LEGISLATIVE ASSEMBLY OF MANITOBA

Monday, February 17, 1992

 

The House met at 1:30 p.m.

       

PRAYERS

 

ROUTINE PROCEEDINGS

 

Point of Order

     

Hon. James Downey (Deputy Premier):  Mr. Speaker, I rise on a point of order.  I rise to advise you and members of the House that the Premier (Mr. Filmon) will be absent from the House today.

     As you know, the Premier puts the highest priority on the attendance in this House, particularly on this day as we resume this session of the Legislature.  He has asked me to convey that it was only the most extraordinary circumstances that prevented his attendance today.

     Unfortunately, the Premier underwent surgery on Saturday, February 15, 1992, at the Vancouver General Hospital to repair a broken ankle sustained in an accidental fall.  Because of the seriousness of the injury, the Premier is being detained at the Vancouver General Hospital, where he is resting comfortably.

     Thank you.

Mr. Speaker:  I would like to thank the honourable acting Premier.  The honourable member does not have a point of order. I would like to thank the honourable acting First Minister for bringing that to the attention of the House.  I am sure I speak on behalf of all honourable members when we wish the honourable First Minister (Mr. Filmon) a speedy recovery.

       

PRESENTING PETITIONS

       

Mr. Oscar Lathlin (The Pas):  Mr. Speaker, I beg to present the petition of The Pas Health Complex Incorporated praying for the passing of an act to amend The Pas Health Complex Incorporation Act.

     

PRESENTING REPORTS BY STANDING AND SPECIAL COMMITTEES

       

Mr. Leonard Evans (Chairperson of the Standing Committee on Public Accounts):  Mr. Speaker, I beg to present the Second Report of the Committee on Public Accounts.

Mr. Clerk (William Remnant):  Your Standing Committee on Public Accounts presents the following as its Second Report.

     Your committee met on Tuesday, December 17, 1991, at 10 a.m. in Room 254 of the Legislative Building and Monday, January 27, 1992, at 2 p.m. in Room 255 of the Legislative Building to consider the Provincial Auditor's Report and Volumes 1 and 2 of the Public Accounts for the fiscal year ended March 31, 1991.  At the December 17, 1991, meeting, your committee also considered the Special Audit of the Provincial Auditor on the Taxation Division of the Department of Finance.

     On January 27, 1992, your committee accepted the resignations of Mrs. Render and Messrs. Rose and Carr, and elected Messrs. Connery, Laurendeau and Lamoureux to replace them.

     Your committee received all information desired by any member from the Minister of Finance (Mr. Manness), staff from the Department of Finance, Mr. Fred Jackson, Provincial Auditor, Ms. Carol Bellringer, Assistant Provincial Auditor, Mr. Stan Puchniak, Assistant Deputy Minister, Taxation Division, and from Mr. Eric Rosenhek, Provincial Comptroller.  Information was provided with respect to the receipts, expenditures and other matters pertaining to the business of the province.  The fullest opportunity was accorded to all members of the committee to examine vouchers or any documents called for, and no restriction was placed upon the line of examination.

     Your committee finds that the receipts and expenditures of the monies have been carefully set forth and all monies accounted for.

     Your committee has considered the Provincial Auditor's Report and Volumes 1 and 2 of the Public Accounts for the fiscal year ended March 31, 1991, and has adopted the same as presented. Your committee also reports that it has considered matters relating to the Special Audit of the Taxation Division of the Department of Finance.

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Mr. Leonard Evans:  I move, seconded by the honourable member for Dauphin (Mr. Plohman), that the report of the committee be received.

Motion agreed to.

     

TABLING OF REPORTS

       

Hon. Darren Praznik (Minister responsible for and charged with the administration of The Civil Service Act):  I would like to table the Annual Report of the Civil Service Commission for 1990‑91.

Hon. Glen Cummings (Minister of Environment):  Mr. Speaker, I would like to table the Annual Report for the year 1990‑91 of The Clean Environment Commission.

Mr. Speaker:  I am pleased to table the Annual Report on the Elections Finances Act covering the period January 1, 1990, to December 31, 1990.

