Debates of May 28th, 1999

National Defence

[Keith Martin, Reform, Esquimalt—Juan de Fuca, BC]

Mr. Speaker, the last chief of defence staff warned the government that the Canadian forces was undermanned, underequipped and not able to fight a war.

The current chief of defence staff is warning the government that our forces are stretched to the limit and that we are unable to increase our personnel in the Kosovo mission. The Minister of National Defence, however, is saying that he is still prepared to commit troops to the former Yugoslavia. Why is the defence minister ignoring the advice of his own chief of defence staff and the last chief of defence staff in wanting to send more troops to the former Yugoslavia?

[Herb Gray, Liberal, Deputy Prime Minister]

Mr. Speaker, yesterday in his press conference the chief of defence staff was asked this question: “Is it possible to increase our contribution to the peace force in the Balkans without cutting elsewhere and do we have the appropriate type of equipment?” His answer was as follows: “The answer is yes to both of your questions”.

I think the hon. member misunderstood what the chief of defence staff actually said.

Obviously we have made no decisions as yet on expanding our participation in the peace implementation force. If we want to make such a decision we will obviously have to take into account the financial resources required and the advice of General Baril as to the most appropriate use of the men and women in our Canadian armed forces.

[Keith Martin, Reform, Esquimalt—Juan de Fuca, BC]

Mr. Speaker, I suggest that the hon. Deputy Prime Minister look at the auditor general's report which excoriated the government for underfunding the military.

If the government continues to underfund the military, what it will do is compromise the lives of the brave men and women who are in Yugoslavia right now and the ones who may go there in the future. From the Griffon helicopter to the Coyote armoured personnel carrier, the equipment is not good enough to protect our troops.

I ask again the hon. Deputy Prime Minister, will the government send troops to the former Yugoslavia when our troops may be putting their lives in danger through the government's actions?

[Herb Gray, Liberal, Deputy Prime Minister]

Mr. Speaker, I repeat, we have made no decision to expand our existing commitment to the peace implementation force. If there is such a decision, obviously it will be based on providing appropriate resources, financial and otherwise, to our men and women in the Canadian armed forces.

What we should have from the Reform Party is a vote of confidence in the skill and professionalism of our troops, instead of trying to undermine them by these unnecessary questions.

Tainted Blood

[Stéphane Bergeron, Bloc, Verchères, QC]

Mr. Speaker, when questioned yesterday about his apparent conflict of interest in the tainted blood matter, the Minister of Finance hid behind the ethics counsellor so as not to answer our questions.

The ethics counsellor responds solely to the Prime Minister, however, and not to this House.

My question is for the Minister of Finance. Is this sudden desire of the Minister of Finance to consult the ethics counsellor not simply a pretext to buy some time until the end of the session, to put a lid on this because it is somewhat of an embarrassment to the minister?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, there is no embarrassment.

The ethics counsellor has already looked at this matter after the NDP asked a question about a week ago. I myself have spoken to him and indicated my great interest in having him look at the situation.

[Stéphane Bergeron, Bloc, Verchères, QC]

Mr. Speaker, since the members of this House do not have access to the ethics counsellor, in light of the good faith shown by the Minister of Finance, can the minister commit right now, out of a concern for transparency, to make public the entire report of the ethics counsellor concerning his apparent conflict of interest in the tainted blood matter?

[Herb Gray, Liberal, Deputy Prime Minister]

Mr. Speaker, the matter is being looked into by the ethics counsellor. The release of his report is a matter for the ethics counsellor and the Prime Minister. I am sure they will carry out their duties in the most appropriate and complete way.

Publishing Industry

[Inky Mark, Reform, Dauphin—Swan River, MB]

Mr. Speaker, this has been quite a week. We have a government claiming it won the trade war. That is a rather premature claim. We are not out of the woods yet, and we all know that.

What we witnessed this past week was a face-saving exercise for the heritage minister. The fact is that she was the one who created this mess. Now even the Americans want a subsidy.

How much will this face-saving exercise cost the taxpayers?

[Sheila Copps, Liberal, Minister of Canadian Heritage]

Mr. Speaker, I would hope that the hon. member in examining this dossier would understand that the fight around Canadian magazines is a fight that has existed in this country for many years.

In fact, Bill C-55 was passed through the cabinet and will be amended and passed through the House as a result of the WTO decision which preceded my term as minister.

