LEGISLATIVE ASSEMBLY OF
MANITOBA
Wednesday, June 29, 1994
The House met at 1:30 p.m.
PRAYERS
ROUTINE PROCEEDINGS
PRESENTING PETITIONS
ACCESS Program Funding
Mr. Gregory Dewar (Selkirk): Mr. Speaker, I beg to present the petition of
Lisa Jablonski, Helen Egyed, Ellen Olfert and others requesting the Legislative
Assembly request the Minister of Education and Training (Mr. Manness) to
consider restoring funding to the ACCESS program.
Mr. George Hickes (Point Douglas): Mr. Speaker, I beg to present the petition of
George Munroe, Laurie Wesley, Andrea Asham and others requesting the
Legislative Assembly request the Minister of Education and Training to consider
restoring funding to the ACCESS program.
Ms. Jean Friesen (Wolseley): Mr. Speaker, I beg to present the petition of
Vincent Stamler, Loni Beck, Buffie Macklin and others requesting the
Legislative Assembly request the Minister of Education and Training to consider
restoring funding to the ACCESS program.
PRESENTING REPORTS BY
STANDING AND SPECIAL
COMMITTEES
Standing Committee on
Economic Development
Mr. Jack Reimer (Chairperson of the Standing
Committee on Economic Development): Mr.
Speaker, I beg to present the Second Report of the Committee on Economic
Development.
Mr. Speaker:
Dispense.
Your Standing Committee
on Economic Development presents the following as its Second Report.
Your committee met on
Tuesday, June 28, 1994, at 9 a.m. in Room 254 of the Legislative Building to
consider bills referred.
Your committee heard
representation on bills as follows:
Bill 18, The Insurance
Amendment Act; Loi modifiant la Loi sur les assurances
Mr. William O'Brien ‑
Insurance Brokers Association of Manitoba
Bill 28, The Off‑Road
Vehicles Amendment Act; Loi modifiant la Loi sur les véhicules à caractère non
routier
Mr. William O'Brien ‑
Insurance Brokers Association of Manitoba
Written Submissions
Received:
Bill 10, The Wildlife
Amendment Act; Loi modifiant la Loi sur la conservation de la faune
Ms. M. Scott ‑
Union of Manitoba Municipalities
Your committee has
considered:
Bill 7, The Crown Lands
Amendment Act; Loi modifiant la Loi sur les terres domaniales
Bill 8, The Fisheries
Amendment Act; Loi modifiant la Loi sur la pêche
Bill 9, The Convention Centre
Corporation Amendment Act; Loi modifiant la Loi sur la Corporation du Centre
des congrès
Bill 10, The Wildlife
Amendment Act; Loi modifiant la Loi sur la conservation de la faune
Bill 11, The Legislative
Assembly Amendment Act; Loi modifiant la Loi sur l'Assemblée législative
Bill 12, The Provincial
Auditor's Amendment Act; Loi modifiant la Loi sur le vérificateur provincial
Bill 13, The Condominium
Amendment Act; Loi modifiant la Loi sur les condominiums
Bill 14, The Real Estate
Brokers Amendment Act; Loi modifiant la Loi sur les courtiers en immeubles
Bill 18, The Insurance
Amendment Act; Loi modifiant la Loi sur les assurances
Bill 23, The Manitoba
Historical Society Property Act; Loi sur les biens de la Société historique du
Manitoba
Bill 28, The Off‑Road
Vehicles Amendment Act; Loi modifiant la Loi sur les véhicules à caractère non
routier
has agreed to report the
same without amendment.
