Province		Législature	Session	Type de discours	Date du discours Locuteur	 Fonction du locuteur	Parti politique
Terre-Neuve et Labrador	39e		1ère  	Discours du Budget	27 mai 1982	 John F. Collins Ministre des finances	PC


MR. SPEAKER,
   
   It is with a great deal of pride in our People that I present to this Honourable House of 
Assembly the fourth Budget of the Peckford Administration. It is the first Budget since the 
citizens of our Province so overwhelmingly endorsed the policies of this Government in the 
General Election of April 6th. Considering the troubled economic times in which we live, the 
resounding victory at the polls must reflect a remarkable degree of trust by the Newfoundland 
People in an Administration which had laid no claim to magical short-term solutions to the 
economic issues confronting us, mostly not of our own making. The powerful mandate bestowed 
by the voters represents a strong vote of confidence for Government’s unrelenting drive to rectify 
the inequitable treatment of our Province within the Canadian Confederation. It said much for 
the character and enduring nature of our People, Mr. Speaker, that they would rise so readily and 
wholeheartedly to the challenge which was placed before them in such unequivocal terms.
   
   The renewed mandate given the Peckford Government is not only a great opportunity but 
also a great responsibility. We must continue the struggle to provide and improve upon the level 
of services and the opportunities for development which our People unquestionably deserve. For 
we must never lose sight of the fact that our rightful advancement within Confederation will be 
accomplished only when we obtain a legitimate share of the benefits from our own resources.
   
   Mr. Speaker, the pace of economic progress in the short-term is not solely ours to determine. 
We know we must contend with the national and international economic environments and their 
influences on our Province. As my colleagues and I worked through the budgetary process, 
commencing last November, we saw the North American economies slip into recession. We 
watched interest rates soar to unprecedented levels stifling capital expansion. We saw the 
strongest industrialized nation in the world, the United States, struggling to get its deficit under 
control, even at the cost of serious reductions in services to the American people. We witnessed 
the U.S. unemployment rate climb to its highest level since the Great Depression while some of 
the largest industrial enterprises world-wide were forced to suspend production for periods of 
time and propose wage reductions in an effort to provide job security and sustain continued 
viability of their operations. We have seen the consequences of the U.S. economy in recession 
overflow the international border and pull down the Canadian economy which is so intertwined 
with that of our great neighbour to the south. Exacerbating the Canadian condition have been 
stubborn inflationary influences, partly resulting from misdirected economic management.
   
   In Canada, Mr. Speaker, the monetary levers which contribute in a significant way to the 
climate and direction of economic activity are controlled by the Federal Government. Provincial 
Governments are left to grapple with the fall-out for business, labour and others in their 
economies. Over the past year we have continued to experience an anti-inflationary policy 
characterized by prolonged and largely single-minded reliance on tight money supply and high 
interest rates, pursued without visible sensitivity to down-stream effects, even in regions of 
weaker economic base. Mr. Speaker, it is now clearly apparent that the energy and industrial 
strategies followed by the Government of Canada are effectively fueling recessionary forces 
without controlling inflation. The news of the cancellation of the Alsands, Alaska pipeline and 
Cold Lake projects all stand out as stark examples of self-destructive Federal strategies.
   
   Mr. Speaker, it comes as no surprise that Newfoundland and Labrador cannot insulate itself 
from these economic forces, nor can we, by ourselves, reverse them. However, this Province 
does possess vast treasures of underdeveloped natural resources which can significantly and 
beneficially impact upon them. All we ask is to be allowed, as good Canadians, to get on with 
the work that should be done. Rather than throw obstacles in our path, we ask the Federal 
Government to extend the hand of understanding and co-operation as we reach to attain the 
Canadian average in quality of life and contribute a fair share of our natural endowments to the 
national well-being. We were led to believe that is what Confederation is all about.
   
   In addition to economic conditions, Mr. Speaker, our Budget must address the present 
financial realities of the Province. While we wrestle with the ongoing pressures of inflation on 
our expenditures, and the many legitimate needs to expand public services, we have to cope with 
recessionary impacts of the national economy on our provincial revenue base and concurrently 
deal with major revisions to the revenue base from federal sources. We have had to be guided by 
fundamental principles of responsible financial management in reconciling conflicting budgetary 
pressures. The essential challenge was not so much to match the Canadian average as the 
standard for our public services, but to find the means of preserving those we currently supply.
   
   Mr. Speaker, Government had thus to confront the 1982 Budget with the firm resolve to 
arrive at an expenditure and revenue balance which best reflects both the genuine concerns of the 
People and the financial capacity of the Province.
   
   As I have already stated, a Provincial Budget in Newfoundland and Labrador cannot be 
expected to counteract all of the economic forces of recession. It can, however, establish a 
framework to ensure that available Government dollars converge upon areas which are likely to 
contribute most to the strengthening of economic activity. We have taken care to adopt that 
approach in this Budget, and are confident that the stimulus to be provided by the public sector 
capital investment program, which I shall outline shortly, will play a crucial role in accelerating 
the rate of economic recovery from the current recession.
   
   Before proceeding with the details of the Budget, I would like to review briefly the economic 
performance in 1981 and the outlook for the Province in 1982.

ECONOMIC REVIEW
   
   
   Newfoundland entered 1981 with an upswing in economic activity. Employment in the 
Province expanded as the levels of industrial output picked up, and consumer spending showed 
signs of recovery from restrained levels in 1980. However, these encouraging economic signs 
were short-lived. Canadian and American interest rates, which were falling in late 1980 and early 
1981, quickly reversed their trend and started to climb again in response to the tight monetary 
policies of the respective Governments. The Canadian economy's initial resilience in the face of 
a 17% bank rate early last year dissipated by mid-year as the rate climbed to over 21%.
   
   In Newfoundland, the high interest rates affected most severely the fish processing and 
residential construction industries as well as those businesses involved in the sale and purchase 
of interest-sensitive goods and services. The fishing industry was troubled as well by depressed 
markets and a poor inshore fishery.
   
   There were, however, some bright spots in the economy during the year and the Province did 
record a 2.2% expansion in real Gross Domestic Product for 1981. This was based in large 
measure on increases in newsprint production, partly due to the start-up of the new Stephenville 
mill; increased mining output; and expansion in offshore oil and gas exploration activites.
   
   Employment grew during the first seven months of 1981 with strongest growth recorded in 
the primary, manufacturing, trade and public administration sectors. Some declines were 
experienced by our construction industry and by the transportation, communications and utilities 
sectors of our economy. After mid-year, the level of employment fell in both the fish processing 
and construction industries while the service industries still experienced modest growth rates. 
Overall, the yearly average number of employed persons increased by 3,000; from 184,000 to 
187,000; while the labour force grew by 5,000 persons. As a result, the official unemployment 
rate averaged 14.1% for the year.
   
