Réginald Bélair

[Department Of Health Act, November 6th, 1995]

Madam Speaker, I thank the hon. member for Mackenzie for giving the government a chance to respond to this matter because it is a very important subject.

First it is a matter of taking stock. Public Works and Government Services Canada concluded a contract with Fuller Construction, the principal contractor in the Peace Tower restoration project. Therefore, this department must ensure the quality of the work being done on the Peace Tower and that the work done by Fuller Construction, the general contractor, meets very high standards.

The issue raised by the member for Mackenzie concerns a dispute between two subcontractors working on the project, Pro-Tech Building Restoration and Colonial Building Restoration. The dispute, based on the non-payment of wages and harassment, has resulted in Pro-Tech being removed from the job by Colonial. An employee of Pro-Tech, Ms. Ann Raney, has made allegations of gender discrimination.

In this matter, the government has a contractual link with Fuller Construction only, whereas the dispute involves the two subcontractors: Pro-Tech and Colonial. Public Works therefore has no direct involvement with the subcontractors working on the project.

However, the contract with Fuller Construction, like any other major work contract, includes an anti-discrimination clause. As I said before, Public Works Canada's contract specifications do not permit discrimination in hiring in the workplace.

As the general contractor, Fuller is responsible for settling this dispute.

I am pleased to inform the House that progress is being made and that the general contractor has taken steps to ensure that a solution is reached in the very near future. Both parties have agreed in principle to resolve the alleged discrimination issue through a third party independent arbitrator. Until the issue is resolved, the party alleged to have harassed has been removed from the job by Fuller.

The member for Mackenzie also raised the question about ownership of the tools. I would like to take this opportunity to set the record straight. On August 18, 1995, tools worth $5,000 were taken from the site. These tools remain in the hands of the Ottawa-Carleton police.

I would like to assure members of the House that complaints of the nature raised by Ms. Raney are taken very seriously by the minister of public works. His department does not tolerate harassment or discrimination.

[National Housing Act, November 3rd, 1995]

Mr. Speaker, I rise again to tell the Canadian audience that the speech made by the hon. member for North Vancouver was somewhat wrong. First, I wonder if he has read the bill and second, I do not know why he disagreed so strongly with the fact that this is a cost revenue neutral program.

As a matter of fact, the Government of Canada made money in 1994. The mortgage insurance fund gave $55 million back to the treasury. It is beyond my wildest imagination why members of the Reform Party would so strongly object to this bill.

My colleague from Bruce-Grey made an eloquent speech. It was obvious that he had read and understood the thrust of the bill which says essentially that $50 billion in liability will be added to the $100 billion that the Government of Canada already has to provide those Canadians with low incomes the backing to be able to own their own homes. This is extremely important because in many cases a 25 per cent requirement for a down payment is not there. They simply do not have the revenue. However, if they have 5 per cent or 10 per cent, the Government of Canada comes in and guarantees their loan with any bank in Canada.

I would like to ask my colleague from Bruce-Grey how important is this initiative for those Canadians who would not otherwise have the opportunity to buy their dream home?

[National Housing Act, November 3rd, 1995]

Mr. Speaker, I rise to move that Bill C-108, an act to amend the National Housing Act, be read a second time and referred to committee.

This is an administrative bill whose purpose is to increase the ceiling of mortgage loan insurance under the National Housing Act. This will enable CMHC to continue underwriting home mortgage loan insurance within the legislative limit. Bill C-108 will increase the existing limit on outstanding loan insurance from the current $100 billion to $150 billion. The bill also includes a provision to increase the ceiling further through appropriation in the future.

Members of the House should know that CMHC loan insurance is self-financing and self-sustaining and does not cost the government anything. The mortgage insurance fund is regularly evaluated according to rigorous insurance principles and is fully adequate to cover all insured losses as well as overhead.

While the amendments contained in this bill represent administrative matters, passage of this bill is essential to the continued operation of CMHC's Mortgage Loan Insurance. Allow me to take a minute to explain why this bill is important to Canadians.

The desire to own a home remains very strong among Canadians. Yet many people who can afford the monthly mortgage payments are still unable to access home ownership because they find it difficult to save for a down payment for a conventional loan.

With mortgage loan insurance, home buyers can secure up to 95 per cent financing with a lender because CMHC insures the mortgage.

Because CMHC assumes the risk of borrowers defaulting, mortgage lenders are able to supply more mortgages to Canadians. By reducing the down payment required to purchase a home, the Mortgage Loan Insurance Program makes home ownership more accessible to moderate income households.

It is a vital component of ensuring that all Canadians, regardless of where they live, have equal access to mortgage funds needed to acquire decent, affordable housing.

