LEGISLATIVE ASSEMBLY OF MANITOBA

Monday, May 3, 1993

 

The House met at 8 p.m.

 

ORDERS OF THE DAY (continued)

 

COMMITTEE OF SUPPLY

(Concurrent Sections)

 

FAMILY SERVICES

 

Mr. Deputy Chairperson (Marcel Laurendeau):  The hour being eight o'clock, committee will resume.  We are going to deal with item 4.(b) Community Living and Vocational Rehabilitation Programs (1) Adult Services (a) Salaries $1,110,600.

Mrs. Sharon Carstairs (Leader of the Second Opposition):  Mr. Deputy Chairperson, I would like to get into the payments to external agencies.

       In the House and outside of the House, the minister indicated that they had to make tough choices, so they, in essence, decided that they had to give money to support organizations that were providing service.  So they cut funding to those that, in their judgment, provided primarily advocacy.  Is that correct?  I do not want to put words in the minister's mouth.

Hon. Harold Gilleshammer (Minister of Family Services):  Mr. Deputy Chairperson, that was one of the criteria that we looked at.  I certainly have had discussions with a number of these groups that do provide advocacy.  They, in some cases, may also provide services to their members and some services to the community.  Certainly the ones that were providing what is generally known as advocacy were part of a group that had some reduced funding.

       I think that when the Finance minister made his announcement across government, one of the things that were said was that advocacy groups were one of the targets.  As well, there were agencies that were providing programs that were not of the highest priority within our department and what our department mandate is.  Some of them, of course, had gotten into other service delivery to do with their work within the community.

Mrs. Carstairs:  First off, payments that were made today, the recipient organization, I found it rather interesting that the first two list in their name that they are advocacy groups, the Brandon Citizen Advocacy Inc. and the Winnipeg Citizen Advocacy Inc.  While their funding was reduced from, I think, a high of $38,000 to $34,200, they did manage to maintain a large chunk of their funding as opposed to, for example, the Association for Community Living.

       Can the minister explain why these two, by their own definition, advocacy groups managed to survive but the Association for Community Living did not?

Mr. Gilleshammer:  I can well understand why the member has asked the question.  I guess part of the explanation is that these are two groups who work with mentally disabled clients and perform an advocacy function for their clients and, as such, a service for those clients.

       The Brandon Citizen Advocacy Inc. assists that organization that is working, again, primarily with mentally disabled individuals in day‑to‑day living and in a sort of big‑brother, big‑sister fashion and of course as indicated, within the city of Brandon.

       The Winnipeg organization is essentially the same.  They advocate for individual clients who would be described as mentally disabled.

Mrs. Carstairs:  Surely that is a definition of what the Association for Community Living does.

Mr. Gilleshammer:  Again, I do not think there is a clear‑cut definition of advocacy.  Many of the groups were probably in a broader advocacy role representing their particular client group advocating government on certain programming and certain directions.  These, it was thought and felt, because they provided a service to the mentally disabled, were providing a service that we wanted to maintain.

Mrs. Carstairs:  The only new recipient organization that I could find, unless of course it is a pullout from one of the others, is the CareerStart transition.  Is that a brand new group that is being funded this year?  It was not found last year.

Mr. Gilleshammer:  Yes, it is part of our community living initiative that we announced in the subject that we spoke about earlier.

Mrs. Carstairs:  Can you tell me what was the function of Abilities Network, because they seem to also be one that does not have its funding this year, but received some 76.6 last time?

Mr. Gilleshammer:  This was a nonprofit association that was fostering and promoting the effectiveness and relevance of those organizations whose primary purpose is to provide continuing education, training and development for adults with intellectual, physical and psychiatric disabilities.

Mrs. Carstairs:  It would sound, from the description, that they were providing a direct service.

Mr. Gilleshammer:  Again, I think there is a gray area here where the previous two groups that the member was asking about certainly provided a direct service to individuals.  In this case, the Abilities Network was an umbrella organization that encompassed a number of groups that in fact do provide service.

Mrs. Carstairs:  Was there a percentage figure which was used for all the recipient organizations other than, for example, the ones who had their grants eliminated altogether?

Mr. Gilleshammer:  Yes, there were some that lost 100 percent of their funding.  Others, there was a 10 percent reduction.  With some others, there was a 4 percent reduction.

Mrs. Carstairs:  What was the determination for one percentage vis‑a‑vis the other percentage?

Mr. Gilleshammer:  The 4 percent was agencies that we felt could achieve the workweek reduction model that government is imposing on civil service staff.  The 10 percent was on larger agencies with a capacity to achieve some savings in efficiencies within their organization.

Mrs. Carstairs:  The housing type models like Ten Ten Sinclair received no reduction in their funding at all between '92‑93, '93‑94, whereas some of the other agencies seem to require more of a cut even though they are also providing accommodation, for example, Main Street Project Inc. which received a rather massive reduction of some hundred thousand dollars.