ECONOMIC OUTLOOK

   Mr. Speaker, as with the rest of North America, the recovery from the current recession in 
Newfoundland and Labrador is expected to begin during the latter part of 1982. Throughout the 
earlier part of this year, markets for our major exports — iron ore, newsprint and fish products 
— will remain soft, reflecting the depressed state of the economies of the United States and our 
various other trading partners.
   
    While it will require several months to re-establish the momentum of economic growth, 
some encouraging developments have taken place on the international economic horizon. 
Inflation has begun to decline significantly in the United States and in Europe, and international 
oil prices have fallen and may now stabilize for a period of time. Very soon there should be some 
room for Foreign Governments to begin to ease the economic restraints presently in place. This 
would have the effect of improving the demand for Newfoundland’s exports and stimulating 
recovery in the resource sectors.
   
   Offshore exploration activity is continuing at about the same level as in 1980 with drilling 
going ahead on the Grand Banks and the northern offshore areas. The minerals sector, on land, 
will also benefit from a high level of exploration activity in 1982. In addition, representatives of 
the Provincial and Federal Governments are currently involved in negotiations with Transpacific 
Corporation with respect to the asbestos mine near Baie Verte and it is hoped that these 
negotiations will result in the reactivation of the mine later in the year.
   
   Investment in construction activities is projected to grow somewhat in 1982, mainly on the 
strength of increased spending by Government on new public infrastructure, and by Crown 
agencies, particularly Newfoundland and Labrador Hydro.
   
   The rate of inflation has begun to decline, and the overall level of personal income will begin 
to benefit from the increase in employment later in the year. We believe that consumers may 
continue to delay major purchases until the recession is perceived to be ending and until interest 
rates begin to fall. At present, a larger than normal share of personal income is being directed 
into savings, partly as a hedge against economic uncertainty and partly a response to high returns 
paid on savings deposits. As the recession ends, pent-up consumer cjemand will be released, and 
this should aid the recovery.
   
   It is expected that the Province’s real Gross Domestic Product will remain constant for 1982 
in comparison with 1981. This will be due to a substantial drop in production in the iron ore 
portion of the mining sector. Nevertheless, other sectors, including the fisheries, forestry and 
construction sectors, should show a modest improvement over last year leading to some growth 
in employment. With the expected strengthening in export markets toward the end of the year, 
the Province should be in the early stages of recovery as it enters 1983.
   
FINANCIAL PERFORMANCE

   Mr. Speaker, as Minister of Finance since March 1979, I have had the opportunity to report 
to this Honourable House on the results of our continuing efforts as an Administration to pursue 
sound financial management policies. This Government has been firmly determined to achieve a 
positive balance in our Current Account, and it has reinforced that determination in each 
successive Budget. In point of fact, in the two fiscal years leading up to 1981-82, we achieved a 
greater degree of success than projected at the beginning of each budgetary period. These very 
positive results effectively reduced our borrowing requirements during the two year period by 
over $67,500,000 from the level originally thought necessary.
   
   Mr. Speaker, I am happy to report today to this Honourable House, that last year in the midst 
of national and international economic turmoil, we again balanced our Budget. Latest revised 
estimates on Current Account for fiscal 1980-82 indicate a positive balance which will result in a 
$4,500,000 contribution to our Capital Account. I would point out, Mr. Speaker, Newfoundland 
and Labrador was successful in achieving this position for a year in which many Canadian 
provinces ran up high deficits.
   
   Table I summarizes the revised estimates for 1981-82 compared with the budgeted position.

Total: Financial Requirement


   
   During the 1981-82 fiscal year, the Province experienced stresses on our budgetary position 
unprecedented in recent years. Expenditures were brought under pressure by inflation, wage 
settlements and high interest rates. Provincial revenues were depressed as consumers found their 
disposable incomes being squeezed by interest rates and by the impact of the economic 
slowdown. The private business sector also struggled under the burden of high interest rates, and 
deferred new investment decisions. The slowdown of economic activity was most apparent in the 
level of Retail Sales Tax receipts which by year-end were nearly $29,000,000 below Budget.
   
   When evidence of these factors began to emerge and accelerate last Fall, Government 
intensified its financial restraint efforts and imposed additional cost- saving measures in order to 
minimize the influence of these negative trends. This exercise, coupled with positive adjustments 
in transfer payments and favourable variances in Provincial Income Tax receipts, enabled us 
once again to accomplish our important financial objective of a balanced Current Account for 
1981-82.
   
   Mr. Speaker, Government looks back upon the financial results for the 1980-82 fiscal year 
with a genuine sense of accomplishment and satisfaction particularly in view of the economic 
environment in which we had to function.

   I will now turn to the budgetary outlook for the 1982-83 fiscal year.

BUDGETARY POSITION 1982-83

   While unfavourable economic conditions have created financial difficulties for governments 
generally, for Canadian provinces in 1982-83 these difficulties have been aggravated by cutbacks 
in Federal transfer payments. In recent weeks, Mr. Speaker, sister provinces have been 
compelled to bring in hard line budgets, containing tight expenditure restraint, heavy tax 
increases and in some cases wage guidelines. Even in the face of these measures, Mr. Speaker, 
there exists still a troublesome growth in the volume of deficit financing by Governments in 
Canada.
   
   Newfoundland and Labrador is presently weathering many of the same economic difficulties 
as our neighbours. In some respects, historically our economy might not be considered as strong 
as others because ours is more narrowly based and heavily reliant upon three or four major 
industries. However, we must be ever aware that we have not yet even begun to approach the 
realization of the massive economic capacity inherent in our resource wealth. This Government 
remains sharply focused on the need to develop this capacity in a carefully planned manner and 
thereby broaden and solidify our financial base in order to secure the prosperity of the Province 
over the decades ahead. In the short run, however, we have committed ourselves to live within 
our means while we diligently work toward the attainment of these rightful goals.
   
   Mr. Speaker, let me first give Honourable Members a snapshot overview of our budgetary 
plan for the 1982-83 fiscal year.


   I am most pleased to announce that the Peckford Government, for the fourth consecutive 
time, is again budgeting for a positive balance on Current Account in the new fiscal year. At the 
same time, it is a matter of considerable satisfaction to report that the Budget also contains a 
carefully considered expansion on Capital Account in order to provide a resuscitative measure 
for the Newfoundland economy.
   