Your committee has also
considered:
Bill 5, The Highway
Traffic Amendment and Consequential Amendments Act; Loi modifiant le Code de la
route et apportant des modifications corrélatives
and has agreed to report
the same with the following amendments:
MOTION:
That clauses 171(2)(c) to
(e) of the French version, as set out in section 7 of the Bill, be struck out
and the following substituted:
c) d'enlever une plaque
d'immatriculation ou une vignette de validation de la plaque d'immatriculation
d'un véhicule automobile ou d'une remorque, sauf si le propriétaire y consent,
que le registraire l'autorise ou que le présent code ou les règlements le
prévoient;
d) d'apposer ou de
permettre que soit apposée sur un véhicule automobile ou une remorque une
plaque d'immatriculation qui ne peut être utilisée pour le véhicule en
question, sauf si le présent code ou les règlements le prévoient;
e) d'utiliser ou de
permettre que soit utilisé un véhicule automobile ou une remorque sur lequel
est apposée une plaque d'immatriculation qui ne peut être utilisée pour le
véhicule en question, sauf si le présent code ou les règlements le prévoient.
MOTION:
THAT clause 29(e) of the
French version of the Bill be amended by striking out "eee.i)" and
substituting "eee.1)".
Mr. Reimer:
Mr. Speaker, I move, seconded by the honourable member for St. Vital
(Mrs. Render), that the report of the committee be received.
Motion agreed to.
Standing Committee on
Law Amendments
Mr. Gerry McAlpine (Acting Chairperson of the
Standing Committee on Law Amendments): Mr. Speaker,
I beg to present the First Report of the Committee on Law Amendments.
Mr. Speaker:
Dispense.
Your Standing Committee
on Law Amendments presents the following as its First Report.
Your committee met on
Tuesday, June 28, 1994, at 9 a.m. in Room 255 of the Legislative Building to
consider bills referred. At that meeting
your committee elected Mr. Penner as its Chairperson.
Your committee heard
representation on bills as follows:
Bill 19, The Mental
Health Amendment Act; Loi modifiant la Loi sur la santé mentale
Ms. Nancy Davids ‑
Private Citizen
Mr. Bill Martin ‑
Canadian Mental Health Association
Bill 21‑‑The
Manitoba Medical Association Dues Act; Loi sur la cotisation de l'Association
médicale du Manitoba
Mr. John Laplume ‑
Manitoba Medical Association
Bill 26‑‑An
Act to amend An Act to Protect the Health of Non‑Smokers (2); Loi no 2
modifiant la Loi sur la protection de la santé des non‑fumeurs
Ms. Jane Stewart ‑
Council for Tobacco Free Manitoba
Written Submissions
Received:
Bill 2‑‑The
Prescription Drugs Cost Assistance Amendment and Pharmaceutical Amendment Act;
Loi modifiant la Loi sur l'aide à l'achat de médicaments sur ordonnance et la
Loi sur les pharmacies
Mr. Peter Sim ‑
Manitoba Association for Rights and Liberties
Ms. Michelle Scott ‑
Union of Manitoba Municipalities
Bill 4‑‑The
Energy and Consequential Amendments Act; Loi sur l'énergie et apportant des
modifications corrélatives
Mr. Peter Sim ‑
Manitoba Association for Rights and Liberties
Your committee has considered:
Bill 2, The Prescription
Drugs Cost Assistance Amendment and Pharmaceutical Amendment Act; Loi modifiant
la Loi sur l'aide à l'achat de médicaments sur ordonnance et la Loi sur les
pharmacies
Bill 3, The Cancer
Treatment and Research Foundation Amendment Act; Loi modifiant la Loi sur la
Fondation de traitement du cancer et de recherche en cancérologie
Bill 15, The Law Society
Amendment Act; Loi modifiant la Loi sur la Société du Barreau
Bill 19, The Mental
Health Amendment Act; Loi modifiant la Loi sur la santé mentale
Bill 21, The Manitoba
Medical Association Dues Act; Loi sur la cotisation de l'Association médicale
du Manitoba
Bill 26, An Act to amend
An Act to Protect the Health of Non‑Smokers (2); Loi no 2 modifiant la
Loi sur la protection de la santé des non‑fumeurs
and has agreed to report
the same without amendment.
