it is

that we take whatever measures we can to prevent and discourage young people

from taking up smoking. It is a very sad fact.

I know that the Minister of Health mentioned it. I know the

Minister Responsible for the Status of Women has to be very discouraged to know

that the most significant number of recruits to the smoking population are in

fact young women. I think that is a very, very discouraging piece of

information, and any effort that can be undertaken to stop that - if anybody has

any methods that we can undertake to prevent that or discourage that in any way

possible, whether it be the use of negative advertising, the demonstrating of

what a turnoff tobacco smoke is and tobacco breath is, if you want, to young

people, I think any measures should be undertaken.

I hope government is also considering using some more of its

money that it collects from the tobacco companies - because we do collect a

considerable amount of money from the tobacco companies - using more of its

money to perhaps have some targeted advertising against a particular group.

I wonder if the minister can elaborate on what government is

doing or plans to do in that regard. Is the government going to look at this

particular group now being recruited by the tobacco companies into the legions

of people who smoke? Is the minister going to do that?

I know she knows that one of the again startling statistics

that we see happening is that lung cancer is on the rise in women because

principally, if not for the sole reason, there are more women smokers, or there

have been more women smokers historically, and it is going to continue to rise

for some time because more women are smoking for longer. The effect of that

smoking is now having consequences on people in the form of lung cancer and

other diseases that come from smoking.

I wonder, does the minister have any specific plans to target

young women as potential victims of the tobacco industry. Is the minister

prepared to look at this as a serious health problem in young people? Probably

one of the most serious health problems facing young people today, particularly

young women, is getting into the clutches of the tobacco industry by being

addicted to smoking cigarettes, by being addicted to tobacco. What specific

plans does the minister have to target this group of people who are potential

victims of the tobacco industry?

So in addition, Mr. Speaker, to amending the Tobacco Control

Act to make the ability of government to enforce legislation against tobacco use

more effective, what specific measures would the Department of Health be

undertaking to ensure that we are able to discourage young women from smoking

cigarettes and from becoming addicted to tobacco? Young men too, of course. I am

not suggesting that this is solely a problem of young women but it is a

startling statistic, that there are more young women being recruited than young

men. I hope that the minister will undertake an enhanced advertising program

using some of this money to ensure that we have as strong a program as we

possibly can to try to curb the use of tobacco by all citizens, and particularly

young people.

MR. SPEAKER: If the hon. minister speaks now she will

close the debate.

The hon. the Minister of Health and Community Services.

MS J.M. AYLWARD: Thank you, Mr. Speaker.

Before I move second reading, I would like to take the

opportunity to answer a few of the questions raised by the Member for Signal

Hill-Quidi Vidi with respect to the focus and attention that would need to be

put on addressing smoking, particularly in young women in the Province. This

particular piece of legislation, by reading it of course, would not do that

because this is a piece of legislation that is very much focused on the ability

of government, through a licensing process of vendors and retailers, to limit

the sale of tobacco to those under the age of nineteen and to impose fines, as

outlined under the bill, ranging from smaller fines to higher priced fines with

repeated offense, and eventually involving the loss of the license to sell

tobacco, which I am sure would be a big loss to retailers, particularly because

of its revenue generating capacity.

Specifically with respect to issues around smoking and

prevention, the issue does not lie with government alone. As I have mentioned in

a former ministerial statement in this House, government has been working for

the last two years with representatives of the Canadian Cancer Society,

Newfoundland branch, with the Newfoundland and Labrador Lung Association, with

the Heart and Stroke Association, with the Newfoundland Lung Association, with

physicians, particularly pediatricians, and other concerned citizens around,

addressing it as a community based issue. That is one of the reasons why our

government announced a $900,000 initiative over the next three years to begin to

address the issues around smoking and particularly targeting high-risk groups,

namely young women. We know that the incidence of lung cancer has increased. In

fact, it has equalled or surpassed the incidence of breast cancer in women, and

that is a very startling figure because of its relatedness to smoking and

second-hand smoke.

We are very concerned, not only from a health perspective but

also from a human perspective where we know many of these very cancers can be

preventable if we are able to target those particular age groups before they

start smoking. So yes, the focus of this campaign - which again is not

identified in this bill. This is a bill specifically related to vendors and

those that are selling cigarettes, outlining very clearly the sale of cigarettes

to minors being an offense rising in intensity over time and in violation. It

very much makes the store owners responsible and does not put children in a

criminal position by buying cigarettes if they are under the age of nineteen.

