33rd Parliament, 1st Session

L029 - Thu 24 Oct 1985 / Jeu 24 oct 1985

STATEMENTS BY THE MINISTRY

ANNIVERSARY OF UNITED NATIONS

ORAL QUESTIONS

RENT REVIEW

KEY CHARGES

TORONTO APARTMENT BUILDINGS CO.

AMATEUR HOCKEY

GO TRANSIT

AMBULANCE LABOUR DISPUTE

JOB OPPORTUNITIES FOR WOMEN

PUBLIC HEALTH NURSES

ONTARIO NORTHLAND TRANSPORTATION COMMISSION

APARTMENT CONVERSIONS

SUMMER WAGES

SOUTH AFRICAN WINES

SPILLS BILL

A AND P FOOD STORES

HALIBURTON KAWARTHA PINE RIDGE DISTRICT HEALTH UNIT

VISITORS

PETITIONS

ROMAN CATHOLIC SECONDARY SCHOOLS

REPORT

STANDING COMMITTEE ON REGULATIONS AND PRIVATE BILLS

INTRODUCTION OF BILL

TIME AMENDMENT ACT

BUDGET RESOLUTION

BUDGET STATEMENT

INTRODUCTION OF BILLS

ONTARIO ECONOMIC COUNCIL REPEAL ACT

CAPITAL AID CORPORATIONS REPEAL ACT

ONTARIO LOAN ACT

SMALL BUSINESS DEVELOPMENT CORPORATIONS AMENDMENT ACT

CORPORATIONS TAX AMENDMENT ACT

INCOME TAX AMENDMENT ACT

RETAIL SALES TAX AMENDMENT ACT

LAND TRANSFER TAX AMENDMENT ACT

TOBACCO TAX AMENDMENT ACT

FUEL TAX AMENDMENT ACT

GASOLINE TAX AMENDMENT ACT

BUSINESS OF THE HOUSE


The House met at 2 p.m.

Prayers.

STATEMENTS BY THE MINISTRY

ANNIVERSARY OF UNITED NATIONS

Hon. Mr. Peterson: Today marks a historic day for all nations that strive for world peace. October 24 is, as many honourable members are aware, the anniversary of the United Nations, one of our most cherished international institutions.

As we pay tribute to this important organization for the crucial role it has played in attempting to maintain world peace and stability, it is fitting to recall the pledge taken by the UN member states when they ratified the founding charter of the United Nations some 40 years ago. It is equally fitting to remind honourable members now how timely this pledge still remains today, despite the passage of time.

The members of the United Nations undertook a solemn pledge to maintain international peace and security and to co-operate in establishing the political, economic and social conditions that are conducive to achieving this noble objective. But as members are only too well aware, it is a sad commentary on the world we live in that peace, which we all so eagerly desire, is so fragile and difficult to maintain.

In this regard I would like to cite the eloquent and most appropriate words spoken yesterday by Prime Minister Brian Mulroney before the United Nations General Assembly:

"While the UN may seem powerless in the face of circumstances that confront it, it is nevertheless all we have. The men and women who created this organization in 1945 hungered for peace and justice and were guided by high principles. They sought to create a global forum where they could voice their hopes and fears, their dreams and their regrets."

I would like to point out that the people of Canada, like their fellow citizens in other nations, are increasingly aware of the need to make public their desire for peace. This cry for world peace was dramatically demonstrated today at the Seven Minutes for Peace ceremony in Toronto, which brought together many spiritual leaders, religious and peace groups from around the world.

It is therefore most appropriate that the 40th anniversary of the founding of the United Nations coincides with the proclamation that 1986 is the International Year of Peace. I would suggest it is equally appropriate that this House express its solidarity with the aspirations of the United Nations and of other nations of the world for a better and more peaceful world.

Mr. F. S. Miller: I am proud to rise on behalf of our party in commemoration of the anniversary of the United Nations. While the UN has not been successful in guaranteeing peace in the world or in totally eliminating terror, hunger or oppression, it has at least provided a forum for the prevention of war and the reduction of those miseries that plague humankind and can lead it to war.

Perhaps the UN's most outstanding achievement has been that it has managed to survive for 40 years. It has kept people at the bargaining table seeking agreements and seeking compromise when they might otherwise have turned to aggression and even annihilation.

Those of us in this chamber have special cause for interest in Canada's current role in the United Nations. The fact that a former colleague is there speaking with conviction and expertise on behalf of all Canadians is not only comforting but also a source of pride for all of us. Those of us who served in this House with Stephen Lewis have not been surprised by his success and popularity at the UN. Prime Minister Mulroney chose well in his appointment.

I would also take this opportunity to commend our Prime Minister for his presentation to the UN on Wednesday of this week. No country has more right than Canada to speak of peace, equality and justice. This anniversary is an appropriate time to reaffirm our commitment to those worthy goals.

Mr. McClellan: On behalf of my colleagues in the New Democratic Party, I take great pleasure in being able to join the Premier (Mr. Peterson) and the Leader of the Opposition (Mr. F. S. Miller) in expressing our thoughts on the occasion of the 40th anniversary of the United Nations. We, of course, take a great deal of pride in the fact that our former colleague Stephen Lewis has served with such distinction as our ambassador at the United Nations. Those of us who served with him, as the Leader of the Opposition said, are not surprised that he has done such an outstanding job.

The United Nations was formed 40 years ago to rid the world of fascism, and in that it was successful. Forty years later, we are still engaged and the United Nations is still struggling to rid the world of the blight and shame of apartheid in South Africa. I think all Canadians are proud to see that our Prime Minister, Mr. Mulroney, has taken a leading role in that struggle at the United Nations forum and has again made a major plea for international sanctions against the racist regime of South Africa, to end once and for all this blight on our planet.

The United Nations not only represents our best hope for peaceful development and peaceful co-operation; it is our only hope. We rededicate ourselves to the original ideals set out 40 years ago today.

ORAL QUESTIONS

RENT REVIEW

Mr. F. S. Miller: I have a question for the Premier, and I welcome him back. Will his government remove rent controls when the vacancy rate rises?

Hon. Mr. Peterson: There are no plans to remove rent controls. We are in the process of building a system that we think is fair to tenants as well as a system that will encourage building. The honourable member will be quite delighted with our policies as they will start unfolding today.

Mr. F. S. Miller: We are a bit confused in here, and I think with good cause. The Minister of Housing (Mr. Curling) keeps talking one way in the House and another way in the corridor. He comes back in and refutes what he has said in the corridor, and he goes out and says it again. One day he says outside, "There will be rent review next year." But in here he asks why we cannot understand that he means there is no rent review.

So please help us to understand whether he is confused, whether he is confusing tenants or whether he is confusing the landlords. What really is the policy, and why does his minister not seem to know it?

2:10 p.m.

Hon. Mr. Peterson: I can understand the member's confusion. The member for St. Andrew-St. Patrick (Mr. Grossman) is saying one thing and the member for Don Mills (Mr. Timbrell) is saying another thing on this subject. I have trouble? The member's former colleague brought in a four per cent guideline just shortly before the election and he has been saying different things since. I can understand that because he comes from chaos, he expects chaos everywhere. That is not the case with this government.

We acknowledge there are some serious problems in the housing situation in this province today. There is serious undersupply. We want to address that problem. We will have legislation that will be fair to tenants and responsive to some of the potentially serious inequities. It is not our intention to remove rent controls but to have a system that is fair to all.

I am sure my friend would recognize, even through his own inability ever to deal with the problem in a substantive way over the last 10 years, that it is a complex and difficult subject. We are working quickly. We are going to want his help in building a system that in general terms he and his more fair-minded colleagues of his own caucus will want to support. I think we can build a system that will accomplish both of those ends together and I look forward to his help on this matter.

Mr. McClellan: I am tempted to ask the Minister of Housing to step outside and answer the question, but I will ask the Premier, since the Minister of Housing has said on two separate occasions that his view of rent control is that it will be removed when vacancy rates reach an acceptable level. I believe he suggested a target of three per cent on two separate occasions.

Is that the policy of this government? If it is not, why is the Minister of Housing continuing to say it is the policy?

Hon. Mr. Peterson: I would just advise the member in a friendly and personal way not to invite anybody to step outside because my friend is a former pugilist, as am I, and I remind my friend that he can get into serious trouble in that regard. I say that only in the most helpful of ways.

That being said, it is not our intention to remove rent controls. We are going to provide what we think is a fair package of tenant protection that will really protect those people. We are not going to be removing those controls next year.

Mr. F. S. Miller: The fact that the Premier and the Minister of Housing were both pugilists, past tense, makes me wonder if one took a few blows too many in the head. Over here we have years of practice in ducking.

Being serious, though, the Premier must have found it rather surprising, even abominable, to discover that the Minister of Housing yesterday was quoted as saying he was not even aware there was $100 million set aside for 14,000 low-rental units. Is that because there is no commitment? Is it because there has been no discussion in cabinet? Is it because the Premier does not trust his minister enough to tell him what is being done in housing?

Hon. Mr. Peterson: I would remind the member that the honourable minister and I were so fleet of foot that we never got hit. I can understand his interpretation with respect to blows to the head from looking at some of his own front benches -- a few there were former pugilists -- but the same does not apply here.

I think if he could be patient for just about an hour and three quarters, he will see the world unfolding as it should.

KEY CHARGES

Mr. McFadden: I have a question for the Minister of Housing. The Minister of Housing is reported to have stated in an interview on CKFM radio that some landlords were acting illegally in collecting key charges from prospective tenants and he expected that this would continue for another two years or so. Would the minister care to confirm whether he made such a statement?

Hon. Mr. Curling: The reporter asked me if I was aware of key money. I told him people were calling in to say they are paying key money. I cannot recall saying that will continue for two years. I do not have any idea whether it will continue for two, one or three years.

Mr. McFadden: As the minister is aware, key charges are illegal in the province. Besides the CKFM interview, there have been newspaper reports about key money being charged to prospective tenants. Will the minister consider investigating and taking action to ensure that the law is obeyed so tenants will not continue to be required to pay key charges to secure accommodation in Ontario?