Your committee has also
considered:
Bill 4, The Energy and
Consequential Amendments Act; Loi sur l'énergie et apportant des modifications
corrélatives
and has agreed to report
the same with the following amendments:
MOTION:
THAT the English version
of subsection 7(3) be amended in the part preceding clause (a) by striking out
"a prescribed energy‑using product is" and substituting
"prescribed energy‑using products are".
MOTION:
THAT the English version
of clause 10(1)(b) be amended by striking out "that" and substituting
"than".
MOTION:
THAT subsection 10(2) be
amended by striking out ", employee".
Mr. McAlpine: I
move, seconded by the honourable member for Seine River (Mrs. Dacquay), that
the report of the committee be received.
Motion agreed to.
MINISTERIAL STATEMENTS
Negotiations on Internal
Trade Barriers
Hon. James Downey (Minister of Industry, Trade
and Tourism): Mr. Speaker, I have a statement for the House.
I am pleased
to rise in the House today as co‑chairman of the Committee of Ministers
of Internal Trade to announce that the federal, provincial and territorial
representatives have reached an agreement in principle on a comprehensive
agreement to reduce and eliminate internal barriers to trade within
Canada. I believe that this is a truly
historic event for Manitoba and for Canada.
At the
outset, I would like to acknowledge the negotiators for the Province of Manitoba,
particularly my colleague the Minister of Finance (Mr. Stefanson), who was the
co‑chair of the negotiations prior to my taking on the
responsibility. As well, I would like to
acknowledge Paul Goyan and Allan Barber for their hard work and their commitment
in the negotiations. I would like to
also acknowledge and thank Mr. Arthur Mauro, who has done a tremendous job of
chairman and chief negotiator, for his excellent work on behalf of the people
of this country.
* (1335)
In 1992,
First Ministers set a deadline of June of 1995 for dealing with internal trade
barriers. Ministers for internal trade
launched comprehensive negotiations in March of 1993 to conclude an agreement
by June 30, 1994, and to be ratified and implemented by June of 1995. A comprehensive agreement to reduce and
eliminate interprovincial trade barriers that have emerged over the past 127
years is vital to the economic well‑being of Manitoba and of Canada.
Manitoba is a
trading province and our continued prosperity is directly dependent upon an
open and efficient internal market.
Internal trade barriers are estimated to cost Canada almost $7 billion
annually. These costs are particularly
important to Manitoba since we are one of the provinces which depend upon
trading within Canada. Manitoba exports
over 60 percent more within Canada than it does internationally. Removing barriers to this trade will enable
Manitoba business to grow and prosper.
Internal
trade barriers cost Manitobans an estimated $300 million each year. Enormous progress has been made with the
agreement reached yesterday in Ottawa.
The agreement includes: a
framework based upon general trade rules applicable to all governments; a
dispute settlement mechanism for resolving issues on internal trade matters
including access to this process for the private sector; the opening of a
public sector procurement market of almost $50 billion to all businesses in
Canada and commitments to continue negotiations to open the procurement of
Crown corporations; a code of conduct to prevent destructive competition for
investment and put an end to the senseless bidding wars pitting province
against province and wasting taxpayers' dollars; a framework and a commitment
to deal with differences in occupational standards and qualification
requirements that limit the mobility of workers and professionals within
Canada; and an agreement not to create any new barriers to internal trade.
Mr. Speaker,
this agreement represents an enormous breakthrough in an area that all
governments have been wrestling with since 1985. There remain some matters which we will work
to resolve in the near future. We have
agreed to continue negotiations on internal trade barriers in the area of
agriculture and food products, energy and alcohol beverages, to resolve
outstanding issues in these areas in time for them to be part of our formal
agreement.