Let me give you an idea of the extent to which Canadians depend on mortgage loan insurance in order to fulfil their dream of owning a home. Mortgage loan insurance has allowed many people to become homeowners, some who would not otherwise have been able to buy, others who would have been able to make their purchase sooner because of the lower down payment.

In 1994 alone, CMHC mortgage loan insurance helped to house over 300,000 Canadian families at no cost to the government.

My colleagues will also be interested to learn that this means that approximately 40 per cent of the residential mortgage stock in Canada has involved financing by CMHC mortgage insurance last year. Without mortgage loan insurance, Canadians who do not have a 25 per cent down payment would generally never have access to home ownership.

CMHC Mortgage Loan Insurance has demonstrated the flexibility to facilitate innovation in housing finance. This is a critical feature, given that the needs of mortgage borrowers, and the market within which these needs are met, are constantly evolving. In 1987, the program was improved to allow for the insuring of second mortgages, an innovation that has been particularly helpful to people who need additional money for renovation.

In the following year, the chattel loan insurance program was introduced as a five-year experiment to cover loans made on mobile homes and to help people who choose this kind of affordable home ownership. This coverage for mobile homes has now been made a regular part of the mortgage insurance program as per the announcement made by the the minister responsible for CMHC at the beginning of this year.

In 1992 the mortgage insurance program was expanded to accommodate the reduced down payment for first time home buyers making home ownership even more accessible to moderate income households.

This program, called First Home Loan Insurance, has provided Canadians with their entry point to home ownership. May I reiterate to my hon. colleagues that the success of this initiative has been achieved without any cost to the government.

We want to ensure that CHMC can continue to provide that kind of market support in the future. That is why this legislation is before the House today. CHMC is continually reviewing the Mortgage Loan Insurance Program and regularly introduces changes to make it more effective and more convenient for both approved lenders and home buyers.

By exploring new housing finance options for Canadians we are looking to promote greater choices, lower the costs, increase the accessibility of housing finance and assist borrowers to meet their financing needs within their own resources.

CHMC will continue to encourage innovation and creativity in housing finance through the Mortgage Insurance Fund to promote greater access to housing markets for the benefit of all Canadians.

Besides helping Canadians to become homeowners, CMHC mortgage insurance has been key to the health of the housing industry in Canada. By fully protecting approved lenders against default on the part of the borrower, mortgage insurance encourages investment in residential construction.

The federal government, through CMHC, has been providing national mortgage insurance for four decades. CMHC has remained a significant player throughout this time with a mandate from the federal government to provide mortgage insurance to support loans to all Canadian home buyers regardless of where they live in Canada at the smallest feasible down payment and the lowest feasible cost.

Today, the private housing market is able to meet the housing needs of the vast majority of Canadian households. There is no doubt that CHMC's Mortgage Loan Insurance has played a critical role in that achievement. CHMC's Mortgage Insurance Program experienced a record year in 1994 in terms of volume. A number of unexpected factors led to the significant increases in activity last year. Mortgage rates dropped to their lowest levels in 30 years, much lower than anticipated. Low inflation has kept house prices stable and more affordable.

As well, the rapid and continued success of housing stimulation policies, including the First Home Loan Insurance Program and the RRSP Home Buyers' Plan, contributed to record volumes of insurance activity last year.

When the Mortgage Insurance Company of Canada stopped underwriting new mortgage insurance business in April 1993, CMHC had to assume 100 per cent of residential mortgage insurance activity. Furthermore, a greater proportion of all mortgages have been insured by CMHC in recent years.

In 1994, CMHC insured 40 per cent of all residential mortgages initiated, up from 22 per cent in 1991. Because there is some lag time between insurance loans and receiving the reports from the approved lenders, it was only in 1995 that all the figures for 1994 were compiled. At that time it was realized that the $100 billion maximum aggregate loan insurance currently stipulated in the National Housing Act had been exceeded. For this reason the provisions of this bill are effective starting 1994. I hope members of the House will see fit to give swift passage to Bill C-108 so that CMHC can continue to promote access to home ownership through mortgage loan insurance.

As I have stated and as my colleagues are aware, the purpose of the bill is to increase the maximum aggregate mortgage loan insurance. This will enable CMHC to continue underwriting home mortgage loan insurance within the legislative limit. Considering the housing sector's importance to the well-being of the nation, CMHC is committed to a stable supply of housing that increases economic and social opportunities for all Canadians.