Mr. Gilleshammer:  With the Main Street Project there was a 10 percent reduction in the grant funding that we gave them.  With Ten Ten Sinclair there was a 4 percent reduction that it was felt they could achieve on the salaries portion.

Mrs. Carstairs:  So they got 758 last year and 731 this year. All right, I see that.

Mr. Doug Martindale (Burrows):  Mr. Deputy Chairperson, I would like to go back to some of the comments the minister was making at five o'clock.  I could not let his remarks go unnoticed or uncommented on.  He ended on quite a rhetorical flourish at five o'clock.  Unfortunately, I have forgotten most of what he said. It went in one ear and out the other, I guess.

       However, I would like to say that the main point of difference between us is his alleged reference to fairness.  I know that the minister has heard us say this before in Throne Speech Debate, in Question Period and in Estimates.  We believe that the pain is not being shared fairly and we will continue to repeat that.  I just wanted to make sure that I got that on the record in reply to the minister's remarks and then I have some questions.

Mr. Gilleshammer:  I might respond with a challenge again.  The member has consistently said that in Family Services we have not made the appropriate decisions, that we are not showing a sense of fairness within our budget.  I have challenged him to give us some options that he would see as a direction as a member potentially of a government that may someday have more realistic thoughts of forming government, and we are still waiting for those options.

* (2010)

       Again I say to the member, the reality of government is the reality faced by the Premier of Ontario and the Premier of Saskatchewan, and the reality of opposition is the rhetoric that is coming from federal members of his party who, of course, are so used to being in opposition that they continue to say the same lines and do not account for the fact that once in government you have to make some hard decisions.

       We believe in this department that we have shown a sense of fairness in finding the savings within our department which allows us to make the increases in a number of areas where we are dealing with very vulnerable Manitobans.  I know that before the Estimates are over the honourable member is going to tell me what some options are within Family Services that he would lobby for should he ever have that opportunity.  I say to the member, these were difficult decisions that your Leader has recognized on numerous occasions and I am sure before we are finished maybe the honourable member will also recognize them.

Mr. Martindale:  Mr. Deputy Chairperson, there are some very specific examples of how we feel that this budget is unfair, for example, the total elimination of the grant to the Manitoba Anti‑Poverty Organization.  In conversations with many organizations, particularly external agencies that are funded by your department, we know that different organizations are dealing with their reduction or even elimination of grants in different ways.

       For example, some executive directors or board members have told me that they are going to sit down and redo their budget for this year.  Others are going to save money primarily from the workweek reduction that the minister just referred to.  Others are going to charge fees to their members, in some cases, for the first time; hopefully, in that way they will keep their organization afloat.

       However, Manitoba Anti‑Poverty Organization really does not have any of those options.  They feel that their staff are underpaid for the kind of work that they are doing now.  They have no ability to reduce staff wages to continue, because such a large part of their funding comes from your department.  They cannot charge fees to their members because they are dealing with poor people who probably would not be able to pay, let alone willing to pay, for service.  So I think that is one organization whose ability to rebudget or to take workweek reductions or charge fees is either severely constricted or impossible.  They may well end up with having one staff or no staff, and if there is no staff, there is no organization.

       Now the minister knows that out of the 56 organizations that received no funding, there are only a very few that we have gone to bat for, and Manitoba Anti‑Poverty Organization is one of them.  If the minister were to reconsider any decision of the externally funded agencies, that is the one that I would probably pick out of all of them for the minister to reconsider.  Since this is the first time we have really gotten into payments to external agencies in any detail, I would like to ask the minister if he would reconsider the funding decision regarding Manitoba Anti‑Poverty Organization.

Mr. Gilleshammer:  I would be pleased to answer that and note that the alternatives that were requested by myself have yet to come forward.

       The Manitoba Anti‑Poverty Organization is one of the groups that I have met with frequently and will be meeting with again in the not too distant future to discuss the work that they do. Again, this was one of those difficult decisions that we had to make within this budget, to achieve any degree of savings.  I recognize what the member is saying, to a large extent, is correct.

       Again, these are services that are provided by the department and where we have staff who work with individuals on social allowances.  So, in some ways, there is a bit of a duplication of service there, although I do recognize that the organization did advocate for the system and, in some cases, for individuals, but then there are other organizations that do that as well.  I know that the WORD organization, which is not funded by government, the Winnipeg organization representing the disabled, again, has brought forward excellent recommendations, some of which we have followed.  One of the most significant was the fact that we put into place a benefit called Income Assistance for the Disabled. I know that the member has been supportive of that.

       The other organization that has provided good advice and good background to the department and to the minister is the Social Assistance Coalition of Manitoba.  I know those are individuals not unknown to members of the opposition.  We have frequently met with two of their executive members who not only provide advice and information for the department, but also do a lot of advocacy on behalf of individual members who may be accessing the system.