Hon. Mr. Curling: I will investigate that. If these practices are being carried out, we are concerned and I will take that position and investigate it.

Mr. McClellan: I am sure the minister did not just find out about key money today, last week or two weeks ago. I cannot believe he is not fairly briefed on the subject of these kinds of ripoffs and scams. It is appropriate to ask the minister what action he intends to take to protect tenants from these kinds of ripoffs.

Hon. Mr. Curling: We know there are many illegal things happening in this province of ours. If we have specific cases, we will investigate them. I know there are many illegal things going on. As soon as the member identifies specific cases, I will investigate.

Ms. Fish: What is the minister going to do to find the cases?

Interjections.

Mr. Speaker: Order.

Mr. McFadden: We have now received confirmation from the minister that he is aware of these illegal key charges in Ontario.

Could he give the House some idea of the specific steps he intends to follow and the timetable for those steps? Surely this is not the first time he has been aware of it. He must have given some consideration to this. I wonder if he can tell the House what he is planning to do and give us some idea as to what his timetable might be on that action. Every month tenants are being required to pay these illegal charges.

Hon. Mr. Curling: I would ask the member to co-operate and bring specific cases to me, which we will investigate. Then I could set a timetable with all the specifications I have.

Ms. Fish: So the minister is aware of these illegal actions and will not investigate them.

Hon. Mr. Curling: The member will get her chance.

TORONTO APARTMENT BUILDINGS CO.

Mr. McClellan: I have a question for the Attorney General arising from a broadcast today on the Canadian Broadcasting Corp. radio news about the practices and conduct of the Toronto Apartment Buildings Co.

Was the Attorney General told by the member for Parkdale (Mr. Ruprecht), the Minister without Portfolio for citizenship and culture, about a demand by the Toronto Apartment Buildings Co. to the Radio College of Canada for approximately $250,000 in the form of a phoney loan from Tabco to make up for a rollback of illegal rent? Further, was he told about the threat that Tabco would evict the students of the Radio College unless this loan was taken? Was he informed of this by his colleague and has he initiated a police investigation?

Hon. Mr. Scott: I did not hear the radio broadcast. I will undertake to get a tape of it to determine what was said and to investigate.

2:20 p.m

Mr. McClellan: It was alleged on the broadcast that the president of Radio College, Hartley Nichol, immediately and fully informed the member for Parkdale about the details of the demand for a loan and the threat of eviction.

Since the answer to my fast question was apparently no, will the minister investigate why his colleague -- who I am sure he will agree had a clear duty to report this allegation of serious wrongdoing either to the police or to the Attorney General -- will the minister investigate and advise the House why his colleague did not do that? Will he also now initiate a police investigation?

Hon. Mr. Scott: I am getting used to it around here. The answer to the first question was not "apparently no", it was the answer I gave. I have not heard the radio broadcast. I was elsewhere at lunch time. I will undertake to listen to it. If an allegation of criminal offence is disclosed, I will investigate promptly.

Mr. McClellan: I will ask again because I want to understand this clearly: did the minister's cabinet colleague advise him of the conversation it is alleged he had with the president of the Radio College of Canada to the effect that a demand for a loan had been made accompanied by the threat of eviction, which could be described as attempted extortion? Was that brought to the Attorney General's attention or not?

Hon. Mr. Scott: I do not feel I have any obligation to disclose conversations that have been held among the ministers. Let me say that when an allegation of a criminal offence or anything like it is brought to my attention, we will investigate promptly and see what steps have to be taken in the light of that.

AMATEUR HOCKEY

Mr. Martel: I have a question for the Minister of Tourism and Recreation. About a year ago I presented a report called Play it Safe involving hockey, which indicated there were 44 spinal injuries in Canada in a nine-year period. Is the minister aware of the latest report that indicates from 1976 to April 1985 there have now been 88 spinal injuries, 84 amongst males and four amongst females primarily between the ages of 15 and 19?

Ontario has 44 of these spinal injuries. That is four times higher than those of the next closest province with 11. Of these young people, 22 were pushed from behind and 13 were bodychecked from behind. Of the 88, is the minister aware that 53 have spinal cord injuries, 24 have complete motor loss and sensory loss, eight have complete motor loss and incomplete sensory loss and 19 have incomplete motor loss and incomplete sensory loss?

Mr. Speaker: The minister.

Mr. Martel: Does the minister not feel it is time for the province to act since our injuries are four times higher than anywhere else in Canada? Is it not time we acted to clean up the game so young people's lives are not wiped out?

Hon. Mr. Eakins: I am very much aware of the statistics the member has brought to my attention. I have taken the initiative to meet with the Sport Medicine and Safety Advisory Board. I also have a meeting set up with a representative of the Ontario Hockey Association, who was this government's nominee. I am very much concerned, as is the member, about the injuries that are taking place.

Mr. Martel: Some time ago I wrote to all the hockey organizations in the province to get statistics from them of the number of injuries. The minister will be pleased to know that three bothered to respond. One said it did not keep statistics because it did not feel it was necessary. The other two did not have any.

Can the minister tell me how we can help the Sport Medicine and Safety Advisory Board, and I think there are some excellent people there, to get a handle on this problem, unless hockey organizations are forced to submit all the accident statistics to that board so they can analyse those statistics to determine what is prompting the serious number of accidents we are encountering? Will the minister make it mandatory that they report all accidents to the Sport Medicine and Safety Advisory Board?

Hon. Mr. Eakins: As I mentioned, I have a meeting coming up with Judge Kane shortly. We also have a ministerial committee looking at draft legislation. If it is necessary, we will take this a step further. At present I want to take a look at the possibility of legislation, if necessary, and report back to the member.

Mr. Baetz: I have a supplementary question for the minister. Am I correct in understanding him to say he has not yet met with people from the Sport Medicine and Safety Advisory Board, an important board that was established many months ago? It is now early fall. Is it not time he met with these people? Is he saying he has not yet met with people from the board that was set up months ago?

Hon. Mr. Eakins: I do not believe the former minister was listening. I have met with them.

Mr. Martel: Is the minister aware of a poll taken by this government on hockey? Of the people polled, 55 per cent said there had to be stronger action to eliminate rough and violent play, 43 per cent said there had to be stricter enforcement of the rules and 39 per cent said there had to be better coaching. All these were in the report I tabled.

Finally, is the minister aware that they advised the minister not to act since the public did not feel the government of Ontario should do anything, and that is precisely what the government did do -- nothing? Is he prepared to act to clean this mess up?

Hon. Mr. Eakins: I take the statistics very seriously and I want to do a further review. I assure the member I am not afraid to act.

GO TRANSIT

Mr. Ashe: I have a question for the Minister of Transportation and Communications. Despite the commitment that was made by the previous government to extend GO Transit services to the people in and around Metropolitan Toronto, because of the minister's inaction, because of his hesitation and because of his procrastination, his ministry has not made any funding commitments in the current year towards that extension. As a result, no construction contracts have been let this year and, consequently, no construction has taken place and a whole year has been lost.

How can he justify his inaction and the inaction of his government in extending a needed service to the people of Ajax, Whitby, Oshawa and beyond, when his party's own candidate in the last election out our way was in full support of the GO train technology and rapid completion of that much-needed service?

Hon. Mr. Fulton: I would like to remind the honourable member that no slowdown has taken place in the GO Transit system. This government is committed to proper, efficient and safe transit systems to all the people in the greater Metropolitan Toronto area. In fact, the $2-billion-plus scheme of a previous minister has delayed certain of the works in that we inherited a $284-million project.

Bearing that in mind, we are very mindful of the funding abilities of the taxpayers of this province. It was our responsibility to view with care and review with care those spending commitments. We are doing that and we will be making an announcement soon. The people east of Toronto have not been in any way affected by the system; they have not in any way had any reduction in the level of the service in the GO Transit system.

Mr. Dean: To follow up on that remarkable answer or nonanswer that the minister has given my colleague, in view of the very pressing need -- just as pressing as in the east -- for the extension of GO Transit rail service to the Hamilton-Burlington area, and in view of the repeated requests for action by the council of Hamilton-Wentworth and the people there, why is the minister stalling on taking the necessary steps to confirm exactly what the railways are prepared to do to aid GO Transit in extending the service to Hamilton? When will he give GO Transit the green light to get this important project under way?

2:30 p.m.

Hon. Mr. Fulton: We are not stalling. If the previous government had negotiated a settlement with the federal government on the use of the Canadian National line for commuter rail, we would not have been delayed. I have met with Mr. Mazankowski very recently to get the assurance that the existing CN Lakeshore line would be available for commuter rail and I will be making announcements soon.

Mr. Breaugh: Can the minister tell me now the current anticipated date for the arrival of GO Transit by rail in Oshawa? When will that finally occur?

Hon. Mr. Fulton: The member for Oshawa may be aware that the current program going to the east stops at the eastern boundary of the town of Whitby. There is some environmental question on whether the GO extension would proceed on the CN line or the Canadian Pacific line, which I understand is the preferred route to the city of Oshawa. I will give the member the exact year, but I believe we are looking at about five years into downtown Oshawa.

AMBULANCE LABOUR DISPUTE

Mr. Swart: My question is to the Minister of Health. It concerns the strike of ambulance workers in the Welland, Port Colborne and Fort Erie area, which is now in its 90th day, and the inadequacy of the ambulance service in that area at the present time.

Is it not true that the latest offer made to those workers is a lower rate than that reached in any other recent settlement across the province, all of which the ministry has agreed to fund? Will the minister now commit his ministry to a level of funding to the Welland and Port Colborne ambulance services, at least so far as the wage component is concerned, sufficient to pay wages at least equal to those on the lower end of the scale, such as Uxbridge-Stouffville?

Hon. Mr. Elston: There is some misconception of the role of the Ministry of Health on the part of the honourable member. We do not agree with respect to any particular contractual obligations entered into between the employees and employers. As he recognizes quite clearly, the negotiations are between the employer, the owner-operator of the particular operation, and the employees.

We fund the operations under an arrangement for funding of a budget, and it is within the mandate of each operator and his employees to do the negotiating and the bargaining. They determine what they can bargain and they determine the collective agreement under which they make the arrangements. We do not approve, nor do we reject, any of those settlements arrived at freely through the negotiations.