With CMHC's mortgage loan insurance program qualifying home buyers anywhere in Canada can secure up to 95 per cent of home financing with an approved lender. Mortgage insurance through CMHC also provides a means of introducing guarantees for innovative mortgage products to benefit consumers, for example mortgage backed securities which increase the pool of funds available for mortgages and competitive rates.

The corporation continues to develop new initiatives and adapt existing ones to meet the challenges of housing Canadians adequately into the new millennium. Among the new initiatives being examined are alternative financing mechanisms for homes such as reverse annuity mortgages and shared equity financing.

CMHC has a role to play in helping Canadians to access decent affordable housing. CMHC continues to provide social housing assistance to support more than 661,000 existing units that house over one million low income Canadians whose housing needs cannot be met through the housing market. This housing assists some of the most disadvantaged members of our society including seniors on fixed incomes, aboriginal people, persons with disabilities, single parent led families, social assistance recipients and the working poor.

To solve today's housing problems and define tomorrow's housing needs CMHC is involved in research and development both independently and with industry and government partners. CMHC's research into sustainable development, quality of life, housing technology and building science promotes good living environments that are safe, healthy and sustainable. As well CMHC is helping the Canadian housing industry to promote the Canadian housing system abroad by helping to develop housing export strategies to assist the Canadian housing industry to market Canadian housing technology, products and services in world markets.

Through its Mortgage Loan Insurance Program, CHMC continues to make housing more accessible for Canadians. The Corporation is also working to improve housing affordability.

The federal government through CHMC is committed to a stable supply of affordable and accessible housing that increases economic opportunities for all Canadians. CHMC's market housing programs promote affordable housing and equal access to financing through financial instruments such as mortgage loan insurance.

Moreover, CMHC provides mortgage insurance to all Canadians regardless of where they live in Canada at the smallest feasible down payment and at lower cost. To improve access to an affordable form of housing CMHC also provides mortgage insurance for manufactured housing, for example mobile homes. In January 1995 the minister of public works recently announced an expanded chattel loan interest program that includes resale of manufactured housing units.

CMHC also helps to ensure Canadians are well housed by pursuing and encouraging housing innovation and by developing national housing policies in concert with provincial and territorial partners, the housing industry and non-profit groups.

One important way CMHC levers the efforts of its partners in Canada's housing sector is CMHC's Canadian Centre for Public-Private Partnership in Housing. The Centre acts as a catalyst and a source of expert advice.

It brings together the public and private sectors, non-profit organizations and private citizens to develop low to moderate income housing projects without the need for government subsidies.

CMHC is also contributing to making housing more affordable through better housing regulations. The affordability and choice today program funded by CMHC encourages regulatory innovation in municipalities across Canada. The ACT program encourages the housing industry and municipalities to work in partnership to improve housing affordability and choice. More than 80 ACT projects are developing a wide range of practical approaches to streamlining approval processes, developing new forms of affordable housing, facilitating infill and conversion, and adopting alternative development and building standards.

As I have said Bill C-108 is an administrative bill. As my colleagues know, the bill is crucial to ensuring that CMHC can continue to offer mortgage loan insurance to Canadians. Through its mortgage insurance activities CMHC has been responsible for helping many Canadians become homeowners and we want to ensure that it can continue to do that.

I would like to take a few minutes to talk about a complementary initiative, First Home Loan Insurance, introduced by CMHC in February 1992, to make home ownership even more accessible for first time home buyers. Earlier this year, the Hon. David Dingwall announced that the maximum eligible house prices for First Home Loan Insurance were increased in 30 communities across the country.

This initiative allows more first time homebuyers to purchase a home with a down payment of as little as five per cent. Anyone who buys or builds a home in Canada as their principal residence is eligible for the lower down payment, as long as they have not owned a home at any time during the last five years.

First home loan insurance was initially in effect for a two-year period but was extended for an additional five years until 1999.

The 5 per cent down initiative has been a major success in helping to increase home ownership in Canada. Thanks to the reduced down payment home ownership has moved from a dream to a reality for the many Canadians who can afford monthly

mortgage payments but are having trouble saving for the down payment.

The statistics speak for themselves. Since November 1993 over 210,000 Canadian households have taken advantage of the lower down payment to become the proud owners of either a new or existing home. In April 1994 a survey of Canadians who bought homes with less than 10 per cent down showed that 72 per cent of them would not have been able to purchase their homes when they did without the reduced down payment.

The first home loan insurance initiative is constantly being monitored to ensure that it continues to meet the needs of Canadians. CMHC is committed to helping Canadians who desire to own a home and have the proven financial management capability to do so.

First home loan insurance is an excellent example of CMHC's ability to adapt its mortgage loan insurance activity to ensure that Canadians can enjoy the benefits of home ownership.

