Volume XL Thursday Province of Newfoundland FORTIETH GENERAL ASSEMBLY OF NEWFOUNDLAND Fourth Session VERBATIM REPORT .{Hansard) Speaker: Honourable P.J. McNicholas Number 1 10 March 1988

The House met at 3:00 p.m. MR. SPEAKER (McNicholas): Order, please! SERGEANT-AT-ARMS: Mr. Speaker, I have the honour to inform you His Honour the Lieutenant-Governor has just arrived to open the Fourth Session of the Fortieth General Assembly of Newfoundland. MR. SPEAKER: Admit His Honour Lieutenant-Governor. HON. JAMES A. McGRATH (Lieutenant-Governor): I.THE MONARCHY the Mr. Speaker and Members of the Honourable House of Assembly: The Province of Newfoundland has an old and tremendously rich history.

It has been many things, fishing station, settlement, colony, nation and province, but throughout it has never waivered from a loyalty to and affection "for the Crown that has no equal. I sit here today as the representative of Her Majesty the Queen; as an active participant in the Constitutional Monarchy by which we are governed. This loyalty of Newfoundlanders and Labradorians to the Monarchy is both institutional and personal. No other people have a greater love of the Queen nor a higher appreciation of the role of the Crown in our democracy.

It is with great pleasu~e that we anticipate a visit by a member of the Royal Family in this year, the one hundredth anniversary of Municipal Government in Newfoundland and Labrador. Ll March 10, 1988 Vol XL II. THE COUNTRY - CONSTITUTION Mr. Speaker and Members of the Honourable House of Assembly: In the past year the Nation of Canada engaged in a process of . constitutional reform leading up to the Constitutional Amendment of 1987, known in popular parlance as The Meech Lake Accord.

This Accord completes the 1982 constitutional process and allows Quebec to become once again a full participant in the Constitution of Canada, possessed of all privileges, and duties, that our Constitution brings. Recognizing the principle of equality of all Provinces and affirming a balanced federation with strong Federal and Provincial Governments, the Accord, beyond its unifying measures, holds much specific promise for the people of this Province. annual There is First Conferences provision for Ministers' with the to deal Economy and Constitution.

Included on the agenda of the next constitutional round is THE FISHERY - Roles and Responsibilities. My Government is pleased that all first ministers agreed that this subject was worthy of constitutional discussion. The Accord has bestowed upon Provinces, for the first time, the formal right to participate in the process of judicial appointments to the Supreme Court of Canada and the Senate.

I am pleased that My Government has already been able to utilize this process, to nominate a list of candidates to the Senate of Canada, from which came the appointment of the Honourable Gerald Ryan Ottenheimer, whose service to this House and to the people of our No. 1 R1

Province, had few equals. There are key changes to the constitutional amending formula that require the consent of all provinces for certain fundamental amendments, reflecting the principle of equality of all provinces. There is recognition that in the usage of the federal spending power by the Government of Canada to promote national objectives, there must be a sufficient role for the provinces to ensure that such objectives are implemented in a manner responsive and sensitive to provincial needs.

This Accord succeeds in healing the divided nature of Canada following the 1982 reforms and My Ministers are committed to implementing its procedures by means of the Requisite Resolution in this session of this Honourable House. It will be the first legislative action My Government will take in this Session. III. FREE TRADE Mr.

Speaker and Members of the Honourable House of Assembly: Another major achievement at the national level which shall prove of a great benefit to the people of our Province was reached on January 2nd this year by the signing of The Canada - United States Free Trade Agreement by Prime Minister Brian Mulroney and President Ronald Reagan. This historic treaty crowns months of negotiations, which included extensive consultation and participation at all levels by My Government.

Most Newfoundlanders. and Labradorians ·support this Agreement in light of our historic need to ensure markets for our export dominated economy, as well as the benefits of less expensive consumer goods. L2 March 10, 1988 Vol XL My Government expects that the Free Trade Agreement wi 11 improve the climate of investment in Newfoundland and Labrador by firms which hope to serve the entire North American market. Without doubt, however, the single most important - part of the Agreement is the market security that it grants us in the country to which the majority of our produced goods are sold.

All of our export products, fish, oil and gas, forest products, minerals, and hydro will benefit as a result of the Agreement. IV. JOBS Mr. Speaker and Members of the Honourable House of Assembly: The task which has occupied My Ministers more than any other has been the creation of employment for our people. The results that they have achieved are dramatic and consistent. During the past three! years, employment in Newfound land and Labrador has increased by at least 10,000 jobs on a monthly average basis.

These gains, resulting from the strong economic pet'formance of the Province, have reduced the unemployment rate by 2. 7'1. points ovet' this period. Indeed, the decline in the past year of 1. 4'1. was the largest absolute decline recorded fot' any Canadian Province. No single geographical area benefitted exclusively from the creation of these jobs, which were distributed tht'oughout our Province, benefitting both male and female workers. Mr. Speaker and Members of the Honourable House of Assembly: The creation of these jobs is due in no small measuL·e to the economic development policies that No. 1 R2

have been pursued in a clear and consistent manner. My Government's Economic Development - Job Strategy Policy is firmly based on a number of principles: 1. Resource Based Industries My Government has been emphasizing our traditional resource based industries of fishery, forestry and mining and attempting more secondary processing of products from these industries whenever possible. A number of dramatic success stories in pursuit of this goal have been achieved. In 1987 Fishery Products International Ltd. was successfully returned to the private sector.

Since 1985 this giant corporation has been immensely profitable returning close to fifty million dollars to the Province as a result of the Privatization Program. The doom and gloom that pervaded the offshore fishing industry just a few years ago has been replaced by a restructured offshore fishery that is dynamic and forward looking. Many fish plants have been upgraded all around the Province and a new modern trawler fleet is being constructed at Marystown. The company is engaged in aggressive marketing of its product lines and diversification into secondary processing markets.

My Government recognized that the revitalization of the offshore fishery, important as it is to our economy, was by itself insufficient. Consequently, My Government insisted as a condition to the restructured offshore fishery that new and innovative actions must be pursued in the Inshore Fishery. The new . sixty million dollar Inshore Fishery L3 Karch 10, 1988 Vol XL Agreement with the Federal Government is the result of this action. This Agreement will improve and expand our basic inshore infrastructure, provide money to improve fish quality, and provide money to increase fishermen's harvesting capability.

A third fishery policy component of our has been the introduction of the middle distance fleet. When first announced there were many who were critical of this new program. However, the results of this initiative have been very encouraging providing increased volumes of fish to our inshore plants while introducing another technology to the industry. My Government is pleased with the progress made and is pleased to announce that it will be reviewing further expanding our capability in this area of th~ fishery.

My Government's fourth initiative in the fishery has been launching a full range of programs in aquaculture. In the last Session of this House a new Aquaculture Act was passed. In the last few weeks a Memorandum of Understanding was signed My Government and the between Federal Government. With these two areas now in place My Government will proceed aggressively to expand our Province's aquaculture capability. Several areas of the Province have already benefitted from My Government's actions in this field.

Underlying these four policy directions in the fishery is My Government's unwaivering commitment to sound management of our fish stocks. Recent actions by France and other Canadian provinces to access additional qualities of our fish stocks No. 1 R3

starkly demonstrates our vulnerability - a lesson that history continues to teach us. My Government will continue its efforts to protect this valuable resource for our people and will this year be presenting to all the Governments of Canada its position on this vital area in the next round of Constitutional discussions. Mr. Speaker and Members of the Honourable House of Assembly: This past year has been a successful one for our mining and mineral sector.

A great deal of money has been spent on exploration and development work for future mine operations and stability has returned to the iron ore mines in Wabush and Labrador City. The Cinq Cerf Brook Gold Mine on the South Coast of the island portion of our Province, · was developed by Hope Brook Gold Incorporated · with provincial assistance. This operation is employing 325 people during the construction phase, and will have permanent workforce of 280 jobs upon completion, anticipated by November 1988. The St. Lawrence Fluorspar Mines have been re-activated by St.

Lawrence Fluorspar Limited with provincial assistance. This mine, now in production, employs 90 people in the St. Lawrence area, and will finally employ 100. At Baie Verte the asbestos mine has been re-activated by Baie Verte Mines Incorporated with provincial assistance. This operation presently employs almost 400 people, engaged in both re-development and mining operations, and after · the L4 March 10, 1988 Vol XL conclusion of the major Removal Program, employment stabilize at approximately people.

Waste will 230 At Daniel's Harbour the zinc mine has been reopened by Daniel Harbour Mines Incorporated with provincial assistanee. This mine employs 150 people. At Port au Port, a new limestone mine will be opened by year's end by Newfoundland Resources and Mining Company without provincial assistance, and create 35 jobs. My Government beli,eves that this coming year will be another record year in the mineral exploration field and is optimistic that the ore deposits recently discovered at Tally Pond will see commercial production. Mr.

Speaker and Members of the Honourable House of Assembly: The forest industry in Newfoundland and Labrador performed extremely well in 1987 with newsprint demand and prices at record highs. As a result of the modernization programs at Grand Falls and Corner Brook, to which My Government contributed substantially, Newfoundland mills are producing top quality products competing successfully in the most demanding and lucrative markets.

My Government takes considerable pride to see the confidence and optimism that now exists in the communities depending upon the newsprint industry, especially considering the precarious position of operations in certain areas only a few short years ago. Government is determined to continue its work to ensure a strong future for the forest No. 1 R4

;~ industry. In 1987, twelve million new trees were planted in this Province, about half as many as had been planted in the previous ten years, with hundreds of jobs created in thinning and other forest work. In 1988, a similar number of trees will be planted. It is our duty to protect this vital inheritance for the generations that follow from fire, insects and other threats. While 1987 was a very dry season, with nearly 300 fire starts, losses were kept to a minimum because of quick attack capability as our enhanced water bomber fleet was strategically stationed around the Province. 2.DIVERSIFICATION Mr.

Speaker and Members of the Honourable House of Assembly: The second . principle which underlies our Economic Development Job Strategy is the diversification of our economy whenever feasible to do so. The revitalization of the Come by Chance Refinery is a classic example of this policy. Since the Come by Chance Oil Refinery was acquired by Newfoundland Energy Limited in November 1986, privately financed refurbishing has been substantially completed, and the flame over the refinery relit for the first time in years.

At full capacity, in 1988, the refinery will employ 200 persons and process 100,000 barrels of crude oil per day. This undertaking, perhaps -more than any other, symbolizes the turnaround in the economy of Newfoundland and Labrador. My Government is proud of this LS March 10, 1988 Vol XL achievement, given the troubled past and that the facility was about to be demolished days before My Government attracted new investors. My Government is in active discussions with the owners in an attempt to ensure the maximum utilization of the facility and its products so more new jobs can be created. Kr.

Speaker and Members of the Honourable House of Assembly: A second example of this policy of diversification is in enviroponics. In the past year a new and innovative enterprise has come to our Province with the development of the Sprung Enviroponics facility. Recognizing the potential for market growth in this Province and elsewhere, and with an appropriate level of Provincial" Government participation for less per job than other government investments, this dramatic application of biological technology leads the way into a new era for our agricultural sector.

