The House met at 1500.

His Honour the Lieutenant Governor, having entered the chamber and being seated upon the throne, was pleased to open the session with the following gracious speech.

SPEECH FROM THE THRONE / DISCOURS DU TRÔNE

Hon Henry N. R. Jackman (Lieutenant Governor): Pray be seated.

Mr Speaker, members of the Legislative Assembly, ladies and gentlemen:

I have the honour of welcoming you to the opening of the second session of the 35th Parliament of the province of Ontario.

In opening this session, I am pleased to report that Her Majesty, Queen Elizabeth II, Queen of Canada, will be visiting the nation's capital from June 30 to July 2 to join in the celebration of the 125th anniversary of Confederation.

We are a remarkably diverse people, coming from all over the world, living and working in the heart of a Canada we love and want to strengthen. We are a truly international community living in a global economy.

We believe fundamentally that the purpose of an efficient, productive and competitive economy is to provide a secure, healthy and prosperous society. But experiences of the past months and years show that nothing can be taken for granted, and we have to learn and understand how to do things better ourselves.

The illusion that our society has to choose between caring and productivity, between compassion and efficiency, has to be broken. Ontario at its best has always tried to choose both. We will manage our public resources more efficiently and effectively so we can continue to build a fairer society.

Taking care of the environment is an essential part of true progress, and making our economy more conserving will ultimately be a source of strength and competitiveness. Anything less, in this generation and the next, is simply a charge on the future.

We have to be prepared to take a longer view, to understand the importance of learning and skill, to celebrate the fact that we are an international society, to encourage real cooperation between governments, business, labour and communities and to break down the solitudes we can no longer afford.

Jamais auparavant nous n'avons traversé de période aussi critique pour notre province et pour notre pays. L'année qui vient décidera peut-être de l'avenir du Canada. Notre gouvernement prend une part active aux débats intenses engagés entre le gouvernement fédéral, les gouvernements provinciaux et territoriaux et les peuples autochtones afin de réaliser un fédéralisme renouvelé, capable d'unir le Canada. Il nous faut faire preuve de créativité et de souplesse. Rien d'autre ne pourra assurer l'avenir de nos enfants.

And so too with the economy. Dealing with the most persistent and deepest recession since the 1930s has been an enormous challenge for this government, and governments across Canada. Sadly, there are disturbing signs that this recession's hold on some of the most powerful economies around the globe has not loosened as predicted.

But our province faces additional challenges. Ontario lost more than an argument in the free trade deal. Implemented without adjustment measures, free trade has devastated Ontario's manufacturing base, costing tens of thousands of jobs in Ontario communities. Combined with the goods and services tax, persistently high real interest rates and an overvalued dollar, the new trading arrangements between Canada and the United States have not worked for Ontario.

Now the prospect of a North American free trade deal, driven by political agendas unconcerned with the welfare of this province's businesses and workers, is equally disturbing. My government has made it clear to the national government that this is not the time, particularly as profound changes are being negotiated to the General Agreement on Tariffs and Trade, for more adventurism at the expense of Ontario jobs.

The federal government's cap on transfers to the provinces, coming as the recession struck with full force, represents a fundamental and unilateral change in the rules of federalism. This change is unacceptable to the taxpayers of Ontario.

The Ontario government cannot, by itself, solve every economic problem, but neither can we rely on others to fix our economic circumstances. We must do what we can ourselves. My government has already launched an economic renewal plan, an investment strategy to build a stronger future during this time of change. We are investing in the people and the economy of Ontario now to build a dynamic economy that treats all Ontarians fairly.

Today, there is no subject more important to the people of Ontario than getting our economy back to health. Doing our part to build a stronger economy is the first priority of government.

Investing in business: Our investment strategy starts with the conviction that a strong economy depends on a flourishing business sector.

The foundation of Ontario's economy remains our manufacturing and resource industries. Our province is also the financial centre of the country, and is home to a growing and important service sector. Today's world of free trade and globalization has forced our economy, along with all others, to restructure and adjust to changing conditions.