   In actual figures, the 1982-83 Budget projects a Current Account surplus, or contribution to 
Capital Account, of $5,400,000. Net Current Account expenditures and revenues are forecast to 
grow by approximately 12.9% over the 1981-82 revised level. Gross expenditures on Capital 
Account will increase by 28.9% over last year’s revised level to a total of $253,700,000. The net 
budgetary requirement to be financed by borrowings is $168,200,000.
   
   Table II provides a comparative summary of 1982-83 budgetary position.

FISCAL ARRANGEMENTS
   
   Mr. Speaker, before commenting on the details contained in today’s Budget, I would like 
briefly to review the status of Federal/Provincial Fiscal Arrangements. As these arrangements, 
between the Province and the Government of Canada, govern approximately one-half of the 
revenue base of this Province, they occupy a position of critical significance in our fiscal 
framework.
   
   As Honourable Members are aware, the Federal Fiscal Arrangements Act covers transfers 
from the Government of Canada under Equalization and Established Programs Financing. The 
purpose of the Equalization program is to ensure that each province in Canada has the fiscal 
capacity to maintain levels of basic public services, comparable to the national average, without 
resorting to unduly burdensome levels of taxation. The Established Programs Financing 
Arrangements support expenditures on hospital insurance, medicare and postsecondary 
education.
   
   The Fiscal Arrangements Act (1977), in effect for the past five years, expired on March 31, 
1982. A negotiating process for a new five-year Act commenced, belatedly, last Fall, subsequent 
to the November 12th Federal Budget. Honourable Members will recall that the Federal Budget 
initially proposed substantial cutbacks in both the Equalization and Established Programs 
entitlements from the levels which would follow from a continuation of previous arrangements. 
Such proposals by the Federal Government raised deep concerns that the Government of Canada 
was seeking to transfer its own budgetary deficit onto the provinces and moreover, raised the 
spectre of widening provincial and regional disparities - a direct contravention of the spirit and 
intent of the principles of Equalization which only last month were enshrined in the Canadian 
Constitution.
   
   Let us take a closer look at the major components of those proposed fiscal arrangements.
   
   Equalization
   
   First, Equalization. The Government of Canada proposed replacing the well-tested ten-
province national average standard formula under which we had been operating, with a one-
province, Ontario-based standard which would have substantially reduced the stability of future 
Equalization payments. In addition, various ceilings on Federal expenditures under the 
Equalization formula were to be imposed. Moreover, the treatment of resource revenues under 
the new formula threatened to penalize unduly those provinces, such as Newfoundland, which 
have large natural resource sectors but which can not generate proportionately large amounts of 
economic rent.
   
   After many months of intensive negotiations, the Government of Canada finally agreed to 
withdraw the unstable and inequitable one-province standard and replace it with a five-province 
standard of Equalization. This formula, along with some other changes of a more minor nature, 
has now been included in a new five-year Fiscal Arrangements Act.
   
   During negotiations with the Federal Government, in company with other provincial Finance 
Ministers and Treasurers, we pointed out anomalous features within the Equalization formula 
which create particular inequities for Newfoundland. The most serious of these is the treatment 
of water power rentals.
   
   By way of explanation let me state that a province’s share of Equalization from this revenue 
source is based upon the volume of hydro-electricity generated in thai province. However, the 
related revenue base in the Equalization formula is designed to represent the province’s capacity 
to raise economic rent from this source. Unfortunately, it does not measure the revenues actually 
received. This means that, not only does our Province fail to derive any meaningful revenues 
from the Upper Churchill because of the unconscionable power contract with Quebec, but, to add 
insult to injury, the relatively large, volume of electricity which we produce reduces our 
Equalization entitlements by about $18,000,000 per year.
   
   During the negotiations, we were successful in getting the Federal Finance Minister to 
recognize and acknowledge this anomaly and he has indicated a willingness to work with us 
towards an early remedy.
   
   Other technical modifications to the Equalization program are also in the process of being 
negotiated with the Government of Canada, some of which hopefully will result in additional 
improvements in our Equalization entitlements.
   
   With these changes, the level of Equalization transfers for this Province is now estimated to 
be $548,000,000 compared with the initial Federal Budget proposal of $513,000,000.
   
   Established Programs Financing
   
   Mr. Speaker, in its November 12th Budget, the Federal Government proposed fundamental 
revisions to the financing and program arrangements for health and post-secondary education. 
They eliminated entirely the revenue guarantee component of Established Programs Financing 
which was negotiated as a vitally important part of the arrangements in 1977. Also, they sought 
to implement during the next year or so, new, and as yet undefined, Federal/ Provincial 
arrangements for the financing of post-secondary education. Further, they wished to establish 
expanded national standards for health care along with criteria for enforcement before the end of 
the current fiscal year. As a result, provinces have now been put in the position of receiving 
reduced funding for health and post-secondary education without knowing the financial 
implications of upcoming negotiations. I am sad to say, Mr. Speaker, that the Federal 
Government has so far proven to be totally inflexible during negotiations aimed at effecting 
changes of a more reasonable nature.
   
   In summary, the Federal Government intends to reduce its financial involvement in the 
Established Programs, and, at the same time, to increase its control over spending and program 
content in areas of Provincial jurisdiction.
   
I want to assure Honourable Members that over the months ahead we will negotiate in a 
forthright fashion with the Government of Canada regarding standards and priorities for post-
secondary education and health care, and that we will exert every effort possible to ensure that 
the People of this Province will not have to sacrifice any of the benefits they presently enjoy.

   The level of cash payments to the Province expected in this fiscal year under the Established 
Programs Financing is $155,000,000; an actual decrease of $9,000,000 from the 1981-82 
receipts. It is worth noting that a continuation of previous arrangements would have yielded in 
1982-83 a grant of $175,000,000; or $20,000,000 more than the level now anticipated.
   
   Mr. Speaker, the Government of Newfoundland is gravely concerned over the reduced level 
of funding for the Established Programs. At a time when high interest rates and inflation, as well 
as low levels of economic activity, are seriously limiting growth in tax receipts from provincial 
sources, the lower-than-expected revenues under the Established Programs Financing are 
especially distressing. The cut of $20,000,000 from the payments we would have been entitled to 
receive under the program as it existed prior to April 1st, 1982, means that, in effect, our receipts 
in 1982-83 will decline by 5.5%. This must be contrasted with a growth rate facing us in 
expenditures for health and post-secondary education in excess of 14%.
   