While we have seen the potential for aquaculture and other enhanced production systems, this is a first for our Province, and will provide 150 permanent jobs to our economy. At the outset this project was viewed with great skepticism in some quarters. While these skeptics viewed Government involvements in our traditional industries of fishingJ forestry, mining and the service sector both large and small, acceptable, they did not approve of such involvement by Government in a new innovative technology, which both put this Province at the leading No. 1 RS

edge of a new technology and creates new permanent jobs, as appropriate action by Government. The project has now begun to produce and our people are purchasing these fresh wholesome products with enthusiasm. My Government believes that this project will prove its viability in the next few months and will join with Kruger, Come by Chance, FPI, Hope Brook Mines, and others as a major economic success story in addition to the technology transfer and research opportunities it is providing to our people.

My Government is eager to see expansion in this area - to create new jobs around our Province and to give our young people another opportunity so that they will remain in our Province and assist in its development. My Government is eager to pursue with the Sprung Group other products that can be developed using this new technology and other areas, like forestry, that may benefit from its application. A third exciting example of My Government's diversification efforts has been its suppor~ of Terra Nova Shoes Limited of Harbour Grace.

This company made an important decision in 1987 that is somewhat unique in recent Canadian economic history. The company wished to expand its manufacturing capacity and chose to expand its Harbour Grace facility over expansion of its facility in an Ontario location. My Government supported this decision and with some financial support the expansion is near completion with new jobs being created. 3 • LABRADOR HYDRO POWER AND OTHER LABRADOR RESOURCES L6 Karch 10, 1988 Vol XL Mr.

Speaker and Members of the Honourable House of Assembly: My Government' :s third economic development job strategy is the use of Labrador Power. The key to both providing stable electrical rates to all our people and further Labrador and Provincial Development and Provincial Job Creation is Labrador Hydro Power Development. My Government has been unceasing in its efforts to correct the Upper Churchill inequity and develop other sites on the Churchill River. As is well known, all our efforts to date have not seen a change to the situation. My Government is moving on two fronts to try and see development occur:

(1) We are working ,..,ith the Federal Government and Quebec at the highest level to see whether solutions can be found with Quebec.

(2) We are continuing our efforts to attract industry which would be a catalyst so that the hydro potential of the Lower Churchill River may be developed. 4.0ffshore Resources Mr. Speaker and Members of the Honourable House of Assembly: The fourth lever· of My Government's Economic Development Job Strategy Policy is the rational development of our offshore resources. My Government is continuing its efforts in concert with the Federal Government and the oil companies to negotiate an Agreement for the development of the Hibernia Field. The uncertainty of world oil prices has been the single most important factor that has delayed an Agreement to date. We No. 1 R6

will do all that is possible to have this matter resolved before June of this year. My Government is encouraged by the recent developments at the Terra Nova and Whiterose Oilfields and indications point to ongoing positive exploration results. Petro Canada will be awarding pre-engineering work for the development of the Terra Nova Field next month. 5 . CONSULTATION - ROYAL COMMISSION' Mr. Speaker and Members of the Honourable House of Assembly: A fifth action in the Job Creation - Economic Strategy was to obtain the views of our people. As a result, the House Royal Commission was established.

Its report has been exhaustively studied by My Government and responses provided on a department by department basis. It is the intention of My Government to table in this House an overview comprehensive response in the next few weeks. My Government accepts the underlying theme of a balanced approach to our development and has been pursuing this goal for a number of years as is evidenced by the initiatives already mentioned in this Speech.

My Government believes, however, that there are two large areas mentioned by the Commission that are critical to our development, Education and Training/Research and Development and Small Business/Entrepreneurial Action. These two areas form the sixth and seventh policy directions of My Government. 6.EDUCATION AND TRAINING/RESEARCH AND DEVELOPMENT Mr. Speaker and Members of the L7 Karch 10, 1988 Vol XL Honourable House of Assembly: In the last several years My Government has spent hundreds of millions of dollars upgrading our educational infrastructure and providing improved wages to our teachers.

It is a fact that as our student population has gone down our student-teacher ratio has improved. In addition, My Government has reorganized the high school system at considerable cost. Consistent with the House Royal Commission My Government launched a program of restructuring the post secondary vocational school system to a community college system and the identification of three provincial institutes.

This dramatic change at the post secondary level which is now well underway is intended to ensure that our Province responds to the latest technological advances and provides our young people with education and training which is responsive to the needs of our ever changing society, that is relevant and provides the best chance to obtain meaningful employment. The physical achievements in education and training are impressive.

(1) Hundreds of new schools

(2) The new Institute of Fisheries and Marine Technology

(3) The Institute establishment of the of Marine Dynamics at Memorial University

(4) The new Music School Building at Memorial University

(5) The new Pharmacy School at Memorial University

(6) The new Fine Arts School at the Sir Wilfred Grenfell Campus at Mo. · 1 R7

Memorial University in Corner Brook

(7) The new Earth Resources Building at Memorial University

(8) The new Marine Emergency Training Building operated by the Marine Institute

(9) A new library at Memorial University . These actions, coupled with the reorganized high school and the new Community College System, demonstrate My Government's commitment to education and training. However, My Government is still not satisfied. Last year in My Speech to you My Government called for a study on teacher training in our Province. That study is well underway and My Government looks forward to the recommendations that will result. In My Government's continuing review of education and training a number of distrubing trends have been revealed.

In spite of the many and varied actions I have listed today that have been undertaken, My Government has discovered from discussions with our post secondary institutions that the failure rate of our high school graduates in first year mathematics and science has increased to alarming proportions. In one institution the failure rate in mathematics has almost tripled from 1972 to 1987. Statistics reveal ·that one third to one half of all our high school graduates fail in mathematics and science in first year courses at our post secondary institutions.

It will be impossible to advance our development and pursue excellence through research and development if these trends are not reversed. L8 March 10, 1988 Vol XL My Government will immediately establish a Task Force to indentify the causes of this critical problem and it will be empowered to make recommendations as soon as possible of ways to correct and reverse this disturbing trend. Mr. Speaker and Members of The Honourable House of Assembly: The financing of our total education system has always been a priority of My Government.

In the past few years it has been at the secondary and post secondary levels that major structural changes have occurred which have also involved large sums of money. Yet, at the same time, significant new money has been spent in elementary and secondary education. In 1971-72 approximately $72 million was spent. In 1986-87 that amount had risen to $416 million. To put it another way, the per pupil cost has risen from $460 to $3,273 from 1971-72 to 1986-87. Teachers' salaries and benefits have risen in that period of time from $46.4 million to over $300 million or a 5361.. increase.

To further assist the financing of our basic education system, My Government has in recent yeat·s introduced addi tiona! measures to assist school boards. For example, a tax equalization grant was put into effect to help some of our less fortunate boards. This plan has met with favour by all our educators and requests are being made to further enrich this plan. Additional teachers have been provided for small schools and districts as well as to assist boards facing high declines in enrollment. These and other such programs have assisted our school boards to cope with the financial No. 1 R8

realities which they face. Yet, because of the rural nature of much of our Province, which leads to wide disparities in the prosperity of one region as opposed to another, the financing problem still exists. This has been exacerbated by declining enrollments over many years. My Government realizes that declining enrollment does not mean declining costs to administer our school system. Statistics show .the opposite is true. Recognizing this, a full review of financing the operation of our elementary and secondary education system will be undertaken to seek ways to make the system more equitable.

This undertaking will require the participation of all those involved and it is hoped that it can ne completed this year. Sweeping changes are being made to our post secondary education system and they will continue. However, My Government believes that we must be ever mindful of the total formal education process from preschool to the university graduate, post graduate level. Without a strong and dynamic foundation in our pc-imary, elementary and secondary level, the post secondary level, regardless of the amount of money spent, cannot be successful and lead to a more prosperous and happy society.

Because of the present study on teacher training and the other studies announced today and because we wish to assess the first year university program presently being offered at Lewisporte and Grand Fa lls, My Government will defer any expansion of first year university to other centres until the present studies are completed. My Government wishes to continue this expansion but it must be confident L9 March 10, 1988 Vol XL that our basic foundation of the day school system is heal thy and strong. Mr.

Speaker and Members of The Honourable House of Assembly: Hand in hand with education and training goes research and development, science and technology. My Government has pursued a centre of excellence policy over the last several years which has seen the proliferation of agencies both public and private especially in ocean science. The Institute of Marine Dynamics, C-Core and NORDCO are examples of the results of this policy. My Government is eager to continue this thrust. A special cabinet committee has been formed to oversee this vital area of policy making.

Through the Offshore Development Fund a new Science Advisory Council will be formed to advise Government on all Research and Development/Science and Technology matters. My Government will be seeking advice on appropriate co-ordination between various agencies and to establish priorities for all Research and Development/Science and Technology efforts in the Province. The composition of this Council will be announced in the next week.

My Government is convinced that our Province must move decisively in this field and that we must pursue areas of excellence that are both appropriate and natural and that are of a world class stature. My Government welcomes the Federal Government's recent announcement on Science and Technology and i.s determined to ensure that our Province receives its fair share of National Programs in this field. In this regard, the role of the New Science and Technology Council will be invaluable. No. 1 R9

7.SMALL BUSINESS/ENTREPRENEURIAL DEVELOPMENT Mr. Speaker and Members of The Honourable House of Assembly: The seventh direction of our Economic Development - Job Strategy Policy is Small Business and Entrepreneurial Development. The House Royal Commission was of invaluable assistance to My Government in this regard. For several years support to our small businesses centered around our loan boards in the fishery, farming and rural development sectors. Beginning last year My Government began emphasizing the business side of these endeavours of whatever type for themselves.

Therefore My Government last year introduced several new initiatives: ( 1) Enlarging the mandate of the Rural Development Authority and increasing the maximum that can be borrowed.

(2) Greatly increasing the mandate of the Newfoundland and Labrador Development Corporation including Equity Financing, Youth Entrepreneurial Program, and the sale for the first time of Development Savings Bonds that were guaranteed by My Government.

(3) A Public Sector Employment Program in Fisheries, Tourism, Culture, Parks, Forestry and Aquaculture.

(4) A Government Private Sector Program that shared the wages of new jobs between both groups on a fifty/fifty basis. Two thousand jobs were thereby created. My Government is pleased to report that these programs were welcomed by our people and that job creation programs wiil be LlO March 10, 1988 Vol XL instituted again this year using the results of last year's success. My Government is especially pleased with the success of the Newfoundland and Labrador Development Corporation. Many enterprises have been assisted.

For example, assistance has been provided to the fur farming industry, secondary processing of our forestry resource, and high technology firms. The success of our Development Savings Bonds demonstrates that our people are ready and ·eager to invest in our own development. Mr.

Speaker and Members of The Honourable House of Assembly: To further cultivate this entrepreneurial spirit My Government will introduce as the second legislative action of this Session, a stock savings plan which will give our people an opportunity · to invest in local firms on the one hand and our local firms the much needed financial assistance to get their enterprise operating on a sound business footing.

Individuals investing in local firms will be eligible to deduct for income tax purposes the investment they have made up to a prescribed amount and local firms will be assisted i.n preparing their business plans so that investors will know the nature and level of risk involved in the various enterprises. To Commission - quote the Royal "It is mainly through the self help efforts of thousands of Newfoundlanders in hundreds of communities that new initiatives can be taken and new jobs created". My Government believes that No. 1 R10

a clearly defined integrated approach to small business development - rural development must be pursued. There is still a need for the Federal/Provincial Subsidiary Agreement to provide the fundamental infrastructure that is taken for granted in many other parts of the country. My Government is optimistic that it will conclude agreements with the Federal Government in Agriculture, Rural Development and Tourism in the near future. These ongoing agreements, however, must be harmonized with ongoing small business and rural development activities.