     

Announcement

       

Mr. Speaker:  I must inform the House that James Gordon Carr, the honourable member for Crescentwood, resigned his seat in the House effective January 27, 1992.

     I am therefore tabling his resignation and my letter to the Lieutenant‑Governor‑in‑Council advising the vacancy thus created in the membership of the House.

     

INTRODUCTION OF BILLS

     

Bill 24‑The Post-Adoption Registry Act

       

Mrs. Sharon Carstairs (Leader of the Second Opposition):  I move, seconded by the honourable member for The Maples (Mr. Cheema), that Bill 24, The Post‑Adoption Registry Act; Loi sur le Bureau d'enregistrement postadoption, be introduced and that the same be now received and be read a first time.

Motion presented.

Mrs. Carstairs:  The purpose of this bill is really quite simple.  The Post‑Adoption Act that we presently have in the province of Manitoba has legislative limitations.  One of those limitations is that it does not permit those who have been adopted to make contact with siblings who have also been adopted.

     They can be given access to records of siblings who are still with their birth parents; however, they cannot be given access at the present moment to those siblings who have also been adopted. This would give them the opportunity to also be in touch with those of the same birth parents but who, in fact, have been adopted.

Motion agreed to.

     

Bill 32‑The Immigration Consultants Registry Act

 

Mr. Kevin Lamoureux (Inkster):  I move, seconded by the member for Osborne (Mr. Alcock), that Bill 32, The Immigration Consultants Registry Act; Loi sur l'inscription des conseillers en immigration, be introduced and that the same be now received and read a first time.

Motion presented.

Mr. Lamoureux:  Mr. Speaker, it was just under a year ago where we had seen an excellent example of how immigrants or would‑be immigrants are exploited, and we believe that this bill is a positive step that, if the government chose to adopt it, would go a long way in sending a very strong message to would‑be immigration consultants that Manitoba will not tolerate the exploitation of immigrants, something that is long overdue.

Motion agreed to.

     

Bill 31‑The Municipal Amendment Act

 

Mr. Neil Gaudry (St. Boniface):  Mr. Speaker, I move, seconded by the member for St. James (Mr. Edwards), that Bill 31, The Municipal Amendment Act; Loi modifiant la Loi sur les municipalites, be introduced and that the same be now received and read a first time.

Motion presented.

Mr. Gaudry:  Mr. Speaker, this bill corrects a serious flaw which was inserted into The Municipal Act in the last session.  This bill will delete the word "consecutive," making the residence requirement for eligibility for elected office in summer resort municipalities two months in any year.

     As a result of the government's addition, which brought the residency requirement to two consecutive months, only 8 percent of the population of Victoria Beach are eligible to run for municipal office, while most taxes are collected from those disqualified.

     In the interest of basic democratic principle, this flaw must be corrected, as this bill will do.

Motion agreed to.

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Bill 16‑The Health Care Directives Act

Mr. Gulzar Cheema (The Maples):  Mr. Speaker, I move, seconded by the honourable member for River Heights (Mrs. Carstairs), that Bill 16, The Health Care Directives Act (Loi sur les directives en matiere de soins de sante), be introduced and that the same be now received and read for the first time.

Motion presented.

Mr. Cheema:  Mr. Speaker, this bill, so‑called living will, will legalize the wishes of a dying person made while competent and will give effect to the patient's right to self‑determination and right to refuse care.

     This bill is based on the recommendation from the Manitoba Law Reform Commission, and it will provide a mechanism to enforce the rights of patients when they are no longer competent to speak for themselves.  Thank you.

Motion agreed to.

     

Bill 30‑The City of Winnipeg Amendment Act

Mr. Paul Edwards (St. James):  Mr. Speaker, I move, seconded by the member for Osborne (Mr. Alcock), that Bill 30, The City of Winnipeg Amendment Act; Loi modifiant la Loi sur la Ville de Winnipeg, be introduced and that the same be now received and read a first time.

Motion presented.