BUDGETARY MEASURES

   Mr. Speaker, it is clear that the fiscal arrangements situation I have outlined has exacerbated 
difficulties arising out of the general economic situation. In order to eradicate the potential 
budgetary shortfall, Government’s approach in the first instance was a general scaling-down of 
all departmental expenditures. However, this alone proved insufficient and it thus became 
necessary to cut more deeply into certain Government programs and as well to implement 
measures to strengthen the provincial revenue base.
   
   Faced with such a situation, we considered increasing the Retail Sales Tax rate as two 
provinces have done recently in like circumstances. This, we rejected.
   
   We reviewed the concept of a Health Insurance Premium currently existing in three 
provinces and costing families up to $500 annually. This, also, we rejected.
   
   We looked at imposing a Payroll Tax as presently enacted in Quebec and as just announced 
in Manitoba. Again, rejected.
   
   We considered increasing the rate of Gasoline Tax, but decided against so doing.
   
   On the expenditure side, we examined the possibility of revising downward the University 
Student Aid program to the level current in other Atlantic Provinces, but ultimately determined 
to maintain the extra advantage to our own students.
   
   We considered closing 400 active hospital beds in various areas throughout the Province, but 
we decided to avoid that option as well in favour of alternatives in the health care field for which 
the rationale is stronger, as 1 shall outline shortly.
   
Revenue Measures

   In reaching final decisions on the budgetary measures to introduce, Government took care to 
avoid those which are regressive in nature in favour of measures whereby taxpayers who are 
more able to pay, pay most; and those less able, pay least. As well, where possible we aimed our 
thrusts for the gathering of additional revenues at purchases by the public which are discretionary 
in nature.
   
   Accordingly, Mr. Speaker, I wish to announce the following fiscal measures:
   
•	The effective rate of Provincial Personal Income Tax will increase by 2%, with effect from 
July 1st, 1982. This increase will have a very modest impact on the low income earner. For 
example, a married taxpayer on an annual income of $15,000; supporting a spouse and two 
children, will only pay an extra $16 a year. A person in the same family circumstances 
earning $25,000 per year will pay only an additional $54. A like person earning $35,000 will 
pay an additional $102, and so on up the scale. I should point out that for 1982 the impact on 
the taxpayer will be even less — only be one-half the amounts which I just quoted. This 
measure will yield some $6,000,000 in 1982-83 and represents the first increase in the 
Personal Income Tax in five years.

•	The Newfoundland Liquor Corporation has been requested to increase its prices to provide 
an additional $5,500,000.


•	The Tobacco Tax will be increased immediately by an amount of 10$ on a package of 20 
cigarettes and a proportionate amount on cigars and tobacco. This will yield $4,500,000 in 
1982-83.

•	The effective rate of Corporation Income Tax for large corporations will be increased by 1 
Vo to a new rate of 16% effective January 1st, 1982. This measure will add $2,900,000 to 
provincial revenues in 1980-83. The rate of Corporate Income Tax on small business will 
remain unchanged at 12%.


•	A new Capital Tax of 1.5% will be imposed on banks, loan and trust companies with effect 
from June 1st, 1982. There are five other provinces that impose a capital tax on corporations 
and banks. This new tax here will apply to banks, loan and trust companies only and is 
expected to yield $1,500,000 in 1982-83.

•	Various fees imposed for Government licences and services will also be increased to yield a 
further $1,000,000. These fees include: cutting permit fees, adult education course fees, 
liquor licensing fees, and nonresident big game licensing fees. The fees for drivers’ licences 
will be increased with the regular rate being increased by $1 a year to a new level of $24 for 
a three-year licence. The fees for motor vehicle transfers, intransits, inspection books, and 
beginners’ licences will also be increased. A new fee of $10 will be charged for re-instating 
suspended driver licences.


•	The interest rates charged on new resource loans made by the Fisheries Loan Board, Farm 
Development Loan Board and the Rural Development Authority have been increased from 
8% to 12% per annum.
•	
   Mr. Speaker, these revenue measures total a little over $21,000,000; an amount which 
approximates the extent of the cutbacks in Established Programs Financing payments imposed 
by the Federal Government.
   
   Public Sector Restraint
   
   With regard to Current Account expenditures, Mr. Speaker, Government is committed to 
providing a level of service that addresses our priority needs. Unfortunately, we cannot yet afford 
the level of service that is enjoyed by many Canadians in other provinces and it, in fact, has been 
necessary to exercise firm restraint with existing programs to achieve our financial targets.
   
   Almost half of the Current Account Budget of the Province goes to pay public service 
salaries and benefits required for program delivery. Over the past number of years, we have seen 
the wage bill grow, through a compounding effect of annual increases, increments, new positions 
and new benefits. Government simply cannot afford to allow this trend to continue unchecked 
and will, commencing immediately, restrain the growth in provincial public sector salary cost. 
We have concluded that it is better to restrain wages and preserve employment where possible 
rather than permit salaries to increase by rates recently experienced and then be forced by 
financial pressures to impose large scale layoffs.
   
   As an initial step in this wage restraint policy, salary increases to Executives in the Public 
Service will be held at 5% in the 1982-83 fiscal year. Crown corporations and other Provincial 
agencies will be requested to adopt the same approach. At the same time, I am recommending 
that salary scales and allowances to Cabinet Ministers and Members of this Honourable House 
be given no annual increase in this session. I would emphasize that Government sees this policy 
of tighter restraint on wages being reflected throughout all groups in the Public Service, 
including those affected by current collective bargaining negotiations, and those covered by 
existing contracts when they come up for renewal. Also, the private sector should play its part in 
the process of wage and salary restraint during inflationary times. It is instructive to note the 
restrained wage settlements currently being negotiated in the U.S. even though inflation there is 
running at considerably lower rates than in Canada.
   
   Government will continue its restraint program with respect to other aspects of 
administration in the Public Service. The provision of new positions, public service travel, 
building maintenance funding and a variety of other housekeeping areas have all been 
exhaustively reviewed to ensure that expenditures are contained within the minimum levels 
required.
   
HUMAN RESOURCE DEVELOPMENT

   Mr. Speaker, it should be absolutely crystal-clear to any serious observer of the Peckford 
Administration that its highest priority is the People of this Province. Government has 
consistently emphasized the importance to our Provincial economy of natural resource 
development for the establishment of a sound stable revenue base. But resource development is 
merely the means to a more important end — the well-being of our People at every level and in 
every respect, remains our fundamental preoccupation.
   
   To that end, the Government has meticulously reviewed our human resource programs with 
the aim of improving them where the need exists, consistent with our limited financial resources. 
I take great pleasure, therefore, Mr. Speaker, in outlining the following initiatives in these areas.
   