Mr. Swart: Surely the minister does not expect us to accept a statement that his ministry is not consulted on whether the funding will be available before these settlements are made. Does the minister not feel it is unfair that he will have some ambulance workers who are doing exactly the same job as others in an area receiving a dollar or two less an hour than the other ambulance operators? Can we not have some reason to believe it may be because he is unhappy with the owner-operators in the Welland-Port Colborne area, perhaps with some justification, that he is thus refusing to treat them the same as other owner-operators and that the workers there are being used as pawns?

Hon. Mr. Elston: There is no use by the ministry or the minister of any workers as pawns. As the honourable member will understand, if he looks at what happens with respect to owner-operated operations, the funding is at the same level around the province for each of those.

There is a base. We have a restriction with respect to the amount of money the Treasury has flowed to us. There is a three per cent guideline. The settlements that were arrived at in other locations in the province have been done within the framework of the three per cent. Whatever opportunities are available have been worked upon by the employees in those local areas and the operators.

I have not, nor has anyone from my ministry, sat at the negotiating or bargaining table with respect to those operator-controlled ambulance services and agreed to any particular settlement. The funding is available and is well known to the operators. They settle with their employees on the basis of the collective-agreement arrangement for bargaining that is currently in place here in Ontario.

Mr. Gordon: Is it not true that the minister is having to carry the ball right now for the Minister of Labour (Mr. Wrye), who fails to appear in this House to answer questions about labour matters?

Hon. Mr. Elston: I find that a totally inappropriate question from that member concerning the Minister of Labour, who is not well. He is ill. He is at his home. He has not been able to come to the House.

The member knows, as well as I do, that the member for Windsor-Sandwich, the Minister of Labour, is a dedicated proponent of the use of this House as a very valuable place for a statement of public policy. I find it totally and unacceptably out of order that the member has been pointing a finger at my colleague the Minister of Labour. I ask him, please do not ask a question like that again.

Mr. Gordon: On a point of privilege, Mr. Speaker.

Mr. Speaker: What is the member's point of privilege?

Mr. Gordon: As the critic for Labour, my point of privilege is, can we be assured in this House from this moment on that whenever these ministers are away --

Mr. Speaker: Order. I am afraid the Speaker cannot answer that question.

JOB OPPORTUNITIES FOR WOMEN

Ms. Fish: I have a question of the Attorney General, the minister responsible for women's issues. Last weekend the Attorney General attended a conference addressing career planning, options and futures, tied particularly to young teen-age girls at a fairly impressionable stage of their development. He talked about the varieties of opportunities that were available to them.

In particular, he made reference to a variety of jobs that he described as being among the most rewarding and the best-paying. He described those jobs as men's jobs. Would he define "men's jobs" for this House?

Hon. Mr. Scott: I would like to thank my colleague the member for St. George for the question. Unfortunately, she was not at the meeting and therefore did not get a correct report of what was said.

I pointed out to the students that of the 500 job categories that are listed in the Canada census, women are the majority in only 20 of those categories and men are the majority in the others. In the others, the 480, pay rates are substantially higher than they are in the jobs where women are the majority, the 20 categories.

That was the statement of fact I made. It is correct and I stand by it. I encouraged women to consider applying for jobs in the other 480 categories. I am sure the honourable member agrees with me that is what they should do.

Ms. Fish: As it happens, I have perhaps a slightly different view of how to deal with some of this problem. However, let me just refresh the minister's memory of what he did say.

Mr. Speaker: What is the supplementary?

Ms. Fish: By way of supplementary, Mr. Speaker, he said: "Men's jobs pay better. That may not be fair, but it's a fact of life."

I want to know whether he is abandoning the nurses, the secretaries, the receptionists, the teachers and the child care workers in this province, the women who have chosen to go into those areas that are acknowledged to be underpaid and who are in the very forefront of the fight for equal pay for work of equal value. Where is the commitment there when the minister just said: "Well, you're not paid enough, so get another job. Go get a man's job."

2:40 p.m.

Hon. Mr. Scott: Anybody who is quite that strident is going to have trouble getting work anywhere, whether male or female.

The reality is that I described the 500 categories, just as my colleague on the opposite benches did when he was Minister responsible for Women's Issues. I pointed out the fact that of those 500 job categories, women are the majority in only 20 of them and that, regrettably, the 480 job categories tend to be the most intellectually rewarding and most financially rewarding jobs. I encouraged the young women at that conference to get out, put aside the stereotypes if they could and apply for those jobs. That is what affirmative action is all about. I am in favour of it, and I would like to hear from the honourable member what her view is.

Ms. Gigantes: I would like to ask the Attorney General, where is our green paper?

Hon. Mr. Scott: I am not sure that is a supplementary, but I want to point out that the green paper will be here before the next full moon.

PUBLIC HEALTH NURSES

Mr. D. S. Cooke: I have a question for the Minister of Health. The minister will recall that back in August he made a statement that he had not been in office long enough at that point to have looked into the issue of parity of public health nurses with hospital nurses. It now has been several months since he made that statement. The Kingston public health nurses are still on strike. The Metro Windsor-Essex county public health nurses are locked out. The Porcupine health unit is involved in a labour dispute as well --

Mr. Speaker: Therefore, you would like to ask a question.

Mr. D. S. Cooke: -- and the Kent-Chatham public health nurses are locked out. There are four public health units where the services mandated under the Health Protection and Promotion Act are not being provided. Is the minister prepared to make a statement on the record today that his government will supply the necessary funds to bring public health nurses up to equity with hospital workers so these labour disputes can be settled?

Mr. Speaker: Order. The question has been asked.

Hon. Mr. Elston: I cannot make a statement today to the effect the honourable member has requested. There is some confusion as to what the request is, as around the province there is variation as to what is actually equality between those two groups.

There is no question that there is concern, as far as I am involved as Minister of Health, with respect to the provision of core services. I have been assured, particularly with respect to Kingston, that so far those services have been provided at the local-area level by physicians and others who are working in the area, but I do have concerns along the lines the member has raised.

Mr. D. S. Cooke: Is the minister aware that in Kingston specifically, prenatal classes are not being provided, family planning classes or instructions are not being provided, the immunization clinic has been done away with, the preschool clinics are not in operation, adult clinics in senior citizens' buildings have been suspended and the visiting program to mothers of newborns has also been eliminated? Those are only some of the programs that are not in operation because of the strike. The minister cannot say the same services are being provided when the labour dispute is on.

Is the minister aware that on November 4, 1976, in this Legislature, the then Minister of Health, the member for Muskoka (Mr. F. S. Miller), recognized a problem was developing with public health nurses not being paid at the same rate as hospital nurses and took action to correct the situation?

Mr. Speaker: The member has now come to the question.

Mr. D. S. Cooke: Is the minister going to take action to correct the situation, or is he going to let this inequality continue?

Hon. Mr. Elston: The situation the member outlined with respect to Kingston indicates clearly that on occasion there is flexibility in the health delivery system to provide alternative methods of delivery of health care services. Immunization is being carried on through physicians. That is just one example.

With respect to the commitments made by the then Minister of Health, the member for Muskoka, I understand those were made on a one-time basis, and were not adequately reflected on by several of the local areas and unfortunately the options were not accepted at that time.

The other item that is of use for the member to consider is that we are one party that can provide compensation for local health units. There is a partnership between us and municipalities with respect to contribution, and we cannot unilaterally fund the entire expansion of the budget without some local assistance.

Mr. Gordon: Is the minister prepared to increase the amount of money he provides to municipalities, which then can follow suit?

Hon. Mr. Elston: The flowing of money to municipalities does not fall under the aegis of my ministry. Certainly the raising of taxes is often used to provide money for the payment of contributions to the health units. The honourable member has misconceived the ideas around the funding required with respect to the public health units in the province.

ONTARIO NORTHLAND TRANSPORTATION COMMISSION

Mr. Harris: I have a question of the Minister of Northern Affairs and Mines. Given the growing concern on the part of northern Ontario residents about the commitment of not only this minister but also the Liberal government to the very existence, let alone the role, of the Ontario Northland Transportation Commission -- the Chairman of Management Board (Ms. Caplan) might want to listen to this, since, when she was in North Bay, she did not know whether that was federal or provincial --

Hon. Mr. Bradley: She was checking with Moe Mantha.

Mr. Harris: Moe would straighten her out.

Given this problem and the growing concern throughout northern Ontario that the very existence of the ONTC and its various services will be reviewed by the provincial government -- a story in one of the papers says, "Funds for the ONTC Double-Decker Coaches on the Night Train Now Frozen by the Liberals"; that not only service in the northeast but also jobs in Thunder Bay will be affected, and that, according to a statement, one of the two daily trains operated by the ONTO in northern Ontario should be cancelled -- will the minister confirm or deny an apparent leak from his ministry that the ONTC in its entirety will be abolished?

Hon. Mr. Fontaine: First of all, I would like to correct the member for Nipissing. What we are doing with the NOTC or the NORTC -- what is the name of that? -- le chemin de fer du Nord.

Une chose que j'ai dite, et je le répète, c'est qu'on va étudier le système de transport dans le Nord de l'Ontario. Comme vous le savez, Monsieur le Président, nous avons un gros déficit, qui est autour de $20 millions. Alors, j'ai demandé à mes employés d'étudier pourquoi ce déficit est si élevé.

I have asked my employees to study the deficit of this transportation system, and I have also said that we are going to go around the north and ask the people which train they want to take. If the people of northern Ontario want to take the day train, there is going to be a day train. We will not put on a night train for only a few politicians or a few businessmen. We are going to go where the people want to go, and that is our commitment.

I never said in North Bay or any place that I would close the ONTC. That is the dream of the member opposite, not mine.

Second, about those double-decker --

Mr. Speaker: Order.

Hon. Mr. Fontaine: He asked me that question. First, they should know that when they dream about those double-deckers, they were supposed to be a big order by Via Rail, and this big order has not arrived yet. When this big order arrives, we are going to review the five or 10 cars we are supposed to get.