Mr. Edwards:  This bill will re‑establish the Winnipeg Police Commission, which was dismantled by City Council in 1986 because of reduced responsibilities or perceived reduced responsibilities of that commission.  It will help the Winnipeg police force, reaffirm its integrity in its crucial mission in the community after a very difficult period in its history.

     This bill, as I have said, will re‑establish the police commission.  By establishing it in statute, the commission will be mandatory and, it is our hope and our submission, will help secure the respect of the police force, not just for the community but for the police force itself.  This is a commission whose day has come again, Mr. Speaker.  I recommend it to all members of the House for speedy passage.

Motion agreed to.

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Bill 23‑The Private Training Accountability Act

 

Mrs. Sharon Carstairs (Leader of the Second Opposition):  Mr. Speaker, I move, seconded by the member for Osborne (Mr. Alcock), that Bill 23, The Private Training Accountability Act; Loi sur l'obligation redditionnelle en matiere de formation privee, be introduced and that the same be now received and read a first time.

Motion presented.

Mrs. Carstairs:  I think we are all, in this House, in agreement that training opportunities must be made more and more available to not only our young people but people who find themselves unemployed.

     Unfortunately, we are putting more and more money into training programs, but there is no adequate mechanism for adjudicating those programs.  We do not have criteria which is clearly enunciated for funding, we do not have standards for curriculum, and we do not have a system for reporting the expenditures, nor do we have a follow‑up.

     This bill will provide the wherewithal by which young people who are trained will know that they are adequately trained, and the government will know that their money has been spent to a good endeavour.

Motion agreed to.

     

Bill 17‑The Patient Records Access and Confidentiality Act

 

Mr. Gulzar Cheema (The Maples):  Mr. Speaker, I move, seconded by the member for St. James (Mr. Edwards), that Bill 17, The Patient Records Access and Confidentiality Act; Loi sur l'acces aux dossiers des malades et leur confidentialite, be introduced and that the same be now received and read for the first time.

Motion presented.

Mr. Cheema:  This bill will entrench the right of all patients to access their medical records, a matter which is still in dispute in Manitoba's health care system, and which is one of the sources of great tension for many health care consumers.  This bill will also guarantee confidentiality of medical records prohibiting disclosure that would identify the patient except with his or her permission.  We must ensure that Manitobans are empowered and informed so that they are able to make a decision about their own health care.  This bill will help to accomplish that.

Motion agreed to.

     

Introduction of Guests

       

Mr. Speaker:  Prior to Oral Questions, may I direct the attention of honourable members to the gallery, where we have with us this afternoon from the Roseau Valley School, thirty‑five Grades 9 and 11 students.  They are under the direction of Mr. Richard Maslanka.  This school is located in the constituency of the honourable member for Emerson (Mr. Penner).

     On behalf of all honourable members, I welcome you here this afternoon.

     

ORAL QUESTION PERIOD

 

Goods and Services

Tax Harmonization

     

Mr. Gary Doer (Leader of the Opposition):  Mr. Speaker, we on this side would like to pass on our comments to the Premier (Mr. Filmon), pass on our regards for a healthy recovery and successful operation that is taking place today in Vancouver.

     Mr. Speaker, in the last provincial election, we were told very clearly that there would not be a harmonization of the GST and the PST in the province of Manitoba.  In fact, the Premier stated in an all‑party debate that we do not believe in taxing children's clothing, we do not believe in taxing music lessons.

     In the last budget, the government stated it was going to study the issue of harmonization with the GST and PST, then it promised us it was going to release the results of that study, but then after the Saskatchewan election, the Premier announced again he was not open to having the harmonization of the GST and the PST.  Well, lo and behold again, Mr. Speaker, we have another situation with the First Ministers' Conference last week.  The Premier again has announced that the Province of Manitoba is considering the option of the harmonization of the GST and the PST.

     I would ask the Minister of Finance very directly:  Are they considering the harmonization of the GST with the PST in the province of Manitoba, yes or no?

Hon. Clayton Manness (Minister of Finance):  Mr. Speaker, the Leader of the Opposition has his chronology fairly accurate.  Let me say that certainly the full report was not provided of what it was the Premier (Mr. Filmon) was responding to in question.