Many in Ontario are meeting the challenge, taking on and winning in the international marketplace. Our province is one of the best places in the world to do business.

Recently, Delcan International Corp of North York was awarded a $36-million contract to design and implement two state-of-the-art sewage treatment plants in Venezuela.

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Sandoz Ltd of Whitby, a pharmaceutical firm, was awarded the mandate to produce and distribute Neo Citran for the entire North American market by its Swiss parent.

Babcock and Wilcox of Cambridge led the Ontario Group consortium to sign a $900-million contract to design, build and commission an 1,100-megawatt thermal power plant in Iran. This will generate nearly $400 million of goods and services for participating Ontario businesses.

My government welcomes the remarkable turnaround by Magna Ltd, a major force in automotive parts.

Where challenges exist, my government is prepared to be creative in proposing solutions and assisting companies, communities and workers build a new future in different ways.

C'est ainsi que les montants investis dans l'usine Spruce Falls à Kapuskasing et dans l'Algoma Steel à Sault-Sainte-Marie ont permis de sauvegarder des emplois dans ces localités tout en ouvrant de nouveaux horizons pour la participation des travailleurs et travailleuses à la propriété de l'entreprise.

My government's strategic investment as a minority shareholder in de Havilland Aircraft has already paid dividends. A reinvigorated de Havilland recently announced a new sale of planes and plans to produce a new line of Dash-8 aircraft.

A more stable future for UTDC has also been assured with its sale to Bombardier, making the firm the largest North American manufacturer of mass transit systems and equipment.

When appropriate, government can play a strategic role as partner or coinvestor with the private sector.

Our assistance to a three-company venture involving Devtek Corp and Ortech International of Mississauga, and Stewart and Stevenson Power Inc, will help bring an efficient natural gas fuel injection system to market.

Last fall, the government signed a memorandum of understanding with the Society of the Plastics Industry of Canada to cooperate with this growing Ontario industry as it makes major inroads into the global marketplace.

The government has supported the establishment of the Industrial Research and Development Institute in Midland. The institute, dealing with advanced tools, dies and moulds, represents a unique partnership between the private sector, academic community, and government to enhance Canada's competitive position through applied research and development.

Innovative solutions for the forest industry are being developed by the joint business-labour-government Forest Industry Action Group.

We intend to keep investing in Ontario jobs and business. Ontario will continue its support to position many small and mid-size Ontario firms for future expansion. In addition, we will step up our work with groups of companies in key areas of our economy to broaden Ontario's base of skills, knowledge and innovation, enhancing our ability to compete in world markets. We will announce new funds to assist the development of made-in-Ontario products and promote our successes aggressively around the globe.

My government will introduce measures to assist Ontario's agricultural community, hit hard by the recession and international trade policies. Already we have announced the commodity loan guarantee program to help farmers meet financing requirements this spring. Under this program, we expect more than $50 million to be lent this year and as much as $100 million in subsequent years.

Investing in infrastructure: While the federal government has yet to respond to our challenge to invest in the infrastructure of Ontario, my government will continue to invest billions of dollars this year in vitally needed capital works, including transportation, housing, education, communications and environmental protection. We will work in partnership with Ontario Hydro and local and regional governments. We continue to seek the participation of the government of Canada.

The Treasurer will release details later this spring of our plans to channel capital resources towards growth-related projects and continue the government's commitment to renewing our infrastructure.

New investment mechanisms: A central challenge to Ontario is getting access to investment dollars, whether for new projects or expanding enterprises. My government appreciates the sound advice on investment strategies offered through the Premier's Council on Economic Renewal.

Beginning this spring, consultation will take place on establishing an Ontario investment fund designed to increase voluntarily the productive investment by Ontario pension plans in the Ontario economy. There can be few better uses for Ontario pension funds than investing in jobs in our own province while providing good returns to Ontario workers and retirees.