We are working on a very focused approach. The challenge we

have is that we are competing with tobacco companies with billions of dollars

sunk into advertising right across the country. They are not multinationals,

they are transnationals. They cross all over the world. You know, if you have

been anywhere in the United States particularly, there are huge billboards

targeting young people with cartoon-like figures. We know that it is very

successful in its advertising capacity to attract young smokers.

So we are working with all of the various groups. One of our

main, I think, approaches is to actually work with young people who started to

smoke and do some focus testing around what it was that actually tuned them into

smoking, so that we can learn from their own personal experiences and maybe use

some sort of an anti-campaign, based on that information, on how to prevent

other children from starting to smoke.

Again, the ages are becoming younger, which is very

disturbing. We do believe that many of the children have greater access than

ever before. Maybe not from their parents, but from school yards and from people

that are only too happy to sell to minors. There is a campaign underway. The

various groups - the coalition is what we are calling ourselves - in fact have

come to the final process of hiring a coordinator to begin that particular part

of the process whereby they will target their campaign at younger people, and

also try to lobby government and other parties to really become much more aware

of what is happening with smoking in our homes, in our restaurants, and in other

entertainment establishments.

Perhaps the area of biggest concern is the introduction of

young children, babies, to secondhand smoke. We are seeing, also, a very much

increased incidence of asthma and other allergic reactions because of the

introduction of secondhand smoke. Now we are becoming much more aware of the

hazards around secondhand smoke. We are very concerned and we are working with

all of the groups to try to put in place a very directed campaign.

Mr. Speaker, I now move second reading of "An Act To Amend

The Tobacco Control Act," Bill 11.

On motion, a bill, "An Act To Amend The Tobacco Control Act,"

read a second time, ordered referred to a Committee of the Whole House on

tomorrow. (Bill 11).

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

MR. TULK: Mr. Speaker, Order 3.

Motion, second reading of a bill, "An Act To Amend The Health

And Post-Secondary Education Tax Act". (Bill 5).

MR. SPEAKER: The hon. the Minister of Municipal and

Provincial Affairs.

AN HON. MEMBER: Oh, oh!

MR. MATTHEWS: Thank you, Mr. Speaker.

I say to the hon. member, when I get through all the bills of

the Minister of Finance today I may just get the Oscar.

This particular amendment is fairly straightforward. As hon.

members may recall in the Budget that was presented in the House in late March,

we moved the threshold for the payment of the post-secondary health and

education tax from $120,000 minimum payroll per year to $150,000. In order to

accommodate that upward adjustment in the threshold level we need to put this

amendment through the House.

It is simply an issue of housekeeping. The new threshold has

the affect of removing several hundred small businesses from the responsibility

and obligation of having to access and remit the particular tax in question,

which is a positive thing. It has been well received by the business community,

the Board of Trade and those groups. We think it is a good thing to do.

There is a lot of debate and discussion about this particular

tax. While we, as government, are in no position to, obviously, indicate that

this tax will not be with us for some time, we are doing our best efforts to

raise the threshold level against which remittances have to be assessed and made

to a point where it is having less and less impact on small businesses.

I guess I do not move second reading until the Opposition has

had a chance to speak to it. Those are the guts of the bill. I am pleased to be

able to present it for discussion in the House on behalf of the Minister of

Finance who is not here today.

MR. SPEAKER: The hon. the Member for Waterford Valley.

MR. H. HODDER: Thank you, Mr. Speaker.

Certainly, on this side of the House, we support the general

thrust. We had hoped the minister and the government would have seen fit to

eliminate the payroll tax altogether. The aim of the government, as announced a

few days ago by the Minister of Finance, is that that is the objective. We had

hoped that it could have been achieved.

I cannot help but note the title of this particular act. It

is called, "An Act To Amend The Health And Post-Secondary Education Tax Act."

That title seems to camouflage the real reason. This is a payroll tax, a tax on

jobs, a tax that stifles the investment incentive that businessmen have,

particularly small business people.