Mr. Speaker,
I truly believe that this agreement represents a crucial step in restoring the
faith of Canadians in the functioning of the Canadian economic union. It demonstrates the commitment of all
governments to work together to address the issues that have arisen over the
past 127 years. The lowering of trade
barriers within Canada will allow Manitobans to reap the benefits of a unified
Canadian market. The opening of
previously restricted markets in Canada will create new opportunities for
Manitobans and the elimination of procurement barriers, and the establishment
of a code of conduct and investment will directly benefit taxpayers. This agreement will reinforce Manitoba's
efforts to make efficient use of every tax dollar.
It has been
my privilege, Mr. Speaker, to represent Manitoba in these negotiations, and I
am proud to announce to this House the conclusion of what I believe is a
historic agreement. Thank you.
Mr. Gary Doer (Leader of the Opposition): Mr. Speaker, I want to thank the Deputy
Premier and the co‑chair of the national committee for his statement
today in the Chamber. I want to pass on
our best regards to Mr. Mauro and members who represented Manitoba in these
negotiations.
Mr. Speaker,
I know that every agreement that is reached in Canada is called historic, and I
know that I have perhaps used that term myself, but certainly this agreement
does produce some results, and it does provide a number of exceptions, and it
provides a number of challenges that are still unresolved in this trade
agreement. So I think there is a lot of
work ahead, if I must say so to the members opposite and to the trades
ministers across the country.
First of all,
Mr. Speaker, I have always been opposed to provinces bidding for jobs through
taxpayers' money and taxpayers' grants.
If you just look at the telemarketing situation in Canada today, we have
a Liberal government in New Brunswick that put money into jobs for Federal
Express. We have a Conservative
government in Manitoba that put money into GWE, and we have an NDP government
in Saskatchewan that put money into the Sears marketing operation, all of which
is wrong because, ultimately, those are three different governments, three
different political stripes with the same problem.
A code of
conduct, Mr. Speaker, will not deal with that problem, and there is no real
teeth in this measure that has been agreed to by provinces. As we have lost a number of jobs to Alberta
through the former Conservative government putting in tremendous public support
to the Cargill plant and we have lost jobs potentially with the Simplot plant
in Brandon, I do not think this problem has been solved, quite frankly, in the
communique issued today.
* (1340)
Secondly, Mr.
Speaker, there are exceptions for Crown corporations, but there are no
exceptions for social priorities of provinces.
The whole area of regional economic development which was put on the
table by some provinces, the whole area of northern unemployment and northern
aboriginal hiring was not dealt with, I think, adequately by the
ministers. It has been an area which we
believe should be part of a trade agreement, an affirmative action program, to
hire and train northerners and northern aboriginal people, and we think that is
missing.
Thirdly,
there is no strategy to deal with making sure that the floor of trading for
goods and services is equal, Mr. Speaker, that labour laws, workplace safety and
health laws, minimum construction laws, have a national agreement to them, so
that we are truly competing on an equal basis.
There are
jobs now in Manitoba that are being filled by construction firms from
Alberta. Even I believe the latest
national disease headquarters has a number of jobs being fulfilled not by
Manitobans but by companies from Alberta.
It is important. I know when I
was Minister of telephones, companies in Saskatchewan would bid into Manitoba
and be part of the tendering process, yet we could not bid into
Saskatchewan. I think progress in this
area is really important.
I want to
congratulate the minister in his work.
As I say, I think we have a lot of challenges to meet still on this
very, very important item of having fair treatment of goods and services, of
fair trading practices between provinces and an aggressive approach to dealing
with taxpayers' money going to, as David Lewis used to say, corporate welfare
bums who just up the ante in terms of grants from the public. Thank you.
Mr. Paul Edwards (Leader of the Second
Opposition): We, too, would like to join with the Premier
(Mr. Filmon) and the Leader of the Opposition in thanking the participants, on
behalf of the Province of Manitoba, who have been down at these negotiations
most recently, but have been involved in a very real way and through some very
difficult negotiations for a number of years.
They have served us well and, I think, kept cool heads throughout.