Additionally, with the new role of the Atlantic Canada Opportunities Agency, care must be taken to ensure that overlapping of programs from various agencies does not occur. Aware of this potential problem My Government established a Task Force last year to study all the various business support programs to recommend ways to streamline our provincial activities in concert with the new Federal Government Programs. The report of the Task Force has been received and Government will be acting upon its recommendations as soon as possible.

My Government believes that pursuit of these seven objectives of Economic Development - Job Strategy is consistent with the House Royal Commission and other recommendations that have been received from the Economic Council of Newfoundland and Labrador. Mr.

Speaker and Members of the Honourable House of Assembly: My Government has always been extremely sensitive to the need for honesty and integrity in Government and for politicians and ·Lll March 10, 1988 Vol XL public servants to high standard of morality. exemplify a conduct and The first conflict of interest legislation in this Province's history was introduced in 1973 and strengthened in 1982 through amendments to the Act and the issuance of regulations and guidelines governing the conduct of ministers and public servants in their official duties.

Further amendments to those regulations in 1984 served to clarify and reinforce the prohibitions of the earlier rules. There has now been 14 years experience with . conflict of interest legislation, and the issue of honesty and integrity in Government is as important today as it was 14 years ago. Recent revelations on the national and international scene affirm the imperative that our politicians and public servants be seen and recognized as adhering to the highest ethical standards of behaviour.

Accordingly, My Government is now embarking on a two-tiered program to ensure that conflict of interest legislation is enforced fairly and equitably and to see if there are ways it can be further improved. In recent weeks, the first phase of this review was announced consisting of the establishment of a conflict of interest tribunal to review administrative decisions relating to conflict of interest situations of public employees. This will ensure that the highest standards are uniformly applied to those who serve the public of Newfoundland and Labrador.

An internal appointed No. 1 committee to review has the Act been and Rll

the legislation pertaining to public servants and to reconunend necessary legislative or regulatory changes. The second phase of the program is a review of the Act as it relates to all members of the House of Assembly, both Government and Opposition. To effect this, I am announcing the appointment of a tribunal to advise Government on all situations which may involve conflict of interest on the part of Ministers.

This tribunal will be asked to review the Conflict of Interest Rules as they pertain to Ministers to ensure they are as comprehensive and effective as is possible, to reflect the expectations of our citizenry. The tribunal will also review the entire Conflict of Interest Act as it relates to members of the House of Assembly. The basis of the Conflict of Interest Legislation is disclosure of a member's interests that pose real or potential conflict of interest.

My Government will implement the advice of the tribunal on measures whereby full disclosure of all interest is required, without leaving the determination of the existence of a conflict up to the individual involved. No excessively legalistic exceptions will be permitted not in keeping with the fundamental premise of the legislation.

My Administration is fully dedicated to the highest standards of conduct in Government and is asking these two tribunals to review our Conflict of Interest Legislation and the associated guidelines to ensure that politicians and public servants adhere to, and are seen to adhere to, the highest ethical standards. Ll2 March 10, 1988 Vol XL V.LEGISLATIOIJ Mr. Speaker and Members of the Honourable House of Assembly: This Session of the Honourable House will prove to be a very busy one.

You will be asked to grant supply and My Government will be introducing a large munber of amendments to existing acts and introducing new legislation. My Government will, in the opening weeks of this session, provide a listing of the measures that wi 11 be introduced. Almost every Department of Government is involved in these measures, but I am pleased to single out a major reform in the field of Family Law and Family Matrimonial Orders. My Government continues to recognize the importance of improved Family Law.

Several years ago, The Matrimonial Property Act was introduced and provided for an equitablE! sharing of matrimonial property. Continuing social change and contemporary circumstances place a responsibility on the Government to now address other areas of Family Law within the jurisdiction of the Province.

In continuing our initiatives towards human betterment, and mindful of the principles of the Charter of Rights and Freedoms, My Government will be introducing legislation addressing such issues as family support obligations, domestic contracts, status of children, custody, access, guardianship and automatic maintenance enforcement. Most importantly, My Government recognizes the1 growing problem, and regretful social consequences, associated with the alarming number of debtor spouses failing to fulfill their No. 1 R12

obligations under court-issued family support orders. Government has an interest in ensuring that families receive a stable level of economic support, and a further duty to ensure that court orders, especially those concerning children, are enforced. Family support orders being ignored may also eventually lead to disrespect for the administration of justice. My Government will therefore be introducing legislation to provide for the establishment of a Province-wide Automatic Maintenance Enforcement Program.

Complemented by Federal Funding for Systems Development, the Maintenance Enforcement Program under this new legislation will provide for improved collection remedies and related penalties where there is an ability to pay. My Government believes that . it has an obligation to ensure that beneficiaries of family support orders receive the economic support to which they are entitled. Mr.

Speaker and Members of the Honourable House of Assembly: The commitment of My Government to enrichment of individual and community life in our Province has been evident during the past year in the support given to a program which I was privileged to initiate - the Lieutenant-Governor's Institute on Family Life.

The founding conference of this organization was held in October past, and brought together acknowledged international authorities with representatives of church, social agencies, government departments, and concerned citizens from all regions of Newfoundland and Labrador to identify and examine L13 March 10, 1988 Vol XL the issues which impact on the modern family. It gives me great personal pleasure to report that the Family Life Institute is now fully operational, with a distinguished provincial board of directors and a professional staff complement supported by My Government.

This institute will play an important role in our future as a Province. As it will meet existing needs for new research into family life issues, development of a body of knowledge pertaining to family living in Newfoundland and Labrador, and co-ordination of organized programs to protect and enhance the fabric of society. VI.CONCLUSION Mr. Speaker and Members of the Honourable House of Assembly: The basic themes of My Government's policies are inextricably linked in a vision of Newfoundland and Labrador that we all must share.

It is a vision in which the whole of our people have equal access to the material, intellectual and spiritual benefits which our culture can provide. These benefits can only be made available when our people have meaningful employment and this will not be achieved without great effort and dedication. It is through the application of research and technology to our workplace, and the provision of the best available education to our people, that we will seize the necessary tools to forge ahead, and to ensure for ourselves and our children that the vision we hold is a true one.

There is no more arduous task, nor one of great worth. I invoke God's blessing upon you as you commence your No. 1 R13

labours in this Fourth Session of the Fortieth General Assembly. May Divine Providence guide you in your deliberations. 0 0 0 Motion, the han. the President of the Council to introduce a bill, "An Act Respecting The Observance Of Rememberance Day," carried. On motion, "An Act Respecting The Observance Of Rememberance Day", read a first time, ordered read a second time on tomorrow. MR. SPEAKER: His Honour has been pleased to make a speech to members and I have obtained copies for greater accuracy. I would ask the Pages to distribute the copies now. MR. REID .: Mr. Speaker. SOME HON. MEMBERS: Hear, hear! MR.

SPEAKER: The hon. the member for Trinity - Bay de Verde. MR. REID: Mr. Speaker, it is my honour and privilege today to move that a committee of this bon. House be appointed to draft an address in reply to the very gracious Speech from the Thone. I would like to begin my brief remarks today by congratulating the han. Leader of the Opposition (Mr. Wells), the new M.H.A. for Windsor - Buchans, on his election victory of December past. SOME HON. MEMBERS: Hear, hear! Ll4 March 10, 1988 Vol XL MR. REID: I would like to welcome him back to this hon.

House and I certainly trust that his stay as Opposition Leader will be a long and productive one. I do hope that both his style and his substance will add to the level of debate in this hon. House. Mr. Speaker, it is a pleasure as well to congratulate the newly elected member for Waterford Kenmount. SOME HON. MEMBERS: Hear, hear! MR. REID: I look forward this session of Assembly. to his the input House in of Mr . Speaker, I have the great pleasure alpo to welcome the M.H.A. for Bellevue (Mr. Callan) to the Peckford team. SOME HON. MEMBERS: Hear, hear! MR.

REID: I feel sure that his stay on this side of the House wi 11 be a long and happy one. Also, at this time, Mr. Speaker, I would like to pay a special tribute to the former longstanding member for Waterford - Kenmount, the honourable Gerald Ottenheimer. SOME HON. MEMBERS: Hear, hear! MR. REID: All members I am sure will agree he has served his Province and country with great distinction. Mr. Speaker, while this House has lost the intelligent input of this truly great parliamentarian, I feel sure that his exper ience and No. 1 Rl4

expertise will be welcomed by the Canadian Senate. I certainly wish Senator Ottenheimer well in his new position and I want to express my own personal appreciation for his service to this Province and our government. I also want to congratulate His Honour on his excellent present~tion today. Mr. Speaker, this is indeed a proud moment for myself and my family. I have been honoured to represent the historic and proud District of Trinity - Bay de Verde and I want to thank my constituents for their constant encouragement and support.

As bon. members may know, many of the communities in my district date from the earliest years of our discovery and settlement. Centers such as Old Perlican and Heart's Delight at one time rivalled St. John's in their terms of trade and population growth. Many of the headstones in our area are the oldest in Canada and the links with the founding countries of England and Ireland are preserved to this day in speech, folklore, and material artifacts.

The community of Heart's Content was the terminal site of the first Trans-Atlantic cable and the station, preserved as an historic site, is a reminder of this pioneering step in communications. Mr. Speaker, the prosperity of each community in Trinity - Bay de Verde district is directly linked to ·our fishing industry.

Our fishery is the very reason for our existence and our people have looked to the bountiful waters of Trinity Bay for centuries to provide their livelihoods, from Dildo and New Harbour at onE'! end, to Grate's Cove and Bay de Verde LlS March 10, 1988 Vol XL at the extreme · Northeast tip of the Avalon Peninsula. Mr. Speaker, Trinity Bay has been recognized throughout our long history as one of Newfoundland's must lucrative fishing areas.

The waters around Bacealieu Island have historically yielded astounding catch levels, and at one point the community of Bay de Verde boasted one of the largest inshore fleets in the Province. Against this backdrop, our present day catch levels pale by comparison. Less fish and smaller fish are now the rule and as the fishery goes, so goes the prosperity of each community in my district. Mr. Speaker, it has been a real struggle for many of our fishermen, whom I rank second to none in the world. Without raw material from outside the district, our fish plants would be hard pressed to succeed.

One could hardly believe that this could be the case in a region boasting· one of the greatest and richest fishing traditions in this Province. Mr. Speaker, I have heard many reasons given for the failure of our fishery, particulary over the past five years or so. Two or three years ago fisheries biologists studying fish migration patterns blamed cold water temperatures at the head of Trinity Bay. As temperatures warmed last year, no scientific rationale could be given for the very patchy showing throughout my district.

Notwithstanding the scientific studies, fishermen always looked to a perceived overfishing in the Northern cod stock by foreign and local deep sea fleets. While this may have been the case for too long, I do No. 1 R15

feel that our sound fisheries management in 2J+3KL and our decision to stick to our guns with respect to French access in this region will bring results for our fishermen. We will continue to press for extension of our 200-mile-limi t to cover the Nose and Tail sections of our continental shelf, where overfishing is an ongoing problem. In saying this, I want to commend the Premier and the Minister of Fisheries (Mr. Rideout) for their vigorous defense of our fishing industry. Mr.

Speaker, I wish to mention that it is a credit to our fish plant operators that they have continued to provide secure and stable employment for residents throughout Trinity - Bay de Verde district; the two Quinlan Brothers Plants, one in Old Perlican and one in Bay de Verde; the Quinsea Plant at Old Perlican; the P.