     Let me indicate very specifically to the question.  The government at this point in time is not reviewing harmonization. It has not since the Premier announced, I believe, almost a year ago now that‑‑not a year ago, let us say, eight months ago, that we were not actively considering harmonization.  That was restated before we rose last session; it was restated again last fall.  The government, at this point in time, is not actively considering harmonization.

Mr. Doer:  Mr. Speaker, during the last budget, after the government said in the last election that it was not considering harmonizing the GST and the PST at this particular time, in the last budget that the Minister of Finance tabled, he stated that he is having his officials carefully study the full implications of harmonizing the sales tax.  Surely the government agrees that it is the public's right to know what is in those studies that of course have been paid for by taxpayers' money, in the studies that have been implemented by the Minister of Finance in his own budget.

     Given the government has the results of the implications of the study on the harmonization of the GST with the PST, will the Minister of Finance agree today to table that study in the Legislature so that the debate in the province can be full and accurate with all the facts that the government has produced before us for this debate?

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Mr. Manness   Mr. Speaker, we said we would study the issue.  We did not say that there would be a study as such prepared.  Oh, there is a big difference, and I can say in all honesty that we studied the issue in great detail.

     Again, what was reflected was this, and I have spelled this out for the Member for Brandon East (Mr. Leonard Evans) on several occasions.  Again I will recite for the record, namely, this:  Whereas the member for Osborne (Mr. Alcock) seems to think there is hundreds of millions of dollars available, if indeed we are to harmonize, I am here standing, saying that, if the government were to harmonize, if the government were to now apply the provincial sales tax to services and were to adopt the tax credit system in place by the federal government, there would be basically a net wash to the province.  There would be no additional revenues whatsoever, Mr. Speaker.

     That is what I have said over and over again.  That is what I stand here and say today, but more importantly, to answer the question for the member, harmonization is not under active consideration today, and indeed I would expect it will not be under consideration tomorrow either.

Mr. Doer:  I guess that begs the question:  What about the day after?  We have had four different positions from the government to date, and that is only over the last 18 months.

     

Impact Manufacturing Industry

     

Mr. Gary Doer (Leader of the Opposition):  Finally, the government has stated, the Premier (Mr. Filmon) stated in this Chamber last year, that the federal Conservative GST would have a positive impact on the manufacturing sector in this province.

     Many of us who have talked to people working the manufacturing sector think that the Premier is all wrong on this issue, and given the fact that the Minister of Finance has these studies and has these reports, and given that the Manufacturing Association of Canada has produced numbers to show the decline of manufacturing shipments is 13 percent in Manitoba, the largest decline of any province, will the Minister of Finance agree today to table all these studies that he has of the various sectors that he has on the GST and PST, the various studies he has on the effect of the GST period in Manitoba, and all these other issues such as changes in the credits, et cetera, that he obviously has at his fingertips but is not available to the people of Manitoba?

Hon. Clayton Manness (Minister of Finance):  Mr. Speaker, let me make it plain for anybody who wants to hear.  The GST is not a provincial tax.  It is a federal tax.  The studies associated with the impact on the provincial economy with the implementation of the GST in January of 1991, indeed the expectation of negative impact, was in the realm of one and a half percent.  Those were not our numbers; those were the federal government's.  There were only two models to try and predict those.  Those were the Conference Board of Canada and the internal model of the Department of Finance.  That was their estimate.

     Nobody, there is not a province in Canada that has the modelling capacity, on their behalf at least, to estimate the impact of the GST.

     Mr. Speaker, I fully believe that was the negative impact on our province.  It represented several hundreds of millions of dollars, and indeed that is one of the reasons that the Province of Manitoba chose not to harmonize with the federal GST.

Mr. Doer:  A little reminiscent of the comments of the Minister of Finance without the studies of Michael Wilson when he said that the GST would be revenue neutral.