I think we
are all very pleased the parties‑‑and we have all seen over the
years the very different approaches that were taken and the very different
philosophies that came into these negotiations.
Really, to see progress like this is encouraging. Is it as much as was hoped for? Clearly not, Mr. Speaker, and I think we hope
it will continue and set a precedent for further discussions.
It is indeed
anomalous and I suggest quite damaging to our country that we are now and have
been for some time making it more difficult to deal with each other than it is
with the rest of the world. The way the
world is evolving is clear and that is towards a freer trade between nations,
between peoples of all continents, and it was becoming easier for us to trade
with Mexico than Saskatchewan.
Mr. Speaker,
many have suggested and I think quite rightly that if we were going to tolerate
that for the long term, we deserved our fate in this country. I am very pleased that the governments have
worked together across this country from the various political perspectives to
come up with an agreement which I hope sets a precedent for future agreements
that have more teeth.
I do share
the comments of the Leader of the Opposition that I think it is an agreement in
principle. It is going to rely on good
faith, a commitment from all the provinces, but ultimately, I think, we do want
to see a more stringent agreement between the provinces in this country that
will not be at the mercy of the particular ups and downs of the political
situation in each province but will serve us well into the next century.
Mr. Speaker,
I am very pleased to have seen the governments work together, obviously very
much appreciate the efforts of the negotiators here in Manitoba and, as well,
the efforts of Mr. Mauro and the efforts, I think, of the federal government as
they brought this to a conclusion.
Indeed, it was started under the prior administration but was continued
and to a successful conclusion in a very, I think, co‑operative
fashion. Thank you.
* (1345)
INTRODUCTION OF BILLS
Bill 220‑‑The
Elections Amendment Act
Mr. Gord Mackintosh (St. Johns): I move, seconded by the member for Point
Douglas (Mr. Hickes), that leave be given to introduce Bill 220, The Elections
Amendment Act; Loi modifiant la Loi sur les élections, and that the same be now
received and read a first time.
Motion presented.
Mr. Mackintosh: This bill gets patronage out of the
administration of elections insofar as it takes the power to appoint returning
officers from the cabinet and gives that power to the Chief Electoral Officer
to be exercised by considering merit.
I cannot
imagine an area where patronage is more repugnant than election
administration. The bill will ensure
that returning officers are both seen to be, and are actually, impartial and
makes a move to a timely appointment process and professionally trained
administrators.
This measure
is recommended by the Chief Electoral Officer and was most recently urged in
regard to last year's by‑election in St. Johns.
Motion agreed to.
Bill 31‑‑The
Manitoba Employee Ownership Fund Corporation Amendment and Income
Tax Amendment Act
Hon. Jim Ernst (Government House Leader): Mr. Speaker, I wonder if we might have leave
to introduce for first reading, Bill 31, The Manitoba Employee Ownership Fund
Corporation Amendment and Income Tax Amendment Act (Loi modifiant la Loi
constituant en corporation le Fonds de participation des travailleurs du
Manitoba et la Loi de L'impôt sur le revenu).
Mr. Speaker:
Is there leave to introduce Bill 31 for first reading at this time? [agreed]
Hon. James Downey (Minister of Industry, Trade
and Tourism): Mr. Speaker, I move, seconded by the Minister
of Health (Mr. McCrae), that leave be given to introduce Bill 31, The Manitoba
Employee Ownership Fund Corporation Amendment and Income Tax Amendment Act (Loi
modifiant la Loi constituant en corporation le Fonds de participation des
travailleurs du Manitoba et la Loi de L'impôt sur le revenu), and that the same
be now received and read a first time.
His Honour
the Lieutenant‑Governor, having been advised of the contents of this
bill, recommends it to the House. I
would like to table the message as well.
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 Winkler
Elementary School seventy‑five Grade 5 students under the direction of
Mr. E. Claassen. This school is located
in the constituency of the honourable Minister of Energy and Mines (Mr.