Janes & Sons Plant in Hant' s Harbour; Green Seafoods Limited at Winterton; Fred Woodman's and Ron Higdon's in New Harbour; also the smaller plants in Sibley's Cover operated by Earle Brothers and Trinity Bay Fisheries in Heart's Desire operated by Roy Cheeseman, all of which have contributed greatly to our region's economic growth. Mr. Speaker, one of the pressing needs in my district is the improvement of our roads. While much has been accomplished, much remains to be done. Mr. Speaker I have been very encouraged that a real start has been made in addressing the transportation needs in my district.

Construction is ongoing along the New Harbour Barrens area. Upgrading and paving is ongo~ng on the

section of road from Lead Cove L16 March 10, 1988 Vol XL to Brownsdale, as are improvements to the road from Hant's Harbour towards Lead Cove. Mr. Speaker, I will be continuing to lobby hard for improvements to a very important

section of road linking the community of Grate's Cove with the Bay de Verde highway, which is also in a very deplorable condition. The Minister of Transportation (Mr. Doyle) is aware of these priority areas and I am hopeful everything possible will be done within the financial circumstances confronting us. As in all districts, byroads are always in need of upgrading and paving. My district is no exception, as roads in New Harbour, Hopeall, Green's Harbour, Heart's Delight and Islington require attention, and, again, I will be working closely with the minister, who is fully aware of these problem areas. Mr.

Speaker, I often have felt that many of our roads were hastily constructed and in so doing we have really created problems. The Bay de Verde Highway is certainly a case in point, where inadequate road beds and pavement have simply been destroyed, thus requiring reconstruction at additional costs. I feel that this philosophy of paving for paving sake is a thing of the past and I would like to commend this administration for its initiatives in this area. Mr. Speaker, health care is another area that is basic to the residents of Trinity-Bay de Verde district.

Through the co-operative support of the former Minister of Health, the late Hon. Wallace House, the cottage hospital in Old Perlican, I am pleased to say, is continuing to No. 1 Rl6

serve the needs of my constituents well. I would like to indicate that the hospital was renamed the Dr. A.A. Wilkinson Memorial Hospital in memory of Dr. Wilkinson's longstanding service to the area, and I want to commend the present Minister of Public Works, the Hon. Dr. Hugh Twomey, who was present at the ceremony. I can assure my colleague that he made many friends during his visit and his efforts on behalf of my constituents are appreciated by all. I was also pleased to have played a role in the reorganizing of the Markland health service.

The Medical Clinic for that area is working well and many residents have indicated that it is, in fact, better serving the health care needs in the area. Mr. Speaker, my constituents are very fortunate to possess quality health care with the facilities in Whitbourne, Old Perlican and Carbonear. This administration has always placed a high priority on health care in our Province and most people who have needed medical attention, I feel sure, would praise our system as a caring and responsive one. Related to this is Government's increasing support of senior citizens' housing.

My district has made great strides in providing new facilities for our senior citizens, and no doubt there are many of these success stories throughout the Province. Mr. Speaker, I just want to briefly mention the growing need for expanded and improved recreation facilities. Many people in our urban centres take swimming pools, tennis courts and soccer fields for granted, as if everyone has the opportunity to partake in these enjoyable and competitive activities.

We have much catching up to do in L17 Karch 10, 1988 Vol XL Trinity-Bay de Verde district and our immediate goal is to secure funding for a ice stadium in Old Perlican to serve the Northeast Avalon region. I am very pleased with the level of support which I have received from my colleague, the Minister of Culture, Recreation and Youth (Mr. Butt) and I look forwarding to working with him to fulfill this long time dream for my district. Mr. Speaker. I would be remiss if I did not mention the need for increased funding for our schools. The Minister of Education (Mr.

Hearn) knows more than anyone that our rural schools, in terms of overall programs and services, are simply lagging behind our urban facilities. Whilst the solutions are complex, I want to commend the minister, who has worked tirelessly, not only for Trinity­ Bay de Verde district, but for every area of Newfoundland and Labrador. I realize that this Province's level of funding for education is considerable, given our size and tax base. We must, however, continue to find new initiatives and new sources of funding.

I am, therefore, especially pleased that the Throne Speech directly addressed this issue in a meaningful way, with the establishment of a review committee to seek ways to make our elementary and secondary education systems more equal. It is my hope also that this review can be completed this year and that some concrete solutions will be implemented to bridge the gap between urban and rural schools. Hr. Speaker, I have listened with great interest to the Gracious Throne Speech and I share its theme of optimism both short and long term. The course charted by No. 1 R17 '

this fruit government is bearing the of our labours. We have succeeded in strengthening our resource based industries and in diversifying our economy. We have created jobs and we remain committed to this goal through an enhanced educational environment and through innovative private sector programs. Mr. Speaker, we have done our homework well. Our success, however, did not happen overnight and, in closing, I want to say that when history is written, it will be our Premier, the Honourable A.

Brian Peckford, who will be credited with lifting the Province up by its bootstraps, so that the twenty-first century can be truly ours. SOME HON. MEMBERS: Hear, hear. MR. REID:. His vision became our vision, his courage became our courage and his confidence became our confidence. I have been proud to have been a part of his team which has stood firm, against whatever odds, to ensure that the torch passed to our children will be brighter than ever. Mr.

Speaker, as the member for Trinity-Bay de Verde district, I am proud and honoured to move that a committee of this Honourable House be appointed to draft an Address in Reply to the Gracious Speech from the Throne. SOME HON. MEMBERS: Hear, hear! MR. GREENING: Mr. Speaker. SOME HON. MEMBERS: Hear, hear! MR. SPEAKER: Ll8 March 10, 1988 Vol XL The han. the member for Terra Nova. MR. GREENING: Thank you, Mr. Speaker. Mr. Speaker, first of all, I want to join with my colleague in commending His Honour on an excellent delivery today of the Gracious Speech from the Throne.

I noted with pleasure the tremendous success of His Honour's efforts with respect to research and support of family life, and I want to congratulate Your Honour on the formal establishment of this important social programme. I am pleased that this g;overnment has afforded its assistance and I certainly want to wish His Honour continued success in this initiative and, indeed, in all endeavors.

As Your Honour mentioned, Newfoundlanders have a special loyalty to our Monarchy, and I was, therefore, especially pleased to hear of the scheduled visit this year by a member of the Royal Family to help us celebrate the 100th anniversary of municipal government in Newfoundland and Labrador. Mr. Speaker, it is an honour and privilege for me to second the motion so ably presented by my colleague, the han. member for Trinity - Bay de Verde. I too want to begin my brief remarks by welcoming the new Opposition Leader (Mr. Wells) back to his han. House.

I trust that the decorum and debate·in this Chamber will be elevated by his presence. Mr. Speaker, it is also a pleasure to welcome the M.H.A. for Bellevue district · (Mr. Callan) to our ranks, along with the newly elected member for Waterford Kenmount, Eric Gullage. This House has lost a distinguished parliamentarian in the person of the Han. Gerald R. Ottenheimer. No. 1 Rl8 '

.,. However, his intelligent opinion and experien~e will still be evident as he puts forward Newfoundland's interests in the Senate of Canada. Mr. Speaker, I entered political life in 1983 with the sincere desire to improve the quality of life in the Terra Nova district and in the Province as a whole. I can state without fear of contradiction that the intervening years have been ones of progress for my constituents and for the people of Newfoundland and Labrador.

The people of Terra Nova district placed their trust in me and I have worked hard to earn their ongoing encouragement, for deeply grateful. support which I and am Mr. Speaker, I have been pleased with the initiatives that have been undertaken in my district and I look forward to working closely with my colleagues for continued growth and prosperity throughout Terra Nova district. One of the priorities when I was first elected was the upgrading and paving of roads. While this remains to be fully addressed we have made considerable progress.

In fact, over $8 million has been spent on roads in my district since 1983. This represents roads such as the Eastport - Burnside road which is presently under construction; the Lethbridge Winterbrook - Portland - Jamestown Road; Bunyan's Cove to Musgravetown; the community of Canning's Cove paved; paving from Eastport to Salvage, including the town of Salvage; upgrading of the roads on the Island of st.

Brendan's; not to forget new bridge construction in Lethbridge, Morley Siding, and Bloomfield; and, of course, the purchase by L19 March 10, 1988 Vol XL the government of the Green Bay Transport for the Island of st. Brendan's. Mr. Speaker, while the district comprises many varied sectors of our economy, we must not forget the backbone of our Province, the Fishery, and I am pleased to identify that $250,000 has been spent for such things as Government Loan Guarantees, upgrading of fishermen's centres, slipway improvements, and the ongoing salmon enhancement project on the Terra Nova river. - Mr.

Speaker, it is generally recognized that Terra Nova National Park is perhaps the Province's most popular tourist attraction. Indeed, the Terra Nova area has always been a popular destination for both resident and non-resident travellers. To date, thirty capital and marketing projects have been approved for my district. Total grants approved total $1.2 million. With these funds travel/tourism, in the Province in general and the Terra Nova area specifically, will improve in the future. Mr.

Speaker, in my view, the most important resource is our youth, and ·I want to commend and acknowledge the tremendous community service and leadership provided by such groups as Lions Clubs, Kinsmen and recreations committees, etc. I am therefore pleased and proud to advise hon. members that $230,000 has been spent to date by the Department of Culture, Recreation and Youth. Also, Mr. Speaker, I am hopeful that the pending application for a multi-purpose recreational facility will be given favourable consideration. This project will benefit the residents of No. 1 R19

Glovertown and area and the Eastport Peninsula and our neighbouring friends in the district of Bonavista North. Mr. Speaker, the Terra Nova district has been known over the years as one of Newfoundland's most productive agricultural areas. Since my election in 1983, the government has seen fit to provide $850,000 in the forms of grants and loans towards the farming industry.

While this is an impressive figure, there are some farmers, due to the drought during the past year, who require immediate assistance, and it is my understanding that a decision on this request will be forthcoming within the next two or three weeks. Mr. Speaker, I have noticed over the past number of years that there is better understanding and co-operation amongst farmers an4 I must give part of this credit to the Goose Head Farm Women's Association which has shown leadership and demonstrated to all that farming is a viable industry which greatly contributes to our provincial economy. Mr.

Speaker, I have been very pleased with the support I have received from the Department of Municipal Affairs. Some $8,350,000 has been spent in my district during the past four years, resulting . in improved water and sewer services and fire prevention and fire fighting equipment. At present we have eleven communities consisting of town, local service districts and community councils requesting financial assistance to better their level of municipal services.

As a result of a 60/40 cost shared programme, we have been able to upgrade many roads, such as · those L20 March 10, 1988 Vol XL in Glovertown and Kusgrave town. Kr. Speaker, we have come a long way in four short years and I will continue to work hard to ensure that the remaining needs in this area are addressed. Mr. Speaker, forestry is also a major contributor to my disrict' s economy and I want to congratulate the Department of Forest Resources for its ongoing support and assistance.

During the past four years the Department has spent $1. 5 million in . improving and expanding our forest access roads, our significant silviculture projects and on fir1efighting capabilities. This is a clear indication of the importance this government attaches to our Forest industry and Terra Nova district has received its fair share of funding. Mr. Speaker, in closing I want to stress that I am very pleased with the level of support which I have received from my provincial colleagues.

