ROUTINE PROCEEDINGS

PRESENTING PETITIONS

Home Care Services

Mr. Kevin Lamoureux (Inkster): Madam Speaker, I beg to present the petition of Thanasi Alexiou, Edward Matheson, Ana Jarmoszo and others requesting the Premier (Mr. Filmon) and the Minister of Health (Mr. McCrae) to consider reversing their plan to privatize home care services.

Mr. Jim Maloway (Elmwood): Madam Speaker, I beg to present the petition of Henny Salie, Bianca Cucu, Shannon Martin and others requesting the Premier and the Minister of Health to consider reversing their plan to privatize home care services.

Mr. George Hickes (Point Douglas): Madam Speaker, I beg to present the petition of C. Cudmore, J. Burr, D. Bohemier and others requesting the Premier and the Minister of Health to consider reversing their plan to privatize home care services.

READING AND RECEIVING PETITIONS

Home Care Services

Madam Speaker: I have reviewed the petition of the honourable member for Point Douglas (Mr. Hickes). It complies with the rules and practices of the House (by leave). Is it the will of the House to have the petition read?

Some Honourable Members: Yes.

Madam Speaker: Yes? The Clerk will read.

Mr. Clerk (William Remnant): The petition of the undersigned citizens of the province of Manitoba humbly sheweth:

THAT on at least six occasions during the 1995 provincial election, the Premier promised not to cut health services; and

THAT on December 16, 1995, a plan to privatize home care services was presented to Treasury Board; and

THAT this plan calls for the complete divestiture of all service delivery to nongovernment organizations, mainly private for-profit companies as well as the implementation of a user-pay system of home care; and

THAT previous cuts to the Home Care program have resulted in services being cut and people’s health being compromised; and

THAT thousands of caring front-line service providers will lose their jobs as a result of this change; and

THAT profit has no place in the provision of vital health services.

WHEREFORE your petitioners humbly pray that the Legislative Assembly of Manitoba may be pleased to request the Premier (Mr. Filmon) and the Minister of Health (Mr. McCrae) to consider reversing their plan to privatize home care services.

Madam Speaker: I have reviewed petition of the honourable member for Inkster (Mr. Lamoureux). It complies with the rules and practices of the House. Is it the will of the House to have the petition read?

Some Honourable Members: Yes.

Madam Speaker: Yes? The Clerk will read.

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Mr. Clerk: The petition of the undersigned citizens of the province of Manitoba humbly sheweth:

THAT on at least six occasions during the 1995 provincial election, the Premier promised not to cut health services; and

THAT on December 16, 1995, a plan to privatize home care services was presented to Treasury Board; and

THAT this plan calls for the complete divestiture of all service delivery to nongovernment organizations, mainly private for-profit companies as well as the implementation of a user-pay system of home care; and

THAT previous cuts to the Home Care program have resulted in services being cut and people’s health being compromised; and

THAT thousands of caring front-line service providers will lose their jobs as a result of this change; and

THAT profit has no place in the provision of vital health services.

WHEREFORE your petitioners humbly pray that the Legislative Assembly of Manitoba may be pleased to request the Premier (Mr. Filmon) and the Minister of Health (Mr. McCrae) to consider reversing their plan to privatize home care services.

PRESENTING REPORTS BY

STANDING AND SPECIAL COMMITTEES

Committee of Supply

Mr. Marcel Laurendeau (Chairperson of Committees): Madam Speaker, the Committee of Supply has considered certain resolutions, directs me to report progress and asks leave to sit again.

I move, seconded by the honourable member for Sturgeon Creek (Mr. McAlpine), that the report of the committee be received.

Motion agreed to.

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MINISTERIAL STATEMENTS

Manitoba Telephone System

Privatization

Hon. Glen Findlay (Minister responsible for the administration of The Manitoba Telephone Act): Madam Speaker, I have a statement for the House.

For nearly 90 years, the people of Manitoba watched their telephone company, MTS, develop and grow. In return, MTS has continuously provided affordable, reliable service to many generations of Manitobans in every corner of the province. MTS, by and large, has been a stable company run by Manitobans for Manitobans.

Today, as we begin a new chapter at MTS, we must and we will maintain this sense of stability and continuity. That is why, in converting MTS from government ownership to a publicly traded company, we are offering Manitobans an exclusive opportunity to purchase the majority of shares in the company, thereby ensuring that the voice of Manitoba will be as strong today as it always has been in protecting the services that the province has come to depend on.

But, while Manitobans will be given the opportunity to continue controlling the company, not everything will stay the same. Change is coming, some of it forced on us by circumstances in the telecommunications industry but mostly change that is forced on us by the future itself. You see, the Manitoba Telephone System is in danger of being overcome by the future. Responding to these challenges means selling MTS in an effort to allow us to build upon the foundation Manitobans have worked so hard to create.

