Sue Barnes

[Executive Salaries, November 30th, 1994]

Mr. Speaker, I rise today to speak on the motion put forward by the hon. member for Winnipeg-St. James respecting the principle of public disclosure of salaries of senior executives of publicly traded private corporations and crown corporations.

Unfortunately because of time I do not think I am going to get through my whole presentation but I thank my hon. colleague for sharing the time.

The issue as it relates to provisions of the Canada Business Corporations Act rests mainly with my colleague, the Minister of Industry.

For Crown corporations the government has a more direct responsibility because of the public policy purposes these corporations serve and has a strong interest in ensuring appropriate compensation levels.

The subject of salary disclosure of executives in Canada's corporate world has always been one of great debate and great importance. Our government has traditionally attempted to balance the right of the public to access information concerning both public and private institutions against the rights of individuals to privacy.

Disclosure rules in the private sector for publicly traded corporations reflect an increasing desire on the part of investors and creditors to exercise their corporate governance rights and responsibilities in ways that ensure that compensation packages to management harmonize to the degree possible with the interests of the shareholder. Compensation should reflect corporate performance and industry standards.

Provincial securities legislation deals with disclosure rules for public companies. For example, Canadian companies which do or may file debt securities which trade under the Ontario Securities Commission jurisdiction are required to file information on executive compensation for the presidents of the companies and the four most highly compensated officers. These rules appear to be well designed to meet the needs of private investors and creditors. They provide assurance and accountability.

Disclosure of compensation for CEOs and chairpersons establish a reasonable and welcome degree of public transparency concerning corporate affairs for some of Canada's most important corporate bodies whose shares trade on the open market.

Sound corporate governance for crown corporations continue to be a matter of concern to this government. This past October the President of the Treasury Board hosted a conference of chairpersons and CEOs of crown corporations to discuss ways of improving the performance and accountability of crown corporation boards.

I think it is fair to say that all crown corporations represented displayed sensitivity to the public's changing expectations concerning the responsibilities of corporate boards. This sensitivity extends to the development of appropriate compensation policies for corporate employees.

In recent years a number of studies in the area of corporate governance, including the report prepared by Mr. Peter Dey for the Toronto Stock Exchange, have addressed the changing role of the board of directors.

Crown corporation boards face difficult challenges complicated by the need to balance the corporate agenda with the public policy agenda. They also face problems similar to those in the private sector such as ensuring open communication programs with shareholders, stakeholders and other affected parties, and that includes the taxpayers of Canada.

In the Dey report there is a particularly challenging concept of a modern business corporation put forward by the Canadian Centre for Ethics and Corporate Policy. The centre sees "the modern corporation as both an economic institution and a social institution". The role of the "economic institution" is "to conduct affairs with activities with a view to enhancing profit for the benefit of the shareholders". This of course is the traditional role.

However, I think we can go further and say that "as a social institution a corporation in the conduct of its business activities must take into account those ethical principles and considerations that are reasonably regarded as appropriate for the responsible conduct of business" in Canada. This expands the traditional view and puts the onus on boards of directors to become accountable for much more than only the bottom line on a set of financial statements.

Crown corporations by their very nature have always had to consider the public policy principles and considerations to a much greater degree of public scrutiny than private sector corporations.

Furthermore, the Treasury Board secretariat continually reviews corporate government issues as they relate to federal crown corporations. The review of annual corporate plans and budgets, including salary budgets, is one aspect of their work. In addition, much information on crown corporations is now publicly available.

Hon. members are probably aware that for crown corporations, directors, chairpersons and chief executive officers, these are appointed by order in council and have their remuneration fixed by the governor in council. Salary ranges for these appointees are in fact now very much public information. The practice has been to provide easy access to information concerning the salary range of a particular person. This protects the privacy of the individual concerned, especially with respect to exact salary, while allowing the public to have access to significant information. Similarly, the salary schedules of senior appointments to federal agencies and commissions are publicly available.

Crown corporations seeking to issue debt instruments follow rules established by respective provincial securities commissions. They too are subject to disclosure requirements as are their counterparts in the private sector.

With respect to the current public sector wage freeze, all crown corporations have been asked to follow government policy. Order in council appointments such as board chairs have had their wages frozen. Senior crown corporation officials who are not government appointees have had their compensations set by the boards of directors of their corporations. Crown corporations subject to access to information or privacy legislation can be required to provide salary ranges and discretionary benefits of a financial nature for these officials.