   Education
   
   Mr. Speaker, Government is conscious of the inflationary pressures on the providers of 
primary and secondary educational services in our Province and has accordingly increased 
operating grants to School Boards in 1982. In addition, I take pleasure in announcing a new 
initiative. In recognition of the very difficult financial plight in which many of our School 
Boards find themselves, a special fund of $2,500,000 is being established to provide a measure 
of assistance beyond the existing grant structure. Details of disbursements from this Fund will be 
announced by the Minister of Education after appropriate consultations have taken place.
   
   This year, Government will be providing $22,800,000 to the Denominational Education 
Committees for school construction. Of this amount, $12,000,000 will be spent on new facilities 
required for the Reorganized High School Program and the remainder will be used for other new 
school construction and for necessary extensions and renovations. When coupled with existing 
school construction commitments, these amounts will bring the total Government capital 
expenditure for school facilities this year to $47,000,000.
   
   Mr. Speaker, the Peckford Administration has long felt that this Province should be 
recognized as an international focal point for study and research in marine resources and 
technology. For some time now, we have been negotiating with the Government of Canada with 
respect to a cost-shared agreement for the establishment of a new campus for the College of 
Fisheries and Marine Technology. Although an agreement has not yet been reached, Mr. 
Speaker.
   
I	am very pleased to announce that the Provincial Government has decided to allocate in this 
fiscal year an amount of $2,100,000 for the acquisition of land for the new campus and to 
finalize planning of the facility. It is hoped that this initiative on our part will encourage the 
Government of Canada to expedite the concluding of negotiations for cost-sharing the 
construction and equipping of a facility critically important to Canada’s maritime activities. This 
decision is a further demonstration of Government’s commitment to our fishing and marine 
industries and to all who are associated with them.
II	
   Government has recently carried out a review of the various student assistance programs in 
the vocational school system. The students in this system are not eligible for Provincial Student 
Aid Grants at present even though Canada Student Loans are available and, in some cases, 
weekly expense allowances are paid. These students also differ from their university student 
counterparts in that no tuition fee is applicable in the vocational school system. I wish to 
announce that Government plans to change this situation in September, 1982, at which time all 
post-secondary students will be provided assistance under the same “needs based” program 
which is currently available to University students.
   
   Thus students in the colleges and vocational schools having demonstrated financial need will 
be eligible for grant assistance from the Province of up to $2,000 a year, if single, and up to 
$2,500 a year, if married. When this new program is introduced, payment of the weekly expense 
allowances to students in our colleges and vocational schools will be discontinued and a tuition 
fee of $100 per semester will be introduced.
   
   In response to the lack of demand in various traditional trades, training in certain trades will 
be reduced in some of our vocational schools. However, programs in Electronics Technology 
and Computer Data Processing will be expanded in the new year providing places for more 
Newfoundlanders to undertake instruction in these high technology fields, where job 
opportunities exist.
   
   Action is being taken in several areas to improve educational services for handicapped 
children. Provision is made in the Budget to complete design and site preparation work for a new 
school and for residential facilities to replace the existing School for the Deaf at Torbay. The 
new school will accommodate 150 students, 100 of whom will live in residence. The policy of 
providing resources to local School Boards will be continued so that as many mentally and 
physically handicapped children as possible can be integrated into a variety of “least restrictive” 
educational programs within the regular school system.
   
   The Queen Elizabeth II Library at Memorial University will be officially opened this coming 
weekend. The Budget provides $1,800,000 to complete Government’s contribution to its 
construction. Government is proud of this new facility which is seen as playing a fundamentally 
important role in the pursuit of higher learning at our University. An amount of $1,200,000 has 
been provided in Memorial’s 1982-83 Budget for necessary renovations at the Henrietta Harvey 
Building in order to allow the University to accommodate its growing needs in many areas.
   
   Mr. Speaker, the Reorganized High School Program, begun at the Grade X level in 
September, 1981, is progressing well. Full consultation is taking place with all associated interest 
groups to help minimize phase-in difficulties. The new program will see the first Grade XII 
graduates in June, 1984. Government will honour its commitment to allocate additional teacher 
salary units and capital funding this year to facilitate the implementation of the new program, 
and will also be providing additional financial assistance to School Boards for the purchase of 
equipment and supplies needed for some of the new courses.
   
   Social Services
   
   Mr. Speaker, I am pleased to state that funding has been provided for important changes in 
Social Assistance services. Effective April 1st, 1982, regular and special foster home rates were 
increased by 10%. General Social Assistance rates and rental and mortgage allowances were 
increased by 10% effective May 1st, 1982. Child Welfare Allowances were increased by 12% 
effective April 1st and the clothing allowances by 40%.
   
   Mr. Speaker, Government is very much aware of the increasing needs of our senior citizens. 
While we believe that every effort must be made to allow our senior citizens to remain in their 
homes as long as possible, it is necessary to provide facilities for the many who do require 
institutionalized care.
   
   Accordingly, Mr. Speaker, it gives me great pleasure to announce that Government has 
decided to implement a three-year program to secure additional chronic care beds throughout the 
Province. Under this important new initiative an expansion has been approved for the St. 
Patrick’s Mercy Home in St. John’s which will bring to 200 the number of beds in that facility. 
As well, approval has been given for an increase of 35 beds at the Harbour Lodge in Carbonear, 
an additional 10 beds for the Senior Citizens Home in Springdale, and a further 6 beds for the 
Blue Crest Interfaith Home in Grand Bank. Details of the second and third years of this program 
will be announced later.
   
   Government has provided funding for an additional 50 beds in licensed boarding homes and 
an additional 25 beds in homes for ex-psychiatric patients. We have also provided financial 
assistance for the operation of the Infirmary at the new Masonic Lodge in St. John’s.
   
   Mr. Speaker, I am sure all Honourable Members will be pleased to learn that we have 
provided funds for the establishment of an Alcohol and Drug Dependency Commission, and we 
are confident that this initiative will make significant strides in addressing the many facets of 
social problems arising out of alcohol and drug abuse.
   
   Health
   
   Mr, Speaker, Government remains committed to doing everything within its power to 
provide and maintain a health care system which is sensitive to the needs of our people and 
appropriate to our unique geography. The cost of operating the health care system today 
constitutes a major portion of the Provincial Budget, and it is a continuing challenge to allocate 
to it sufficient funds as the pressures of other social and economic needs of our people become 
stronger.
   
   Despite economic restraints, Government is committed to the health facility construction 
program set forth in its Five Year Plan. Construction will be completed during this fiscal year on 
the Channel Hospital. Today, I am pleased to announce that funds have been allocated in the 
Budget to complete planning and start construction of a new hospital at Clarenville. Also, funds 
have been provided to commence planning for the construction of a hospital on the Burin 
Peninsula to serve the growing needs of that very important part of our Province.
   