Mr. Harris: This is a serious matter. When the minister talks in the House today as he talked in northern Ontario he is consistent: he is going to do away with one of the trains. When he does away with one of the trains, he concerns 1,000 employees in North Bay, 1,000 employees throughout the rest of northeastern Ontario and all those who depend on this development road for service to the industries and passenger service in northern Ontario. Every time the minister goes into the north he talks about reviewing this and cancelling that. These are the things the people of northeastern and northwestern Ontario hear from us.

Mr. Speaker: How about a supplementary?

Mr. Harris: By way of supplementary, the minister keeps leaving the impression that not only is he not prepared to fight for the north, as the member for Kenora (Mr. Bernier) used to fight for the north, but he is going to cancel some of the things he fought for.

Mr. Speaker: Order.

2:50 p.m.

Mr. Harris: It is a simple question. Will the minister give me an answer? Now we hear the ONTC is to be cancelled. Is he going to cancel it? Yes or no?

Mr. Speaker: I believe we finally got to the question. It will be a nice, brief answer, I presume.

Hon. Mr. Fontaine: It took a long time.

I just said that we in the north are going to review this commission, which is packed with Conservatives. That is all I said. Maybe in the future I will replace some with Liberals or New Democrats for a while, because we could never get a job on this commission before. But I never said I would cancel it.

Mr. Wildman: Surely the minister recognizes that this is not the first deficit the ONTC has experienced and that there is tremendous concern about his proposal for cancelling either a night train or a day train. Surely the problem of lack of passengers is caused by the slowness of the service. Rather than cancelling a train, why does the minister not commit funds to upgrade the roadbed so we can have better service in northern Ontario instead of cutting back on it?

Hon. Mr. Fontaine: I would like to ask my friend the member for Algoma how many times he has taken the train from Kapuskasing to Toronto. I am the only one in this House who takes the train. I take it every month. I did not see him on the train.

We will not cut any trains. We are going to see which schedule is the best to get that train from Kapuskasing to Toronto in 10 hours. The honourable member has to remember that it takes 14 hours to go up. If we reduce that time by four hours, it disrupts all the other schedules. We have to be sure that --

Mr. Martel: Is that not awful?

Hon. Mr. Fontaine: It is awful. Has the honourable member ever taken that train before?

Mr. Martel: I know more about trains than the minister will ever know.

Mr. Speaker: Order.

Hon. Mr. Fontaine: We are going to look at which schedule is the best for northern Ontario and we will have another train from North Bay to Toronto; so the member should not worry.

APARTMENT CONVERSIONS

Mr. Philip: I have a question of the Minister of Municipal Affairs concerning the possibility that the former Cadillac Fairview buildings will be converted to condominiums.

The minister should be aware that under the Municipal Act and under the Planning Act, various municipalities have been able to curtail the conversion of affordable rental accommodation to condominiums. All the municipalities that have the former Cadillac Fairview buildings have in some way passed policies restricting conversion in situations where there is a low vacancy rate, which is the present situation.

Has the minister yet conveyed to the federal authorities that he will uphold the policies that have been passed by the municipalities and that in this province, under the Minister of Municipal Affairs, there will be no conversions of Cadillac Fairview buildings?

Hon. Mr. Grandmaître: I would like to inform the honourable member that every municipality in Ontario, through the Municipal Act or section 34 of the Planning Act, can prevent these conversions. It is up to the municipality to take on its responsibility and to apply section 34 of the Planning Act.

Mr. Philip: The minister should be aware that the municipalities involved, namely, York and Scarborough, already have a moratorium on conversions, that North York and East York restrict conversions until the vacancy rate reaches five per cent and that Toronto does so until the vacancy rate reaches more than 2.5 per cent.

Will the minister now unequivocally state that he will support those municipalities, that there will be no exception in the case of the former Cadillac Fairview buildings and that there will be no conversions of those Cadillac Fairview buildings in Ontario?

Hon. Mr. Grandmaître: I will support any municipality that wants to apply section 34 of the Planning Act.

Mr. Shymko: As the minister is aware, the city council opposed the proposed conversion of these rental units to condominiums because of the increased pressure this would put on the already very tight rental situation in this city. The city housing commissioner, George Cook, has called upon the government to acquire these 11,000 units. He made that request officially. Will the minister accede to this city's request, and if so, when?

Hon. Mr. Grandmaître: I am not aware of the request. I have not seen it. Possibly it went to the Minister of Housing (Mr. Curling).

SUMMER WAGES

Mr. Hennessy: I direct my question to the Minister of Natural Resources. Students who had summer employment with his ministry have not been paid by contractors who received contracts to plant trees for the ministry in northwestern Ontario. Can the minister answer that one?

Hon. Mr. Kerrio: No, not such a specific question. I shall take it under advisement and get back to the honourable member.

Mr. Hennessy: Will the minister institute a policy whereby, when the Ministry of Natural Resources is paying the contractor, it keeps back a certain amount of money to pay the wages to the youngsters who work in the summer?

I know of many people in my riding and the ridings around me who work for contractors. After the contractors are finished, if they get paid by the ministry, they go bankrupt and they are not around to pay the students. The students come back to us. It is the responsibility of this minister to try to rectify this matter.

Hon. Mr. Kerrio: It is as if the honourable member was with me this morning when I was briefed on this very subject. With my past experience, we are looking at ways to hold back sums of money where that issue becomes a problem and to extend it beyond that. We are looking into a way of bonding those companies that do work for us in the Ministry of Natural Resources to protect those people and guarantee they will get their wages.

Mr. Morin-Strom: Yes, but what will that do to help out the youngsters who worked this summer to help his ministry to plant trees in northern Ontario? Because of the bankruptcies of some of the companies they worked for, they have not been paid a cent for their work. How will they get compensation for the work they have done on behalf of his ministry? What will he do specifically about those youngsters in northern Ontario?

Hon. Mr. Kerrio: That relates to the first question. Of course, it is a concern of ours. I will be looking at the matter in detail, and I will report back on how we might be helpful to those young people.

SOUTH AFRICAN WINES

Mr. Warner: I have a question for the Minister of Consumer and Commercial Relations. I would like to know why the government has abandoned its ban on the sale of South African wines and liquors in Liquor Control Board of Ontario stores.

Hon. Mr. Kwinter: We have not abandoned that plan.

Mr. Warner: The minister should be aware that today 26,000 bottles of South African liquor and spirits were unloaded at the Kipling store. Since the normal turnaround time is six to eight weeks, and the Norwegian ship Thorscate left South Africa on September 16, arrived at Montreal on October 4 and in Hamilton on October 9, and today its unwanted cargo was unloaded, this order was placed by the government of Ontario after it announced a ban on South African wines. I want to know why the minister has let down the cause of supporting the oppressed peoples of South Africa.

Hon. Mr. Kwinter: I will take that as notice from the member and investigate it. It is the first time it has been brought to my attention. I will get back to him.

Mr. Runciman: While indicating our party's support for the banning of South African wines from outlets of the Liquor Control Board of Ontario, I wonder if the minister could share with the House the criteria the cabinet and his ministry developed to apply to the sale of South African wines through LCBO outlets. How are they applying that to other products? I am thinking specifically of Chilean wines and Russian vodka. Is he dealing with those products as well?

Hon. Mr. Kwinter: At the present time, the policy of the government is to ban the sale of South African wines and spirits only.

3 p.m.

SPILLS BILL

Mr. Villeneuve: I have a question of the Minister of Agriculture and Food. Is he aware of the very grave concerns in rural Ontario regarding the spills bill which the government has committed to be proclaimed on November 29? Has he checked with the different agricultural organizations and with his rural caucus members? Does he know the grave concern rural Ontario has about the spills bill? What has he done to influence the Minister of the Environment (Mr. Bradley)?

Hon. Mr. Riddell: Thank you for the question. I was beginning to feel a little lonely over here. I am well aware of the concerns the member expressed. Yes, I have met with the various farm groups, the Ontario Federation of Agriculture, the various commodity boards, and the transporters' association. I have had numerous meetings.

I have sent some recommendations to my colleague the Minister of the Environment, drawing to his attention the concerns as they were expressed to me. However, I want to tell the member there is a paranoia out there that is not justifiable. When the minister gets up to make his statement, the member will find there is a lot of concern among the farm people that I feel has been sparked by the chemical manufacturers, for example, and maybe the odd person connected with some of our farm organizations, who may have some motives other than that for which they are expressing a concern.

There is a paranoia out there that should not exist.

Mr. Villeneuve: It sounds like the Ontario Federation of Agriculture and the rest of the agricultural community has been taking it very lightly. I believe the KC on the minister's hat the other day was the kitty cat approach.

Would he please go to the Minister of the Environment and express the real concerns? The "f.o.b. the plant" disturbs me tremendously on some of these chemicals.

Hon. Mr. Riddell: Chances are I have spoken to far more farmers and farm groups since I became minister than the member has. The farmers are not expressing the same concern he is, particularly after they have had the situation explained to them.

Do not ever think the Minister of the Environment would be bringing in a bill for which there would not be some insurance. Just wait until he makes a statement. When he does, then ask the question again, because I am going to tell the member there is not the concern he thinks there is regarding the spills bill.

Something had to be done. Let me remind him that every member of every party in this House voted for the bill because they knew something had to be done.

Mr. Speaker: Order. I think the answer has been given.

Hon. Mr. Riddell: Sometimes it is hard to get it through, though.

Mr. McKessock: Is it true that in the spills bill legislation there is a limit of $500,000 on the liability for farmers?

Hon. Mr. Riddell: I believe that is the case, but let me also remind the member that most farmers carry liability insurance of anywhere from $500,000 to $1 million. Most of them carry liability insurance when they apply for drivers' licences. Just wait until the minister makes a statement and I think the member will find that the farmers' concerns will be addressed.

Hon. Mr. Bradley: Quit fighting your own environmental legislation. When is your party going to stand up for the environment?

Mr. Speaker: Order.

Hon. Mr. Bradley: You are against the environment and you know it.

Mr. Gregory: We are against stupidity.

Mr. Brandt: The nonsense that is in the bill.

Hon. Mr. Bradley: Do you mean the bill your party voted for?

Mr. Brandt: We did not vote for your legislation; you know that.