     

Economic Growth

Employment Creation Strategy

 

Mr. Gary Doer (Leader of the Opposition):  I have a new question to the Minister of Finance.  We have had the largest increase in the unemployment rate of any province in Canada in the last statistics that were released by Statistics Canada.  There are now 57,000 people on the unemployment lines of Manitoba, the highest number since we have been maintaining statistics in this province‑‑the highest number of people.

     Mr. Speaker, last year the Premier said and the government said very boldly that they would step aside and let the private sector be the engine of the Manitoba economy.  They would step aside and let the real creators of jobs do their work.

     Unfortunately, that single‑engine strategy has been a failure in the province of Manitoba, and this Minister of Finance's predictions on unemployment rates have not been accurate for one month on any given month since he has tabled his budget last year in this Chamber.

     My question to the Minister of Finance is:  What action is his government going to take to get people working again and get people off the welfare lines of Manitoba?

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Hon. Clayton Manness (Minister of Finance):  I find it interesting that the Leader of the NDP in Manitoba would ask that question.

     Mr. Speaker, first of all, and I remind him that Ontario lost a quarter of a million jobs in 1991 in the space of two quarters, but more important, I listened very carefully‑‑no doubt the Leader of the Opposition did too‑‑to First Ministers last week at the First Ministers' Conference.

     What I could not help but detect was that every NDP provincial Premier said in essence that they did not believe in mindless make‑work projects that could destroy the confidence if badly placed.  At least Premier Rae, Premier Harcourt, and also Premier Romanow‑‑all of them said that.  Also, they said that every NDP government said the fight on deficit control and reduction must be maintained.

     I am interested to know whether or not the Leader of the NDP party in Manitoba subscribes to those views of the NDP Premiers in Canada, because they were very forceful in their understanding that the deficit had to be controlled, that throwing money at make‑work projects in themselves was misspent money, indeed, similar to what the Jobs Fund did in this province years before. That was found wanting; that was found a total waste of money.

Mr. Doer:  Mr. Speaker, I also note that the Premier talked about keeping out the partisan rhetoric around the table, and we must work today, we must start today, Canadians had their fill of hopeful rhetoric.  Well, Manitobans have had their fill of hopeful rhetoric from this government over the last l8 months.

     We have always called on the capital investment in the province of Manitoba and needed capital works projects to go ahead in the time of a recession.  This government reduced capital expenditure from the pre‑election period of time to last year's budget.  They put thousands of people out of work with their ideological cutbacks, and all they did was move those costs into welfare lines.  That is what they did in last year's budget.

     I would ask the Minister of Finance:  Is the government going to stick with its ideologically extreme policies of just stepping aside during the time of the recession, or is this government going to work in partnership with people to get people working again and get our economy moving again in the province of Manitoba?

Mr. Manness:  Mr. Speaker, the member's facts are wrong; they are in error.  If he wants to compare capital spending in Manitoba vis‑a‑vis any other province in Canada over the last three or four years, budget over budget, he will see that there has only basically been one government that has maintained the level of capital spending.

     In Highways, last year, we increased capital spending from $102 million to $106 million; in Government Services, we maintained capital spending; in Housing, we maintained capital spending; in Health we increased capital spending significantly; in Education we also maintained capital spending.

     Mr. Speaker, we, as one province in this nation, have done something that is most difficult to do during a time of restraint, and that is to maintain the level of capital expenditure.  We are proud of that, because when one looks around at how the other provinces, particularly NDP provinces, will be addressing their deficit over the years to come, one will notice that the first attack, the first line to be attacked, is the capital side.

     That has not happened in this province, and it will not happen in the next budget either.

Mr. Doer:  I refer the Minister of Finance to the two budgets he has tabled over the last two years in the Chamber.  The facts speak very clearly for themselves.

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Budget

Employment Creation Strategy

 

Mr. Gary Doer (Leader of the Opposition):  My question again is to the Minister of Finance.

     Winnipeg, according to the Canadian Council on Social Development, has had the highest increase in social assistance of any other major city in Canada‑‑a 51 percent increase in the last 12‑month period, Mr. Speaker.  That is higher than Toronto.  That is higher than Ottawa.  It is higher than Edmonton.  It is higher than Vancouver.  It is higher than Halifax.  It is higher than even places like Saskatoon and Montreal that are 13 percent and 14 percent.