Not long ago, equipment and services we take for granted today were unheard of, undreamed of, things like fax machines, modems, voice and data transmissions, the World Wide Web. As we look forward just five or 10 years, it is apparent the technology will continue to change and at an even faster pace than it has in the past.

But with change comes opportunity to open new doors, to introduce a sharper management focus, to alleviate the debt load and the opportunity to help MTS meet the future on its feet and ready to grow.

MTS can have a strong future, but Manitobans have to reach out and grab it because there are a number of formidable obstacles in the way.

Firstly, we must overcome the huge debt load, the largest debt load of any telephone company in Canada. It is an anchor that is bogging down MTS and threatening its very survival. At the same time MTS faces an increasingly urgent need to finance an extensive modernization program, a full system upgrade worth half a billion dollars aimed at ensuring MTS is capable of providing a full range of future voice, video and data transmissions.

In this day and age of rapid change and increasing competition, government ownership also creates obstacles, obstacles that slow MTS down, that hold the corporation back from pursuing new growth areas like wireless technology, that prevent the corporation from seizing important and valuable market opportunities before its competitors snatch them away first. The Manitoba Telephone System has done well under the government's wing, but the days when it can afford to be just a simple telephone company are long gone. MTS must be able to keep pace, must be able to continue to provide reliable universal service at affordable rates, must be able to create new opportunities for future generations, but this will only happen if MTS stands alone, free from the ties of government.

Converting MTS to a publicly owned company will allow all of this to become a reality, because the best guarantee of affordable rates, reliable province-wide service and jobs is a prosperous, growing MTS.

Further, by offering Manitobans exclusive opportunity to purchase the majority of shares in MTS, we will ensure the decisions continue to be made in Manitoba, by Manitobans, for Manitobans.

To accomplish this goal, we will grant Manitoba, MTS employees and MTS retirees special treatment by offering them the opportunity to purchase shares during exclusive Manitobans-only sales period. Furthermore, we will introduce legislation this session to ensure that Manitobans have the majority of the seats on the board of directors and that shareholder restrictions are imposed to prevent any individual, company or group from gaining voting control of MTS. As well, we plan to offer current MTS employees special incentives to encourage maximum participation.

Today, the old MTS is about to pass into the history books, taking a place of honour for a job well done. It will be replaced by the new MTS, fresh and full of life. MTS has a strong future, a future that builds on the strengths of the past. Thank you very much, Madam Speaker.

In the interest of helping the members opposite understand, we are giving them technical briefing materials that the advisers gave us.

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Mr. Gary Doer (Leader of the Opposition): Madam Speaker, the only thing that we believe is moving into the history books of this province is the word and honour of this Premier (Mr. Filmon) and this government who promised not to privatize the Manitoba Telephone System. I think this is a shameful chapter of a party and a group of 31 individuals across the way saying one thing to the constituents before an election, during an election, and shortly thereafter breaking their words to their constituents and to the people of this province.

What democratic mandate do you have? You promised not to privatize. You are now breaking your word to the people of this province. We were extremely disappointed that a Premier of this province would say one thing in an election campaign and I believe in an unprecedented way break his word.

Members opposite would have you believe that this is a need for change.

What we need in this province on the Manitoba Telephone System is a belief in a vision of modern telecommunications owned by the people of Manitoba for the people of Manitoba. We have seen the ideology of the Conservative Party be the only factor that determines where the decisions are going in this province. Instead of looking at the new technology that would allow us to merge data, cable and voice, a new vision that would be similar to some of the European countries that have taken tremendous advantage of the new technology to have advantages for the consumers and the retail decisions that can be made, this government has sold off pieces of the Telephone System by stealth and now brings us to this cynical decision today.

They mention some of the changes and some of the financial situations. Yes, there is a debt in the Telephone System and, yes, there is an asset. There is an asset owned and operated by Manitobans of over $1.2 billion and there is a debt of about $800 million. The debt has been dramatically reduced in the last 10 years, and the minister knows this because we have started a plan to fund the unfunded liabilities of pension plans which was started in the mid-'80s. The minister will acknowledge this because he has in committee. We have paid off almost $200 million on top of the reduction in debt that has been made because the unfunded liability that was established by the Roblin government was begun by the Pawley government to have that asset and unfunded liability stabilized which has strengthened the corporation, a fact not mentioned in this document today.

The government talks about the need for capital. Manitobans found the capital to build the Telephone System. Manitobans found the capital to do rural telephone services. Nobody else did it. I would ask them to compare the private companies of what they did for farmers in rural communities, the private companies. Manitobans found the capital to build the fibre optics line. We were one of the first ones again to build the new fibre optics line across our province. We found the capital again in this province. We found the capital on cellular telephones.

In fact, I was the minister responsible for the Order-in-Council on cellular phones. I am pleased to note that it is one of the so-called strengths of the Telephone System, because we had a vision. We would have cellular telephones competitive at the retail end, but they would come onto the Manitoba information highway so all of us could take advantage of those retail decisions. That is the vision we had to build up this system, and that is why we have the market share that is contained within this document.