The Financial Administration Act requires as well that any benefits other than remuneration paid to directors, chair or chief executive officers shall be fixed by the board of directors in accordance with the regulations made under this act. The regulations require that these benefits do not exceed any industry norm.

I would like to emphasize that federal crown corporations are subject to more stringent accountability and control rules than are publicly traded corporations.

The Financial Administration Act, part X, sections 83 to 154, establishes very thorough and comprehensive reporting requirements. This law requires corporations to submit annual corporate plans and budgets to Treasury Board for approval.

Corporations must conduct internal audits as well as being audited externally. In most cases, external audits are undertaken by the Auditor General who is empowered to make special reports on the matters he believes require the attention of ministers and Parliament.

In addition, crown corporations under part X must undergo a special examination at least once every five years. These examinations are established to ensure that systems and practices respecting financial and management controls are maintained in order to provide assurance that the resources of the corporation are being managed effectively and efficiently.

How much more disclosure is reasonable for other crown corporation executives? Is there a further need to add more rules for Canada's 48 crown corporations? Should smaller corporations which do not issue debt instruments and have only a handful of employees be treated in the same manner as a larger corporation? It would be premature to go beyond what we now have in the area of salary information reporting by crown corporations. Public accountability for crown corporations is now well and adequately established under a sufficiently rigorous statutory and regulatory framework.

The corporate form together with this framework has served Canadians well. In the 1993 report to Parliament, the Auditor General of Canada stated:

In 1991, we reported that the control and accountability framework established in 1984 represented a vast improvement over the previous situation and provided for greater vigilance and stability. It has, in our view, improved the management of crown corporations as well as the receipt of essential information by Parliament on a more timely basis.

The government will continue to monitor this system to ensure its effective functioning and make whatever amendments are needed.

[The Environment, November 29th, 1994]

Mr. Speaker, the Deputy Prime Minister and Minister of the Environment recently announced a five-part action plan that will help to accelerate

Environment Canada's greening initiatives and save money.

One of the most significant changes resulting from this plan is the introduction of the green procurement policy to help ensure environmentally responsible purchasing. The procurement policy directs employees to use ecologo products or those that exceed the environmental choice program and to use products that have been recycled or can be recycled.

This policy also calls for the avoidance of products containing resources from environmentally sensitive areas. Personnel will also avoid acquiring over-packaged products and, wherever feasible, require suppliers to take back excess packaging for reuse and recycling.

In addition to saving the environment and money, the initiative helps to develop Canadian environmental industries, thereby creating jobs, stimulating the economy and improving our international competitiveness.

Many departments have already taken impressive steps in this direction.

[Vanier Cup, November 22nd, 1994]

Yes, again. I remember as a student cheering them on to their very first Vanier Cup in 1971. The Mustangs

won the Canadian varsity football championship in 1974, 1976, 1977 and 1989, and hopefully next year too.

Saturday's 50-40 victory was the first overtime victory in the history of the Vanier Cup. The Saskatchewan Huskies' valiant effort made for an exciting game for the spectators.

A Western fan, 82-year old Professor Emeritus Allen Philbrick, lapped the field after every Western touchdown, as he has done for the last 20 years.

I am proud to congratulate the team, the university and all the fans. I am very happy that they are in my riding.

[Vanier Cup, November 22nd, 1994]

Mr. Speaker, the University of Western Ontario Mustangs finished an undefeated season with a record sixth Vanier Cup victory Saturday.

[Committees Of The House, November 16th, 1994]

Mr. Speaker, I have the honour to present, in both official languages, the fourth report of the Standing Committee on Justice and Legal Affairs.

Pursuant to Standing Order 108(2), your committee has considered the documents entitled: "Draft Amendments to the Criminal Code and the Customs Tariff, Crime Cards and Board Games" and your committee has agreed to report it with three recommendations.

The study was prompted by concerns about the glorification of violence through the format of a board game and trading cards depicting serial killers. Many petitions were received in the House.

The committee studied draft legislation. The committee now recommends a broader scope dealing with the glorification or exploitation of horror, cruelty and violence through expanded obscenity provisions of the Criminal Code as a more inclusive legislative effort. Also suggested were the utilization of a preamble together with appropriate safeguards and special defences.

[Justice, November 14th, 1994]

Mr. Speaker, my question is for the Minister of Justice.

The Department of Justice released a discussion paper on the weekend raising the possibility that cultural defences might be permitted to criminal charges. Will the minister clarify just what this might mean if introduced?