Allow me to speak on the importance of Bill C-108 by describing an initiative of CMHC which has as its foundation the flexible use of the mortgage insurance fund. I am referring to the Canadian Centre for Public-Private Partnerships in Housing which I mentioned earlier. Allow me to take a moment to provide the House with some details about the important work being undertaken here.

The partnership centre was established by CMHC in 1991.

Its objective is to bridge the public and private sectors to facilitate the production of cost-effective and accessible housing for low to moderate income households, including those with special needs. The centre ventures into new areas through such means as innovative financing and tenure arrangements.

Much of the centre's activities are accomplished at the grassroot level with a view to encouraging a wide variety of people active in their community to become involved in newly created housing partnerships.

The partnership centre identifies opportunities and brings together potential partners to develop and implement public-private partnerships. It acts as a source of best advice by offering an advisory service to potential partners to identify the key legal, financial and regulatory issues that need to be considered in structuring a deal.

Since its inception the centre has ventured into innovative tenure arrangements such as occupancy rights, life leases, equity co-ops, as well as a home ownership equity partnership program. As at the end of June of this year the centre had facilitated the realization of 79 projects totalling in excess of 4,200 housing units.

Allow me to take a minute to outline a few innovative projects that have been made possible by CMHC's Canadian Centre for Public-Private Partnerships in Housing.

Vancouver's Khatsahlano Equity Housing Co-operative offers affordable housing for families. Equity co-operatives are ongoing housing co-ops that are financed entirely or partly from the investment of their members.

Traditionally aimed at seniors, they are now becoming an affordable housing alternative for a growing number of Canadians. This project demonstrates that it is possible to provide families with affordable housing options in a market where starter homes are very expensive.

Two non-profit groups in the province of Quebec, both dedicated to helping people with psychiatric and developmental handicaps, are buying and renovating houses and will run them as group homes. In Montreal, Centre de crise "Le Transit" is purchasing a house in a mixed residential downtown neighbourhood to accommodate eight adult residents referred to them by city-run and charitable social services agencies.

A similar project in Granby will house 12 residents in a triplex being purchased by L'Autre Versant Inc., a local non-profit group organized five years ago to provide homes for people with psychiatric and development handicaps. Both these projects are being made possible thanks to CMHC-insured mortgage loans supported by the Partnership Centre.

Clearly CMHC's partnership centre and its innovative uses of mortgage insurance are making great strides in increasing the supply of affordable housing for low to moderate income Canadians including those with special needs.

As I have stated before, Bill C-108 is an administrative bill to facilitate the continuation of mortgage loan insurance under the National Housing Act. As my colleagues well know, CMHC has an important role to play in helping Canadians gain access to home ownership.

CMHC's mortgage loan insurance with its mandate to provide equal access to Canadians throughout the country is important to achieving that goal.

CMHC has a unique role of ensuring equal access to Canadians throughout the country. This is one of the major factors that distinguishes CMHC's operation from mortgage loan insurance operations. Without CMHC's commitment to provide mortgage loan insurance in the small communities of the country, places that

private insurers have not traditionally wanted to serve, many Canadians might not be able to buy homes.

Let me illustrate how important CMHC loan insurance is to Canadians in small communities. Take for example CMHC loan insurance activity in the municipality of Brooks, Alberta, with a population of 10,000. In 1994, 137 households were able to access home ownership thanks to CMHC's mortgage loan insurance.

This year, as of September 30, 153 households became proud homeowners, again thanks to CMHC. Make no mistake about it, if CMHC were not in the mortgage loan insurance business these 290 families in Brooks, Alberta, might not have been able to buy their homes. I would further like to point out that these 290 households represent 83 per cent of the total number of 349 households who bought homes in Brooks, Alberta, during that period.

The government knows just how much Canadians value home ownership. It represents a major portion of wealth accumulated by households. For some it is a source of retirement income. It is also an important component of quality of life.

We believe that every Canadian should have access to home ownership. CMHC mortgage loan insurance can turn the dream of owning a home into a reality. It is therefore critical that CMHC be able to continue to provide mortgage loan insurance to Canadians now and in the future. This is why I support Bill C-108.

I hope my colleagues will see fit to give swift passage to this administrative bill so that CMHC can continue to help Canadians realize their dream of owning a home.

[Canada Post, November 1st, 1995]

Mr. Speaker, given the fact that the hon. member alluded to the Perez-Clermont affair, it should be mentioned again in this House that the matter is in court and it would not be advisable at all to comment on such a situation.

[Canada Post, November 1st, 1995]

Mr. Speaker, given the absence of the minister of public works who is also responsible for Canada Post, I will take this question under advisement and a written answer will be given.