       As well, I would point out that the member has indicated that because of the need for funding, the organization cannot maintain its profile and its work.  There are thousands and thousands of volunteers in society that provide service and provide advocacy for individual groups.  I do not think the member and I would ever agree whether there is sufficient service and sufficient advocacy for the disadvantaged who are on social assistance.  I would say that there are other groups; there are other individuals and we do have departmental staff that provide service to the many thousands of cases that we deal with.

Mr. Martindale:  Will the minister not agree that there is a fundamental difference between the Manitoba Anti-Poverty Organization and the other two organizations he talked about, namely WORD and the Social Assistance Coalition of Manitoba?

       The fundamental difference, in my view, is that the Manitoba Anti‑Poverty Organization had a paid staff and an office at 365 McGee Street, and they were providing a service to people who walked in the door or who phoned them.  They were acting as advisers and advocates for individuals, mostly for individuals with problems with city and provincial social assistance. Whereas, my understanding and knowledge of WORD and SACOM is that they are fairly limited in that they do not have paid staff. They do not advocate or give advice to a whole lot of individuals.  Primarily, their purpose has been to advocate on behalf of groups of people on social assistance and advocate to change the rules and to improve the benefits.  They were primarily lobbying organizations and had no or almost no service component.

       Would the minister not agree that those are fundamentally different functions of those organizations?

Mr. Gilleshammer:  As much as I would like to find some area where the member and I can agree, I am surprised that he is so critical of those organizations which have really provided valuable input to the department and valuable input to government on a number of issues.  I can assure him that they certainly provide individual service.

* (2020)

       We met with the co‑chairs of SACOM many times and listened to the number of cases that they do individual advocacy and work for.  They have many times assured me that they work with clients on a day‑to‑day basis to help them achieve some of their goals in terms of education, some of their goals as far as working within the social allowances system.  I sense from the vast knowledge they have of the legislation and of the system‑‑and, certainly, I have not asked for any documentation, but I take them at face value that they do a tremendous amount of work for individual clients who come to them.

       Similarly, with the WORD organization, although they are small in terms of membership and they do not have a permanent full‑time staff, they have achieved a number of gains for the disabled community as a group and for individuals.  I think it is an example how groups like that, which in many ways feel unencumbered by government, do provide both a service to individuals and good advice about the system.

Mr. Martindale:  Well, the minister is trying to put words in my mouth.  I am certainly not critical of either of those organizations.  In fact, I support nongovernmental organizations that advocate with government on behalf of individuals or groups of people.  I would repeat that they are fundamentally different from MAPO, another difference being that, as far as I know, neither of the other two groups are incorporated or have a board of directors.

       I can appreciate that the minister gets advice from them and appreciates that advice, but the fundamental difference is still there.  One was an organization with paid staff serving large numbers of people, and the others were serving less people without any paid staff.

       I would like to go back to Community Living and Vocational Rehabilitation and ask the minister what positions have been eliminated by staff cuts to the civil service in three areas: behavioural specialists, family services workers and vocational rehab workers.

Mr. Gilleshammer:  My understanding is that we have two fewer staff in that area.

Mr. Martindale:  For clarification of those three areas, there are two fewer staff?

Mr. Gilleshammer:  Yes, that is correct.

Mr. Martindale:  Can the minister tell us what he sees as the role of his department in meeting the needs of aboriginal people with a mental handicap?

Mr. Gilleshammer:  There is an understanding that in Manitoba the Government of Canada is responsible for services to aboriginal people whose residency is on reserve.  Of course, in the not too distant past, the Government of Canada, in terms of a transition from the reserve to a nonreserve location, also were responsible for certain programming for First Nations people as they moved from the reserve to the city of Winnipeg or elsewhere in the province.

       The example that I am most familiar with of course is the whole area of social allowances, where there was once an understanding that as aboriginal members moved off reserve, the federal government were responsible for them for the first year.

       Similarly in child welfare, the federal government played a larger role there.  In the area of citizens who access programming through this area of the department, the province is responsible for off‑reserve services to Status and non‑Status and because this does not come under the CAP cost sharing, this is a service provided by Manitoba.

Mr. Deputy Chairperson:  4.(b) Community Living and Vocational Rehabilitation Programs (1) Adult Services (a) Salaries $1,110,600‑‑pass; (b) Other Expenditures $413,400‑‑pass; (c) Financial Assistance and External Agencies $38,586,800‑‑pass.

       4.(b)(2) Children's Special Services (a) Salaries $223,900.

Mrs. Carstairs:  In the last line of this particular appropriation it talks about Financial Assistance and external. I am presuming that means External Agencies, but what External Agencies would be covered under this since none of them are listed?

Mr. Gilleshammer:  I am told this is primarily through per diems and primarily to St. Amant.

Mrs. Carstairs:  What kinds of Children's Special Services would come under that?

Mr. Gilleshammer:  This is the way in which we flow money to St. Amant, that there is a budget line around $13 million or $14 million that is accessed by St. Amant for individuals who are clients there.

Mrs. Carstairs:  I did not really want to get into this one, but I was shocked when I saw the St. Amant Developmental Day Care program line under Child Day Care because it was 413.4 in '92‑93 and in '93‑94, it is 158.2.  I would have thought that would have come in here.