The government will restructure the investment services of the Ministry of Industry, Trade and Technology. The investment development office will create a one-stop shopping system for business investing and expanding in Ontario.

Worker ownership legislation will come forward for final debate.

The credit union and cooperative movements play a major role in supporting small business and community investments. The Co-operative Corporations Act and proposals on credit union reform will go forward this session. These are innovative solutions to our need for new investment.

Municipalities will be given increased flexibility to borrow and invest.

Investing in the environment: In the 1990s and into the next century, the interests of the environment and the economy are converging as consumers, businesses and governments respond to new realities. Green restructuring is happening all around us as domestic and international standards change, consumers demand green products and technology advances.

Our investment strategy includes a green industry strategy to support our environmental goals and make Ontario a leading producer and exporter of environmental goods and services.

Recently we concluded an agreement with Canadian General Electric to locate in Ontario production of energy-efficient lighting products for the North American market.

Ontario continues to be on target to become a leading jurisdiction in energy efficiency by the year 2000. Hydro's Home Power Saver audit program, under way right now, will save participating households $350 million. The utility's overall demand management programs will save $170 million and stimulate over 10,000 jobs in Ontario this year.

During the next year the Sewell commission on planning and development reform in Ontario will produce recommendations on a land use system that is both efficient and environmentally responsible.

The environment bill of rights consultation group, involving members of the environmental and business communities, is expected to report this spring. Draft legislation will be released later this year.

My government acknowledges the productive work of the Ontario Round Table on Environment and Economy and looks forward to its recommendations on a strategy for sustainable development this spring.

Streamlining regulation: The regulatory system in Ontario is overburdened. While each individual regulation, act or process has its justification, the accumulation over several decades has resulted in gridlock.

Our investment strategy includes tackling critical roadblocks in the regulatory maze.

We are immediately committing new resources to the backlog at the Ontario Municipal Board. Already we have achieved modest success in speeding up the process, and we are determined to do more. Last week we appointed a facilitator to move vital capital projects through the regulatory process as part of a broader urban economic recovery strategy. A task force to streamline regulations will be set up to identify and remove unnecessary regulations and barriers.

My government will not engage in destructive deregulation. The ongoing reform of the environmental assessment process will simplify, expedite and clarify the process, not lower Ontario's environmental standards.

This is an area where actions are more important than words, and the recent fast-track approvals of the two expansions of the Spadina subway in Metropolitan Toronto are promising examples of the creative solutions possible.

Amendments to the Condominium Act will be introduced to overcome outmoded legislation that is inhibiting development and inadequately protecting consumers. The building code will be updated. My government will revise the Planning Act to increase the supply of basement apartments throughout the province, an inexpensive way to increase affordable housing and create jobs in the home renovation industry.

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Investing in people: Ontario's people are its greatest strength. In our budget we will be releasing details of a new training strategy that will help create thousands of new jobs in growth areas of the private sector, particularly in small businesses, while providing new training opportunities. The plan will put social assistance recipients and workers whose unemployment insurance has run out back to work.

We will, as part of the strategy, increase the child care spaces available for working women.

This session we will introduce legislation that will make Ontario a leader in training with the Ontario Training and Adjustment Board. Building on real economic partnership, representatives of labour, business and community groups will take responsibility for many training programs now run by government.

The investment strategy will also give a high priority to training agreements that tie skills development directly to market needs. We are vigorously pursuing new agreements with the steel industry and with auto parts employers and employees, where up to 30,000 workers could benefit.

Work on reforming and restructuring the school system, including curriculum, is proceeding with the goal of making what and how our students learn more relevant to today's society and work world. The first effects will be felt in the coming school year.

Ontario's workforce has changed, both in terms of who is in it and what they do. Women, members of minority communities and part-time workers are significant and growing contributors to our economy. The rules that govern our labour force, however, have not kept pace. In fact, the Ontario Labour Relations Act has not been reformed for more than 15 years.

Our public consultations on the act have recently concluded, and my government has listened intently to the advice from representatives of both the business community and the labour movement.