[Excise Tax Act, October 31st, 1995]

Mr. Speaker, it is a pleasure for me to take part in this report stage debate.

Bill C-103 is one element in the longstanding policy supported by various governments in Ottawa. Governments long ago recognized the importance of the Canadian magazine industry and the affirmation of the Canadian personality. Allow me to take this opportunity to describe the background of the various measures put forward by the Canadian government in an effort to support the development of this major sector of our cultural industries.

The Canadian government has been concerned about the status and survival of the Canadian magazine industry almost since the beginning of the 20th century. Government's original concern was simply to ensure that Canadians had access to periodicals from around the world. It was a question of communication, in other words, the possibility for Canadians to have reasonable access to periodicals wherever they live.

Another major concern of the government, editorial content, came later. Initially, the aim of federal policy was to give Canadians an opportunity to enjoy and appreciate the arts, so the Canada Council was founded in 1957.

The emphasis was on the quality and quantity of the cultural product in Canada. There was no specific attempt to find out whether Canadian interests were involved in the creation or production of this product. There was no concern for culture in the broader sense, only for the arts. Since 1957, the Canada Council has supported periodicals of an artistic or scientific nature with subsidies, modest though they may be.

A third concern arose sometime before the Canada Council was created and has become increasingly important in the past 30 years. I am referring to the issue of Canadian content and Canadian cultural identity in the broader sense.

While we were concerned with promoting Canadian ownership and content, we realized that we must not close the door to foreign

periodicals. We simply must prevent them from gaining too many advantages on the periodicals market in terms of economic advantages arising from intensive production, distribution, access to capital, or a well established reputation among Canadian readers. The key to this policy is advertising and postal distribution.

Thanks to legislative measures implemented progressively pursuant to the recommendations of the 1961 Royal Commission on Publications, commonly known as the O'Leary commission, and the 1970 Special Senate Committee on Mass Media, magazines printed in other countries were prevented from entering Canada when they contained advertising directed specifically at the Canadian market. Canadian advertisers were thus encouraged to place ads in Canadian magazines.

I would like to elaborate on the role played by the O'Leary commission in identifying measures to promote the development of the Canadian periodical industry. In 1961, only 25 per cent of the magazines distributed in Canada were Canadian. It became imperative for the Canadian government to do something about this situation. This led to the appointment of the Royal Commission of Inquiry on Publications.

Following a long series of hearings and extensive research, the commission was able to assemble all the elements it needed to establish the status of the Canadian periodical industry in the early sixties. It was clear that the industry was facing serious problems and that the government had to act. Members of the commission found that between the two sole sources of magazine revenue, circulation and advertising, there was a durable and mutually beneficial symbiosis which they defined as follows, and I quote:

"Behind all this is an important spiralling action, fundamental to periodical publishing; the larger a periodical's circulation, the more advertising it can attract; the greater its advertising revenue, the more it can afford to spend on editorial content; the more it can spend on editorial content, the better its chances of obtaining more circulation."

It became clear that advertising revenue was essential to the Canadian periodical industry. Consequently, the government decided to do what was necessary to channel Canadian advertising revenue to Canadian periodicals. The development of a policy for this purpose was instrumental in creating a strong financial basis for the industry.

Section 19 of the Income Tax Act was adopted in 1965 and became one of the main tools for implementing the federal government's policy on magazine publishing. According to this section, only purchases of advertising aimed at the Canadian market and inserted in Canadian periodicals were tax deductible. This section also provided that to be eligible for the tax deduction, the taxpayer had to advertise in a magazine with at least 75 per cent Canadian ownership and a ratio of original editorial content of at least 80 per cent.

Second, the members of the Royal Commission on Publications recommended that foreign periodicals containing advertising intended for the Canadian market should be denied entry. Customs tariff code 9958 was created in 1965 pursuant to this recommendation. Since these measures were implemented, Canadian magazines have multiplied and diversified.

In 1959, before the introduction of these two measures, Canadian magazines represented 23.3 per cent of the magazines distributed in Canada. The proportion rose to 29.9 per cent in 1971 and 39.4 per cent in 1981. In 1992 Canadian magazines represented 67.6 per cent of the magazines distributed in Canada.

These mechanisms must now be updated in response to the advent of new technology in recent years. The electronic transmission of proof pages produced in other countries for printing and distribution in Canada was not envisaged when these policy instruments were designed in 1965.