Mr. Speaker: Order. Will the Minister of the Environment contain himself.

A AND P FOOD STORES

Mr. Morin-Strom: I have a question for the Minister of Consumer and Commercial Relations.

I am sure the minister must be aware of the increasing level of corporate concentration in the retail grocery business across the province. In particular, in northern Ontario we are seeing the hands of the grocery business being concentrated into one firm in the major communities in the north. In Sault Ste. Marie, as a result of its purchase of four Dominion Stores last year, A and P Food Stores now controls seven of the 10 major stores in the city. It is now proposing to close one of those stores and has given notice to 50 local employees.

What can the minister do to ensure there is fair and adequate competition in the grocery business in northern Ontario?

Hon. Mr. Kwinter: That issue is not really something I can address. It is an issue that is outside of the purview of this ministry.

Mr. Morin-Strom: I would think it is the minister's responsibility to be concerned about the consumers in individual communities in this province. When consumers are given the choice of one store in their area, as is the case in the whole western half of Sault Ste. Marie where there were previously two stores, one of them now being proposed to shut down so there will be only one major grocery store in that area; and when at the same time the store owners --

Mr. Speaker: Question.

Mr. Morin-Strom: -- say the stores that are closing will not be put on the market for sale to any other grocery operation, will the minister look at that situation and investigate the operation of A and P in Sault Ste. Marie?

Hon. Mr. Kwinter: I would like to repeat there is no indication that just because there is one store it is a problem for the consumer minister. When there is a problem that relates to my ministry, I will address it.

HALIBURTON KAWARTHA PINE RIDGE DISTRICT HEALTH UNIT

Mr. Sheppard: I have a question for the Minister of Health. In September officials at the Haliburton Kawartha Pine Ridge District Health Unit were made aware of an outbreak of head lice in our schools. This is a health unit which decided to stop sending nurses to the schools to check for head lice. The problem is growing.

Mr. Speaker: My problem is hearing the question.

Mr. Sheppard: Will the Minister of Health ensure that the nurses will go back into the schools to clean up the head lice?

Hon. Mr. Elston: The honourable member understands that the administration and direction of the public health unit are under the auspices of the board of Northumberland county or under the auspices of the medical officer of health. I will look into what happened there on September 20 and report back to him. The administration and the decisions to send people into particular situations are made at the local level by that board and the MOH.

3:10 p.m.

VISITORS

Mr. Speaker: If I could have your attention for a moment, I would ask all members of the assembly to join me in recognizing and welcoming in the Speaker's gallery Ms. Rosemary Brown, member of the Legislative Assembly for the riding of Burnaby-Edmonds in British Columbia.

Members might also like to welcome Bob Eaton to the Legislature.

PETITIONS

ROMAN CATHOLIC SECONDARY SCHOOLS

Mr. Villeneuve: I have a petition signed by at least 110 constituents and by Grand Knight Eric Dumm of the Iroquois-Morrisburg Knights of Columbus, Council 6882.

"To the Honourable the Lieutenant Governor and the Legislative Assembly of Ontario:

"We petition the Ontario Legislature to implement the policy on the funding of the completion of our separate school system without delay in order that it can applied on September 1, 1985.

"We further petition that this legislation protect the historic rights of Roman Catholics to maintain the special character of their separate schools."

Mr. G. I. Miller: I also have a petition signed by Grand Knight N. E. Leeking of Council 5420, Goderich, Ontario, dated September 20, 1984.

"To the Honourable the Lieutenant Governor and the Legislative Assembly of Ontario:

"We petition the Ontario Legislature to implement the policy on the funding of the completion of our separate school system without delay in order that it can applied on September 1, 1985.

"We further petition that this legislation protect the historic rights of Roman Catholics to maintain the special character of their separate schools."

Mr. Sheppard: I have a petition, signed by 450 people in my riding, as follows:

"To the Honourable the Lieutenant Governor and the Legislative Assembly of Ontario:

"We petition the Ontario Legislature to implement the policy on the funding of the completion of our separate school system without delay in order that it can applied on September 1, 1985.

"We further petition that this legislation protect the historic rights of Roman Catholics to maintain the special character of their separate schools."

REPORT

STANDING COMMITTEE ON REGULATIONS AND PRIVATE BILLS

Mr. Callahan, from the standing committee on regulations and private bills, presented the following report and moved its adoption:

Your committee begs to report the following bills without amendment:

Bill Pr6, An Act with respect to the City of St. Catharines;

Bill Pr10, An Act with respect to the City of Niagara Falls.

Your committee begs to report the following bill with certain amendments:

Bill Pr18, An Act with respect to the City of Cambridge.

Motion agreed to.

INTRODUCTION OF BILL

TIME AMENDMENT ACT

Mr. McClellan moved, seconded by Mr. Breaugh, first reading of Bill 40, An Act to amend the Time Act.

Motion agreed to.

Mr. McClellan: This bill would extend daylight saving time from the first Sunday in March to the first Sunday in November, subject to variation by regulation, thus providing for eight months of daylight saving time a year in Ontario.

Mr. Speaker: I would like to advise the members we will be adjourning. There will be a five-minute bell prior to 4 p.m.

The House recessed at 3:15 p.m.

4 p.m.

BUDGET RESOLUTION

Hon. Mr. Nixon moved, seconded by Hon. Mr. Peterson, that this House approves in general the budgetary policy of the government.

[Applause]

Hon. Mr. Nixon: I trust the House will be as enthusiastic at the end of my remarks as it is at the beginning.

Mr. Speaker: I wonder if I could ask the indulgence of the House to wait just a moment while the pages distribute the budget to each member before the speech begins.

Mr. Poirier: Mr. Speaker, on a point of privilege: I would like to take this opportunity to pay our compliments to the Treasurer for having had the courtesy to provide this very important document in both official languages.

BUDGET STATEMENT

Hon. Mr. Nixon: Before I begin my formal presentation of the budget, I want to express my appreciation to the officials of the Treasury and the Ministry of Revenue for their assistance, their consultation and perhaps I should say their patience during the last few weeks and months. I also want to express appreciation to the number of groups that made the effort to prepare a submission to the Treasurer and the Treasury and came into the Treasury boardroom to back up their views and carry on some exchange of views at the same time. I found this very helpful and stimulating.

I am very glad we were able to arrange for the distribution of the budget document itself to every member. I always feel it is convenient to follow the reading of the budget and even make notes, all of them of approval, I expect, rather than have to go over it in one's own time and mash it up at a later time.

I am sure you are aware, Mr. Speaker, that since 8 a. m. today the budget has been available under conditions of restricted access to the press, to the representatives of opposition parties, to the business community and particularly to representatives of the groups that are dependent upon the level of transfer payments from Ontario to their organizations. As I begin to speak, the signal is given to them that they may come back here, if they choose, to listen to the actual budget or go about their business in its support.

I would like now to present the budget to the House. I am pleased to present my first budget to the Legislature and the first Liberal government budget since March 19, 1943. Over the coming months, we will present a plan of action that will ensure steady improvement in the long-term performance of the Ontario economy and its capacity to provide new job opportunities for the men and women of this province.

Ontario is a trading province in a trading nation. Canada is the largest trading partner of the United States, far ahead of Japan, based primarily on the strength of Ontario's economy. We are committed to expanding Ontario's trading horizons, but we will do so without jeopardizing our farm, industrial and resource jobs. We want to strengthen our service sector and revitalize our tourism industry.

We are developing a fresh, comprehensive approach to industrial policy. It must involve all sectors of Ontario's economy: government, business and labour. It will focus on science and technology to meet the challenges of the new international economy. It will be based on the fundamentals of economic progress -- people and ideas.

The Premier (Mr. Peterson) set out the government's immediate social and economic objectives in his speech to the Legislature on July 2. This budget presents a plan to accomplish our objectives by carefully balancing social responsibility with fiscal responsibility.

Fiscal responsibility is simply applying the principles and practices of good management to government. It means keeping a clear, open and understandable set of books; it means spending our money efficiently where it is most needed, and it means dealing responsibly with our partners in government.

We have a new opportunity to strengthen the partnership with our hospitals, colleges, universities and local governments. We have emerged from the recent period of economic uncertainty and high inflation rates into what, I believe, is a much more stable economic environment. We are now in a position to assure greater certainty in funding to our partners in local government and the agencies that provide health and education programs so they too can bring good management and a more businesslike approach to their responsibilities.

We value equally our partnership with the other provinces and the federal government. We all benefit when we co-operate to achieve common objectives. Ontario and the other provinces, however, are apprehensive about the federal government's recent approach to federal-provincial finance.

Members will be aware that I attended a meeting of federal and provincial Treasurers and Finance ministers in Halifax in late September. At that meeting, federal Finance Minister Michael Wilson reasserted his intention to proceed with a reduction in the rate of growth of provincial transfer payments for health and post-secondary education. Moreover, he revealed that he planned to start these reductions beginning April 1, 1986, that is, one year before the existing federal-provincial financing arrangements would normally be renewed.

4:10 p.m.

Unless the federal government reconsiders its proposed course, Ontario faces a revenue loss of $150 million in the fiscal year 1986-87, increasing to $300 million in the following year and eventually rising to $750 million annually by 1990. In other words, over the next five years, our health and education systems will lose $2 billion in federal support.

These proposed transfer cuts would weaken the partnership under which the federal government is committed to share substantially and equitably in the financing of health and postsecondary education programs that the provinces deliver.

Our priorities are clear. We believe in strengthening and revitalizing our postsecondary education system. We believe in meeting the needs in the health care system associated with an ageing population and new technologies. We will continue to urge the federal Minister of Finance in the strongest possible terms to adopt the same approach and withdraw his proposed cuts in transfers for health and post-secondary education.

Since my statement to the Legislature on July 11, we have continued our examination of Ontario's financial position, including an assessment of the reporting of a number of programs and activities in the province's accounts.

If we are to begin planning for the future on a sound basis, it is important that our balance sheet accurately reflect the true state of Ontario's financial affairs. Accordingly, I am taking a number of actions.

Ontario has more than $2 billion in financial assets on its books that do not represent any real value other than to record financial obligations the province owes to itself.