I am also happy to state that Government has decided to proceed with Phase II of the expansion 
plan for the hospital at Bonavista. Finally, funds have been allocated to commence construction 
of new community clinics in Labrador at Black Tickle and Fox Harbour and to undertake major 
renovations and upgrading to community clinics at Cartwright and Mary’s Harbour. Those 
clinics are being built and renovated under the provisions of the Labrador DREE Subsidiary 
Agreement.

   Mr. Speaker, for some years, Government has been evaluating certain aspects of the Cottage 
Hospital System, which was introduced during the days of Commission of Government, nearly 
fifty years ago. The System served the Province well, but has remained relatively unchanged for 
decades. Cottage hospitals were built in outlying areas of the Province in times when patient 
referral to larger centres was not possible because of transportation and communications 
difficulties, except for very serious medical cases. In many areas, there were no regional centres. 
However, with improvements in road and other transportation services, and with the construction 
of modern health care facilities in most regions of the Province (and others under construction 
and in the final planning stages), a review and rationalization of the roles of some of the small 
cottage hospitals was obviously required. Some of these hospitals are faced with low occupancy 
rates and an inability to provide a comprehensive service to the people they seek to serve. As a 
first step in this process, during the coming fiscal year, Government will change the role of the 
cottage hospitals located in Old Perlican and Markland. Essentially this process will phase out 
the treatment of in-patients as the predominant activity and concentrate instead on the 
improvement of out-patient clinical services which are the greatest health need of the 
communities concerned. In each case, some holding beds will be maintained in order to deal with 
emergencies, but most in-patient care will be given at larger amd more medically- sophisticated 
centres nearby.
   
   As Honourable Members are aware, the health care system abounds with technological 
change and this implies a continual need for funds to buy new equipment as well as to replace 
existing items. Mr. Speaker, Government has allocated $4,000,000 this year for these purposes.
   
   Again, despite these times of restraint, funding for board- operated hospitals has increased by 
15.5% over last year. In order to generate additional revenue, the existing nominal $3.00 per day 
ward charge will be increased to $5.00 per day and the ceiling for aggregate ward charges will be 
raised from $45.00 to $75.00 per hospital stay. The charges for private and semi-private rooms 
will increase from $18.00 to $30.00 and from $12.00 to $20.00, respectively. These increases in 
hospital rates are the first in four years and will be effective immediately.
   
   After undertaking a thorough review of our existing Children’s Dental Program, we have 
decided to adjust the number of examinations and fluoride treatments permitted from two per 
year to one per year, effective April 1, 1982. We have been assured by professional advice that 
this new level of service is entirely satisfactory for preventative dental health purposes.
   
   Government is aware of the special needs of small groups of people who have health care 
problems of particular difficulty. In recent months, Government approved the extension of its 
medical transportation program to cover transportation expenses of Newfoundland residents who 
require kidney transplants in centres outside the Province. Included as well is a provision to 
cover 50% of the transportation expenses of a spouse.
   
   Government is keenly interested in encouraging Newfoundlanders to pursue careers in 
specialty areas of health care where qualified people are in short supply. Consequently, 
Government is providing an additional 22 places in an expanded bursary program to encourage 
more nurses to undertake specialty courses. We have also provided additional bursaries for 
medical residents designed to encourage practice in Newfoundland after specialist qualification.
   
   Administration of Justice
   
   Mr. Speaker, substantial improvements have been completed in the corrections area. Phase I 
of Her Majesty’s Penitentiary has recently been opened and the first regional facility at 
Clarenville is now fully operational. Construction is proceeding on schedule on the Bishop’s 
Falls regional correctional centre and it is anticipated that it will be completed in this fiscal year.
   
   I am pleased to announce two further steps in the modernization of our correctional system. 
Construction will commence this year on the Labrador correctional centre to be located in Happy 
Valley/Goose Bay. Renovations will also commence on the old centre block of Her Majesty’s 
Penitentiary to provide for additional inmate programs, including a new multi-denominational 
chapel.
   
   Consistent with Government’s plan to merge the Trial Division of the Supreme Court with 
the District Court, the Budget provides funds for detailed design work for alterations to the 
Supreme Court. Included are funds for planning to move the St. John’s Provincial Court to 
leased accommodations. Additional support staff will also be provided to the Provincial Court in 
order that the provisions of The Small Claims Act are made fully effective. These changes will 
help provide needed access to the courts for all residents of the Province.
   
   Government has recently announced a major expansion of the Royal Newfoundland 
Constabulary to Labrador City/Wabush to take effect in the Summer of 1984. Funds have been 
provided in this year’s Budget for planning of a new Constabulary Building in the area to 
accommodate the expanded service.
   
BUSINESS INCENTIVES

   The marine industries sector of our economy includes establishments which manufacture 
equipment or provide services in support of commercial and scientific activities in the ocean. 
Government is anxious to encourage the expansion of Newfoundland companies in this area and 
to attract new ocean related industry to the Province. Mr. Speaker, I am pleased to announce that 
for the 1982-83 fiscal year only, a total of $1,500,000 in incentive funds will be made available 
to assist companies with the cost of approved capital projects aimed at expanding local capacity 
of this nature. This assistance is evidence of Government’s commitment to the development of a 
diversified marine industries sector to complement and enhance the traditional relationships of 
our economy with the sea. Full details of this program will be announced shortly.
   
   In late 1981 Government announced its new policy with respect to industrial parks in the 
Province. That policy has centralized the planning, administrative and development activities 
which were previously fragmented among a number of agencies and provides a consistent 
approach to meet the demand of industrial growth. I am pleased to announce that funding is 
included in the 1982 Budget to commence Phase I of the new Octagon Industrial Park, including 
detailed planning and design work, as well as right of way acquisition. Work on six other 
projects will continue, as well.
   
   Government regards small business as a vital component of the provincial economy, 
employing many Newfoundlanders. Economic benefits are especially important where local 
manufacturing reduces the need for imported goods, and where sales of manufactured goods are 
secured outside the Province. In order to encourage these types of business enterprise, 
Government has decided to bring in a new program. On an individual case basis, applications 
will be considered for exemptions from Retail Sales Tax for capital investment in machinery and 
equipment which results in increased local employment. The program will be jointly managed by 
the Department of Development and the Department of Finance.
   
   As a boost to the sawmilling industry, a Retail Sales Tax exemption is being provided for 
capital equipment expenditures made by sawmill operators and used directly in their 
manufacturing process. This exemption will not apply to the pulp and paper industry.
   