Mr. Gilleshammer:  The daycare program at St. Amant is funded under the Day Care line.

Mrs. Carstairs:  But the Day Care line for St. Amant, and we can discuss it in detail later on, is some $300,000 less than it was last year.

Mr. Gilleshammer:  That is correct.  As part of the review of the St. Amant Centre that we did in conjunction with them, there has been a change in the way the St. Amant Day Care Centre is operated.  In this budget year the advice of that review committee was to treat the St. Amant Day Care in a similar fashion that we treat other daycares in the province so that the funding levels for the St. Amant Day Care now reflect the formula we have for funding all daycares.

Mrs. Carstairs:  I do not disagree with that except that I‑‑and this is where I got confused, because I would have thought that those special needs for those children within that daycare centre might have shown up under Children's Special Services, but in fact there is a decline.  Where is the money coming from for those children in the daycare that need Children's Special Services?

Mr. Gilleshammer:  Within the global daycare budget there is a certain amount of funding for special needs children.  The funding that flows to the St. Amant daycare for special needs comes out of that formula in the daycare budget.

Mrs. Carstairs:  Would that be in addition to the 158 which is listed under External Agencies Grants?

* (2030)

Mr. Gilleshammer:  Yes, that is correct.

Mrs. Carstairs:  There has been a decline in the financial assistance.  Is this because there are fewer children being serviced, or is this just a reflection that everybody had to take less to do that servicing?

Mr. Gilleshammer:  Part of the restructuring that St. Amant has done with their daycare shows some changes in the way which, for instance, transportation is being handled.  There is a reduction in the transportation allowance, again to reflect the type of funding that we do with other daycares.

       This was worked out with the board of St. Amant.  The changes in that policy to do with daycare was done in agreement with the St. Amant board.

Mrs. Carstairs:  I am now dealing actually with Community Living and Vocational Rehab Programs under Children's Special Services. There has been a decline in the Financial Assistance line from 20.6 to 20.5.  Is that as a result of fewer children, or is that as a result of just the downsizing that everybody has been asked to do?

Mr. Gilleshammer:  That is part of a budget reduction of 2 percent on the per diems.

Mrs. Carstairs:  The 2 percent in per diems for special services?

Mr. Gilleshammer:  For clients of St. Amant.

Mrs. Carstairs:  So St. Amant is now receiving less grant to look after the same child?

Mr. Gilleshammer:  The 2 percent is a reduction in the global figure that we flowed to St. Amant.  Again, I go back to this major review we did in co‑operation with St. Amant.  Part of it was to determine how they should be funded.

       There was some line of thinking that thought St. Amant should be funded as a hospital.  There was another line of thinking that thought they should be just funded on per diems.  We also had to deal with an accumulated deficit.

       The outcome and the changes that are taking place in St. Amant are minimal.  We have flowed additional money, I think around $350,000, to deal with an accumulated deficit.  Part of our treatment of St. Amant is similar to other organizations where we have asked them to take 2 percent less and to find that within their salary structure.

Mr. Deputy Chairperson:  4.(b)(2) Children's Special Services (a) Salaries $223,900‑‑pass; (b) Other Expenditures $83,700‑‑pass; (c) Financial Assistance and External Agencies $20,590,500‑‑pass.

       4.(c) Manitoba Developmental Centre (1) Salaries $20,371,900.

Mrs. Carstairs:  Mr. Deputy Chairperson, with regard to MDC, I think that all MLAs received a recent letter with regard to the staffing problems or as this individual indicates.  Is it normal for a staff person at MDC to work between six and eight days in a row straight without a day off?

Mr. Gilleshammer:  Well, I am not aware of what correspondence the member is referring to, but no, it is not a normal practice. We abide by the civil service guidelines as far as staffing goes.

Mrs. Carstairs:  Well, in this particular case, they refer to Monday to a Sunday shift as a regular type of occurrence‑‑Monday, Tuesday, Wednesday, Thursday, Friday, Saturday, Sunday‑‑and they admit they then get four days off.  My understanding is that is contrary to the labour code.

Mr. Gilleshammer:  We are not aware of that and my limited experience in terms of what the civil service guidelines are, it appears to me that there are opportunities within there to raise a grievance over an issue like that.  I would be surprised if government did not have an appeal process following that if the person's concerns had not been addressed.

Mrs. Carstairs:  Well, I just give it to the minister because I received it as correspondence and would ask that they look into it just to ensure that this kind of thing is not in fact going on at MDC.

       The Supplementary Estimates indicate that there has been a decrease in staff years which reflects workforce adjustments.  It would appear that there has been essentially 10 staff, I think, reduced in this staff years reduced.  There does not seem to be a corresponding reduction in the number of clients at MDC.  What does this workforce adjustment refer to?