These reflect past loans and advances to public institutions. The practice of setting up loans and advances to crown entities for major capital undertakings was ended in the late 1970s. No action was taken, however, to deal with the loans and advances already on the books. I am remedying this by removing these from the province's financial statements.

I am also correcting other anomalies that exist with respect to proper asset valuation.

Financial assets in these categories include advances, loans and investments related to the Ontario Universities Capital Aid Corp., the Ontario Education Capital Aid Corp., the Ontario Housing Corp., public hospitals, the Ontario Energy Corp., the Ontario Land Corp., and some water treatment and waste control facilities.

The steps I have taken today will put an end to these left-pocket-to-right-pocket-and-back-again bookkeeping entries, which would have otherwise continued in the province's financial accounts well into the 21st century.

Furthermore, I am removing from the province's balance sheet the equity holdings related to four crown corporations: the Ontario development corporations, the Ontario Energy Corp., the Urban Transportation Development Corp. and the Liquor Control Board of Ontario.

I would like to share with members the specific actions I am taking on Suncor and the Ontario Land Corp.

As members will recall, in 1981 the government of the day purchased a 25 per cent shareholding in Suncor Inc. for $650 million. The share purchase was financed by a $325-million cash payment through the Ontario Energy Corp. and a $325-million, 10-year, 14.357 per cent note due to the Sun Note Co. This was a bad deal.

The current value of the shares is significantly below the original purchase price. A review now is under way to determine the best method of dealing with the Suncor shares. This review will assess all the disposal options and the shares will be sold as soon as financially prudent.

To clear the province's books, the recorded investment for the Suncor shares will be written off and the province's remaining obligation for the Sun note will be discharged at an estimated cost of $305 million. The principal and interest payments otherwise required to retire this debt total $420 million and stretch to the end of 1991.

Whatever might be recovered by the province in the future from this unfortunate investment will be substantially less than the total that would have been paid by the time the Sun note matures in 1991.

I now turn to the province's advances to the Ontario Land Corp., which are listed at $872 million as of March 31, 1985. These advances have been channelled into two activities, $453 million for land banks and $419 million for mortgage loans.

Members will not be surprised to learn that the Ontario Land Corp.'s estimates put the appraised value of this land at $271 million, well below the original cost and $182 million less than the province's advance to the Ontario Land Corp. This loss in value will be written off and the land transferred to the appropriate ministries or sold as market conditions permit.

A large number of the corporation's $419-million portfolio of mortgage loans were made with terms and conditions not commonly prevailing in today's market. It is estimated that the province would recover $37 million less than its outstanding advance.

Accordingly, the recorded value of this advance is being reduced. The divestiture of these mortgages will proceed in a planned and businesslike manner. These actions put all the cost implications of these anomalous situations behind us, and they will not continue to distort our financial position.

"A Clean Slate." I read that heading for the benefit of the member for St. Andrew-St. Patrick (Mr. Grossman).

My examination of the financial position of the province also reveals that there are a number of major expenditure commitments that were not funded in the estimates inherited from the previous government. The budget makes provision to accommodate these unfunded commitments: $90 million in municipal transit, including the Scarborough Rapid Transit, and $15 million for hospital operating programs not funded in the estimates.

I am also providing $10 million for additional write-offs of loans made by the Ontario development corporations that are deemed, in response to the auditor's report on more than one occasion, to be uncollectable. In order to avoid similar problems in the future, the Management Board of Cabinet will conduct a review of the procedures authorizing ministries to make financial commitments on behalf of the government. We certainly do not want that sort of business approach to occur again.

Historically, in the last three months of each fiscal year the province has paid a seven per cent advance on the next fiscal year's general legislative grants to school boards to help meet expenses for those three months. During the past few years, the province has reduced these advances to only 3.6 per cent. This budget provides the $108 million necessary to restore the advances to the seven per cent level. This move will be of substantial assistance to the school boards, obviously.

In summary, the actions I have taken will provide a more accurate presentation of the financial state of affairs of the province. With the slate clean, we can present a more easily understood financial picture.

I would now like to report on Ontario's economic performance. Our economy is about to enter its fourth successive year of expansion. This year, real growth is expected to be 4.5 per cent. Treasury staff estimate that real growth in 1986 will be somewhat slower at 2.4 per cent.

Interjections.

Hon. Mr. Nixon: It is nice to note that seems to give comfort to the opposition.

Moreover, our economic growth is more balanced. In comparison with the early stages of the economic recovery, Ontario's growth is less dependent on exports to the United States. This provides for a more stable environment by reducing our vulnerability to external disturbances. Business investment, residential construction and consumer spending will continue to expand. Our export-oriented industries should also perform well, aided by recent improvements in our competitive position.

On the inflation front, I believe we have entered a period of stability compared with the volatility of the past 10 years. Inflation has fallen from double-digit levels in the early 1980s to around four per cent in the last two years. For 1986, it is forecast to be 4.4 per cent. This stability should also be reflected in lower and more stable interest rates.

4:20 p.m.

Job creation and training must be a high economic priority. Continued growth will lead to further job creation. Employment is expected to rise by 108,000 jobs in 1986, following an estimated 152,000 increase in 1985. This will bring the unemployment rate down from an average 8.2 per cent in 1985 to 7.7 per cent next year. Such levels, while a clear improvement from the 11 to 12 per cent in 1982 and 1983, are still too high.

Helping young people to prepare for and find employment is a major challenge. Although Ontario's youth unemployment rate continues to improve, it remains well above the overall average for the labour force.

Other groups in the labour market also require special attention. Some workers, such as those in Sudbury, have been adversely affected by major changes in the economy and have not shared fully in the benefits of renewed economic expansion. These workers are frequently unemployed for long periods of time. Often they are located in communities or regions dominated by a single industry. As a result, unacceptably high unemployment persists in some Ontario communities.

In developing our spending plans, I have placed a high priority on regional and community-based economic development initiatives. In addition, the budget contains specific measures to assist northern Ontario communities.

On July 2, the Premier outlined the government's program for this session, and today I would like to report on our progress to date. Funding for this program is provided in this budget plan.

The 1985-86 estimates provided $100 million for 12 different youth programs. This structure created inconsistencies, gaps and duplication. A new program, Futures, already announced by the Minister of Skills Development (Mr. Sorbara), introduces a single work experience program that replaces six of the existing youth employment and training programs. Futures is a major step towards a consolidated approach to job preparation and training. It is directed to employment-disadvantaged youth, 24 years of age and under, and will guarantee up to one year of work experience for all hard-to-employ youth who undertake educational upgrading.

Today, I am announcing a $75-million increase to the youth programs this year -- that is, above and beyond the $100 million that was placed in the estimates we inherited -- and a total allocation of $200 million for next year. These programs will create employment opportunities and training places for more than 230,000 young people by the end of next year.

In addition, the province will provide school boards with $13 million over the next three years for co-operative education programs to assist high school students in making the transition from school to the work place.

Agriculture continues to experience serious economic pressures. We are taking actions to help our farm families cope with the low cash receipts and heavy debt burdens they are facing. We are developing a number of new programs to address this situation. The Minister of Agriculture and Food (Mr. Riddell) has already announced a $50-million Ontario family farm interest rate reduction program to assist farmers in reducing the cost of their long-term debt to eight per cent for this year.

This budget also provides $20 million as Ontario's share of this year's payments under the tripartite stabilization plan for our red meat producers. The Minister of Agriculture and Food is now involved in negotiations to ensure that the federal government joins the province in making the much-needed payments to our beef and hog farmers retroactive.

Within the next few weeks, the Minister of Agriculture and Food will be announcing details of a $6-million transition fund to assist farmers leaving the agriculture industry. The program will recognize the particular difficulties faced by the tobacco-growing sector.

One of the government's major priorities is to assure an adequate and affordable supply of rental housing.

The federal government has re-examined its nonprofit housing programs and has proposed major changes in the mechanisms of federal support. Ontario expects the federal government to continue to fulfil its obligation in the provision of affordable housing.

For our part, we are developing an integrated housing strategy as a comprehensive response to the problems of the housing sector. As part of this strategy, the budget funds significant increases in the number of socially assisted rental units produced in Ontario. These funds will result in the construction of at least 10,000 additional nonprofit housing units in the next three years, more than 4,000 of which will receive rent-geared-to-income subsidies.

The private sector also has a crucial role to play in the provision of rental housing. We will seek to encourage and strengthen that role by providing funds for interest-subsidized loans to developers to stimulate the production of 5,000 rental housing units.

These two programs will generate more than 30,000 jobs. Further initiatives to encourage the production of new rental housing and the rehabilitation of older rental buildings will be outlined in the next few weeks by the Minister of Housing (Mr. Curling). The minister will introduce legislation shortly to fulfil our commitment to establish a rent registry and to make important amendments to the Residential Tenancies Act.

In addition to ensuring more low-cost rental housing for young families, improved child care programs are required and new approaches are currently under review. The budget provides for subsidized spaces, promised by the Premier in April of this year, to accommodate an additional 10,000 children. Priority will be given to child care in rural and underserviced areas and to children with special care requirements.

The government is working to revitalize a system of community care to help seniors maintain their independence and is developing a longer-term support strategy. The budget addresses this area of urgent need by providing $11 million on an annual basis to strengthen support services for the elderly in our communities.

As I mentioned earlier, economic development in northern Ontario is a priority. The government has created a special, $100-million northern development fund. Over the next five years this fund will support economic development initiatives of the Ministry of Northern Affairs and Mines to create viable and enduring economic activity in the north.

Beginning in December of this year, the government will provide financial assistance to residents of northern Ontario who must travel long distances for necessary medical care that is unavailable in their communities. This program for northern residents will help to remove financial barriers impeding access to specialist health care services in the north and elsewhere in Ontario. Furthermore, the Minister of Health (Mr. Elston) has developed a program to encourage additional medical specialists to establish practices in northern Ontario.

To strengthen the small business sector, I am proposing changes to Ontario's small business development corporations program to improve its effectiveness, particularly in the north and the east. As well, I am adding computer software development as an eligible activity throughout the province. To accommodate the expected increase in activity, the budget allocation for the SBDC program will be increased to $30 million for the 1985-86 fiscal year.