The legislation, with changes based on the results of those consultations, will come forward this session. Many will prejudge the bill, and spend large sums of money doing so. My government will move forward responsibly and reasonably.

No economy can function at its peak and no society can call itself truly fair if some of our citizens are excluded from full participation because of discrimination.

Employment equity legislation will be brought forward this session. By tackling workplace discrimination, all Ontarians will have more opportunity to contribute fully and creatively in their jobs. Using the talents and abilities of all our people will help us compete in a global economy. Simply put, employment equity makes good economic sense.

As well, my government will proceed with legislation to extend pay equity to 400,000 women left out of the original legislation, underscoring our commitment to fairness for all Ontarians and the right to a decent living wage.

Affordable and effective public services: The province's economic circumstances have forced the government to make some tough decisions about the services we provide and the funding that goes with them.

More difficult decisions are coming. The budget will announce the first-phase results of a massive review of government programs, affecting virtually every Ontarian. We are implementing stringent financial measures, beyond the spending cuts, salary freezes and program savings already announced, to control the government's operating expenses. These efforts will continue.

As we said when we provided an historically low increase in the transfers to schools, universities, colleges, hospitals and municipalities, governments must balance the cost of services people expect and need and what we can afford. Every dollar that goes to pay the interest on borrowed money is a dollar that cannot be spent to improve our health care system, educate our children or provide a vital service.

We remain profoundly committed to national programs and to paying our fair share in Confederation, particularly in support of equalization. Ontario asks in return that it be treated with fairness as we experience unprecedented change.

Our job has been made enormously difficult by the federal government's abdication of its traditional responsibility to pay its share of health care, social assistance and education costs. In this fiscal year alone, these actions by the federal government will cost Ontario about $4.5 billion, or more than $1,700 for the average family of four in our province.

The federal government's unilateral and arbitrary cap on social spending in Ontario could not come at a worse time. Changes to unemployment insurance, for instance, have shifted a tremendous financial burden to our social assistance rolls at the very time the federal government has cut its share of welfare costs. The effect on families has been devastating.

With our public services being pushed to the brink, the government must act to preserve them. We will manage more effectively and efficiently. Where necessary, sectors will undergo a dramatic restructuring as the tough choices are made.

Many ministers in my government are working closely with affected sectors to start the sometimes difficult process of changing the way Ontario provides services and the way the public has access to them. Already results are being achieved.

In the hospital sector, for example, plans are being developed in Guelph to rebuild St Joseph's Hospital as a long-term care facility and develop Guelph General Hospital as an acute care hospital. This rationalization of services will build expertise and save money. At Women's College Hospital in Toronto, management and a union president worked together to implement innovative recycling, operational efficiency and retraining programs. Major cost savings were achieved with almost no layoffs or service reductions.

These tangible examples speak well for the job ahead. If we do not succeed, then badly needed reforms in our child care, social assistance and long-term care systems will be unaffordable. Future funding can no longer be an automatic add-on; emphasis must be on shifting resources.

A critical component of these plans is labour relations. Public sector employers must find ways in which workers and their representatives can participate fully in designing new, more effective delivery systems for the high-quality public services Ontarians deserve. Creative collective bargaining, such as the settlement at Ontario Hydro with its employees, can produce solutions where no one loses.

My government is confident that this province will emerge from the current economic circumstances stronger. Our investment strategy recognizes that the way back to economic health for Ontario will require intense commitment by all Ontarians and the willingness to work in partnership to achieve the goals we share.

As we do so, we know that building a stronger Ontario is one of the greatest contributions we could make to a strong and united Canada.

Puisse la divine Providence guider vos délibérations.

In our Sovereign's name, I thank you.

God bless the Queen and Canada.

His Honour the Lieutenant Governor was pleased to retire from the chamber.

Prayers.

The Speaker (Hon David Warner): I beg to inform the House that, to prevent mistakes, I have obtained a copy of His Honour's speech, which I will now read. [Reading dispensed with.]