[Decade Of The Brain Act, November 14th, 1994]

Therefore I move:

That the bill be not now read the second time but that the subject matter thereof be referred to the Standing Committee on Health; and that accordingly the bill be withdrawn.

[Decade Of The Brain Act, November 14th, 1994]

Mr. Speaker, I would seek unanimous consent of the House to make Bill C-239 votable.

[Decade Of The Brain Act, November 14th, 1994]

moved that Bill C-239, an act respecting the decade of the brain, be read the second time and referred to committee.

Mr. Speaker, I will be sharing my time today.

I am pleased to introduce debate on Bill C-239, a bill that would declare the 1990s the decade of the brain. First, I would like to recognize and thank all the individuals and organizations that have since early in the decade assisted in this legislative endeavour.

The legislation I am speaking on today is the duplicate of a private member's bill introduced in 1992 by the previous member of Parliament for Niagara Falls. Private members' bills can take a number of years before they are debated in the House.

Given that we are already in 1994, members may ask what the purpose of the bill is and what will be accomplished by declaring the 1990s the decade of the brain.

My response is that the legislation will help to raise the awareness of Canadians and will help to focus attention on the prevention, research, treatment and rehabilitation of brain related diseases and disorders. I believe this to be a worthwhile, rewarding goal, as do many of my hon. colleagues.

We only have to look at numerous examples in the world community to see this is an important issue worthy of our attention as legislators. In 1986 at the 39th world health assembly, the World Health Organization called on member states to apply preventive measures with regard to mental, neurological and psychological disorders and to include these activities in their long term health strategies.

In 1991 Dr. Nakajima, director general of the World Health Organization, urged all governments to designate the 1990s as the decade of the brain. Our neighbours to the south did this in 1990. In 1992 the member states of the European community followed suit, forming an ad hoc task force.

The World Federation of Neurology proclaimed the 1990s to be the decade of the brain in 1992. As we speak, researchers from my riding are gathering with over 12,000 other professionals in Miami to discuss among other subjects advances made in the decade of the brain.

They have expressed to me their support of the bill before the House. Treatments that would have seemed miraculous 10 years ago are now reality and are being applied successfully. We can now look to a day when new drugs may free patients from their struggle with neurodegenerative diseases such as Alzheimer's.

Regeneration research is providing new expectations, new hopes for patients with spinal cord and various other brain injuries. In every riding in Canada research efforts and treatments continue, utilizing more and more advanced and ground breaking technology. In my own riding of London West a young scientist has recently commenced a new research project focusing on brain functioning. Currently magnetic resonance imaging shows brain anatomy clearly. Functional magnetic resonance imaging will allow us to view the working brain and will help map out the centres concerned with such aspects as speech and motor activity.

There is no doubt the human brain is a remarkable feature that distinguishes us from other living creatures. A mere 3-pound mass of interwoven neurons controls all our activities. The brain is the most complex and mysterious wonder of creation. It has been called the seat of human intelligence, the interpreter of senses, the keeper of memory, in essence the sanctum of the soul.

Ailments of the brain carry with them heart rending disabilities that can rob us of the very essence of personhood. A healthy mind is essential for living a full life with total liberty and independence. A great threat to the independence of the elderly are diseases of the brain. Cognitive mental stability enhances the ability to heal and recuperate, to cope and to overcome physical ailments.

Unfortunately like all things human the brain is not perfect, being subject to injury and disease, including the time of development in the youngest members of society. Diseases are

not limited by geographical borders. Nor do they recognize any difference in language, gender, race or economic status. Any human being in the world community is a potential victim of a brain related illness.

I would be very surprised if any member of the House had not been personally affected by such diseases and disorders. All of us have had a friend, relative or family member who has suffered the tragedy of brain related illness. At the beginning of the decade it was estimated that five million Canadians were affected by disorders of the brain ranging from congenital malformations, degenerative disorders, neurogenetic disorders, epilepsy, multiple sclerosis and stroke, to problems with learning, hearing, language and speech.

I have been encouraged by the numerous physicians, individuals and associations that have given me support to work for the recognition of the decade of the brain. I am aware of many who fought for this long before I was involved. Many of these people devoted their careers to the treatment and elimination of brain related illnesses. Designating the 1990s as the decade of the brain would be an acknowledgement of their contributions and an encouragement for them to continue with their noble crusade.