The need to modernize government structural measures became particularly clear in January 1993 when Time Warner officially announced its intention to publish Sports Illustrated in Canada. In an effort to avoid the application of tariff code 9958, Time Warner chose to print Sports Illustrated in Canada using editorial material transmitted electronically from the United States. This situation demonstrated the existence of a loophole in our structural measures and the urgent need to update the Canadian policy on magazine publishing.

On March 26, 1993, the government announced the creation of a task force responsible for reviewing the various issues affecting the Canadian magazine industry, including its trends and evolution, the Canadian advertising market, the impact of technological progress, the international aspects, the regulations, and the effectiveness of current policy implementation measures.

The government wanted to ensure that the measures taken to promote the development of this industry were up to date and effective. These measures included Customs Tariff Code 9958 and section 19 of the Income Tax Act mentioned earlier.

Barely two weeks after announcing the creation of the task force, the government said that this task force on the Canadian magazine industry would have two joint chairmen and would be composed of volunteer experts representing Canadian magazine publishers, advertisers, consumers and the legal community.

The joint chairmen of the task force on the Canadian magazine industry, Patrick O'Callaghan, journalist and former editor at Southam Press, and Roger Tassé, former deputy minister of justice, carried out their mandate with the help of a group of seven volunteer consultants representing all regions of the country. They came from the advertising industry, consumer associations and the Canadian magazine industry; some even had some experience in international trade.

This review of the measures in place to help the Canadian magazine industry was aimed at proposing other measures that would enable the government to meet its political objective of making Canadian information and ideas accessible to Canadians through truly Canadian magazines.

In March 1994 when the task force on the Canadian magazine industry submitted its final report, the government again acknowledged the valuable contribution the Canadian magazine industry makes to our economy, our culture and our heritage. On December 22, 1994 the government announced its response to the recommendations contained in the final report of the task force on the Canadian magazine industry. The government indicated then that it would address all of the task force's recommendations, including the recommendation for a new excise tax on all split run magazines containing advertising directed at Canadians.

The government then stated that an excise tax would be imposed on each copy of a split run edition at the rate of 80 per cent of the value of all the advertisements contained in the edition. Periodicals that would otherwise be subject to the tax are exempted from the tax based on the number of split run editions that were distributed in Canada before March 26, 1993, when the creation of the task force was announced.

Finally, this bill demonstrates the federal government's continued commitment to promote the growth of a Canadian magazine industry that is viable, original and dynamic.

[Quebec, October 24th, 1995]

Mr. Speaker, Quebec is now one of the world's most modern and most industrialized societies. Quebec's expertise is widely recognized in a number of sectors and its products are increasingly sought after throughout the world. The people of Quebec enjoy a considerable standard of living, education is universal, and health care is one of the jewels in our crown.

The Quebec of today owes its success to the quality, ingenuity and determination of generation after generation of Quebecers. All of these accomplishments, all of this progress by Quebec, have taken place within the Canadian federation.

This coming October 30, Quebecers will refuse to compromise what it has taken them centuries to build. They will choose Canada; they will vote no.

[Mining Exploration And Development, October 4th, 1995]

Mr. Speaker, it is a pleasure for me to rise in the House tonight to speak on Motion M-292 which reads:

That, in the opinion of this House, the government should consider implementing a new program of mining incentives which would encourage exploration and development in Canada.

But before going any further, I would to state some very important facts, for the benefit of our viewers. First of all, Canada is the third largest mining country in the world, extracting about 60 metals and minerals, including zinc, uranium, potash and gold. The mining industry provides employment for approximately 335,000 Canadians in 150 communities. Mining companies in Northern Ontario have created 18,000 direct jobs in the metal industry and 5,000 in the non metallic minerals industry. I am very proud to say that the Williams mine, in Marathon, in the riding of Cochrane-Superior, is the largest gold mine in Canada.

There are however many barriers to the survival of the mining industry. First of all, mining exploration is a temporary land use that disrupts small areas for a very short time period. Once the mineral deposit is depleted, cleanup procedures are undertaken and land can be used for other purposes. Unfortunately, land use issues are fraught with uncertainty because of the development of new parks and native land claims, some of which are being negotiated as we speak.

The industry is facing new difficulties since countries like Chile, Argentina and Mexico are upgrading their economies and taking steps to attract mining exploration and, thus, investors.

In 1993, Canadian companies with budgets over $1 million invested nearly $260 million, or half their budgets, in exploration outside of Canada. This represents an increase over 1992, when these companies devoted 40 percent of their exploration budgets abroad.

Why is that? First of all, at the natural resources committee hearings last year, the Canadian mining industry had a lot to say about stringent environmental standards-that is the first problem-and the slow licensing process as well. The second problem is non-unionized labour in Latin America and Mexico. Because of this, wages are extremely low; also, the standard of living is lower in these countries than here. Investors enjoy a much higher return on their investments over there than in Canada.