     Mr. Speaker, this Minister of Finance had to find another $25 million for social assistance because of the absolutely disastrous policies of the Conservative government in Ottawa and the Conservative government in Manitoba, where we have people going from work to welfare under Tory ideological economic policies.

     I would ask this Minister of Finance:  Has he seen the wisdom of his ways to be failing?  Will he have a much better budget to keep people working rather than having the highest increase in welfare of anyplace in Canada as he had with his last year's budget in the province of Manitoba?

Hon. Clayton Manness (Minister of Finance):  Well, Mr. Speaker, I am reminded that a significant reason for that increase, of course, was the increased benefits that we have provided as compared to other provinces.  A significant reason and portion of that increase is the benefits.  Certainly the volume increase is significant in itself.

     Let me point out that we have provided extremely significant increases in benefits also through that period of time, Mr. Speaker.  Let me also point out that our base was a little bit lower vis‑a‑vis other provinces.  I can indicate to the member that I had an opportunity to talk with my counterpart, the Minister of Finance from Saskatchewan, just last week.  He was complaining, indeed, that the very same impact with respect to their social assistance roles was also occurring in Saskatchewan.  He too did not know how he was going to deal with it from a funding point of view.

     Mr. Speaker, the matter that the member brings forward certainly is not isolated to Manitoba.  It is something that is occurring in other parts of our country.

     

Goods and Services Tax

Harmonization

 

Mrs. Sharon Carstairs (Leader of the Second Opposition):  Mr. Speaker, my question is to the Deputy Premier.

     The position of this government on harmonization is about as clear as mud.  It reminds me of the old song:  first you say you will and then you won't.  Mr. Speaker, we had the Premier of this province say on February 12, we will have to consider it.  We had the Minister of Industry, Trade and Tourism on the 14th of February say, well, Mr. Mazankowski asked us to look at it, so we have an obligation to do so.

     Well, when did they start their review and when did they finish their review, if he is in fact going to defend his Minister of Finance?

Hon. James Downey (Deputy Premier):  Mr. Speaker, I think the Minister of Finance, in his comments, has answered the question which has been put by the member of the New Democratic Party.

     Our position has not changed, as has been indicated by the Minister of Finance.

     

Goods and Services Tax

Harmonization

 

Mrs. Sharon Carstairs (Leader of the Second Opposition):  Mr. Speaker, would the Deputy Premier like to tell us if he has told the Premier of the province that the government backbenchers and cabinet ministers assembled have changed their minds?

Hon. Clayton Manness (Minister of Finance):  Mr. Speaker, I will try and make it very clear for the Leader of the Liberal Party, who has great difficulty‑‑very difficult.

     I received a request from the federal government, over the signature of the Deputy Prime Minister, asking our province‑‑and I believe the letter went out to all other provinces‑‑to consider a method of harmonization, not the traditional harmonization, where we were going to apply provincial sales tax in harmony across all goods and all services, but indeed one small element to try and deal with a very real problem in this country.  It is called cross‑border shopping.  It is impacting the constituents and indeed the businesses of each and every one of us in this House.  It would come as not a great revelation to you, Mr. Speaker, that this was an issue that was discussed at the First Ministers' Conference.

     The federal government sent to us a letter asking us to consider a proposal that might deal with this problem.  It was on that wish of the federal government, indeed of the provinces, to try and deal with this that the Premier made a comment dealing with harmonization.  That should not be confused with the harmonization issue that was discussed in this House, in this province and all across Canada a year ago, not in the least‑‑not in the least.

     We are talking about a very serious matter to our businesses and indeed our constituents, and that is cross‑border shopping. I think the members opposite, if they wanted to do justice on a public policy issue, with respect to that issue, could try and shed more light rather than more darkness on that particular issue.