Studying the brain has enormous potential for the health of Canadians, while decreasing the severe economic and emotional burdens placed on our society by brain disease and disorder. In efforts to see the legislation proclaimed, I have also been contacted by people who are right now directly affected, sometimes tragically. I have received scores of letters from parents whose children have died or are dying of brain tumours.

I have listened to people faced with the difficult task of caring for loved ones who suffer from brain disorders. There is more eloquence in their private struggles with adversity, more eloquence in their challenges and their grief than I could ever hope to bring to the Chamber today. It is because of these people that I encourage members to lend their support to the bill.

In 10 minutes it is impossible to speak on the full scope of the problems in research. I would like to highlight two forms of brain related illnesses as well as their effects.

Today over one-quarter of a million Canadians suffer from Alzheimer's disease and related dementias. By the year 2030 it is estimated that this figure will have increased to over three-quarters of a million. The social and human costs of Alzheimer's disease are devastating. A person's ability to understand, think, remember and communicate is affected. The process is always a progressive degenerative one that means the formerly self-reliant men and women slowly become dependent upon others.

The disease has a similarly devastating impact on the caregivers who are often family members. Family members must cope with long periods of emotional, financial and physical stress. Hence we see that the health and well-being of the family members become just as important a concern as that of the person with the disease.

Each year thousands of Canadians are diagnosed with a primary or secondary brain tumour. Since brain tumours are located at the various control centres of thought, emotion and physical function, they can cause serious impairment in motor functions, vision and language abilities and make treatment very difficult.

In 1982 in my home of London, the Brain Research Laboratory was established with both experimental and clinical research units. The Brain Tumour Foundation of Canada was also a founding member of the North American Brain Tumour Coalition, a network of brain tumour organizations dedicated to increasing public awareness of the nature of the brain tumour and of the availability of treatment options.

London has also seen the establishment in 1991 of the brain tumour tissue bank which acts as an international resource from which researchers from Canada, the United States and other nations are able to obtain tissue samples to carry out experiments.

Brain tumours were highlighted in the bill not because they are any more or less important than any other disorder or disability, but rather it was an association that I was involved with at the time when work began on the bill. I have also had some insight through other areas of my previous work into the devastation that mental illness can play in antisocial, violent acts. I can think of no other aspect of our criminal justice and health systems where everyone involved is a victim.

Measures can be taken to facilitate even more effective sharing of knowledge, information and resources to accelerate the research for effective prevention and treatment of brain related illnesses. Canadians must recognize the relationship between the health of the brain and the well-being and quality of life of individuals. Brain related illnesses exact a tremendous toll in human suffering, often during the most productive years in a person's life.

I have mentioned previously the effects that this can have on the individual and his or her immediate circle of family and friends. However we must acknowledge the tremendous financial cost of such illnesses.

Dr. John Evans in the November 1994 Flavelle lecture at the University of Western Ontario stated that neurological diseases require more people to be hospitalized than any other disease group and therefore consume a disproportionate share of scarce health resources. He stated that the staggering burden of the cost of treatment and rehabilitation is estimated to be approximately $300 billion annually for the United States and Canada. In the area of Alzheimer's and other forms of dementia alone Cana-

dians spend approximately $3.3 billion a year providing care for afflicted individuals.

This debate should not be reduced to dollars and cents. To do so is to cheapen the humanity of all involved in the issue. We are talking about the health and happiness of our children, our parents, our friends, our partners and ourselves. No one can go through their lives untouched by brain related illnesses. We all age eventually and our independence will be linked to our physical and mental health.

I stated at the beginning of the speech that the legislation would help to raise the awareness of Canadians and would help focus attention on the importance of the research in this critical medical field. I am seeking approval today of an acknowledgement of that fact and action that will benefit Canadians today and into the future.

[Breast Health Awareness Month, October 25th, 1994]

Mr. Speaker, October 25 marks the first anniversary of our election victory. At that time we said that women's health issues would receive proper attention.

The proclamation of October as Breast Health Awareness Month will raise awareness of one important health issue for women. Each year more than 16,000 Canadian women develop breast cancer. It is the most common type of cancer in women and their leading cause of cancer death.

New initiatives on breast cancer have been implemented by the federal government in four main areas: funding for breast cancer research, support of prevention and screening activities, treatment and care, and support, advocacy and networking of women with breast cancer.

Breast Health Information Day was successfully held in my riding of London West.

Events have been organized for this month across the country to help Canadian women and their families become better informed about the issue. I urge Canadians to attend and support these activities wherever they may be in Canada.