Since the licensing and environmental assessment processes are under federal and provincial jurisdiction, they are characterized by duplication and delay. We need at least $900 million to $1 billion a year in exploration capital in Canada to rebuilt our ore reserves which have dropped dangerously.

We must bear in mind that, from 1990 to 1994, while 44 mines shut down operations in Canada, only 24 were opened.

If we want mining exploration to continue and to keep investors interested, there should be incentives from the government. We need a new program of mining incentives that will encourage exploration and development, encourage Canadian companies to keep investing in their country. That will permit the industry to help stabilize the economy and create employment.

Last year, as I mentioned a while ago, the committee for natural resources issued a report after its very long hearings. The report says:

Canada needs to remove existing structural impediments to the achievement of a sound mineral investment climate. These have been identified as: the tax burden on the industry, particularly the one imposed by non-profit taxes; the inefficiencies of the current environmental regulatory regime; and the uncertainty surrounding land use policies and security to mineral title.

Another recommendation coming from the report is that the government has to work with mining communities and the provincial governments to establish those crucial partnerships to work together to ensure that we have a viable mining industry in Canada.

There is a great need for the harmonization of environmental guidelines. As it is today, the federal government's guidelines

differ from those of many of the provinces. This simply adds complexity to opening new mines.

The mining companies are not asking for grants but they want a level playing field and a tax system that is truly competitive with the rest of the world. There should be security of land tenure and a certainty of continuity in the rules of the game in terms of issuing permits and doing environmental assessments.

After extensive hearings the Standing Committee on Natural Resources have recommended nine key points on mining incentives. These points were also present in the Whitehorse mining initiative report.

I would like to emphasize a few of those recommendations. First, change the adjusted cost base of flowthrough shares from zero to the actual costs of the shares for five years only, to kickstart mining exploration again.

Flowthrough shares would provide a less costly means of raising equity based financing for exploration and development by facilitating a widespread share issue. Flowthrough shares allow access to a broad range of investors while minimizing the impact on corporate management and control.

Second, there should also be harmonization in the federal and provincial environmental guidelines. Co-operation agreements should be established among the jurisdictions for the development, administration and enforcement of environmental standards to improve the efficiency and effectiveness of the regulatory system and to reduce unnecessary industry regulatory compliance costs.

A new mining project should be subject to only one timely environmental assessment by a single lead agency with only one set of recommendations that meet all the requirements. We should try to conciliate conserving the environment with the creation of employment.

Third, we should amend the Income Tax Act to defer taxation of income generated by mine reclamation trusts until the funds within these trusts are finally allocated for reclamation purposes. Reclamation funds should be treated also like RRSPs.

Therefore I support Motion No. 292 by my colleague from Timiskaming. I insist at the same time that we should provide a newer direction for our mining industry and ensure that it continues to make a strong contribution to the Canadian economy.

[Canada Post Corporation, September 22nd, 1995]

Mr. Speaker, the motion proposed by the member for Kamouraska-Rivière-du-Loup is rather strange. It reads:

That, in the opinion of this House, the government should ask Canada Post Corporation to integrate into its development plan a strategy promoting the local development of regions and municipalities in Quebec and Canada.

I say strange because Canada Post Corporation is already promoting the local development of regions and municipalities in Quebec and Canada. Canada Post is everywhere. For instance, there are now over 18,370 retail outlets where one can buy stamps and other products as well as postal services. In Quebec, there are 3,451 outlets. Over 75 per cent of these are presently owned by the private sector. Many of them are found in drugstores, convenience stores, etc. In fact, over 2,000 of these retail postal outlets are managed by small and medium businesses who gain not only from

the revenues generated, but also from the increased flow of clients in their stores.

For the information of the members, I want to briefly recall the historical background of Canada Post Corporation. Organized postal services in Canada began in 1693, when the government of New France paid Pedro da Silva to take some letters from Montreal to Quebec. In 1755, the government opened the first post office in Halifax. The development of postal services followed that of the transportation network. Postal communications are closely linked with the history of Canada. For 300 years, postal communications helped Canadians keep in touch with each other, reduced distances and thus promoted the exchange of information and distribution of goods.

Today Canada Post Corporation delivers 46 million pieces of mail each business day, which are processed through 23 major mail plants and several other facilities, to nearly 12.3 million addresses in Canada and forwards mail to virtually every country in the world. Clearly what we see is Canada Post contributing to a fundamental part of Canadian life.