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INTRODUCTION OF BILLS

WATERFRONT REGENERATION TRUST AGENCY ACT, 1992 / LOI DE 1992 SUR L'AGENCE FIDUCIAIRE DE RÉGÉNÉRATION DU SECTEUR RIVERAIN

Mrs Grier moved first reading of Bill 1, An Act to establish the Waterfront Regeneration Trust Agency / Loi créant l'Agence fiduciaire de régénération du secteur riverain.

Motion agreed to.

Hon Ruth A. Grier (Minister of the Environment and minister responsible for the greater Toronto area): It gives me great pleasure and pride today to table in the Legislature the Waterfront Regeneration Trust Agency Act. The legislation provides the framework for the establishment and operation of the Waterfront Regeneration Trust, to coordinate the regeneration of the Lake Ontario waterfront from the Trent River in the east to Burlington Bay in the west.

It will champion the ecological integrity of the waterfront, identify and protect the public's interest in the waterfront based on the principles of clean, green, usable, diverse, open, accessible, connected, affordable and attractive, and work with all levels of government, agencies, community groups and other interests, including the private sector, to meet common goals compatible with job creation, economic development and a healthy, accessible waterfront.

I am sure all members of the Legislature will take pride in being a part of this legislation. We are taking the first step in creating a healthy, resilient and productive shoreline. This will allow for both social and commercial development within a framework of protecting natural areas, rehabilitating degraded areas and improving access and recreational opportunities.

MOTIONS

THRONE SPEECH DEBATE

Mr Cooke moved that the speech of His Honour the Lieutenant Governor to the House be taken into consideration tomorrow, Tuesday, April 7, 1992.

Motion agreed to.

LEADER OF THE OPPOSITION

The Speaker (Hon David Warner): I beg to inform the House that Ms McLeod, the member for the electoral district of Fort William, is recognized as the leader of Her Majesty's loyal opposition.

Hon Bob Rae (Premier, President of the Executive Council and Minister of Intergovernmental Affairs): I would certainly like to signal my congratulations, and certainly the congratulations of all the members of the government caucus, to the member for Fort William. I've had an opportunity to congratulate her personally and I know, together with millions of other Ontarians, that we were able to watch the convention at which you were elected and had an opportunity to see what I think was a very important day, not only for the honourable member but for democracy in the province, following the election of the member for Nipissing, which I thought was also an interesting and important innovation in the way in which party leaders are elected. No doubt one day my own party will reflect on those experiences.

I have no idea what day that will be, but until that day I want to say to the honourable member that I very much look forward to working with her. Her reputation for hard work, fine leadership, great collegiality and fine ability in government and in opposition is well known. I want to assure the honourable member, in all seriousness, as I've said to her, that while we may have our partisan differences, she will always have my respect, and I know she will always have the respect and affection of members of the House.

Mr Michael D. Harris (Nipissing): I too wish to say a few words of congratulations to my friend and colleague from northern Ontario. I think the election of the two of us as leaders of the two parties in opposition can go a significant distance in educating the rest of Ontario about northern Ontario.

I'm always amazed, when I tell people I'm from North Bay, how many people say, "Oh, yes, Mike Harris from Thunder Bay." I say, "No, North Bay," and they say, "Yes, Thunder Bay, North Bay, what's the difference?" I say, "About 1,200 kilometres, about the same as from Toronto to Prince Edward Island."

Madam Leader, I think your election as leader, the process you followed, is a significant event. I think it did move along, as the Premier has indicated, the evolution of empowerment and how we will select leaders in this province. I think it's also significant that the two of us do come from northern Ontario. It's significant that we were friends and met long before either one of us, I think, ever dreamed we'd seek election to this Legislature -- in fact, as committee members together on the executive of the northern Ontario school trustees' association, I won't say how many years ago for the sake of both of us.