OTHER INITIATIVES

   Government and Anaconda Aluminum are continuing to co-operate in conducting a study to 
establish the feasibility of locating an aluminum reduction facility in the Province. Considerable 
in-house work, both at Anaconda and the Department of Development, is ongoing and 
consultants have been retained to address other areas crucial to the completion of the 
investigation. All of these studies will be completed by August, after which full assessment can 
take place. Should the conclusions be positive, Anaconda would then be in a position to proceed 
with the detailed design and construction planning effort, subject of course to assurance that 
adequate and reliable power would be available. While this study is focusing on two sites, one in 
Labrador and one on the Island, I want to stress that the results would, with some minor 
additional site specific work, be applicable to other locations in the Province.
   
   One of the hallmarks of the Peckford Administration has been an emphasis on the 
preservation of our heritage and unique way of life in this Province. Coincident with the 
development of our vast resources must be a determination to maintain and strengthen our rich 
history and traditions for the benefit of future generations. I am, therefore, very pleased to 
announce, Mr. Speaker, that Government has decided to establish a Newfoundland and Labrador 
Heritage Foundation. The primary function of this Foundation will be to identify, enumerate and 
preserve various properties and structures of historical and architectural significance throughout 
the Province. An amount of $100,000 has been provided in the Budget to initiate a fund for this 
purpose and Government will assess the future need for contributions on an annual basis. We are 
confident that the new Foundation will be instrumental in preserving important elements of 
Newfoundland’s culturally significant past and that the private sector as well, will endorse the 
Foundation and its objectives by providing financial support.
   
   Also in line with Government policy to promote cultural activities within the Province, I am 
very pleased to announce that funding has been provided to complete the planning for a new Arts 
and Culture Centre in the Labrador City/Wabush area. The addition of this new facility will 
provide a focal point for artistic expression in this culturally rich area of our Province.
   
   Mr. Speaker, as a further demonstration of Government’s commitment to the orderly and 
stable growth of credit unions within the Province, we have decided to provide a $1,000,000 
deficiency guarantee for the purpose of assisting with the establishment of a Credit Union 
Stabilization Fund. This Fund will be administered by a board and will lend an additional 
measure of protection to credit union members in place of insurance protection on their deposits. 
The guarantee will enable the Fund to be established at $1,000,000 upon inception and will be 
provided for a five-year period, to be reduced at the rate of $200,000 per annum, as credit unions 
themselves make annual contributions to the Fund.
   
   Mr. Speaker, I am pleased to announce that Government has approved an increase for 
pensioners drawing benefits under the Public Service Pension Plan effective May 1st, 1982 
which will average 10%. As in previous years, the larger increases will be provided to those 
individuals who began receiving pension payments prior to March 31st, 1972.
   
STIMULATION FOR THE ECONOMY

   In my opening remarks I highlighted the present status of the major economies in North 
America and the many forces impacting upon the economic environment in Newfoundland and 
Labrador. I pointed to the limited scope of a Provincial government to resist strong international 
undercurrents of recession.
   
I	emphasized, however, that the Government of Newfoundland and Labrador is committed to do 
its part, within the confines of our financial resources, to stimulate economic activity within the 
Province and thereby expedite the pace of economic recovery. Accordingly, Mr. Speaker, I am 
particularly pleased to be able to announce that the Provincial economy will benefit from various 
forms of public sector investment and financial support by the Province to a total extent of 
almost $500,000,000 in 1982-83. The economic stimulus which will be provided through 
provincial capital construction programs including those of Crown corporations and agencies, 
will result in the creation of approximately 6,700 man- years of employment this year. In 
addition, a large number of measures involving financial assistance which we have taken over 
the past several months will be instrumental in maintaining the continuity of employment in the 
fishing sector. When viewed in its totality, the impact of these steps will be felt in all areas of the 
economy and all regions of the Province. Table III lists the major elements comprising 
Government’s contribution to economic activity in 1982-83.


   
   The construction industry especially will benefit greatly both from the amount of public 
sector investment and, as well, from the procedural steps we have taken over the past few months 
to maximize employment. In particular, we have instituted measures to:
   •	 Get the work started early through advance tendering of major projects;
   •	 Make it possible for many smaller local firms to obtain contracts; and
 •	Accelerate planned investment expenditures to shift work ahead to the present year.
   
   This increased public sector spending will offset the slowdown in private sector investment 
during the 1982 construction season such that real growth in the construction sector is expected 
to reach between 3% and 5% for the year.
   
   Mr. Speaker, I would now like to comment upon certain specific sectors within 
Government’s stimulative financial and economic program for 1982-83.
   
   The Fishery
   
   The fishing industry, from an employment-generating perspective, continues to be a major 
component of our economy. During the past two years, the industry has had to wrestle with high 
interest rates, weakened market conditions, and catch failures in certain sectors of the inshore 
fishery. These factors have contributed to an unprecedented cost-price squeeze for fishermen and 
processors.
   
   Despite these short-term difficulties, we are more than confident that longterm stability can 
be assured through a number of initiatives directed towards overcoming specific structural 
weaknesses in the industry. Over the past several months we have provided some $23,000,000 in 
direct assistance and guaranteed loans to the harvesting and processing sectors of the industry, 
including $7,000,000 in direct assistance provided just prior to the expiry of the old fiscal year. 
The full impact of these measures will be felt in 1982. More than any other fact, this level of 
assistance to the industry in trouble demonstrates Government’s commitment to and faith in the 
enduring nature of the fishery, as it has helped save the jobs of approximately 9,400 plant 
workers and at the same time, has assured the availability of processing facilities for the fish 
catches of some 11,000 fishermen. We are confident of our fishing industry’s ability to bounce 
back from recent temporary setbacks.
   
   A number of conditions were attached in each instance to the assistance we provided, 
including proof of the future viability of the individual operation, as well as clear evidence of 
management expertise. Government also stipulated that affected companies must support 
Govenment-initiated quality improvement measures, and consolidated marketing initiatives, and 
support Government should it decide to establish a consortium of Newfoundland seasonal 
operators to gain access to offshore northern cod outside the normal fishing period.
   
   There can be no doubt about the long-term importance of these measures to our most basic 
industry — an industry historically more interwoven with our way of life than any other.
   
   Newfoundland and Labrador Hydro Corporation
   
   Investment by Provincial Government enterprises, of which Newfoundland and Labrador 
Hydro is the largest, represents a significant portion of all construction investment in our 
economy. Hydro is expected to increase its capital investment spending in 1982 by $63,000,000 
to a total of approximately $168,000,000. This includes spending on a number of projects of 
which the Cat Arm and Upper Salmon hydro developments are the largest. During the 
construction season in 1982, employment will peak at 1550 jobs as a result of all hydro projects 
in the Province.
   