As well, we note that the rate as announced in the Budget,

the amount has changed from $120,000 to $150,000. That again is good news. We

note as well that this bill, in effect, I say to the minister, is really

ratifying what has been existing for the last two years; because this particular

piece of legislation probably should have been amended last year but was not

because this particular amendment covers both 1998 and 1999. So, in essence, it

covers two years rather than one year. Of course, these changes were announced

in the 1998 Budget and they were amended in the 1999 Budget.

We on this side want to say that we look forward to the day

when this government will listen to what the Board of Trade is saying, listen to

what the Chamber of Commerce is saying, listen to what small businessmen are

saying, and see fit to be able to eliminate this tax altogether.

Mr. Speaker, just in case the minister thinks there has been

any change in the revenues to the Province, in essence these changes have been

made without any impact at all on the revenues to the Province because in

Exhibit II, the Estimated Provincial and Federal Revenues in the Budget, you

will note that the estimated revenue from this tax in 1998-1999 was $68.5

million. The estimated revenues for the year 1999-2000 is equally $68.5 million.

So, in essence, the ceiling has been raised from $120,000 of remuneration to

$150,000 of remuneration, and it has not cost the government one cent in terms

of revenue if you follow their budgetary figures.

This particular change has not been a big burden or a big

loss of revenue for the Province. It certainly means a lot to small business,

but it has not meant any decrease in revenues to the Province. One has to assume

that the increase in the businesses that have total remuneration packages in

excess of $150,000 are sufficiently healthy that they are able to, shall we say,

make up for the losses of revenue in the case of the people or companies who

have revenues under $150,000.

We say to the government as well that it is this kind of

taxation that has a great deal to do with driving business out of the Province.

It has an impact on job creation. Many small businesses say that they would be

prepared to expand if by expanding they would not end up putting themselves in a

position whereby they would have to pay extra taxes.

Mr. Speaker, this particular tax is a factor that prohibits

and discourages some small businesses from establishing in Newfoundland and

Labrador. It is a fact that this tax has no other equivalent tax in other parts

of Canada, so therefore it is a tax that is particular to Newfoundland and

Labrador and as such it certainly does not do much by way of encouraging

business to relocate here or those that are here to stay in Newfoundland and

Labrador in the future.

We on this side say, good to the government. We applaud them

for at least moving in the right direction. We just say to them that we look

forward to the day when this government will be able to eliminate the tax. We

have again given a commitment on our side, and it is part of our policy, that in

the life of the mandate that we will have in the near future that we give a

commitment to the business people of Newfoundland and Labrador that, over the

life of that mandate, we will eliminate the payroll tax. It is a tax that is

wrong, a tax that drives business away. We will reverse it.

In fact, it is a misnomer to call this tax anything connected

to a health and post-secondary education tax. This tax is nothing more than a

tax grab by the government, and has always been a tax grab by the government. It

was a tax that was thought up by the Clyde Wells administration. It never

existed during the PC administration.

We also have questions about whether or not this $68,500,000

is specifically targeted toward either health or education. We question it

because we see the cutbacks that have occurred to education funding, and

particularly post-secondary education. We know the health care budget has

increased, but there has never been any direct connection between paying this

tax and offering better health services, and it certainly has not resulted in

better educational services at the post-secondary level.

We on this side say that next year you should be looking to

eliminate it altogether. This is a second step in the right direction but, on

the other hand, it should never, ever have been introduced at all in the first

place.

Thank you very much, Mr. Speaker.

MR. SPEAKER: The hon. the Minister of Municipal and

Provincial Affairs. If he speaks now we will close the debate.

MR. MATTHEWS: Thank you, Mr. Speaker.

It is interesting to hear the Opposition critic for finance

over on the other side talking about the elimination of the post-secondary

education and health tax, the payroll tax. I marvel at his logic.

I cannot help but, before I move second reading, make the

observation that on the one hand every tax that is involved, the hon. member

wants to eliminate. On the other hand, he is going to increase spending by

hundreds of millions of dollars are per his Blue Book platform. In the context

of all of that, he is going to increase services. It is very difficult to put it

all together.

SOME HON. MEMBERS: Oh, oh!

MR. MATTHEWS: I do not want to raise the level of debate

beyond where it is so, against great protestations, I move second reading.