Mr. Gilleshammer:  Yes, there is a reduction, I believe, of nine positions at MDC.  I can give you a bit of a breakdown of those if you like.  I am told that four and a half of the positions are from within the nursing department, and there have been retirements and resignations there.  We are redeploying two positions back into that area from what was called the transitional unit.  One position in the vocational training department was recently vacated as a result of a promotion, and workshop supervision and program management will be maintained by redeploying one position from the transitional unit.

       I do not know whether I have to go into the transitional unit.  There has been a unit there preparing individuals‑‑and it was called the transitional unit‑‑for transitioning out of the institution.

       We are reassigning that staff because of the fact that a number of these individuals are part of the pilot project that we talked about before, and we felt that the transitional unit at this time was not necessary.  So the positions that we are downsizing in MDC, nine of them, a number of them, are being covered off by members from the transitional unit.

Mrs. Carstairs:  There have been a number of significant structural changes at MDC over the last six or seven years, all of them desperately overdue.  I have to say that, having been at MDC in the mid‑'60s and having gone back to it again this summer, there was positive upgrading and the government should be congratulated.

       My first impression, having gone to MDC, was that I wanted to remove all of the clients and I wanted to blow the place up.

       I was back this summer, and I must admit I had a more positive feeling about the type of physical plant.  I always felt the staff was very competent and doing a very good job, but I must say that I thought the physical plant left a great deal to be desired.  And pat people on the back when they deserve it. The government deserves a pat on the back.

Mr. Gilleshammer:  I thank you for that, and I will be certain that staff pass that along to the staff at MDC.

Mr. Deputy Chairperson:  Item 4.(c) Manitoba Developmental Centre (1) Salaries $20,371,900‑‑pass; (2) Other Expenditures $2,910,300‑‑pass.

       4.(d) Child Day Care (1) Salaries $1,818,900.

Mr. Martindale:  Mr. Deputy Chairperson, I think we will be here for quite a while.  Probably till midnight.

       I have a number of excellent letters‑‑

* (2040)

Mr. Gilleshammer:  Could I just ask if you wish to stay on this till midnight there is a possibility that some staff do not have to remain here if we are not going into child welfare?  And if you want to change your mind‑‑

Mr. Martindale:  We may get into Child and Family Services.

Mr. Gilleshammer:  Okay.

Mr. Deputy Chairperson:  Would you just stay in the one level though, at the administration level and that, or‑‑

Mr. Martindale:  I would like to ask all my questions on Child Day Care all at once, of course giving some time to the other critic.

       I am in receipt of some excellent correspondence from people who are very involved either as parents or board members or staff in child care centres.  I would like to quote from some of this correspondence because I think it makes a case that I have been trying to make in Question Period without success, mainly having to do with the impact of the changes announced by the minister, particularly the increase in fees and the capping of subsidized spaces.

       The first letter I would like to quote from is from the law firm, Wilder, Wilder and Langtry..  Langtry kind of rings a bell.  As the letterhead points out, he is on leave of absence. However, one of his colleagues there, Leslie Tough, has sent an excellent letter on behalf of the‑‑actually, she is writing in her capacity of treasurer of the board of directors of Little Bo‑Peep Children's Day Nursery Inc.

       I would like to quote some of the facts that she presents. She says that Bo‑Peep daycare is presently licensed for 32 spaces.  However, she says:  We have 40 children in attendance, because many share a space due to the part‑time requirements of their parents.  This is largely a reflection of the current economic and employment climate where parents are either unable to secure full‑time employment or have been cut back to part‑time hours by their employers.  Thus, the sharing of spaces meets a real need in our community and in particular for those families who are already experiencing financial difficulties.  These are people who cannot afford daycare without a subsidy.

       We were originally told that we had been allocated 25 subsidized spaces pursuant to the recent policy of the provincial government limiting the number of subsidized spaces permitted. This created a very difficult situation, but our director felt that we could try to cope with it.  However, this was recently changed to cases, meaning children.  Obviously, this results in a disastrous situation for the daycare and the parents.  We will no longer be able to provide part‑time care for subsidized parents. We will be unable to fill up all of our 32 licensed spaces.  The result will be a loss of revenue to the daycare and probable staff layoffs.

       The purpose of this letter is to draw your attention to this situation and to respectfully request a reconsideration of the allocation of our subsidized cases.  We do understand the current economic situation, but the course taken by the Province of Manitoba is shortsighted and disastrous.  It will remove people from their employment and children from licensed daycare.  It will create a subsidized ghettoized daycare system for the poor.

       Mr. Deputy Chairperson, I would like to begin by asking the minister if the facts as presented in this letter are the same as what the minister has been saying in the House.  This individual is saying that they are going to be forced to reduce the number of children in their child care, and the implication is that they are going to have to lay off staff.

       I would like to ask the minister if the reason for this is not that‑‑in the past, two and sometimes more children were sharing one space‑‑that this will no longer be true and each case will refer to one child.