I am disappointed, however, with our federal counterparts, and I refer especially to the Federal Department of Finance and their distribution of the Northern allowance. Mr. Speaker, I find it hard to believe that Gooseberry Island, Flat Island and Bragg's Island qualify for such financial assistance when they have no permanent residents, and in the same geographic area, St. Brendan's, the only island with a permanent population, has been disqualified. Mr. Speaker, it is my intention to take this deserving request to Ot ta\lra.

I am pleased with the support which I have received from the Premier and I am hopeful that this can be No. 1 R20

resolved in a favourable, fair and prompt manner. Mr. Speaker, I want to echo the sentiments expressed so ably by my colleague, the member for Trinity­ Bay de Verde (Mr. Reid) . I too have been proud to be associated with this administration. Despite our size and political importance in the federal arena, we have managed to enhance and strengthen our position in Confederation, and this is surely a result of our Premier's diligent and unswerving dedication to the people of this Province. I am very proud and excited with the initiatives outlined in the gracious Speech from the Throne.

All indicators point to a very positive year, and I look forward to continuing our job to build a bright and prosperous future for the people of Terra Nova district and for the people of Newfoundland and Labrador. Mr. Speaker, it is my honour and privilege to second the motion that a committee be appointed to draft a reply to this most gracious Speech from the Throne . Thank you. SOME HON. MEMBERS: Hear, hear! MR. SPEAKER: The han. the Opposition. SOME HON. MEMBERS: Hear, hear! MR. WELLS: Leader of the Mr. Speaker, I thank all bon. members of this House for their kind welcome.

I thank the members for Trinity - Bay de Verde and for Terra Nova for their kind L21 March 10, 1988 Vol XL " remarks. It is good to be back. It was about seventeen years ago that I last stood on this side of the House and made a speech. There is not one face sitting here today that was here then. I am not quite sure what that says. The hon. Mr. Ottenheimer, if he had stayed, would_ __ have been such a face. He came in the same year that I did.

While I am at it, I ought to pay tribute to him and say to him, through you, that I enjoyed very much the gentlemanly manner in which he always conducted himself, the consideration that he had for all members of the House without regard to where they sat, and I think he will indeed make a fine Senator, and I congratulate him most sincerely. SOME HON. MEMBERS: Hear, hear! MR. WELLS: I should not upset too many people by saying though I have been away for seventeen years I am looking forward to the next seventeen years. It probably will not be that long.

I want to express appreciation from this side of the House to the visitors on the floor of the House and in the galleries who came today to see what occurs on this day and to see and remind us, as members of the House, that we are not simple pawns doing what the electorate precisely wants us to do, that we are individuals with intelligence here with a responsibility to exercise our judgement in the best interests of the people of this Province, but that at the same time we are answerable and responsible to the people of this Province, and the presence of the visitors here No. 1 R21

today serves as a good reminder to all of us that that is just the position we are in. I want also, Mr. Speaker, to express my personal appreciation to yourself and to the members of your staff for your many courtesies to me during the last two or three weeks - I greatly appreciate those - and to the other members of this House and members of the Public Service generally. I appreciate all of their courtesies. It makes life a little easier when you have that kind of a courteous reception.

I would remiss if I did not express my gratitude to Graham Flight who has been a long-time member of this House and who, but for what he did for my benefit and for the benefit of the Liberal Party, and I believe the people of this Province, would himself be sitting in this House today, and you cannot help but commend him on that. SOME HON. MEMBERS: Hear, hear! MR. WELLS: You will, I am sure, Mr.

Speaker, also forgive my expressing in a public manner my gratitude to the people of Windsor - Buchans for what they did for me, and for the kind honour that they bestowed upon me in allowing me to seek and obtain a seat in that district so that I coul.d discharge my responsibilities as Leader of the Opposition. I am very grateful to them and I assure them that I ·will not forget it soon. My special appreciation, Mr. Speaker, has to be reserved for my colleagues who sit around me, for the effort they have made over the last eight months since I' have L22 March 10, 1988 Vol XL ' been here.

They have worked long and hard to ensure that the members on this side of the House properly prepare themselves to fully discharge their responsibilities to the people of this Province, and I appreciate most sincerely their efforts. I also appreciate what I have seen in them as dedication to their duty, as a sense of their real responsibility not just to their own constituents but to the whole of this Province. The strength of their concern for this Province is impressive. I am not sure that image has always been totally conveyed, but I intend to do my best to ensure that it is in the future.

I am grateful to them for their loyalty to the Party and to me. It is also, Mr. Speaker, I admit, a little difficult for me today to hide the pleasure that I feel at the results of yesterday's Waterford-Kenrnount by-election. SOME HON. MEMBERS: Hear, hear! MR. WELLS: It is . difficult effectively and wear a broad at the same time, do my best. SOME HON. MEMBERS: Hear, hear! MR. WELLS: to speak smile that but I will Together with that new MHA, when he takes his seat, and the others on this side of the House, Mr.

Speaker, we intend to fully and properly discharge our role for the temporary period that we expect to be sitting here. SOME HON. MEMBERS: Hear, hear! MR. WELLS: No. 1 R22

1:.0 In discharging our role we will also be conveying to the people of this Province that we are a team in preparation to take responsibility for government. And the two roles, Mr. Speaker, go hand in hand. Our ability to properly perform the responsibilities of government, our ability to convey the image to the people of this Province that we are fit to be entrusted with the responsibilities for government, will depend largely on our performance here and we intend to make it a good one _.

Now I realize that today is more of a ceremonial occasion than a genuine working occasion, and I intend to deal with some of the issues that arise from the Speech from the Throne at a later date when it would be more appropriate. But I thought this would be an appropriate occasion for me to do what I cannot ask His Honour the Lieutenant Governor, to do for me. and that is to state our position from this side of•the House, how we intend to deal with the state of the Province, and how we intend to conduct ourselves in the House, how we intend to perform as an Opposition.

I think, and I want to express the view to everybody, and it is not going to change when I sit on the other side of the House, that the role of an Opposition is as important to the welfare of this Province as the role of the government, make no mistake about it. SOME HON. MEMBERS: Hear, hear! MR. WELLS: The British Parliamentary system is indeed an ingenious device. It works extremely well. It provides L23 March 10, 1988 Vol XL for a balance to ensure that there is presented on all issues a balanced point of view.

It is adversarial in nature in that one side frequently takes one point of view and another takes an entirely opposite point of view. But its purpose is to elicit the truth. It is similar in that respect to courts. We say that in courts we have an adversarial system, and it is intended to make adversaries of the persons on each side of the question, but its purpose is not to make people fight one another; its purpose to is ensure that in the end there is elicited a true and full position, and it works extremely well.

I must say that in my experience I have found courts to be somewhat more disciplined than legislatures, but they had the same end, they had the same purpose in what they do. Perhaps one of the problems with the legislatures in that respect is that unlike courts it is the same two teams continually, day .after day or week after week or year after year,

whereas in a court system you are meeting one · lawyer on the other side one day and an entirely different one the next, so the same kind of animosity or constant adversity does not develop. Inevitably, I suppose, in the situation of the legislature, the adversarial activity becomes more determined or tends to be allowed to become more determined, and unless all of us make a conscious effort to discipline ourselves, it can tend to become bitter and nasty. And I personally, Mr. Speaker, want to avoid that. I frankly, Mr. Speaker, am complimented, and I say this sincerely, and I accept as a compliment the remarks of both the No. 1 R23

bon. members, for Trinity - Bay de Verde and Terra Nova in expressing their expectation that the level of debate and decorum of the House would be enhanced by reason of my being here. I am humbled by the comment, and I hope that I will be able to live up to their expectations. But I, nevertheless, have to admit feeling complimented by it. One way in which we may achieve this is to respect the motives of the other side. Ill will usually develops when wrong intentions or wrong motives are ascribed to others who have a different view than the one we espouse.

If we are prepared to acknowledge the good intentions of one another we will go a long way towards minimizing ill will. If we are prepared to recognize that the desire to help the Province and the people of this Province on the other side of the House is as great as it is on this side, and if we have reciprocity in that respect from the other side, then I have no doubt we will contribute greatly to the diminution of the measure of ill will in the House.

We can say of one another, or you may frequently hear us say of the other side, that they are misguided or they do not know what they are doing, but we will always say they are well intentioned. We may even say they are devoid of ideas and have no plans, no sound approach, to the needs of this Province, but we will admit that they are well intentioned. We may even go so far as to say on occasion they they are not capable of achieving it, but we will say they are well intentioned in respect of that. SOME HON. MEMBERS: Hear, hear! L24 March 10, 1988 Vol XL MR.

WELLS: Now, I have no doubt we will probably expect to hear from them similiar comments about us, in which case we would, of course, have to respond that their judgement is not very good either, even though they are well intentioned. SOME HON. MEMBERS: Hear, hear! MR. WELLS: We will, Mr. Speaker, vigorously and respectfully oppose that which should be opposed. t..re wi 11 criticize that which should be criticized. We will examine and question everything. It is our duty and our function. Finally, we will approve the worthy and proper.

Above all, 111e wi 11 discharge that great responsibility that all oppositions in the British Parliamentary system have, to make sure that government fully and completely accounts to the eleetorate for the expenditure of taxpayers' funds, for the use of taxation authority, and for the management of the public affairs of this Province, and we will not waver in our duty to ensure that they fully discharge the total responsibility with which they have been entrusted when they were given the awesome powers of being a government. They are awesome powers, but they are not theirs.

They are only holding them in trust for due exercise for the benefit of the people of this Province and we will not waver in discharging our t"esponsibility to make sure that the government does just that. In doing so, Mr. Speaker, we will act honourably. We will neither unduly impede not" will be unduly facilitate, which, Mr. Speaker, No. 1 R24

' from an Opposition point of view is worse than unduly impeding, because if you do unduly facilitate and you fail to fully and properly discharge your responsibility to be fully critical of the government and examine in detail what they are doing, you allow the government to do anything it wishes, the government deteriorates in quality and you, as Opposition members, have not discharged your full responsibility. We will do so with respect for the function and responsibility of government, we will acknowledge their good intentions, but we will expect similiar acknowledgement and respect from government in return.

Now, if both sides function on that basis I feel confident, Mr. Speaker, that intelligent argument will replace political venom, as it ought to, decorum will be the order of the day, as it should be, and all of us and this whole Province will be better off as a result. We, Mr. Speaker, intend to dedicate our efforts to achieve that decorum and to recover for both sides of this House the good reputation that members of this House ought to have in the eyes of the public of this Province.

I am sure members on both sides are as aware as I am and are as sensitive to the fact that the public of this Province does not hold this House and its membership in very high esteem, and that is a sad, sad fact to have to admit. But we are largely the authors of our own misfortune and unless we do something about it then we will deserve that reputation. Our reputation, Mr. Speaker, is in our hands. We will make it or we will break it.

That does not mean that the place has to be like a Sunday L25 March 10, 1988 Vol XL School all the time, that debate has to be dull, that ~here is no cut and thrust to the debate, no sharp points are made, as they ought to be. We will not allege bad intention but we will not, Mr. Speaker, shrink from confrontation where it is necessary, serves a purpose, and is .appropriate. We will not be intimidated or deterred from the proper discharge of our duties. We will be parliamentary, but I warm members opposite not to assume from my remarks today that we will be a pushover.

I . . give them fair warning, also, that we are determined to occupy the other side of this House - SOME HON. MEMBERS: Hear, hear! MR. WELLS: not, Mr. Speaker, because we feel we have any right to, but we are completely confident that we can do an infinitely better job than those on the other side of the House. SOME HON. MEMBERS: Hear, hear! MR. WELLS: We are confident, however, that we can get there more quickly and more effectively on the high road than on the low road, and that is the one we intend to take. SOME HON. MEMBERS: Hear, hear! MR. WELLS: Mr.