Mrs. Carstairs:  Mr. Speaker, for further clarification, has the Minister of Finance now written to the Deputy Prime Minister and to the Minister of Revenue, Mr. Jelinek, and informed them that there will not be under any circumstances harmonization of the PST and the GST in the province of Manitoba?

Mr. Manness:  Mr. Speaker, I do not have to write that letter.  I will be writing a letter.  I met with my officials this morning, but I do not need to write that letter, because that was not what was requested by Mr. Mazankowski.  He never did request that. Total harmonization, goods and services, was not requested by the federal government.  They know that is a nonstarter.  They were told by First Ministers that that was a nonstarter across this country.  The request that came forward from Mr. Mazankowski did not even ask for that.  It asked to consider whether or not there was a willingness to take the good side of the goods and services tax and apply the provincial sales tax at the border.

     The members can try and muddy it up to make it appear like the provincial government is harmonizing, but I am here standing to tell you that is not the case.  We will not be harmonizing the goods and services tax.

     

Free Trade Agreement

Abrogation

 

Mr. Jerry Storie (Flin Flon):  Mr. Speaker, my question is to the Deputy First Minister.

     Manitobans listened with interest to the comments from the Finance minister about the need to control the deficit, about the concern for the 57,000 people who are unemployed.  Manitobans want more than concern.  They want a government that is prepared to act on their behalf.

     Since 1989, this government has supported the Free Trade Agreement, an agreement which has cost Canada some 435,000 jobs, which has reduced manufacturing jobs in every sector.  Statistics Canada reports that every sector‑‑[interjection]

Mr. Speaker:  Order, please.

Mr. Storie:  Mr. Speaker, my question to the Deputy Premier (Mr. Downey) is:  Will the government now take a stand which opposes the Free Trade Agreement, take a stand which would see Canada get out, abrogate the Free Trade Agreement so that we can re‑establish a manufacturing base in the province, employ people and create wealth or revenues, so that we can have revenue for the government to conduct its programs?

Hon. James Downey (Deputy Premier):  I am not going to in any way accept the information which the member for Flin Flon (Mr. Storie) puts on the table or puts before this Legislature, Mr. Speaker.  There have been times when it has been less than accurate, where it has come from.

     Let me as well say that there are a number of things that one could point to that have caused difficulties in the economy. Number one, Mr. Speaker, we are facing an international and national recession which is impacting on everyone.  If the member for Flin Flon does not see that, then I think he should come alive to the greater happenings that are taking place in all of Canada.

     It should be pointed out as well that, within the manufacturing sector in Manitoba, we have basically maintained the level of employment at some 54,000 this January over last January, Mr. Speaker.  The information we have is contrary to what the member is putting before the Legislature.

     

North American Free Trade Agreement

Manitoba Conditions

 

Mr. Jerry Storie (Flin Flon):  Mr. Speaker, I think Canadians and Manitobans realize that the problems that we have created for our economy are going to be compounded if we join the North American free trade agreement.

     My question is to the minister responsible for Industry, Trade and Tourism (Mr. Stefanson).  Given that on July 16, 1991, the government tabled a set of conditions which would have to be met before we agreed to enter the negotiations with Mexico and the United States, can the minister indicate today which of these six conditions have been met, whether in fact he has had any meetings with the federal negotiators to show‑‑

Mr. Speaker:  Order, please.  The question has been put.

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Hon. Eric Stefanson (Minister of Industry, Trade and Tourism): The honourable member is correct that we opposed a North American free trade agreement unless the six fundamental conditions are met.  We have no clear indication on some of them.  To date there is progress being made in two fundamental areas, the review of labour standards and the review of environmental standards, but the federal government clearly knows our position as a province. It has been made clear back in July of '91 and in federal‑provincial ministerial meetings ever since, and we will continue to stand by that position, Mr. Speaker.

Mr. Storie:  Mr. Speaker, will the minister do two things?  Will the minister please indicate to this House which of the studies and reports from the federal government he is prepared to table today, and will he guarantee the people of Manitoba, if the six conditions are not met, Manitoba will not now, nor will it ever, support a free trade agreement between the United States, Mexico and Canada?