[Inky Mark, Reform, Dauphin—Swan River, MB]

Mr. Speaker, the Reform Party was the only party standing up for Canadian jobs over this mess.

It is time for a reality check. The government went to bat for the magazine publishing industry over this bill and at the same time it excluded the advertising sector. Is that fair?

What kind of deal was struck with the magazine publishers and how much will this cost the taxpayer?

[Sheila Copps, Liberal, Minister of Canadian Heritage]

Mr. Speaker, my only comment would be, thank God the Reform Party was not doing our negotiations.

Tainted Blood

[Monique Guay, Bloc, Laurentides, QC]

Mr. Speaker, the Minister of Finance is still maintaining that he does not recall discussing the Red Cross's contract with Connaught, a subsidiary of the Canada Development Corporation, on whose board of directors he sat at the time. However the minister's name appears at the end of the CDC's 1984 annual report.

Does the minister still stand by his statement that he does not recall discussing blood, Connaught, and its contract with the Red Cross when he was a CDC board member?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, I stand fully by the position I have stated this week and last week in the House.

[Monique Guay, Bloc, Laurentides, QC]

Mr. Speaker, we will refresh the minister's memory.

The CDC's 1984 annual report mentions the expiry of a Connaught contract with the Red Cross representing 14% of its sales. An annual report always mentions the year's highlights, as well as being approved by the board of directors.

Does this not shoot the minister's defence all to pieces?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, no. The member should read the report. The report mentions all the activities of the CDC, including Connaught, which was a subsidiary, but a subsidiary with its own board of directors.

It should also be mentioned that the CDC mainly focussed on mining, chemicals, and the provision of services to companies. The involvement of Life Sciences, Connaught's parent company, was truly minimal in the overall picture. In fact, CDC did not own 100% of its assets.

Atlantic Canada Opportunities Agency

[Lee Morrison, Reform, Cypress Hills—Grasslands, SK]

Mr. Speaker, my question is for the minister in charge of the Atlantic Canada Opportunities Agency.

ACOA has been noted for handing out its largesse to losers. It picks losers very carefully. Now we have an example of a bankrupt recipient coming back for a refill. Heritage Woodworks, an ACOA beneficiary in Eastport, Newfoundland, went belly up a few years ago. Now its offspring, Heritage Manufacturing, operating out of the same building, with the same machinery—

[Some hon. members]

Oh, oh.

[The Acting Speaker (Mr. McClelland)]

The hon. the Parliamentary Secretary to the Minister of Veterans Affairs.

[An hon. member]

He was not done yet.

[The Acting Speaker (Mr. McClelland)]

According to the timer I have, the hon. member was over his 35 seconds. I will double check with the clerk.

[Walt Lastewka, Liberal, Parliamentary Secretary to Minister of Industry]

Mr. Speaker, the hon. member should know that the two companies are not related. The former company did go bankrupt, but the new company has all new people. It just happens to be in the same building. All new people are running a new company and the member should know that. Perhaps he should learn a few more details before he asks a question.

[Lee Morrison, Reform, Cypress Hills—Grasslands, SK]

Mr. Speaker, no legitimate financial institution would even consider giving a refill to a company that has already stiffed it once. When will this minister take some responsibility? When will he decide that the taxpayers' money should be guarded and not handed out to friends of the government?

[Walt Lastewka, Liberal, Parliamentary Secretary to Minister of Industry]

Mr. Speaker, the hon. member makes a number of accusations which are totally wrong. When a firm gets changed over to another, brand new firm, I do not think the policy of the Reform Party would be to tear down the building. I am sure the member does not want that to happen. This is a new company, with new management, a new business plan and new products to make things happen for the Atlantic provinces. We want to create more jobs in the Atlantic provinces under new management.

Radio-Canada

[Paul Crête, Bloc, Kamouraska—Rivière-Du-Loup—Témiscouata—Les Basques, QC]

Mr. Speaker, the CRTC wants to force Radio-Canada to reduce its advertising revenues.

However, the vice-president of the CBC's French network clearly said that any reduction in advertising revenues without equivalent compensation from the government would necessarily result in a loss of services to the public.

My question is for the Minister of Canadian Heritage. Considering that the government has already significantly reduced its subsidies to Radio-Canada, will it now let the CRTC deprive that network of its separate revenues without compensation?