In June of 1994 the Canada Post Corporation declared that the new corporation is in business to serve. This is no mere slogan. Canada Post has established it as a new way of life. It is a philosophy the corporation wants to permeate every decision it makes at every level. CPC is transforming itself from an operations based organization asking the customers to meet its requirements to one that will go the extra mile to satisfy customers and meet their needs.

This motion addresses development. The Canada Post Corporation knows a good deal about development. This past year CPC has focussed particular attention on improving and expanding its services to small business. It is aware of just how important small and medium size businesses are to the economic growth of the country. The central focus of its new approach is a program of services to business. It now has two business centres, one in Calgary and one in London. These are one stop resource centres, where customers can obtain a variety of information on postal products and services, and Canada Post staff can help businesses to expand by providing owners with a full range of communications and distribution solutions.

Another example of Canada Post Corporation's commitment to small and medium size business is the fact that it has made preferential rates available to small volume mailers-some members may be aware that special rates were, until very recently, reserved in theory for those with a heavy volume of mail. That is what I call development.

Canada Post is a dynamic commercial crown corporation which competes with the open market throughout Canada. Due to this dynamism, Canada Post's competitors, for example the Canadian Courier Association, have frequently charged Canada Post with unfair business practices. Why? It is simple: they cannot compete.

The allegations of cross subsidization are not true, and some recent media reports have even supported the association's proposal that a federal regulatory body be established to oversee the operations of Canada Post. However, hon. members should know that independent quasi-judicial bodies have examined the charges, and the charges of cross subsidization cannot be sustained, whether they are aimed at Canada Post's priority courier service or at the corporation's purchase of a controlling interest in Purolator courier.

The CCA has never produced any evidence to support its cross subsidization allegations. The Standing Committee on Government Operations, the Bureau of Competition Policy, and the National Transportation Agency have all examined the issue. They have never been substantiated. For example, with regard to Canada Post's purchase of Purolator courier, in which no public funding was involved, the director of the competition bureau concluded in November 1993 that "there are no grounds at this time to believe that cross subsidization has occurred or would occur post-merger with Purolator, which would likely result in a substantial lessening or prevention of competition in the marketplace".

The CCA claims Canada Post Corporation is in unfair competition with CCA members, through a monopoly on what it calls a considerable portion of its business. But it is more than one hundred years since Parliament enacted legislation assigning this exclusive privilege in order to guarantee all Canadians will pay the same prices to have a letter delivered within the country. Canada Post is in business to serve all Canadians and exclusive privilege is the only way Parliament could guarantee all citizens access to universal postal service from coast to coast.

The independent review concluded that Canada Post is not abusing that exclusive privilege. Is the CCA implying that Parliament erred when it gave a monopoly to this fundamental element of Canadian life?

Some may question Canada Post's ability to survive in the age of the information highway. The corporation is quite aware that the evolution of new communications technologies such as E-mail,

facsimile, data transmissions, and electronic funds transfers will impact the outlook of Canada Post's traditional mail services.

The postal service recognizes the move toward electronic transmission of information and it has developed a number of value added electronic services, which combined with an unmatched infrastructure will allow the corporation to provide all Canadians with the services they will need as Canada heads into the 21st century.

The corporation is no stranger to technological developments in the communications industry. Canada Post has been involved for years in electronic messaging and it continues to develop new services for the future.

The motion before the House today asks Canada Post Corporation to promote local development. I know of no better way to do this than through the literacy campaign. Canada Post works closely with literacy groups throughout Canada. It launched a reading game to encourage reading among school children. This game is now part of the curriculum in Newfoundland and New Brunswick, and in Winnipeg. It developed a series of videos to raise motivation and awareness.

The Canada Post Corporation does not need to further, through more regulations, a strategy promoting the local development of regions and municipalities in Quebec and Canada. Why not? It is is simple: it has already done so.

Canada Post recognizes that it plays an important role in the social and economic fabric of Canadian life. Although the member for Kamouraska-Rivière-du-Loup is well intentioned, I cannot support the motion that is before the House.

[Action Démocratique Du Québec, September 22nd, 1995]

Mr. Speaker, the leader of the Action démocratique du Québec must be starting to wonder what he is doing in Quebec's separatist coalition. In today's Le Soleil published in Quebec City, we read that half the executive of Mario Dumont's riding association intend to vote No in the next referendum.

Members of the association are deeply divided on the policies of their party, and some, including Rémi Dumont, and I quote, "are disappointed in the ADQ's decision to vote for sovereignty". Rémi Dumont added that he would work for the No side.

This development, which is astonishing to say the least, should remind the ADQ's young leader that the Quebecers who supported him in the last election may want more powers for Quebec, but they want those powers within a united Canada.