Mr. Gilleshammer:  Mr. Deputy Chairperson, what we are doing, as I have indicated to my honourable friend on a number of occasions, is making a slight reduction in the number of children who are receiving subsidies.  In this particular case, and in all cases, we have looked at the number of children who are in that daycare who are being subsidized and have been subsidized over the last number of months.  The average change is that we will subsidize one less child than was subsidized there before.

       I think part of the misunderstanding that the member has is if a daycare had 32 spaces, in the past they were eligible to be subsidized for those 32 spaces.  What we have done in terms of downsizing it is to look at the actuals; and, if they actually had 25 children subsidized there before, we have indicated that we could subsidize 24 children.  So there should not be, by following that logic, a great disruption for any one centre.

       I tell the member, as I have told him in the past, we are capping the system at 9,600.  That is‑‑I do not know what the percentage works out to be‑‑but a slight downsizing by attrition of the number of subsidized children that we will accommodate in the coming year.  We have indicated that individual parents can work with the daycare directorate, and we will promise to give fair treatment to all who want to access the system.

       I think the confusion in the numbers is the difference between what they were eligible for before and what their actual number of subsidized children in any particular centre was over the last number of months.  So, in changing the system, and we have got 400 or 500 centres that have subsidized children, we in doing this will not impact any one organization to any great extent.

Mr. Martindale:  In the past I have heard the minister explain the changes as reducing the number of spaces or cases by one child on average.  This time the minister said one less.  I would like the minister to clarify the difference between reducing the number by one less or one less on average, and his explanation just now that there is a difference between what they were eligible for and the actual number of children.

Mr. Gilleshammer:  Maybe start with that first, that all of the daycares are licensed for a maximum number of spaces, and because there was no capping of subsidies before, that means that all centres and homes were eligible for as many subsidies as they had spaces.  In restructuring and making a small downsizing of the system, we want to be sure that there is not any daycare centre or daycare home that is impacted by more than one or two subsidized children so that there is a sense of fairness to this.

       Now, the centres and the homes always have had a component of children within them that were full fee paying children.  I recognize that there were some centres where there was a greater number of subsidized children, and we are aware of that and we do not want to impact them anymore than we would impact any other centre.  So, on average, the centres will not have more than one or two fewer subsidized children.

Mr. Martindale:  I thank the minister for that explanation, and I will certainly be reading it in Hansard to see if I totally understand it and agree with it and will also be sending it to Little Bo‑Peep Children's Day Nursery.

       I would like to ask the minister to consider a couple of particular sentences in this letter and see whether he agrees or not.  Leslie Tough says, quote:  We will no longer be able to provide part‑time care for subsidized parents.  Is that true or not?

Mr. Gilleshammer:  There has been no regulation change that would prevent them from providing part‑time care.

* (2050)

Mr. Martindale:  The next sentence reads:  We will be unable to fill up all of our 32 licensed spaces.  Is that true or untrue in the minister's judgment?

Mr. Gilleshammer:  Well, there are 400, 500 centres, and some of them have vacancies.  They will not have more subsidies than they had in the past.  They will be eligible for one or two fewer.

       As the world changes out there, people may make decisions to have their children in a different daycare for a variety of reasons.  Maybe they have moved.  Maybe there is some particular reason that they want their child in a different daycare, but certainly it is the responsibility of the board and the centre to attract children and parents to use that centre.

       If they find that there are fewer people wanting care at that particular centre, certainly they will have to make staff adjustments, just as they have had to make staff adjustments if their enrollment rises.  I mean, that is what the public school system is doing all the time.

       I understand in the St. James‑Assiniboia School Division that they have closed 12 schools.  I think it is fair to say that there has been a drop in enrollment and a corresponding decrease in the staff.

       So there is no guarantee anywhere that all centres will always be full.  So there is competition out there, and I am sure the member will agree that parents will make the decision that is best for their children and best for their family.  If they decide to go to a different centre, that is their decision.

       So there are always changes at the end of a school year as children graduate from a daycare and move on to the public school system.  There is always, I guess, that pressure on the centre to try and backfill those spaces.  We are saying that they will have the ability to have nearly as many subsidies as they had before.

Mr. Martindale:  I am also in receipt of a copy of a letter to the Premier (Mr. Filmon) written on behalf of Inkster Community Child Care Inc., Maples Day Care, Splash Child Care, Keep Childcare Inc., Sugar‑N‑Spice, Champlain School Age Centre, Champlain preschool and SPLLASH.  They have done a survey of those child care centres and have discovered that, out of the eight centres polled in Winnipeg North, we have lost access to 119 potential subsidized cases.

       I would like to ask the minister if he feels that that is an accurate assessment of those eight centres?

Mr. Gilleshammer:  I cannot do the arithmetic for you right here, but my previous answer should give the member an understanding of this.  If they are licensed for 32 spaces, 40 spaces, their stance on this is that they were eligible for that many subsidies before.  That is true because we had no cap on subsidies.

       Now what we have done is taken the number of subsidized children that they have had over the last six months and have indicated that we will be sure that they are still able, as long as they attract those children, to have the same number of subsidized children less one or two.