On motion, a bill, "An Act To Amend The Health And

Post-Secondary Education Tax Act", read a second time, order referred to a

Committee of the Whole House on tomorrow. (Bill 5)

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

MR. TULK: Mr. Speaker, I am in dread of bringing in the

next one. I am afraid what the Minister of Municipal Affairs (inaudible) might

stir up, but I am going to call Order 7, Bill 14, "An Act Respecting

Municipalities".

Motion, second reading of a bill, "An Act Respecting

Municipalities". (Bill 14)

MR. SPEAKER: The hon. the Minister of Municipal and

Provincial Affairs.

MR. MATTHEWS: Thank you, Mr. Speaker.

This is probably not for everybody sitting in the House as

important a day as it is, in fact, for the members of the councils and municipal

governments around the Province, because today we are giving second reading or

introducing for second reading a bill in the House that is, in effect, a bill to

amend the Municipalities Act that governs the operation of every municipality in

the Province, with the exception of the three cities that operate under their

own pieces of legislation.

MR. EFFORD: And Port de Grave.

MR. MATTHEWS: And Port de Grave, that operates under no

legislation.

In effect, 287 towns and 175 local service districts in the

Province are governed by this piece of legislation. The legislation has been

developed over the past eight years of consultation between the major

stakeholders in the Province, that being: the towns themselves, the Federation

of Municipalities that represents them and their interests, the Association of

Municipal Administrators, who have been involved in the development of this

legislation, and in addition to that, the enormous amount of public opportunity

that was given for the public to have input into this particular bill.

I am more than heartened to refer to not only letters from

the Federation of Municipalities that speak to the timeliness of this bill and

the importance of it being passed through the House in this spring session so

that it can take effect for next January and that sort of support, but I am also

encouraged by the level of support that the general public seems to be giving

this bill, if judging by the editorial in The Telegram recently has any

validity and affect to it.

On May 21 the editorial board of The Telegram wrote

that this is in effect a piece of legislation that is long overdue and that

should be passed at the earliest possible opportunity so that towns can take

advantage of what is in it.

I think with the adoption or introduction of a bill of this

magnitude it is important that I highlight for the House some of the provisions

of this bill, because it is a fairly extensive and expansive revision of the

Municipalities Act. As a matter of fact, it is almost a complete rewrite of the

act, notwithstanding amendments that have gone through the House over the past

number of years to improve the ability of towns to deliver services to the

people who they serve.

There are five areas that are covered in this new

Municipalities Act. It deals extensively with the expansion of the tax base and

the latitude for imposing and collecting taxes that municipalities will have. It

allows for improved flexibility in the administrative and financial matters of

the town's operation. It clarifies certain statutory and procedural matters as

well as governance provisions. It is in effect a more user friendly act in terms

of how it is laid out and how it is worded so that it can be more easily

understood and applied by the municipalities. Of course, it provides new

authorities for the municipalities. As I said earlier, the stakeholders are

eagerly awaiting the introduction or adoption of this piece of legislation.

One of the reasons why we need to get this done as quickly as

we can, and why we have introduced it in the spring sitting, is so that upon

passage of this bill out of this session we will be able to move very quickly to

do a high level of in-servicing for town councillors, town clerks and others who

are affected by this act in their day-to-day business activities. We need to get

on with it so that we can do those things over the next several months

preparatory to January 1 being the actual implementation date of the amendments.

With respect to the scope of expanded tax imposition and

collection capabilities, the bill provides that, amongst other things, arrears

of poll taxes can be collected by way of payroll deduction. We have expanded

that provision to include not only current year's taxes, but also taxes that are

due further back than the current year's poll tax. Municipalities will no longer

be able to collect under this new act both a poll tax and a property tax from a

husband and wife who jointly own property in which they have tax obligations.

The provision of the current act as opposed to that does not allow for that

distinction, so a double taxation situation exist which must be corrected.

In addition to that I would highlight the fact that as of

July 1 each year, under the new act, there will be a deadline set whereby

taxpayers claiming an exemption from poll taxes will have to file a form in a

prescribed fashion. This will address the problem that municipalities currently

have with respect to people applying for exemption back over many years. There

will be a statutory limitation put on the exemption for poll taxes in that

regard.