Speaker, the ultimate purpose of Opposition actions ought not to be to get them on the government side of the House. As well as achieving that our purpose is to ensure the betterment of the people of Newfoundland and Labrador; to bring about a No. 1 R25

situation where the able are working productively and the unable are cared for and are included in the activities of the life of this Province; where the old can feel secure and comfortable and where the young are preparing for and are optimistic and have reason to be optimistic, about their future; where everybody is participating, where everybody has equal opportunity even though they may not have equal ability or may not achieve an equal level, but everybody has equal opportunity.

We will be taking steps to ensure that there is fairness and balance, always fairness and balance for all people of this Province in all governmental actions and in all governmental expenditures, wherever they 1 i ve, without regard to the political stripe of their MHA. The Opposition intends to be a full participant in the process of government in this Province, because only by full and complete participation by the Opposition can government properly and fully discharge its responsibility and the people of this Province have a better future and a better life. Now, Mr.

Speaker, I want to address specifically the Throne Speech. I first must return congratulations to the mover and seconder. I am impressed by their comments and the manner in which they delivered them. It is trite, or it has been trite I suppose from the beginning of parliamentary times, for Opposition leaders to comment on what is not in the Throne Speech. There are a number of major matters that are not in this Throne Speech, major matters that I would have expected to find there.

There is no reference to the situation in this Province L26 March 10, 1988 Vol XL with respect to the deliverly of health care, and one would have expected that. There is no reference with respect to the provision of social services generally. I was shocked to find, frankly, Mr. Speaker, no reference to provision of day care facilities so urgently needed in this Province, bearing in mind how far behind other provinces we are. Nor was there any mention of the financial state of the Province or what is happening with · respect to the railway. One would have exp~cted some of those things to be addressed.

On the whole, Mr. Speaker, it was largely a repeat of the platitudes: of the past and there is not very much in it to look forward to for people in this Province. It was a listing of what the government perceives to be or claims to be significant achievements. Well, their position on that can be examined on another occasion. I do not intend to deal with it now, as I do not believe that this is an appropriate occasion to deal with it. But I want to comment briefly on a couple of matters that I believe are of great significance to this Province.

One was mentioned briefly, without any detail, in the Throne Speech, and the other was not mentioned at all. One is what is necessary for resolving the hydroelectricity problems of this Province and the great inequity of Churchill Falls that was commented upon and mentioned in the Throne Speech. Nobody in this Province can view the Churchill Falls situation as anything other than an intolerable inequity from this Province's point of view. It is an unconscionable situation. We should also be addressing the No. 1 R26

t~. needs of providing for the further power needs of this Province in the future, as well as correcting the problem with respect to Churchill Falls. But before we can have any chance whatsoever at achieving a proper resolution to these problems, we ought to fully examine the problems. The matter is only aggravated if we rush off in a direction of throwing a potential solution at the problem without first fully identifying it. We must determine the real cause of the problem, and that is my quarrel with government. They have rushed off in a wrong direction, tilting at the wrong windmill.

They ought to be examining in detail what caused this problem and where we are and what the proper solution is. Instead they have been attempting to destroy the power contract by legislation that our courts and the Supreme Court of Canada have had to find was invalid, ultra vires, because it was enacted for an improper purpose or in an improper manner. Quebec understandably is resisting that change. I understand the position of Quebec, but that does not make it justifable. They are totally unreasonable in their position, but I understand their taking that position.

The other action, to recover the 800 megawatts of power, I will not comment on to any extent because the matter is still before the courts. But it is sufficient to say that the position taken by this government was rejected both by the Trial Court and by the Court of Appeal of this Province. The government I believe has not examined the real problems, and the real problem is what happened at the time of the original development of Churchill Falls.

L27 Karch 10, 1988 Vol XL The federal government had an obligation to this Province, and they had the constitutional and the legal jurisdiction to discharge that obligation to this Province, of ensuring that we had a means to get our product to market. They refused to prov.ide that. Not only did they have the power to do it under the Constitution, as they do, they had the obligation to this Province to do it. They exercised that power being cognizant of their obligation to other provinces in the past, but they refuse to do it for this Province.

And the first government to refuse to do that was a Liberal Government headed by Mr. Pearson. I do not hide the fact, I face up to it. There nevertheless was a total failure, and there has been a total failure by all successive governments since, without regard to their political stripe, to disch~rge their constitutional obligation in Newfoundland. And you have to ask the question, in that sense, was their position justified? And clearly the answer is no, it was not justified. Let us go further ,and ask the question, why did the federal government do it? Why did they refuse? It is fairly simple. Mr.

Pearson and his government of the day were horrified in the mid-sixties at what they saw happening in Quebec. The first letter bomb appeared in a mailbox in Hull in 1963, at the time this was being negotiated. They were horrified at the prospect of aggravating Quebec further, which Province, Mr. Speaker, you will, of course, be aware, still felt that Newfoundland wrongfully took from Quebec. the territory of Labrador. That was their point of view, and you had to be aware of that, and I think the federal No. 1 R27

government simply took the position that to provide that to Newfoundland would be such an affront to the people of Quebec that they would almost certainly decide to withdraw from Canada, or they were so frightened of the prospect of it that they would not dare consider it. Now ask the question, on that basis, was the federal government justified in refusing? In their judgment it may have been necessary for national unity. To preserve the unity of this nation, would they on that basis be justified?

And if you are at all objective, I suggest you can only really come to the conclusion their position was justified in the national interest. You have to answer that question as yes. Now, you have two positions: It is clearly and unquestionably unfair to Newfoundland, yet it is justified in the national interest. How do you reconcile that? I suggest, Mr. Speaker, it was justified in ·the national interest, but Newfoundland should not be the only province to pay the price of placating Quebec in protecting the national interest.

If it is justified in the national interest, it is a burden which the nation ought to bear, not one which this Province alone ought to bear. So while I can understand it, I have to make sure that the Federal Government does its duty to this Province and compensates, by whatever means is appropriate, this Province, because this Province should not be burdened with the responsibility in perpetuity, or even for sixty-five years, of paying the price of placating Quebec and providing for the unity of this nation. That is a price the nation ought to 'pay. L28 March 10, 1988 Vol XL Frankly, Mr.

Speaker, if we dealt properly with the federal government and this whole nation - not just the Federal Government, there is all of the other provinces - I feel confident that Newfoundland's position would receive a great deal of ·!Sympathy.

I have seen a great deal of indications that there is a large amount of sympathy across this nation for the intolerably unfair position of Newfoundland as represented by that Churchill Falls situation, and that is the direction in which we ought to be going, instead of underhandly trying to pass legislation in this House which attempts to dlo by the back door what it cannot do by the front door, which is really the course that was taken and that our courts determine had been taken. There is, I believe, a proper way to .do this, and that is the course we will be urging and · will be taking, Mr.

Speaker, when we sit on the side opposite. Similarly, Mr. Speaker, the government, instead of looking superficially at the posi tion with the railway, should look to the real problem, go to the root of the matter, not do a superficial examination and settle for a lump sum of $800 million or $900 million dollars, with which to run an election campaign, per·haps, or something of that nature. It would be very short-term judgment to say the least.

We should look at the fact that the Terms of Union specifically provide that the federal government agrees to take over and be responsible for the cost involved in operating the railway and the related steamship services in this Province. You have Speaker, No. 1 to that bear at in the mind, time Mr. the R28

railway and the related steamship services was the . Newfoundland portion of what later became the total national transportation system. The national transportation system across Canada at that time was the railway and the Newfoundland Railway repres .ented what would be the Newfoundland portion of it when Newfoundland joined Canada. So Canada was doing nothing more for Newfoundland under that Term of Union than she was doing for the rest of the Nation, providing for the Newfoundland · segment of the national transportation system. The federal government failed in its obligation to do that.

The federal government did not properly maintain it to a national standard, they allowed it to deteriorate, and over the years, as roads were built, freight and passenger traffic deserted the railroad in droves to go to roads because what the railway was offering was not adequate. The federal government had failed to develop and maintain it to a proper national standard. They have gotten it now to the point where it is a totally unacceptable transportation system, unacceptable to anybody, really, in this Province.

They hav~ . used that deterioration, the fact that it is unacceptable and people do not use it, to claim it ought to be discontinued. I have no quarrel with discontinuing the railroad, none whatsoever. As a matter of fact, as it stands at the moment I would recommend it, but on proper terms and conditions, and that is not simply a lump sum of cash, Mr. Speaker, but by providing for the long-term interest of this Province. Who knows what the price of fuel is going to be thirty or forty years from now?

It may be $100 or $200 a liter and railways may be the L29 March 10, 1988 Vol XL only effective and efficient transportation system in North America. If it is, we will be in a sad position if we are without it. Government cannot look superficially at problems and rush at the first attractive solution that appears on the surface. They have got to look at the long-term interest, and this, I believe, is not being done. Actions such as this, Mr. Speaker, I believe are a proper role for a concerned Opposition, anxious to contribute to the long-term benefit of the Province. I assure you, Mr.

Speaker, of our co-operation and support in the discharge of your duties. I hope that our endeavours in this House will make your burdens not very onerous and that we will not unduly burden you. Finally, Mr. Speaker, I hope that government will accept what we offer and what we say in the spirit in which we intend it, and that is as dedicated to protecting and working for the long-term ·best interests of the people of this Province. Finally, Mr. Speaker, I thank you and all hon. members and all visitors here today for their attention and express my pleasure in supporting the motion. Thank you, Mr.

Speaker, very much. SOME HON. MEMBERS: Hear, hear! MR. SPEAKER : The hon. the Premier. PREMIER PECKFORD: Mr. Speaker, congratulate Trinity-Bay No. 1 first of all let me the Member for de Verde and the R29

Member for Terra Nova for their addresses to this House and to the opening of this session. I think they did an admirable job and obviously are extremely interested in the welfare of their districts and also of their province. Let me also, though the time is getting · late, welcome those visitors who have borne with us until now here in the House, and especially those visitors here on the floor of the House who are still with us. I had made, Mr. Speaker, an offer to the Leader of the Opposition, a number of weeks ago, that we forego these speeches and make this truly a ceremonial occasion.

Because I had thought, like quite a few other members in this House over the last number of years, that when the Throne Speech is read and the galleries are full and you have special guests here, that it would be in our own best interests. When talking about decorum and listening to the lecture from the Leader of the Opposition about decoi"Uill and how we should behave in this House, actions speak louder than words.

Therefore, I had, on behalf of the government a number of weeks ago offered to the Leader of the Opposition to forego our speeches and even the Notices of Motion of the various members so it could truly be a ceremonial day. Unfortunately, the Opposition, I guess, not only the Leader but the Opposition, refused this request. I say to the Leader of the Opposition that, number one, I do not think we of necessity need his lecture on how we are to behave in the House and what this House is all about.

There are quite a few people in this legislature who have been L30 March 10, 1988 Vol XL hear quite some time, and we are very, very familiar with the rules of the House and how this legislature operates and how the British Parliamentary system operates around the world. Let me just repeat, that if the Leader of the Opposition is really serious about that he had an offE~r and he turned it down . Mr. SpElaker , we all have heard the same thing from I do not known how many Leaders of the Opposition now since 1979, six or seven or eight or whatever, and we have heard the same thing from each new Leader before.