Mr. Martindale:  I think these child care centres would beg to differ.  They feel that they have lost 119 potential subsidized cases in their area.  One of the implications for them is a rise in the numbers of latchkey children.  They say:  "Parents will leave children to their own means, and we will see ever rising numbers of latch key children at an earlier and earlier age".

       Does the minister agree that due to the lack of subsidized spaces, even if, as the minister says, it averages one per centre, that there are going to be children who are not going to be able to access child care who will be left at home unattended?

Mr. Gilleshammer:  I think the member is getting some understanding of the difference between the eligible spaces, which were eligible for subsidy in the past.  Centres that were licensed consider all of those spaces to have been eligible for subsidy; in fact, that is true in that there was no limit on the number of subsidies that a centre could access before.

       So we are saying that we have taken a snapshot in time and that those centres can access the same number of subsidized children less one or two so that they should be able to maintain the subsidies that they were accessing before with that small caveat.

       That is where the difference is coming.  I mean, you can add the number of centres, and if you have more centres, there were more potential subsidized spaces.  We, for the first time, have put some limits on the number of children that we will provide subsidy for, and we have indicated that they can work with our daycare staff to make arrangements for their child care.  What the member is saying has always been true:  the parents will make the decision.

       The parents will make the decision about where their children will receive care, and surely the critic is saying that decision should not be lodged elsewhere.

Mr. Martindale:  Does the minister agree with the eight centres in north Winnipeg when they conclude that, as a result of changes, specifically capping, whether it is cases or spaces or children, the result will be an increase in the number of so‑called latchkey children, that is, children at home who are not being attended to by a parent?

Mr. Gilleshammer:  The parents have the primary responsibility for making arrangements for their children, and I am confident that the majority of them will make the correct decision.

Mr. Martindale:  I hope that the minister sees the connection between his policies and what is actually going to happen to some individuals out in the community.

       The eight centres in north Winnipeg go on to say:  "Due to the potential loss of subsidized cases and not being able to fill these spaces, some Child Care Professionals have been laid off and many more will be experiencing the same fate.  How can you justify that all these laid off people who will be collecting UIC and then going on Welfare is helping the system?"

       That is their question, and it is a good question.

Mr. Gilleshammer:  If they have written a letter to me, we will be sure to answer that for them.  What the member is indicating is that he disagrees with the capping of the subsidies.

       What would happen if we had not done that is we would continue to be overexpending our daycare budget.  Last year, we overexpended that budget by $5 million, and we spent in excess of $50 million on child daycare.  Particularly, the major expenditure is in the area of subsidies.

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       One of the advantages of opposition, of course, is that the member can advocate that we overexpend our budget, but we simply cannot do that.

       The member can look at what is happening in other provinces and see what the longer‑term results are if in fact you do not live within your budget and you constantly have these overexpenditures.  So I think that it is important that the member factor that into his thinking.

       The member has not offered alternatives of how we could live within those budgets.  If the member would want us to reduce the grants, then we would have additional room to pay subsidies.  If the member is saying there are savings elsewhere in daycare, then we could have additional subsidies, but what we are trying to do is live within a budget of some $47.5 million in daycare.  That is $1 million more than last year's budget.

       What we are trying to do is prevent the overexpenditure of that budget.  When subsidies are available on demand, that is what happens.  That is why we were over budget by $5 million last year.  So that is our objective.  We are trying to do this in the fairest way possible so that no centre will be adversely impacted.

       The member did have a glimmer in his eye; I think he has an understanding of what numbers the centres are giving him as the number of spaces that they were eligible for.  What we are looking at was the actuals from the last six months, and tried to make a small reduction from that actual.  This is where a big part of the misunderstanding comes in, and I think that, if the member can grasp that, he can do a lot to allay the fears of those centres that the amount of dollars they are going to access through subsidy should not be a whole lot different from what it was the previous year, provided there is a need in that centre for subsidized spaces.

Mr. Martindale:  I have a letter from the Funshine Day Care Center Inc. in Virden, Manitoba, and they say that capping is going to cause empty spaces in their centre and increasing unemployment due to child care professionals being laid off and also parents not being able to stay in the paid workforce due to not being able to access child care.

       Then they make a special case for smaller centres and parents who live in rural areas, and point out that, unlike urban areas, rural areas have fewer licensed facilities, and, therefore, parents have fewer centres to find subsidized spaces in.  They also point out that wages are generally lower in the rural community; therefore, a large number of people eligible for subsidy will be vying for a few subsidized spots.  Thirdly, rural daycare centres tend to have many part‑time users.  The author, Lisa Hicks, the director of the centre, says:  I feel part‑time users should be able to share a subsidized case.

       As a result of this change in policy, will part‑time users be able to continue to share a subsidized space?

Mr. Gilleshammer:  I have referred to the subsidies in terms of the number of children that were accessing subsidies before, and I do not know how many licensed spaces they have in that particular daycare, but if they were accessing subsidies for 20 children on average over the last six months, they would now be eligible for nearly that many.  As I have indicated to the member, we are going to do this by attrition.  We are going to try and manage it so that the average is respected and we will not impact any one centre to any great degree.