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I was only distressed by one clipping -- today is a positive day -- where there was some speculation by some reporters that somehow or other it was a disadvantage to be a leader from northern Ontario. I want to comment on that, because I know the Treasurer would disagree with that. Those in the Legislature will know I would disagree with that. I will never, ever allow any in the media or in this province to say you are heading in the wrong direction because you're from northern Ontario. That's not the reason. I will defend that and be on your side, Madam Leader, as we both go forward in our roles.

Let me also say this -- my wife is here today; my two sons are not -- not only are you making a tremendous sacrifice, as you are discovering, I am sure. The moves from elected member to cabinet minister to leader each are substantial steps. You have made this commitment, but your family members have made this commitment as well. I say to your family and I say to the Premier's family, I think, and my family would share in this, that at a time particularly when a lot of people are questioning politicians, are for whatever reason fed up perhaps with the whole lot of us, it is a tremendous sacrifice you and your family have made to fight for what you believe in, for the crusade you believe in on behalf of this great province of ours.

I congratulate you and your family, I welcome you to this club and I assure you that we will work most cooperatively as you and I strive for one other objective that one has in political leadership in this province today.

Mrs Lyn McLeod (Leader of the Opposition): I do want to express my appreciation for the congratulations that have been offered by the Premier and by the leader of the third party and indeed the congratulations that have been offered by so many members of the House. I also appreciate the best wishes, although I realize that they are offered with understandable moderation.

I did have an opportunity, which I appreciated, to meet with the Premier and he, as he indicated, offered me personal congratulations. I will confess I took advantage in a somewhat unilateral fashion as a newly elected leader of our party to suggest coalition, but the Premier was not ready for my terms and conditions.

I also received a note from the leader of the third party in which he drew attention to what I had also been recollecting, and that was our many shared experiences in the past as northerners, as school trustees and as members of the northern Ontario school trustees' association together. I think there are many comparisons and certainly one point of agreement as we begin our shared work in opposition, and that is that there are no disadvantages in being a leader coming from northern Ontario. I do trust that some of the perhaps more subtle differences between us beyond the fact that you come from North Bay and I come from Thunder Bay will become increasingly apparent over the course of the next months.

I am indeed proud and very privileged to have been selected leader of the Ontario Liberal Party, and I am more than ready to accept the responsibilities as Leader of the Opposition. Today we are gathered to hear the speech from the throne. I will have an opportunity to comment on that at some length and I will certainly restrain myself from doing so in this place at this time. But I would like to take just a moment of the time of the House, if I may, first to express the appreciation of the members of our caucus and our party and I believe all members of the House to the three individuals who accepted the responsibility to serve in interim leadership roles while we were carrying out our leadership selection process: to Jim Bradley, to Murray Elston and to Bob Nixon. We know, of course, that Bob Nixon is now non-political, although I am sure he watches the proceedings of this place with at least a degree of mild curiosity.

I would also like, on behalf of myself and my fellow candidates in the leadership contest, to express our appreciation to all members of the House, particularly members of our caucus, for the patience and the support we all received as we carried out our legislative duties along with the demands of a campaign over a long period of time. Mr Premier, it is a process I can recommend to you and your party at such time as you feel it is required.

I assure all members of the House and the Premier that the Liberal caucus is now back in full force, united and looking forward to the session ahead.

MARY ROWELL JACKMAN

Mr Sean G. Conway (Renfrew North): I beg the indulgence of the House, but I think we have a very special guest today. I would like to draw to the attention of the Legislature and our guests, particularly in light of the remarks of my colleague the new Leader of the Opposition, that it was over 80 years ago today that Newton Wesley Rowell entered this Legislature as Leader of the Opposition. We are particularly honoured to have in our chamber today his daughter, Mary Rowell Jackman, the mother of our distinguished Lieutenant Governor. I am sure all members would want to join me in paying tribute to her and to the very outstanding political, legal and juridical family that she represents.

ADJOURNMENT MOTION

Mr Cooke moved the adjournment of the House.

Motion agreed to.

The House adjourned at 1547.