Orchard).
On behalf of
all honourable members, I would like to welcome you here this afternoon.
ORAL QUESTION PERIOD
Pukatawagan, Manitoba
Health Emergency
Mr. Gary Doer (Leader of the Opposition): Mr. Speaker, my question is to the First
Minister (Mr. Filmon) or Minister of Health (Mr. McCrae).
Last week, I
had the opportunity to travel to the Mathias Colomb Band or the Pukatawagan
community, along with the member for Flin Flon (Mr. Storie), the member for
Rupertsland (Mr. Robinson) and the member for The Pas (Mr. Lathlin). I was quite astounded by the health
conditions in the community and the situation with the sewage lagoon and the
water situation. It was astonishing for
me to find out that the water was being boiled for over six months and, of
course, the member for Flin Flon raised this with the Minister of Health last
week in the House and, before that, privately.
Today we have
received a copy from the Minister of Health of the chief medical officer's
report, Dr. John Guilfoyle, dealing with the Pukatawagan situation. He confirms our concerns last week, concerns
raised by the member for Flin Flon, that 1,100 people had suffered from skin
disease out of a community of 1,700.
This is an absolute
national disgrace of major proportions in terms of that many people being
affected.
* (1350)
Mr. Speaker,
the chief medical officer of Manitoba concludes that a health emergency does
exist in this community due to its lack of a safe supply of drinking water, a
very, very serious situation for any Manitoba community.
I would like
to ask the Minister of Health: Has he
been in contact with the federal government, and what action is either he or
the Minister responsible for Federal‑Provincial Relations, the Premier
(Mr. Filmon), taking with the federal government on this very, very important
health emergency.
Hon. James McCrae (Minister of Health): Mr. Speaker, the honourable member for Flin
Flon (Mr. Storie) appropriately raised this matter with me. Working together, we asked Dr. Guilfoyle to
look further into this situation. The
day before yesterday, Dr. Guilfoyle and two others travelled to Mathias Colomb
and looked at the situation. Dr.
Guilfoyle reported to me yesterday, and I shared the report with the honourable
member for Flin Flon.
Dr. Guilfoyle
does not have very nice things to say, Mr. Speaker, about the circumstances
that have existed at Pukatawagan‑‑very strong language to describe
the way he feels about whoever it was who designed the water system in that
area, and very strong language also with respect to whose responsibility it is
to do something about that and to do something about it immediately, so the
situation can be remediated for the people who live in that area.
That system
is serving supposedly 1,700 people, Mr. Speaker, and is designed to serve
250. It is just totally
unsatisfactory. Dr. Guilfoyle has agreed
to prepare a communication for me to send to the federal officials, the member
of Parliament for that area and anybody else who needs to be alerted to the
situation so that something can be done immediately.
Mr. Doer: If this
situation existed in any southern community in Manitoba, any of our communities,
Mr. Speaker, it would be an absolute emergency that would be dealt with
immediately, and the fact that the people of this community have had to boil
their water for over six months, and 1,100 cases have been reported by that
community is, as I say, a national disgrace.
Mr. Speaker,
the federal government designed a plant that according to Dr. Guilfoyle, the
sewage treatment plant is designed to deal with the sewage from 70 homes, this
peculiar design which seems to be uncommonly inefficient in dealing with
sewage. Tests have revealed that the
bacterial contamination of sewage after treatment is actually higher than
before treatment. This plant currently
discharges sewage approximately 20 metres off the shore into an area where
children swim.
Now, when I
visited that community, you could see it.
I certainly did not know it was this bad. It is a health emergency for all citizens of
Manitoba, and I thank the minister for getting involved in it.
I would like
to ask the Minister of Health: What
response has the minister received from the federal minister responsible and
from the federal government of Canada?
Mr. McCrae:
Mr. Speaker, we know the response since last fall has been zero to a
situation which leaves the people of Pukatawagan in a health emergency
situation, according to Dr. Guilfoyle.