       I am seemingly having trouble getting the member to accept that, and I think it goes back to the distortion of the system that occurs when you accept that all of those spaces that they are licensed for were eligible for subsidy before, that no centre will be impacted by more than one or two subsidized spaces.

Mr. Martindale:  Just to make the Clerk of Committee's job easier, I would like to make the point out that I tabled the letter on the letterhead of Inkster Community Child Care Inc. on behalf of eight child care centres.

(Mr. Gerry McAlpine, Acting Deputy Chairperson, in the Chair)

       In the case of the Funshine Day Care Center in Virden, they say that they have 25 cases allotted to their centre, and currently have 27 subsidized children.  Does that mean that they are going to lose two children to their centre?

Mr. Gilleshammer:  The information I am given is they are licensed for 35.  The six‑month average was 25 subsidized children; they have been allocated 25.

Mr. Martindale:  I would like to ask a general question based on the minister's answers and this correspondence.  I am wondering if, since these decisions were made a few weeks ago, and child care centres, hopefully, have had a chance to study them, does the minister believe that child care centres now understand the changes and why the policy is being made?

       The correspondence that I have suggests that there is still a lot of confusion out there, although these letters were written‑‑April 21 in one case, April 21 in another case, I have an undated letter, and April 30.  One of them at least is fairly recent.  Do you think that the child care community understands these changes now and how they were arrived at?

Mr. Gilleshammer:  I am given information by my staff that there is a greater understanding of the system now than there was probably when those letters were written.  I guess that is understandable in that we have had an opportunity to have some face‑to‑face meetings with centre directors and boards, and that we have been able to return some of the correspondence that has come forward on this issue.

       I guess maybe it is fair to say that the communication that has taken place through the press based on comments that are made by honourable members in some cases served to make the understanding of the issues a little more difficult.  The Day Care office has had an opportunity now to meet with those directors and, as I have indicated, return some of the correspondence.  Of course, there are those who put their own interpretation on the changes to suit their own purposes. Sometimes that plus the communications, because it is delivered through the media, does not give that accurate picture of the changes that we are making.

       So we have tried to have as many meetings as possible with daycare centres, their staff, and to provide them with some understanding of the changes.

Mr. Martindale:  Since the minister and his staff seem to have a lot of detailed information at their fingertips, I would like to ask him about the Winkler Day Care Centre.  They have written a letter to the editor of local newspapers and pointed out:  There is a cap on the number of subsidized cases each centre can accommodate.  For Winkler Day Care Centre, the cap is at 34.  We currently have a caseload of 41.  This is because rural centres have always had more part‑time children in care.

       I wonder if the minister could tell us what the changes are at the Winkler Day Care Centre.

Mr. Gilleshammer:  The centre that the member references, I am told, is licensed for 36; the average subsidized caseload or number of children is 34; and their allocation is 34.

Mr. Martindale:  I would like to go on and quote from this letter to the editor some more because they talk about the impact of changes.  We may disagree on how the changes were arrived at, but I am convinced that the impact is, as these child care centres say.

       This one is, I think, particularly worth reading into the record.  They say, and I quote:  These funding cuts will cost the government more money.  Parents who are unable to access a space because of the cap on spaces will not be able to take jobs. Parents who are unable to pay the extra $1.40 per day per child are quitting their jobs.  For these families social assistance is the only alternative.  For a family of two parents and two preschool children, $1,180 lies within the range of monthly social assistance benefits.  The cost of child care for the same family, even if they are fully subsidized, is $696.  In addition, working parents pay taxes.  Without question these funding changes contradict the very reason they were implemented.  They will cost the taxpayer more money.

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       I would like to ask the minister if he believes that is true.  They are giving two different scenarios.  One is a parent who is employed and the children are in a fully subsidized space.  They also point out that parent who is working is paying taxes.  The other scenario is that the parent is on social assistance, and they quote an amount of $1,180 for social assistance.  Does the minister agree with this letter which says that it will cost the government, cost taxpayers, more money to pay this family social assistance than to subsidize their child care.

Mr. Gilleshammer:  It is difficult to talk about specific parts of that letter without looking at the total letter and putting it in context.  But let me refer to these numbers again.  They have 36 licensed spaces.  They had 34 subsidized children.  They will continue to have 34 subsidized children.  So I am not sure that the catastrophic results that the member is referring to are going to happen here; they are going to have the same number of subsidized children today and later that they had over the last six months.  So the member can get into talking about whether people are better off working or whether there is a cost to the system if they are on social allowances.  That is a completely different argument, and one that we got into under the social allowances.

       What we are saying is, the confusion in the mind of the member still revolves around the number of spaces that they were eligible for before, because they were eligible to have subsidized children in all their spaces.  There is no great impact on this centre.  So to talk about people having to be referred to social all