The bill also contains a definition of what constitutes a

business. This provision, or the amendment in the new act, will allow

municipalities to be able to collect taxes from businesses which, while they may

not have a physical presence in a town, in fact do business in a town. At the

moment that is not possible, but under the new act the municipalities will be

able to find, source out, identify and tax businesses that, while they may not

have any presence, while they may not have any domicile in terms of address in

the town, nevertheless are doing business in the towns. They are selling their

services to the people who live in a municipality, but at the moment they are

escaping the levy of any type of a municipal tax. That will be corrected and

that tax base will be effectively expanded in the new bill.

The new bill also provides the ability for municipalities to

impose a direct sellers tax on sellers that are otherwise operating within a

town boundary, as well as businesses that are doing business in a more generic

fashion within a town boundary, and expand their tax base somewhat in that

regard. The bill provides new authority to regulate and to put those taxes on a

basis where they will be legally binding and therefore appropriately assessable

and collectible.

The act provides a number of other changes. The ones that I

will refer to now have to do mainly with administrative and management matters

with respect to town councils. The bill now provides that a manager can be

absent from a council meeting with council approval. Currently they are

required, by law, to be in attendance at council meetings. The current act

requires a manager, as a matter of fact, to attend all council meetings.

Sometimes that may not be necessary or may not be possible for various personal

circumstances. The new act clarifies that and gives the council latitude to

exempt a manager or a town clerk from being at a certain meeting if in fact it

is not necessary.

The new act allows the municipality to set, in a more relaxed

fashion, the terms of employment and the basis on which people can be employed

and/or dismissed as employees of the town. That is important, because currently

it is a very prescriptive regime. We believe that town clerks and other people

who are employed by towns should be able to be employed on a basis that is

suitable to and meets the needs of the town within which they are working.

These are important changes and these are changes that have

all been endorsed by the Federation, by the towns and by the administrators. My

colleagues here are anxious that I conclude this introduction, but having spoken

to this bill about ten days ago when we announced in the press conference we

were going to bring this forward, and having spoken to some of the provisions in

the bill in the Estimates Committee that was held recently with respect to the

estimates of my department, it became clear to me that this is an important

piece of legislation, for purposes of the Opposition, and they might want to

debate and discuss some of these provisions.

There are about thirty other new provisions in the act that

affect how towns will operate or be able to operate in the future. I don't want

to take the time, because I don't have the time at this point, to outline all of

these. Let me say this. The changes are all important, they are all significant

and they all together will culminate and have the accumulative affect of

providing a better circumstance for town councils and for those who work for

councils in running their affairs.

I would like at this time to say no more in terms of

introducing the bill, other than to say to the members on the other side of the

House that if there are specific questions or concerns with respect to any

amendments that this act contains, I would be happy to answer them at the

conclusion of the debate when we move second reading.

Thank you, Mr. Speaker.

MR. SPEAKER (Oldford): The hon. the Member for Cape St.

Francis.

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

AN HON. MEMBER: Oh, oh!

MR. J. BYRNE: It will be the first time you answered all

the questions, I say to the Government House Leader.

Mr. Speaker, this piece of legislation, Bill 14, "An Act

Respecting Municipalities", is a long time coming, some eight years in the

making. There has been a lot of consultation going on with the municipalities.

One of the better things, I suppose, with respect to this

piece of legislation, and it was actually in the news release from the

Newfoundland and Labrador Federation of Municipalities, is that it has produced

a very user-friendly act.

We all know that in municipalities and towns across this

Province there are all types of individuals getting elected, with varying

degrees of intelligence, with varying degrees of education and what have you,

and the previous Municipalities Act was a very difficult piece of legislation to

follow, and very confusing.

Oftentimes we saw members of councils in a conflict of

interest and they really did not know they were in a conflict of interest. I

have had concerns, calls from my district, from municipalities, where people

were wondering if such and such is in a conflict of interest, and even

councillors themselves and mayors. This piece of legislation should help clarify

that. I will get back to that later on in my comments with respect to this piece

of legislation.

The minister says there is a bit of a rush now to get this

piece of legislation through and get it passed through the House of Assembly. I

think we on this side of the House wou

Document details

CollectionNewfoundland and Labrador — Debates (Hansard)
Citation1999-05-25
Typehansard
Volume / chapter1999-05-25
Languageen
Formathtm
SourcePROVINCIAL
Identifiere044f47711a3292e268841712ebd3d8367b4d47a

Source file is stored in the law ingest library (htm).