As I mentioned at the outset, one of my objectives is to strengthen our partnership with local governments and with those who deliver major education and health services. If our school boards, colleges, universities, hospitals and municipalities are to plan effectively for the provision of adequate and efficient services, they need early information on future provincial funding levels. That is why I have decided to make an announcement of our financial support for the 1986-87 fiscal year at this time.

The government expects each of its public sector partners to contribute to efforts to assure taxpayers that their hard-earned tax dollars are being spent prudently in an environment of careful planning and good management.

Inflation has stabilized, and this should be reflected in public sector salaries and other costs of operation. We have to manage our limited resources carefully and target resources for emerging priorities. We must maintain and upgrade our educational facilities; we must place greater emphasis on opportunities for excellence among our students and ensure the vitality of our cities through improvements in roads and urban transit.

4:30 p.m.

The basic operating grant for universities and for colleges of applied arts and technologies will be increased by four per cent in 1986-87.

In addition, I have allocated a total of $80 million in 1986-87 for the colleges and universities excellence funds. As announced in this House on October 17, $50 million will be made available to our universities to update student and library equipment, increase research activities and appoint new faculty. The excellence funds will enable colleges to purchase state-of-the-art teaching equipment and allow both our colleges and universities to undertake much-needed capital repairs.

Members will be pleased to know that funding will be provided for the University of Waterloo to complete the construction of its new computer research centre, which has been named in honour of William Grenville Davis.

[Applause]

Hon. Mr. Nixon: Did anybody take the names of the members not applauding?

The government is committed to improving access to our post-secondary education system. Accordingly, to reduce financial barriers, increases to formula tuition fees will be held to four per cent for the coming year, while funding for the Ontario student assistance program will be increased by eight per cent to $145 million in 1986-87.

In keeping with the government's promise to gradually increase school board support, the 1986 general legislative grants will be increased by 5.4 per cent.

In addition, we will establish a $25-million education capital fund. This fund will provide a significant enrichment to the $67 million in next year's basic allocation for capital purposes. This will enable school boards to start building badly needed school facilities in rapidly growing communities and to update existing schools. Full details on 1986-87 provincial assistance for all school boards will be announced by the Minister of Education (Mr. Conway).

The budget also honours the government's commitment to extend funding to separate schools. In September, the government enriched funding for grades 9 and 10 and extended support to grade 11 students at a cost of $34 million. In the next fiscal year, the estimates will provide $107 million for this purpose, including the extension of support to grade 12 by September 1986. Also, we will provide a further $17 million in capital funding to accommodate the expansion of the separate secondary school system.

In 1986-87, the basic allocation for total transfers to municipalities will be increased by 4.2 per cent. Details on unconditional grants will be announced by the Minister of Municipal Affairs (Mr. Grandmaître).

Furthermore, the budget establishes a fund for municipal improvement. For the coming fiscal years, this fund will have $60 million for special road renovations and the transit capital program. Further details on the first year of this fund will be announced by the Minister of Transportation and Communications (Mr. Fulton).

The total allocation for the operation of hospitals for 1986-87 will be increased by 8.3 per cent. This increase includes four per cent for the basic allocation for the operation of hospitals and the necessary funding to accommodate additional costs associated with higher demand for hospital service. It also includes provision for new, approved hospital programs, the details of which will be announced by the Minister of Health (Mr. Elston).

The government is taking action to help economically disadvantaged people who rely on social assistance to meet their basic needs. I am announcing a four per cent increase in social assistance rates to take effect on January 1, 1986. In addition, I am providing the resources to increase the shelter subsidy to relieve some of the pressure attributable to high shelter costs in urban areas. Additional funds have also been allocated to provide increased benefits for the children of social assistance recipients and for handicapped children in particular. The Minister of Community and Social Services (Mr. Sweeney) will present the details shortly.

As a major step in strengthening the partnership between the provincial government and its major transfer recipients, I am acting to provide greater certainty in their funding. Accordingly, I am announcing that these transfer recipients will receive a further four per cent increase in their basic transfer payments for 1987-88.

At the beginning of my remarks, I reported that the federal Minister of Finance, Michael Wilson, had recently confirmed his intention to proceed with the cuts in funding for federal support for health and post-secondary education. In his May budget, the Minister of Finance also announced a number of tax measures which I believe move our overall income tax system in the wrong direction.

His budget proposes to grant individual Canadians a lifetime capital gains exemption of $500,000. In its present form, this federal capital gains exemption will reduce Ontario's revenue by as much as $125 million in 1986-87 alone. This measure will provide another large tax break for higher-income Canadians at a time when limits on indexation and the elimination of the federal tax reduction program will increase the burden on low-income taxpayers. Exempting capital gains will do more to stimulate speculation in real estate and foreign securities than to encourage productive investment in Canadian business.

The benefits of this exemption should be directed only to small Canadian businesses and to family farms. I believe the federal government should alter its capital gains tax exemption along these lines. In the meantime, Ontario Treasury officials are developing proposals to amend Ontario's tax collection agreement with the federal government that would ensure the continued provincial taxation of capital gains other than those gains arising from the disposition of family farms and small Canadian businesses.

A positive aspect of the May budget was the announcement of the federal government's intention to introduce a minimum personal income tax. This fall, the federal government is expected to announce the specific form of its minimum tax which, if appropriate, I intend to parallel with a similar provincial tax.

Our assessment of the province's financial situation indicated that the existing revenue structure was not adequate to meet the increasing cost pressures associated with providing services to the people of Ontario within a framework of fiscal responsibility. We also recognize the pressures created by the federal government's plans to reduce its transfer payments to the province for health and post-secondary education.

Accordingly, I will introduce a number of measures to raise additional revenues. These measures recognize the need to improve the fairness and equity in Ontario's tax system.

I will introduce legislation to raise Ontario's general rate of personal income tax from 48 per cent of basic federal tax to 50 per cent beginning with the 1986 tax year. The measure will yield $26 million in 1985-86 and still leave Ontario with the third-lowest rate in Canada.

I also propose a surtax of three per cent of Ontario income tax in excess of $5,000 for the 1986 taxation year. This surtax should affect only the top 2.5 per cent of tax filers in Ontario, those earning $50,000 a year or more. It is expected to yield $2 million in 1985-86.

Although the federal government has proposed to eliminate its low-income tax reduction program for 1986 and subsequent taxation years, Ontario's tax reduction program will be enriched. This move will exempt another 50,000 individuals from Ontario tax, and it will mean that 350,000 low-income Ontarians will pay no provincial income tax. Another 40,000 Ontarians with modest taxable incomes will have their Ontario income tax reduced.

Fairness requires an appropriate balance between the taxation of individuals and that of the corporate sector. Accordingly, I am introducing changes to the taxation of corporations.

First, I will parallel the federal half-year convention that applies to the level of tax depreciation allowed on capital assets purchased by corporations. Adoption of this convention recognizes the inappropriateness of providing corporations with a full-year deduction for capital assets that may have been purchased at the end of the year. This measure is expected to increase provincial revenues by $15 million in this fiscal year. Appropriate transition provisions will be made.

4:40 p.m.

Second, I propose to eliminate the three per cent inventory allowance in Ontario's corporate income tax. This allowance was introduced in 1977 to reduce the impact of high rates of inflation on inventories. With the recent decline and the prospect of stability in inflation rates, the rationale for this measure has disappeared. Elimination of the allowance is expected to increase provincial revenues by $15 million in 1985-86.

Finally, to reduce record-keeping and compliance costs for small business corporations in Ontario, I will parallel, in Ontario's Corporations Tax Act, the small business tax simplification measures introduced by the federal government for taxation years ending after December 31, 1984. To ensure that future revenue losses are offset within the corporate sector, I am proposing to balance this measure with a one-half-percentage-point increase in the provincial corporate income tax rate, excluding the low 10 per cent rate applicable to small business.

To begin to meet the government's commitment to improve the fairness of the retail sales tax, I propose the following tax changes: a tax exemption for prepared food products sold for $1 or less.

[Applause]

Hon. Mr. Nixon: I appreciate the signs of support.

The removal of retail sales tax on feminine hygiene products and a tax exemption for children's car seats; one can find several of those in our family recently.

I also propose an indefinite extension of the tax rebate on accommodation tax paid by out-of-province visitors. That is a support for our tourism industry. I anticipate the revenue cost of these measures will be $7.5 million in 1985-86.

In addition, I intend to reinstate the tax on Maple Leaf gold coins, yielding $600,000 this fiscal year.

I am introducing legislation to repeal the ad valorem taxes on motive fuels and tobacco introduced in 1981 and replace them with specific amounts of tax per unit of product. Future tax changes will not be automatic. They will require approval of the Legislature. We on this side believe in democracy.

For motive fuels, the legislation, upon royal assent, will set the tax rates at 8.8 cents per litre for all grades of gasoline and 9.9 cents per litre for diesel fuel. Other rates will be adjusted accordingly. Nonconventional fuels will continue to be exempt from motive fuels taxation.

These fuel tax measures will yield additional revenues of $12 million in this fiscal year.

For tobacco, the legislation I am proposing today, upon royal assent, will set tobacco tax rates at 2.7 cents per cigarette and 1.5 cents per gram of cut tobacco.

One of the issues raised during my prebudget consultations was the urgent need for mining tax reform. In response, I am proposing modifications to simplify the mining tax system in Ontario and to streamline the administrative provisions of the Mining Tax Act. These changes will be accomplished without any loss in revenue. Under this proposal, the graduated rate structure would be replaced with a flat 20 per cent rate of tax and the processing allowance structure would be scaled back.

The Minister of Northern Affairs and Mines (Mr. Fontaine) will introduce legislation with a view to implementing reforms by April 1986. This will allow ample opportunity for discussion and consultation before the new measures take effect. I am confident that updating Ontario's Mining Tax Act will have a positive effect on this industry, which is vital to the economic health of northern Ontario.

Mr. Foulds: Is that your industrial strategy for the north?