Mr. Stefanson:  Mr. Speaker, I think we have made that position perfectly clear in this House back in July when we introduced it, and we have done it consistently.  We have said we do not support a North American free trade agreement unless those six very important conditions are met.  I have to indicate to you that, as a result of our position, it certainly stimulated some support and interest from other provinces across Canada in terms of recognizing those very important concerns.  That is our position.  We have said it on many occasions, and our position has not changed.

     

GATT Negotiations

Supply Management Proposal

 

Mr. John Plohman (Dauphin):  This Minister of Agriculture's agenda is gradually becoming increasingly clear, much to the alarm of many producers in Manitoba.

     On January 26, Mr. Speaker, he publicly proposed that the method of payment of the Crow be changed to appease other countries at GATT, and he did that on the Manitoba farm news on MTN.  On February 6, at the ministerial meetings, he refused to unconditionally support the retention of supply management at GATT, along with his counterpart from Alberta.  The only two Conservative Ministers of Agriculture refused to unconditionally support supply management.

     I ask this minister:  Will he now stand up for Manitoba farmers by saying that the tariffication proposal that includes our supply managed commodities and does not include the strengthening of Article 11 is unacceptable to Manitoba and should be rejected by the Mulroney Conservatives?

Hon. Glen Findlay (Minister of Agriculture):  Mr. Speaker, the member put about six questions on the agenda for this afternoon.

     I would like to first off tell the member that he is categorically wrong when he says that I refused unconditionally to support supply management.  I want the member to clearly understand the complexity of agriculture in Manitoba.

     Wheat makes up 28 percent of cash receipts at the farm gate; cattle 16 percent; hogs 12 percent; supply management 11 percent; oilseeds 9 percent; coarse grain 6 percent.  Because of the international trade war, the grains, oilseeds and red meat sector have been severely hurt in the province of Manitoba.

     As a result, about two years ago we as a Province of Manitoba took a position that at the GATT round of negotiations, which were clearly needed to help relieve the impact of the grain trade war on the grain and oilseed producers, that we would take a balanced position to the table that all trade distorting subsidies must be reduced, or eliminated preferably, and that we must clarify and strengthen Article 11.

     That is the position that Manitoba took two years ago.  It was the position taken by the federal Trade minister to the GATT table.  It is the position we stand behind today, Mr. Speaker, as the Province of Manitoba, a balanced position supporting all producers of Manitoba and not throwing any producers out of the window in terms of supporting them at the GATT round of negotiations.

Mr. Plohman:  Mr. Speaker, the minister is all over the map on this issue, trying to skate through.  I want to table a copy of the proposal and the agreement that was signed by all of the Ministers of Agriculture, with the exception of Alberta and this minister from Manitoba, that this minister refused to support.

     I want to ask this minister if he is saying by refusing to sign this document that in fact he is admitting that he wants to destroy the supply managed farms in this province, because that is exactly what will happen if the tariffication proposal is accepted.  Is he for that tariffication proposal or against it as it is constituted now?

Mr. Findlay:  Mr. Speaker, that member continually tries to misinterpret what is going on.

     That declaration that he refers to, as I said in my previous answer, did not relate to the balanced position that we take as a Province of Manitoba.  The declaration was in support of Canadian supply management programs only, and I want to read for the member the statement from all Ministers of Agriculture in the country of Canada, ten provincial ministers and one federal minister, that the ministers are encouraged by the positive opportunities for Canada's grain and oilseed producers, the red meat sector, agribusiness, but expressed the importance of protecting the supply management system which currently supports the dairy, egg and poultry sectors.

     All ministers underlined the critical need to work together with industry in fostering Canada's balanced position and received assurance from the federal government that every effort we undertake to achieve a successful conclusion to the GATT negotiations, Mr. Speaker.  All ministers support the balanced position; all ministers supported this communique, which is a position that Manitoba put forward.

Mr. Plohman:  Will this minister come clean and tell this House whether in fact this balanced approach that he talks about includes the clarification proposal that is currently on‑‑

Mr. Speaker:  Order, please.

     

Point of Order