The Manitoba Telephone System is owned by us. It is one of our strengths. We have rural telephone systems. We have fibre optics. We have low rates. We have jobs. We have control of the information highway . What is to stop a government that broke its word in the last election--I know Great-West Life is in favour of this, but the Minister of Labour (Mr. Toews) should stop heckling from his seat, Madam Speaker.

Some Honourable Members: Oh, oh.

Madam Speaker: Order, please. The honourable Leader of the official opposition, to complete his remarks.

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Mr. Doer: Well, thank you, Madam Speaker, and I will continue my remarks on a very long statement on a very important subject.

The member for Rossmere (Mr. Toews) is part of a company that in 1989 wanted to move into rapid deregulation of the Telephone System. In 1990, the Premier (Mr. Filmon) promised he would not do that for the six companies, he would not make the poor people pay more for their telephone rates so that six companies can make more profits. He broke his promise on that in 1992 and he broke his promise again in 1996 in terms of selling the phone system. We know where the member for Rossmere is coming from.

The challenge of $500 million in capital for new technology is a real challenge, but we have met it before in rural telephone services. We have spent hundreds of millions of dollars to bring capital, investment and equity of the new information highway to rural farms. We started the plan, and the government is to be credited for continuing the plan. I have said that to the minister before, but it did require capital and we did have availability of capital here. We spend $195 million in capital every year in the Telephone System, raised by Manitobans for Manitobans, and the government need not pretend the capital has not been a requirement of the Telephone System for the last 90 years.

The Tory strategy on the Telephone System is to reduce the revenues. They got telephones out of selling fax machines when that new technology was in place. They sold cablevision for $11 million when it was worth $65 million. They sold off telemarketing. They went into long-distance competition five years before Saskatchewan. Saskatchewan has made $500 million by not proceeding as quickly as this Premier (Mr. Filmon), and we would be $400 million ahead if we did not have the ideology of members opposite.

We have to have the flexibility to act and if we need to change The Manitoba Telephone System Act to make it more flexible in a changing world, we are absolutely open to that, but we do not believe in throwing the flexible baby out with the technological bathwater and get rid of the public corporation as do the Tories. We believe it should be owned by Manitobans for Manitobans. We should not follow the Alberta model in this province, and the minister knows that and the Premier knows that.

We finally believe and we also know that if you can break your word now on selling the phone system, you can break your word down the road about who will own the system and you can break your word about foreigners owning the system. We know that the people in New Jersey, AT&T, want to control the telecommunication system in this country and in this province, and we know the kinds of interests that come to play. If you like the privatized phone system that will allegedly give us competition, look at the privatized monopoly on cablevision which we see in this country, something that is not in the best interest of consumers in this province.

This Premier broke his word and that is what has gone into the history books today, the word of the Premier. I am very, very disappointed. Thank you very much, Madam Speaker.

TABLING OF REPORTS

Hon. Vic Toews (Minister charged with the administration of The Public Servants Insurance Act): Madam Speaker, I have the honour of presenting the Public Service Group Insurance Fund Auditor's Report and Financial Statements for the year ended April 30, 1995, and the Public Service Group Insurance Fund Actuarial Report as of December 31, 1994.

Hon. Glen Cummings (Minister of Environment): Madam Speaker, I wish to present the Supplementary Information for the Department of Environment for 1996-97, and the Supplementary Information for the Sustainable Development Innovations Fund for '96-97.

Introduction of Guests

Madam Speaker: Prior to Oral Questions, I would like to draw the attention of all honourable members, firstly, to the Speaker's Gallery where we have with us today five parliamentarians from France: Monsieur Dominique Bussereau, Mr. Didier Bariani, Monsieur Alain Moyne-Bressand, Monsieur Jean-Claude Lenoir and Madame Monique Papon.

On behalf of all honourable members, I welcome you today.

Also, seated in the public gallery on the east side, we have members of the search and rescue crew from the 435 Transport and Rescue Squadron. This rescue crew was responsible for providing shelter, medical care, food and ultimately the rescue of five people from a plane crash near Ram Falls, Alberta on January 27, 1996. They were awarded the Mynarsky Trophy for their contribution to search and rescue. The trophy is awarded annually to Canadian aviators and is one of the highest honours in the aviation community. Members of the rescue troops present today are Captain Greg Illchuk, navigator; Master Corporal Mario Pelletier, loadmaster Corporal Mark Holoshka, search and rescue technician.

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

Additionally, we have 16 teachers from China and Kildonan East School, under the direction of Mr. Michael Witts. This school is located in the constituency of the honourable Leader of the official opposition (Mr. Doer).

We have eighty Grades 4, 5, and 6 students from Black Duck Elementary School, which is located in Black Duck, Minnesota, U.S.A., under the direction of Mrs. Abeeda Asfoor, Mrs. Donna Dremmel, and Mr. Joe Shepherd.

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

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