As I say, Dr. Guilfoyle and I and no doubt the member for Flin Flon (Mr.
Storie) are making every effort to ensure that we are not going to allow the
federal government or the local government for that matter to allow this matter
to persist. It is not appropriate for
the people who live in that area.
This water,
Mr. Speaker, is not even good enough to bathe in. The people there have to buy their water in
bottles. That might be all right for consumption
purposes, but when the water is so unsafe that you cannot even bathe in it
without putting your health at risk, it seems to me the authority that has the
responsibility for it ought to waste no further days in addressing the problem.
* (1355)
Mr. Doer: I thank
the minister for that answer.
Capital Funding
Mr. Gary Doer (Leader of the Opposition): In the last paragraph of Dr. Guilfoyle's
report, he mentions very clearly that‑‑prior to that, he mentions
the whole fact that the capital design by the federal government was totally
inadequate both in size and also in design.
He goes on further to say that the band has no other capital to deal
with this issue, and he states that they plan to access emergency funds under
the transfer agreement with the federal government.
I would like
to ask the Minister responsible for Federal‑Provincial Relations (Mr.
Filmon): Will he facilitate this
transfer under this agreement with the federal government? The lead minister or the Premier has dealt
with other transfer agreements before with the federal jurisdiction.
Would he also
work with the Minister of Health to make sure that this health emergency gets
the emergency funds that may be available from the federal government and must
be available for the federal government to deal with this health problem?
Hon. James McCrae (Minister of Health): If in our inquiries today from the federal
government there is not a willingness to move immediately, I will call on the
services of the department of federal‑provincial relations to assist me
in getting that job done.
It is not
appropriate or acceptable that the federal government allow this matter to drag
any further. I do not really know whose
fault this is, whether it is the band's fault or the federal government's
fault, but the fact is, the federal government has a responsibility for First
Nations in this province. If they can
negotiate self‑government agreements, that is fine and dandy, Mr.
Speaker, but right now we have a problem that needs to be addressed
immediately.
Goods and Services Tax
Replacement
Mr. Leonard Evans (Brandon East): I have a question for the Premier.
All major
media reported today that the federal Minister of Finance, Mr. Martin, has
floated the idea of a single, national harmonized sales tax pegged at 10
percent to replace the GST. You might
want to call it son of GST, maybe, Mr. Speaker.
The provinces
would get 60 percent of the revenue from such a tax. However, there could be a shortfall as a
result of such a tax change. In return,
the federal government apparently would give the provinces the right to impose
a flat tax on income.
My question
to the Premier is: Can he confirm that
the federal government has indeed offered to create a single tax of 10 percent,
and can the Premier indicate whether the 10 percent rate would be applied to
food and other items not now covered by the provincial sales tax?
Hon. Gary Filmon (Premier): Mr. Speaker, I just caution the member for Brandon
East for putting on the record what might be considered a sexist remark. It could also be the daughter of GST. Having said that‑‑[interjection]
I will not engage in any discussions with the member for Wellington (Ms.
Barrett) on that.
Mr. Speaker,
I cannot confirm the veracity of those newspaper reports with respect to the
federal proposal, but I can confirm that a quick analysis of what that would
produce would be a shortfall to the Treasury of Manitoba of I believe just
under $200 million annually.
Therefore, we
would be put in a position of having to take the responsibility to raise the
funds and, presumably, the federal government would give us some initiative or
assistance in raising the funds by raising some other taxes to supplant the loss. It looks very, very much as though it is a
proposal that is not in the best interests of Manitoba. That is all I can say.
I expect to
get a full report from our Minister of Finance (Mr. Stefanson), who is
currently in the midst of meetings with his federal and provincial counterparts
on the issue.
* (1400)
Mr. Leonard Evans: Mr. Speaker, I am inclined to agree with the Premier and