Almost every time a new Leader of the Opposition comes in we gt:!t almost identical opening remarks about how the legislature should act, but very little happens. Two or three days after the House is in normal session things revert back to their normal lows. And I agree, and I have agreed with all previous Leaders of the Opposition, and we all agree that we must try to elevate the debate to behave in a manner consistent with all of the great principles that other great parliamentarians before us, who we admire, have adhered to. But it does not always work like that here in this place.

And I think it is perhaps, as the Leader of the Opposition says, our own fault but not necessarily our own fault, in a lot of the ways we behave necessarily. I do not think we will see the galleries full in the next while. I do not th ink we do enough in our own constituencies to explain what the British Parliamentary system is all about. One of the great criticisms you hear from time to time is that a member was reading a newspaper, for example. Now, if a House is televised, the House of Commons or somewhere where it is televised No. 1 R30

,_, all the time, a member may have been in his or her seat for four, five or six hours so there is absolutely nothing wrong with a member of the House reading a newspaper when hearing a speech that he or she may have already heard four or five times before. So there is a lot of explanation, clarification of the dynamics of a legislature and it changes from time to time in various geographical locations, so I say to the Leader of the Opposition we fully appreciate what he is saying.

I know he has been away seventeen years and therefore perhaps he feels that he can bring something to this Legislature that nobody else has been able to do during those seventeen years, but I caution him that whether it is the same now as it was when he was here before, there will be the cut and thrust of debate and I do not apologize to any constituent or to any electorate for many of the debates and activities that go on in this House. It is a part of the character, atmosphere and environment of this place and of many places like it around the world.

Now, the Leader of the Opposition wished to make mention of just two items when he talked about the Throne Speech and listed things that were not mentioned. Obviously, if we were to mention all of the things that government is involved in His Honour would still be reading the Speech and we would be here until well into the night. What a Throne Speech tries to do is to give the particular direction, not the only direction but the particular direction, that an administration may want to take from time to time paralleling the others that they are already taking.

For example, the Leader of the Opposition was quick to L31 March 10, 1988 Vol XL point out that no mention was made of the health system. That is correct, there was no mention made of the health system. It is working very, very well, Mr. Speaker, in this Province, and we are just completing a five year capital works programme. As a matter of fact, some of the latest surveys that have been done have indicated that the people of Newfoundland and Labrador recognize our health system and are happier about it than are people in -any other of the provinces in Canada about their health system.

As a matter of fact, the increase in our health budget since this administration came into power in 1979 has gone from $275 million to $624 million for an increase of 127 per cent. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: We did not mention social services, but we are a government, unlike the government that the Leader of the Opposition was in years ago, that saw fit to introduce day care, and a whole range of other programmes, that have seen the budget of the Department of Social Services go from $45 million to $111 million for an increase of -146 per cent since 1979. SOME HON. MEMBERS ; Hear, hear!

PREMIER PECKFORD: We do not mention them all the time now, Mr. Speaker, because we take these initiatives for granted. They are part of our system, they are part of our governmental apparatu, and unless we were to announce a new capital construction programme, the ongoing exPansion of our social No. 1 R31

services programmes and of health programmes are taken granted by our people and by government. our for this The Department of Education was mentioned in the Throne Speech, but the Leader of the Opposition did not see fit to mention it in his response, which I thought was very, very strange, given thd kind of way it was mentioned in the Throne Speech, and I will come back to it in a minute, but it is interesting. Of course, this health budget, from 1979 to 1986, and this social services budget, happened in a time of restraint.

Lo and behold, what would have happened if we were not in a time of restraint from 1979 to 1986 when the budgets of both those departments were more than doubled. The Department ·of Education has gone from $322 million to $624 million for an increase of 106 per cent in those three social departments. The financial state of the Province is not mentioned in a Throne Speech. The Leader of the Opposition indicated that we did not mention our financial condition.

Within two or three weeks tlme the Minister of Finance (Neal Windsor) delivers a budget in this House, which obviously the Leader of the Opposition forgot in his opening remarks on how we should behave in the House. There is a budget that will be coming down in two or three weeks. Of course, it is then laid out in minutest detail for the leader and for all members of the House of Assembly. The ·railway was not mentioned, and I will come back to that again in a few minutes. The Leader of the Opposition mentioned that the L32 March 10, 1988 Vol XL railway was not mentioned.

No, the railway was not mentioned because there is nothing to mention about the railway, Mr. Speaker, at this point in time. We are surely not going to put into the Throne Speech the negotiating position of the Government of Newfoundland, if in fact the federal government comes to us and wants to close out the railway. We certainly cannot do that, I am sure the Leader of the Opposition would not expect us to do that. So what we could say meaningfully about the railway at this point in time escapes me. I honestly do not know.

We can complain if we want to about what the Leader of the Opposition just talked about, which we have complained about for ye ars, that the CN and federal government have allowed it to deteriorate. You know, talking about deals on the railway, the Leader of the Opposition was a part of a party that formed a government which allowed the Argentia branch line to close and really helped contribute to and condone what CN was doing at that point in time.

The Leader of the Opposition was around at that time and was a member of a party that formed a government that saw these kinds of things happening, but very, very little was done at that time. Yet now we are, at this point in time, to suddenly try to turn all of that around. Those are the things that the Leader of the Opposition indicated that we did not talk about in the Throne Speech, and for good reason, Mr. Speaker, for very, very good reason. We w·anted to talk about a very important national issue, the Meech Lake Accord, which the Leader of the Opposition did not respond to, No. 1 R32

that was in the Throne Speech. It could be because on his side of the House, as I understand it, there are certain members of his caucus who support Meech Lake and there are certain other members of his caucus, like himself, as I understand it, who do not support Meech Lake. So, why highlight a division in the Liberal Opposition today on opening day, Mr. Speaker, to not respond to the Throne Speech and mention one of the more significant constitutional initiatives that have been taken in recent years, which will, as some people indicate, change the complexion and nature of Canada.

And if you believe Donald Johnston you would have to go along, and I think that is where the Leader of the Opposition is coming from, for the worst. But the Leader of the Opposition could not mention the Meech Lake Accord because the Meech Lake Accord has in it also the possibilities for Newfoundland and Labrador to gain a greater say over the fish resource of our Province. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: That is something that the Leader of the Opposition should have spoken about, Mr. Speaker. That is something that we want to speak about.

That is why it was in the Throne Speech, because that ls extremely important to us. Another thing that is extremely important to us, coming out of Meech Lake, because we believe it, is a balanced federalism, and that there is nothing inherently dastardly about talking about sharing certain powers between the central government and . the provinces. That was the basis on L33 March 10, 1988 Vol XL which Confederation started in the beginning.

I laughed until I almost cried the other morning on radio when I heard Donald Johnston, the former member of the Liberal caucus in Ottawa, who started somehow trying to articulate that to sit down together in a co-operative way, which is what Mr. Mulroney has been doing over the last number of years, and trying to work out our differences was somehow wrong and that we are going in the wrong direction. All I could think of, in listening to Mr. Johnston speak, and others who espouse that same kind of a view, was, 'Poor Switzerland, it must be dead in the water.' It cannot have an unemployment rate of almost zero.

It cannot have an inflation rate of about 2 per cent. It cannot be one of the more dynamic economies and societies in the world, because how could it? It is totally decentralized. It is even decentralized more than Canada is or any other like country in the world. That is a very, very important initiative, so we wanted to mention Meech Lake because it will change the direction of Canada, we believe, for the better.

When one and the national talks about the Senate Supreme Court and the institutions which are very important for our country, for us not to have any input, as provinces, into that, we have always argued against. The Senate itself is supposed to be, and was conceived back in C~arlottetown and Quebec City in the last 1800s when Confederation was formed, the institution to give some regional dimension to an otherwise federal government at the center. How can the Senate have that kind of meaningful regional say if, in fact, it is the central government No. 1 R33

who unilaterally appoints those who go to it, because they will then not have that same kind of regional "bias" or "prejudice", if you want to call it that, that is necessary. That is important for Newfoundland and Labrador. That is important for the provinces of Canada. Then, Mr.

Speaker, we wanted to mention free trade with the ·united States, the Free Trade Agreement that has been signed by the two federal governments, because once again if you look at almost every single independent report that has been done, including the Economic Council of Canada, under a free trade arrangement with the United States, there are two provinces over the next ten years which will grow faster than any other provinces, Alberta and Newfoundland and Labrador, under a free trade agreement. SOME HON. MEMBERS: Hear, hear!

PREMIER PECKFORD: John Kennedy said · one time, "Geography has made us neighbors, history has made us friends, economics has made us partners, and necessity has made us allies." When we talk about a free trade agreement between the two countries, the largest trading block in the world - even though most Americans think that Japan does more trade with the· United States than we do, it is not true that is an important national and provincial issue which we believe had to be highlighted in the Throne Speech, because it will affect, and, in our view, very positively, the future course, economically and, therefore, almost every other way, of Newfoundland and Labrador over the next decade.

L34 March 10, 1988 Vol XL We thought it very important, Mr. Speaker, to outline in a clear, concise manner, the seven levers which guide our economic development and job strategy policy. So a lot of the speech dealt with how we are proceeding in our economic developmemt - job strategy policy, from resource industries to diversification to Labrador hydro power to offshore resources to consultation to education and training and research and development to small business and entrepreneurial spirit, and all that that means. We thought _that that was extremely important.

We also thought it was extremely important to talk about conflict of interest and to do a full review, not only as we have already started before this session opened, dealing with the Public Service, but also with ourselves, and to tighten up and make clear some of the provisions that are now in The Conflict of Interest legislation, so that we are all on the same level playing field, because we are not now, because there are certain loopholes or technicalities in The Conflict of Interest legislation which allow a member to say, 'I, God, do not think that this thing I am not going to tell you about is in conflict of intere!st. ' So that is important.

Talking about decorum and elevating debate, being fair to one another and not questioning one another's motives, that only makes sense and that only has meat on its bones when, as individual members of the House of Assembly and as poll ticians and leaders l.n the Province, we are guided by Conflict of Interest legislation which is meaningful. So we thought it was extremely important No. 1 R34

to mention that as well. But most importantly, Mr. Speaker, this Throne Speech was about two things which I and this government consider extremely important if our future is really to be everything we all want it to be, and they are linked inexplicably together, education and jobs, jobs and education, and how that links into research and development. Over the last year or two, and I think we are all becoming more and more aware of it, we have seen a lot of things happening in our world, that the world is really changing.

We have a Burin fish plant which is now exporting a special type of product to the people of Japan, totally automated, very modern. You see it now in some of our agencies mentioned in the Throne Speech, like NORDCO, which is going all over the world displaying its technology. You see it in our woods industry, where now we have a problem with some of our loggers, and it is mainly because of technology. A number of the companies are bringing in new huge big harvesters which are going to replace a lot of our loggers in the woods.

You see it in every aspect, from the c·ompact disk when listening to music to driving your car, as they put in these digitals and whatever. But a very disturbing thing, as the Throne Speech mentioned, has come up.

We have spent hundreds and hundreds of millions of dollars in the primary, elementary and secondary education fields, have restructured physically at the post-secondary level and put in a lot of money, and we are eager ~o pursue research and development opportunities so that L35 March 10, 1988 Vol XL when we have these job opportunities in high research and development that we not have to go outside the Province all the time to get somebody to fill those jobs, so that some Newfoundlanders and Labradorians can fill them as well.

It is not that we want to close the doors, because education means you have to mix with people from all over the world, but at least there should be a good balance. But you cannot, Mr. Speaker, always get that balance, and this is where we have to be very careful.