   Transportation
   
   Mr. Speaker, capital expenditures on transportation projects in 1982-83 will be up 86.4% to 
$70,100,000 compared with $37,600,000 in 1981-82. The greatest contribution to this increase 
comes from construction of new highways, bridges, and causeways, and from road 
reconstruction projects. In addition to these projects, a number of new airstrips will be built 
along the Labrador coast, costing $6,200,000, as well as a number of new marine ferry terminals 
around the Island portion of our Province, costing $4,400,000.
   
   Municipal Infrastructure
   
   During 1982-83 the Province will guarantee $32,000,000 in loans to some 72 municipalities 
in order to finance water and sewer projects. This is an increase of 28.5% from the $24,900,000 
provided in 1981-82. Government guaranteed loans of $13,000,000 will be provided to 39 
municipalities for road constsruction and paving projects, for an increase of 42.9%.
   
   The Department of Municipal Affairs will also increase its construction-related capital works 
budget to $13,200,000 to cover industrial servicing, and other projects, including major St. 
John’s water and sewer projects.
   
   Forestry
   
   Spending under the Forestry Economic Stimulation Program and the Forestry Subsidiary 
Agreement is projected to reach approximately $14,000,000 in 1982-83. These programs include 
such major elements as forest access roads construction, silviculture projects, and harvesting 
budworm-damaged timber. Together, the programs are expected to generate a peak of 1,500 jobs 
during the coming Summer. These programs are co-operative efforts between the two orders of 
Government and the paper companies.
   
   The economic impact of these measures will be to increase the wood fibre yield in the 
Province’s pulpwood logging operations by utilizing wood which would otherwise be lost, and to 
ensure the availability of a continued wood supply for the forest industry in the future.
   
   Housing
   
   Through the Newfoundland and Labrador Housing Corporation we have already invited 
proposals for the construction of 100 subsidized housing units. A further 60 units will be 
commenced in the next several months. In addition, we will spend $8,400,000 for land 
development in the Mount Pearl-Newtown area. As Honourable Members are aware, we recently 
introduced a building lot subsidy program in an effort to stimulate private construction of single 
unit housing. This program is worth $3,200,000 and will affect 1,200 provincially-owned 
building lots located in 18 communities. As well, I am pleased to announce the addition of a lot 
subsidy arrangement for the Cowan Heights Development affecting 200 lots with a subsidy of 
$5,000 - $7,000 per lot. This particular subsidy will be effective for' a six-month period only.
   
   Mr. Speaker, it goes without saying that a significant drop in mortgage lending rates would 
allow these programs to have a much greater impact on the level of housing starts.
   
   Mr. Speaker, let me reiterate that Government’s initiatives in construction, the fishery, hydro 
development, transportation, municipal infrastructure, forestry and housing, inject nearly a half 
billion dollar stimulus into the Province’s economy. Current economic difficulties thrust upon 
our People demand no less. We are especially pleased that we are able to carry out this Program, 
and, at the same time, maintain a balanced current account position.
   
THE GREAT CANADIAN IRONY

   Mr. Speaker, I have, this afternoon, reviewed the economy, Newfoundland’s financial 
performance and the budgetary position for the coming year. I have outlined a capital works 
program aimed at stimulating economic activity this year and I have reiterated the commitment 
of the Peckford Administration to manage the financial affairs of the Province on a sound and 
realistic basis. I cannot, however, conclude a Budget Speech for the Province of Newfoundland 
and Labrador at this time without addressing the issues which are fundamentally important in 
determining the financial and economic destiny of this Province. They are also fundamentally 
important to the future of our nation.
   
   We live in a world, Mr. Speaker, that has become ultra energy conscious— a world where, 
notwithstanding temporary surpluses, nations struggle to locate new major reservoirs of oil, gas 
and hydro-electric power. We see Canada stand out in sharp outline in this context with vast 
quantities of each of these resources, clearly identified as economically viable and technically 
feasible to develop. The development of these energy resources would provide billions of dollars 
of economic stimulus.
   
   Yet, where are we?
   
   The projects are not proceeding. The national economy is in recession. We are still burning 
imported oil and the country is no closer to energy self-sufficiency than it was 5 years ago. 
Hundreds of millions of dollars worth of unharnessed hydropower are flowing into the sea. 
Energy can be transmitted by pipelines across provincial boundaries but transmission of power 
by cables across the same boundaries to ready markets is still not permitted. One province 
exports the power of another province and reaps hundreds of millions in profits for itself while 
virtually none goes to the owner of the resource.
   
   Oil resources on land are treated differently by the Government of Canada than the same 
resources in land extensions under the sea. Oil resources under fresh water are treated differently 
from those under salt water.
   
   The exclusive right of some provinces to exploit and manage their petroleum resources is 
recognized by the Government of Canada. Yet, for the offshore resources of the coastal 
provinces, the Federal Government claims the sole right of management and control. There is a 
refusal even to entertain proposals for joint management and shared jurisdiction. In recent days 
we have witnessed the Federal Government’s abandonment of any pretense of negotiating joint 
management and revenue sharing by taking the unprecedented action of referring the offshore 
issue directly to the Supreme Court of Canada.
   
   Mr. Speaker, that is the Great Canadian Irony — Canada’s Energy Strategy.
   
   Mr. Speaker, it won’t last. It can’t last. It’s too illogical and unreasonable. The world can’t 
understand it. The people of Canada can’t understand it and neither are they prepared to live with 
it.
   Newfoundland will do its share to bring reason to this chaos, Mr. Speaker.
   
   Through the Water Rights Reversion Act which has now been upheld by the Newfoundland 
Court of Appeal and awaits decision by the Supreme Court of Canada, we will bring about 
reason in the hydro sector and achieve equity in the utilization of the Labrador hydro resource.
   
   In offshore oil and gas, we will again bring about reason. The unanimous condemnation of 
the recent Federal action by this Honourable House is a matter of record and this Government is 
determined that the course pursued by the Government of Canada in selfish desperation will not 
succeed. The strength of our legal case and the solid reasoning of our negotiating position will 
triumph over the shallow tactics being practised by the present administration in Ottawa.
   
   We will dedicate our energy resources to the legitimate goal of self-sufficiency for our nation 
and we will share the benefits therefrom with our fellow Canadians. Finally, Mr. Speaker, we 
will ensure that the vast petroleum deposits locked in our continental shelf are properly managed 
for the mutual benefit of Newfoundland and Labrador and all Canadians.