Hon. Mr. Nixon: It is not a bad start. Liquor, wine and beer markups will be increased. To reflect a part of the inflationary changes since the last adjustment in 1976, special occasion permit fees and levies will also be increased. Both of these changes will become effective November 12, 1985, and together will increase revenues by $19 million in 1985-86.

Adjustments in motor vehicle registration and annual driver's licence fees will yield $11 million in this fiscal year.

The land transfer tax will be restructured and rates increased to 0.5 per cent on the first $55,000 and one per cent on the balance. An additional 0.5 per cent on the value in excess of $250,000 will be applied on certain residential properties. The land transfer tax amendments will generate an estimated $6 million in additional revenue this fiscal year.

To better ensure value for taxpayers' dollars, our examination of the financial position of the province included a review of the $181 million in commitments made by the previous government between the May 2 election and June 26. More than $41 million in spending was trimmed from that total.

Further reviews of the proposed spending plans of each ministry were conducted. In total, constraints of more than $260 million were applied to keep spending under control. Specific actions included the elimination of three policy secretariats, a review and reduction of proposed advertising expenditures, and across-the-board reductions in government salary and wage spending.

The Premier has appointed a special adviser who is reviewing a number of government activities. This, along with actions I am taking in this budget, will help reduce government spending as a share of the economy. Expenditure growth will be kept to 7.8 per cent while the economy will grow at eight per cent.

To reinforce the actions and policies I have announced, I am also proposing to streamline some agencies, to consolidate certain government functions and to divest a number of crown corporations. Both capital aid corporations are no longer necessary and will be eliminated. The Ontario Land Corp. will be wound down and its residual holdings transferred to the appropriate ministries or sold as market conditions permit. The functions of the Ontario Energy Corp. are being reviewed with the objective of determining the desirability of divesting further assets.

As Treasurer, I am privileged to have access to a multitude of advisers on the economy, including several independent private and public organizations, for example, the Conference Board of Canada and the Institute for Policy Analysis of the University of Toronto. That is why I have decided to disband the Ontario Economic Council and eliminate the $1.6-million annual expenditure related to its operation.

As a step towards eliminating duplication in the public sector, the government will transfer the Ontario Institute for Studies in Education to the University of Toronto.

The government has been reviewing the cost-effectiveness of its foreign operations. We will be examining methods to enhance our capacity to work in Washington. In the interests of improving Ontario's share of world trade, we will target our trade promotion efforts on the fast-growing markets of the Pacific Rim, the Middle East and emerging nations. To achieve these objectives, the government has decided to reallocate resources from other international offices and close posts in Brussels, Philadelphia and San Francisco.

The present Innovation Development for Employment Advancement Corp. will be wound down. In its place, a slimmed-down, tightly focused entity operating in the pre-venture capital area will be created.

Finally, to ensure that taxpayers receive better value for their tax dollars, there is a need for a comprehensive review of the effectiveness and efficiency of all government activities. The Chairman of the Management Board of Cabinet (Ms. Caplan) will tackle this difficult and challenging task.

4:50 p.m.

The budget plan has been designed to fulfil our commitments in a framework of fiscal responsibility, I say again. The actions I have taken to discharge the Suncor debt, restore advances to school boards and correct unfunded commitments, must be clearly recognized as extraordinary, one-time items in the account. The total of those Suncor debts, the restoration to school boards and correction of unfunded commitments is just over $500 million. Including these special items, net cash requirements for 1985-86 total $2,213,000,000.

Without these one-time extraordinary measures the budget plan holds net cash requirements to $1,695,000,000, a small but significant reduction from $1,702,000,000 last year. It continues the downward trend in net cash requirements as a percentage of total government spending from 6.3 per cent last year to 5.8 per cent this year.

Mr. Rae: Go over that one more time.

Mr. Speaker: Order.

Hon. Mr. Nixon: Listen, I have to find the problems wherever they are here.

Mr. Foulds: That is worthy of the member for St. Andrew-St. Patrick (Mr. Grossman).

Hon. Mr. Nixon: All the facts are there. Just read it.

Without extraordinary items, revenues are projected to increase 8.4 per cent this fiscal year, reflecting both continued economic growth and the revenue measures I have announced. Expenditures are expected to grow at 7.8 per cent.

Details of this fiscal plan are included in the financial tables in the budget papers. I would like to draw to the attention of members the changes I have made in the financial tables to give a clearer and more detailed picture of the province's finances. I believe the budget has benefited from the advice and counsel I have received from many groups in prebudget consultation. Accompanying the budget is a discussion paper entitled Reforming the Budget Process, which contains proposals to increase the involvement of the Legislature in the budget process and improve participation in prebudget consultations.

Before concluding, I would like to make some personal comments about the credit rating. The first thing I want to say is that I think Ontario's credit rating matters. Credit ratings serve as a valuable guide for investors unfamiliar with the creditworthiness of each of the many thousands of corporations and governments that issue or guarantee securities. That is what they are intended to be and that is why the issuers of securities, including the Ontario government, pay the rating agencies to be rated.

In political terms, the value of the credit rating is lost when a government's ambition for its credit rating exceeds its ambitions for the province and for the people. In practical terms, while we value the triple-A credit rating, it has little significance. Having a triple-A credit rating does not provide needed jobs for young people, improve access to affordable housing or improve the quality and availability of health care.

This is not to say that fiscal responsibility or credit-worthiness is not one of our fundamental priorities. I believe this budget demonstrates our commitment to this objective. We have dealt in a businesslike manner with the outstanding budget problems that we inherited, including Suncor, and we have developed a responsible fiscal plan.

Together with the overall economic circumstances and outlook for our province, I believe that the security Ontario offers lenders for their investments is stronger than at any time in recent years. We are confident that this budget describes a fiscally responsible plan to finance the everyday business of government and to pay for the priorities of a new administration.

We have constrained unnecessary and unproductive expenditures and eliminated unnecessary agencies. We have brought new fairness to the task of raising the revenues needed to maintain the quality of public services and to meet new priorities. We have taken steps to improve the financial stability of local governments, colleges, universities and hospitals. We have opened up the books, removed accounting anomalies and written off overvalued assets.

Most important, we have announced and funded programs to implement the commitments made by the government as it assumed the responsibility for the public affairs of Ontario. The Premier, in establishing the priority of these programs, has emphasized jobs for young people and the growth of our economy, which will provide opportunities for all in this great province.

On motion by Mr. McCague, the debate was adjourned.

Hon. Mr. Nixon: Mr. Speaker, I request unanimous consent to revert to introduction of bills so that I may put the revenue bills before the House without delay.

Mr. Speaker: Is there unanimous consent from the House?

Agreed to.

INTRODUCTION OF BILLS

ONTARIO ECONOMIC COUNCIL REPEAL ACT

Hon. Mr. Nixon moved, seconded by Hon. Mr. Scott, first reading of Bill 41, An Act to repeal the Ontario Economic Council Act.

Motion agreed to.

CAPITAL AID CORPORATIONS REPEAL ACT

Hon. Mr. Nixon moved, seconded by Hon. Mr. Conway, first reading of Bill 42, An Act to repeal the Ontario Education Capital Aid Corporation Act and the Ontario Universities Capital Aid Corporation Act.

Motion agreed to.

ONTARIO LOAN ACT

Hon. Mr. Nixon moved, seconded by Hon. Ms. Caplan, first reading of Bill 43, An Act to authorize the raising of Money on the Credit of the Consolidated Revenue Fund.

Motion agreed to.

SMALL BUSINESS DEVELOPMENT CORPORATIONS AMENDMENT ACT

Hon. Mr. Nixon moved, seconded by Hon. Mr. Bradley, first reading of Bill 44, An Act to amend the Small Business Development Corporations Act.

Motion agreed to.

5 p.m.

CORPORATIONS TAX AMENDMENT ACT

Hon. Mr. Nixon moved, seconded by Hon. Mr. Elston, first reading of Bill 45, An Act to amend the Corporations Tax Act.

Motion agreed to.

INCOME TAX AMENDMENT ACT

Hon. Mr. Nixon moved, seconded by Hon. Mr. Ridden, first reading of Bill 46, An Act to amend the Income Tax Act.

Motion agreed to.

RETAIL SALES TAX AMENDMENT ACT

Hon. Mr. Nixon moved, seconded by Hon. Mr. Keyes, first reading of Bill 47, An Act to amend the Retail Sales Tax Act.

Motion agreed to.

LAND TRANSFER TAX AMENDMENT ACT

Hon. Mr. Nixon moved, seconded by Hon. Mr. Fulton, first reading of Bill 48, An Act to amend the Land Transfer Tax Act.

Motion agreed to.

TOBACCO TAX AMENDMENT ACT

Hon. Mr. Nixon moved, seconded by Hon. Mr. Fontaine, first reading of Bill 49, An Act to amend the Tobacco Tax Act.

Motion agreed to.

FUEL TAX AMENDMENT ACT

Hon. Mr. Nixon moved, seconded by Hon. Mr. Eakins, first reading of Bill 50, An Act to amend the Fuel Tax Act.

Motion agreed to.

GASOLINE TAX AMENDMENT ACT

Hon. Mr. Nixon moved, seconded by Hon. Ms. Munro, first reading of Bill 51, An Act to amend the Gasoline Tax Act.

Motion agreed to.

BUSINESS OF THE HOUSE

Hon. Mr. Nixon: Just before the Speaker might be persuaded to call it six o'clock, I would like to indicate the business of the House for the remainder of this week and next.

Tonight, for second reading and committee of the whole, if required, we have Bill 38, the Municipal Election Act; Bill 8, the Mobility Rights Statute Law, and Bills 11 to 14, inclusive.

Tomorrow, Friday, October 25, we will hear the response to the budget by the official opposition, followed by the redistribution debate, if time permits.

Monday, October 28, we will have the budget response by the New Democratic Party, followed by general debate on the budget. Tuesday, it will be budget debate, afternoon and evening. Wednesday, the usual three committees may sit. Thursday, in the afternoon, private members' items are standing in the names of the member for Middlesex (Mr. Reycraft) and the member for Brock (Mr. Partington). In the evening we will have budget debate. Friday, November 1, we will again have budget debate.

The House recessed at 5:06 p.m.