Mr. Speaker, it is with great enthusiasm that I participate in today's debate.
I take great exception to the hon. member's motion. Historically the federal government has been a firm supporter of Newfoundland and Labrador and its economic pursuits. I might remind the House that it was a Liberal government that negotiated Newfoundland's entry to Canada.
The Reform Party introduced today's motion because there is a byelection in Labrador and it hopes to gain votes by pretending to be a voice for the people of Labrador. The Reform Party took an interest in Labrador only after its member of Parliament, the hon. Bill Rompkey, moved to the Senate causing the byelection. There is no evidence that this issue was important to the Reform Party before that.
The Reform Party election platform only makes reference to the revenue from hydroelectric projects in relation to equalization. It states:
The Reform Party supports the inclusion of economic rents from hydroelectric activities in the public revenue of all provinces for the purpose of calculating the size of federal-provincial transfer payments.
In general, the Reform Party supports energy policies based on market mechanisms with no government involvement.
What makes the Reform Party think it will be able to find a new resolution to this longstanding issue which has been debated by experts for years and heard by the courts?
The Reform Party, which it says is a strong supporter of free enterprise, is questioning a contract which has been ruled valid by the Supreme Court. By raising this issue the Reform Party may be trying to mask its extreme right wing economic agenda which is not attractive to the voters of Labrador.
The Reform Party plans to turn programs such as employment insurance and the Canada Pension Plan into personalized savings accounts or private insurance. That will not find support among the workers in Labrador. The Reform's opposition to any active role by governments in economic development and creating new employment opportunities would indeed hurt the workers of Labrador.
The Reform Party avoids telling the voters of Labrador about its opposition to regional development programs. It thinks that regional development spending in Atlantic Canada has been a failure and Reform would slash programs and eliminate subsidies. The hon. member for Capilano-Howe Sound sums up what his party thinks about Atlantic Canadians and regional development by saying: "We do not give money to our children after a certain stage because we know if we keep giving them money they will never become independent. Sometimes the best things we can do for our children is say no".
Another Reform member of Parliament in his determination to uncover failed attempts at regional development by ACOA resorted to exaggeration to try to make his point. The member attacked ACOA for giving $22,323 to a food research centre at the University of Moncton for a study to develop blueberry jelly for Mega Bleu, a company in Tracadie, New Brunswick. In fact, ACOA had only granted $6,000 and would increase the amount only if the company decided to market its product. Moreover the money was not for jelly but for blueberry products.
The same Reform MP told Nova Scotians he would run there in the next election. When asked about this by a newspaper in his riding in British Columbia, he said: "I was trying to be nice because I knew it would be in the Atlantic Canadian papers. I did not want to say: Who the hell would want to run there?" That is a quote from the Halifax Chronicle Herald of September 22, 1995.
I remind all members of the House that this federal government has a long history of partnership and co-operation with all the provinces and territories. In no way would this government hinder responsible resource development in Newfoundland and Labrador. It has a solid record of working with that province to resolve outstanding issues and dismantle barricades to resource development.
For example, I look at how the federal government is working with Newfoundland and Labrador and other stakeholders to resolve issues surrounding mineral development in Voisey Bay. For more than three decades the federal government has been working with Newfoundland and Labrador on the development of its hydroelectric resources. I can cite countless examples of federal support to my province. Recent examples include the Hibernia development project. We are encouraged with the progress that is being made in connection with the Terra Nova project.
We should establish at the outset that the rights of the provinces in the area of natural resources are clearly set out in the 1982 amendment to the Constitution Act, 1867. Those rights are exactly the same for every province.
The province of Newfoundland and Labrador has the complete right to enjoy its own natural resources. It further has the right to control the development of these resources and any benefits from financial gains by way of royalties and taxes. The same is true again for all provinces.
All crown lands within Newfoundland are owned by the province of Newfoundland. These ownership rights give the province the right to royalties from mineral developments such as in Voisey Bay, as well as for all oil and gas development within the province's boundaries. The province also has the right to royalties from offshore oil and gas development such as Hibernia. The same would be true for any other similar projects brought on line.
These rights are clearly set out under the legislation and are further guaranteed under a number of co-operative agreements between the federal government and the province of Newfoundland and Labrador.
That ownership of crown lands also gives the province the right to control the development of forestry resources. That right has allowed Newfoundland to develop and maintain a sustainable forest resource.
The ownership of crown lands is only one way in which Newfoundland has the right to benefit from its natural resources. There are many other ways which are equally important. The province of Newfoundland and Labrador has the constitutional authority to legislate natural resource related works and undertakings within its boundaries. That constitutional responsibility also gives the province jurisdiction over the generation and distribution of electricity.
I mentioned the amendment to the Constitution Act which clarifies the rights of provinces to control their own natural
resources. The amendment deals with provincial rights concerning non-renewable natural resources and it includes forestry resources and electricity. The amendment states that provinces can make laws regarding the exploration for natural resources. Again, all provinces have this right, including Newfoundland.
The provinces may further pass laws covering the development, conservation and management of non-renewable resources as well as forestry. Again all provinces have the right to make laws concerning the generation and production of electricity including everything from development to conservation to the management of the sites and facilities. In addition, Newfoundland and all other provinces have the constitutional right to pass laws regarding the export of electricity. They can pass legislation covering the taxation of electrical generating facilities.
Some members may feel these rights should be changed, expanded or perhaps cutback. My own view is that they represent a reasonable and fair allocation of authority. These rights are clearly outlined and equally applied. I cannot see how these rights have in any way been denied to Newfoundland or any other province.
Newfoundland has constitutional control of its natural resources as do all other provinces. It is Newfoundland that decided how those natural resources would be developed, how they would be conserved and it is Newfoundland that will decide what the best advantage is.