I will · be very interested during the next weeks in the debate on this point, when suddenly we find, after all the money that has been spent on all aspects of primary, elementary and secondary education and the reorganized high school programme, that our high school students are failing at alarming rates in two subject areas which are absolutely c:r;-i tical if you intend to pursue research and development and modernize your economy and be a part of today's and tomorrow's world. That is extremely disturbing to me, and I am sure to all members of this House of Assembly, and how it has to be arrested.

We want to continue to expand what we are now doing in our community colleges. We are a little bit behind because the physical work has not been done at some of our community colleges. Money has been alloted, the planning is going ahead, but as we all know planning and engineering usually · take longer than construction, and sometimes the money as well. So a lot of our community colleges are not ready, even though the money has been allotted, but the new libraries and new labs have not been added on to them. I guess it is lucky that they are not ready, because what we are saying is we have to No. 1 R35

pause for six to eight months, or a year and take a look at what is happening in our school system. It cannot be done in an isolated manner. One terrible thing that is happening now is that our high school students are failing. Is it because the university courses are too hard? Is it because the school system is too easy? I do not know. We have to get answers to those questions. But there is no way that we are ever. going to succeed if we do not have a foundation of primary, elementary and secondary.

You can have all the universities and all the agencies and all the community colleges until your blue in the face, but if you do not that built on a foundation that is working and producing the type of people that we need, then we have a real problem. And that is where we are right now.

So, here we are moving on the one hand to further enrich, enhance, entice and motivate our young people into research and development opportunities and brokering courses in high technology at the Cabot and at the Marine Institutes and out around the province, and the very courses we are encouraging and enticing them to take involve mathematics and science, which they are not doing very well on, and it is linked together. It is a very, very serious piece of business. So we intend, as quickly as we can, get the best people around that we can get to quickly advise us comprehensively as to what is happening here.

There is a new report just out from the Ministry of Education in Ontario - I do not very often talk very positively about Ontario, but obviously there are lots of good things happening in Ontario too. I sent around copies of it to some L36 March 10, 1988 Vol XL of my colleagues in the ministry in the last few days, and I should get it for all members, although some of you might have it already. The recommendations are there.

This gentleman who wrote this report is almost saying, back to the reading, writing, and arithmetic - almost - within a 1988 or 1990 context; that. some of our core material is not being taught. He makes the point that we do not allow fifteen year olds to go to war or get their licence or drink, or whatever, in our laws. We do not allow them to do that, yet when it comes to deciding upon their future life, the rest of their life, in many schools they have the opportunity single-handedly almost to say yes or no to mother and father or guidance counselor or teacher what courses they are going to take.

He is pointing out the irony and the inconsistency in the way the adult society is passing laws in some areas which restrict adolescents, and in other areas, which are even more important to their future, they are at: liberty to decide for themselves. It is a very interesting report, but I do not necessarily agree with every direction that the gentlemen takes in it. And everything else, Mr. Speaker, at least this is our philosophy, centers around that.

You cannot have more hosp:i tals and schools and all the rest of it, unless you have a link between your educational system and what your economic development philosophy is going to be. One will not work without the other, you must have educated people to do it, and so they are linked and spun together into a circle, and one feeds on and off the other. We believe as a government, at this point and time, that there is no other single more important issue for our future than that. No. 1 R36

To talk about offshore oil and gas development, and to talk about hydro development and all the rest is so important. I have talked about it until I am blue in the face. But you must have a society that is competent to be able to deliver that development for the best interests of all of our society. That is what worries me now, and therefore we are going to put a lot of emphasis on that. I have to say this to the Leader of the Opposition on the question of hydro - I have to, it is my nature. The - Leader of the Opposition speaks about all the things that we did and says they were terrible.

I could say a couple of things to the Leader of the Opposition on that, because he is really not being fair. I know the Leader of the Opposition is a lawyer. So is the member for Mount Scio - Bell Island (Mr. Barry) who held that chair and who was a colleague here. There are many good lawyers around, good minds around. Some of the best minds that we could get, both inside and outside the Province, I say to the Leader of the Opposition as kindly as I can, were involved in recommending the initiatives that we would take as related to trying to correct that inequity.

The Leader of the Opposition might have a short memory. I think he was around in 1966 - 1967 when the government of the day, which he was a member of, passed legislation which had the effect of turning over the Lower Churchill river to Brinco. The Leader of the Opposition is in a bit of a conflict of interest situation when he talks about the fact that the reversion case or whatever was no good. He acted for the other side. You know, it is all right to say these things.

L37 Karch 10, 1988 Vol XL On the Water Rights Reversion Act I respect his legal view, but it was not the majority legal view when we were seeking advise. He is further compromised in his comments because he actually took the other side. So how can you expect the Leader of the Opposition to say anything else but that The Water Reversion Act was only a piece of paper that we thought up in the dead of night. It was worked on for two or three years . There was a Task Force of lawyers appointed by the government. It was not done in the dead of night. It was not some impetuous move by yours truly.

It was done with a great deal of care as have been the other initiatives that we have been trying to do. We have tried every way possible to change that situation. I have met with Mr. Bourassa myself on about six different occasions, in his home, in his office, in Ottawa, in Halifax, in the United States, as I have with the Prime Minister and others. There is a two-pronged attack here.

On 92 (A) , which the Leader of the Opposition might bring up in a couple of days in the House, there is another battery of lawyers, inside and outside of government, who have looked at this for the last year or two, and it is fraught with more problems and ten years of legal litigation before the various courts, and is fraught with all kinds of obstacles, so I am told by the best legal minds that we know about and can find. So we continue on a two-pronged at tack. The recall case is before the Supreme Court of Canada.

The Leader of the Opposition says, 'Well, it has already been defeated by this court and that court.' But that is the whole purpose of the legal system, as the Leader of the No. 1 R37

Opposition must know, because there have been times when all the lower courts have ruled one way and suddenly the Supreme Court of Canada ruled the opposite way. We see it in our own court system, coming up through the Provincial Court to what used to be the District Court or the Trial Division and into the Appeal Court, where it is overturned, thrown out. "You are all wrong", says the Supreme Court of Canada, about all the judges and lawyers who took the opposite view for a five-year freeze. That is still before ~he Supreme Court of Canada now, that recall case.

The approach in our meetings now with the federal government, which has been actively involved in it for the first time over the last three months, and ourselves and Quebec, is to see if there is some way with the three of us now, rather than just doing it bilaterally, to break the impasse and bring some sense to it. And, secondly, to rationally try to see if we can attract some industry which can act as a catalyst for some of the development on the Lower Churchill. There are talks going ahead on two or three fronts on that.

But we are not going to do it if it is not in our best interests, unless we create jobs, and we do not have to give away the Lower Churchill, again, for another sixty-five years, the same as the Upper Churchill. But it is being worked on and we are trying to do what we can. So, Mr. Speaker, to sum up, to let the proceedings go on, we take the view at the present moment that we are on a fair course of economic development and job strategy. Our unemployment rate has gone down, and we are moving in the right direction. There are a lot of L38 March 10, 1988 Vol XL fronts there that we hav~~ to move on.

We are very concerned about our total educational system and we have to make sure that our priori ties are right and that one comes before two and three comes before four/and so on, if we are going to develop a society that is meaningful and can grasp the opportunities that will be created both by us and the private sector over time. That is where we are coming from, that is where we are going to go. We look forward to the debate in the next few weeks. SOME HON. MEMBERS: Hear, hear! MR. SPEAKER: Order, please!

It has been moved and seconded that an address of thanks be presented to His Honour in reply to the gracious speech with which he has been pleased to open the present session of the Legislature, and that a select committee be appointed to draft such an Address in Reply . Is the House ready for the question? SOME HON. MEMBERS: Yes. MR. SPEAKER: All those in favour "Aye". A 11 those against "Nay". Carried. The members of the select committee to draft the Address in Reply will be the mover, the member for Trinity - Bay de Verde (Mr. Reid), the seconder, the member for Terra Nova (Mr.

Greening), and the member for Stephenville (Mr. K. Aylward). No. 1 R38

Before calling for Notices of Motion, I would like to invite all bon. members and all our guests in the galleries to a reception in the foyer immediately after the adjournment. Notices of Motion MR. GILBERT: Mr. Speaker. MR. SPEAKER: The bon. the member for Burg eo - Bay d'Espoir. MR. GILBERT: Mr. Speaker, I give notice that I will on tomorrow ask leave to present the following resolution:

WHEREAS indicate all that published reports the federal and provincial governments are about to agree upon the discontinuance of the railway in Newfoundland; and

WHEREAS Term 31 of the Terms of Union places an obligation upon the Government of Canada to take over and relieve Newfoundland of any costs involved in the operation and maintenance of the Newfoundland portion of the national transportation system; and

WHEREAS this was tota lly in keeping with the federal obligation to provide for the basic national transportation system in the country; and

WHEREAS Canada has not faithfully discharged its obligation under the Terms of Union in that Canada has failed to properly maintain the railway to a standard in keeping with the standard elsewhere in the country, resulting in loss of . both passenger and freight traffic; and L39 March 10, 1988 Vol XL

WHEREAS Canadian National Railways and the federal goverment have consistently used the resulting reduction in traffic as an excuse for not putting the capital investment into the railway necessary to bring it up to national standards; and

WHEREAS the effect of this has been to defeat Term 31 (

a) of the Terms of Union by transferring the incurred costs for the Newfoundland portion of the national transportation system from the federal government to the Government of Newfoundland and Labrador; and

WHEREAS the Trans Canada Highway from a structural and safety point of view is not capable of accommodating the passenger and freight traffic already diverted from the railway let . alone accommodating the additional traffic that will be diverted if and when the railway closes; and

WHEREAS we have to recognize that the existing railway is inefficient and unacceptable as a basic means of transportation for this Province because the federal government has failed to properly discharge . its constitutional responsibility to maintain the Newfoundland railway to a standard compatible with the national transportation system; BE IT THEREFORE RESOLVED that this House of Assembly support the discontinuance of the railway in Newfoundland on the following conditions:

a) The federal governments be energy and other the foreseeable such that railways become the most No. 1 and provincial satisfied that developments i..n future will be will not likely effective and R39

efficient transportation system in North America.

b) The federal government undertake to rebuild the railway if, at any time in future, railways become the most efficient and effective means of transportation in North America and as a result Newfoundland becomes disadvantaged by reason of not having an operating railway.

c) The present railway employees be provided with alternative job opportunities or early pensions where appropriate.

d) In place of the constitutional obligation to take over and relieve Newfoundland of the cost incurred in respect of maintaining and operating the railway service as part of the national transportation system, the federal government

i) pay the capital cost of twinning the existing Trans Canada Highway across Newfoundland and, ii) pay annually the addi tiona! operatingcosts made necessary as a result of twinning the highway.

e) Through traffic between North Sydney and Port aux Basques be treated as all highway traffic for rate-setting purposes.

f) The Terms of Union be amended to give effect to these changes ahd thereby protect the long-term interest of Newfoundland and Labrador. THEREFORE BE IT FURTHER RESOLVED that this government not relinquish any of the rights and entitlements provided for in

Section 31 of the Terms of Union unless an adequate alternative is L40 March 10, 1988 Vol XL substituted and constitutionally secured. SOME HON. MEMBERS: Hear, hear! MR. MITCHELL: Mr. Speaker. MR. SPEAKER : The bon. the member for LaPoile. MR. KITCHELL: Mr. Speake