Debates of June 16th, 1995

Bovine Somatotropin

[Diane Marleau, Liberal, Minister of Health]

Mr. Speaker, BST is not approved for sale in Canada. That is a fact. It will only be approved if it is safe and efficacious and if it does what it purports to do.

When we speak of moratoriums, the voluntary moratorium was arrived at by the industry and Agriculture Canada in order to allow the committee to study the issue further. On health grounds, the product has not been approved. At this time we do not know if it will be approved. We must allow the work of Health Canada to go on.

Employment

[John O'Reilly, Liberal, Victoria—Haliburton, ON]

Mr. Speaker, my question concerns the social security overhaul.

Structural unemployment must be addressed by structural change. Can the minister explain how we will ensure that social programs lead to real jobs?

[Maurizio Bevilacqua, Liberal, Parliamentary Secretary to Minister of Human Resources Development]

Mr. Speaker, I would like to thank the hon. member for Victoria Haliburton for a very important question as our government deals with the transition from cyclical unemployment to structural unemployment.

One program that is very successful in our department is the self-employment assistance program, which has generated 34,000 jobs. The program helps people on social assistance and unemployment insurance to start up their own business. The multiplier effect of the program is 1.1 full time jobs; in other words, 68,000 jobs have been created. The budget for this program has also been increased by 62.1 per cent.

During this time when the Canadian economy is going through changes, it is very important that our government devote itself to programs that help people help themselves and create sustainable employment.

Bosnia

[Jack Frazer, Reform, Saanich—Gulf Islands, BC]

Mr. Speaker, the policy of the Canadian government toward the mission in Bosnia has been wavering and inconsistent since the beginning.

The Minister of National Defence rashly disbanded the airborne regiment but now needs its capabilities. It wants to be neutral in Bosnia but approved air strikes and may join a rapid reaction force.

In its heart, this government wants out of Bosnia but cannot make the tough decision. Will the minister agree that Canada has done its part in Bosnia and that it is time to leave, rather than sending more troops into an impossible situation?

[David Collenette, Liberal, Minister of National Defence and Minister of Veterans Affairs]

Mr. Speaker, the Prime Minister has said on a number of occasions, and all of us on this side agree, that the continued presence in the former Yugoslavia of the United Nations forces is perhaps the only way we can avert a very difficult situation and more lives being lost.

The Canadian government undertook to continue its engagement until next October. We fully intend to discharge that unless circumstances prevent us from doing otherwise.

I realize that at the moment it is very awkward, it is very difficult, and the situation is unacceptable, but we still believe this mandate can get back on track with the willingness of the parties to start talking to each other and start working toward a lasting settlement.

[Jack Frazer, Reform, Saanich—Gulf Islands, BC]

Mr. Speaker, while the Prime Minister and the G-7 leaders plead with the Bosnian Serbs and Muslims to play nice, the European peace envoy says: "At the moment there isn't a political process. At the moment we're heading towards war."

Will the Minister of National Defence categorically assure this House that the government will decline to participate in any rapid reaction force and announce its intention to withdraw Canadian troops as soon as possible?

[David Collenette, Liberal, Minister of National Defence and Minister of Veterans Affairs]

Mr. Speaker, we have had this question asked a number of times in the last couple of weeks and the answer has been the same. We are considering the question of the rapid reaction force and Canada's participation in it. We certainly believe that force should have been set up. Canada supported it at the NATO meeting a few weeks ago.

The Prime Minister will be reflecting on whether or not it is in not only the best interests of Canada but the best interests of the UN if we participate in that force, as to whether or not even a small contribution would make a difference. Also, we are concerned about further implicating ourselves in that particular crisis with larger numbers of people. We have 2,100 people in the conflict.

All of these things are being reflected upon. As for the peace process at the moment, it may be true that no formal negotiations are going on between the parties, but as was said last night on behalf of the G-7 leaders, and I think everyone in this House would share that sentiment, the parties must get back to the negotiating table. They must bargain, because that is the only way to resolve this very difficult problem.

Aerospace Industry

[Réal Ménard, Bloc, Hochelaga—Maisonneuve, QC]

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

Yesterday, the Minister of Industry stated here in the House that he intended to review DIPP next year. For the first time, the minister appeared open to the opposition's arguments that the ability of Canadian and Quebec companies in the defence and aerospace industry to develop technology must not be eroded.

Will the minister admit that we urgently need to re-establish DIPP budgets, in order to keep our aerospace industry as competitive as it currently is with foreign companies, which are heavily subsidized by their governments for the research and marketing of their products?

[John Manley, Liberal, Minister of Industry]

Mr. Speaker, I believe that the hon. member is very aware of my reluctance to subsidize private enterprise. I believe that the best economic strategy is to avoid subsidies. This is not only advisable here in Canada, but also for all of the world's governments.

I accept what he said, and I agree with him that indeed there are other countries which subsidize the aerospace industry. This is one of the issues that we have to take into consideration when reviewing DIPP. He will also understand that the government is obliged to take its fiscal framework into consideration. I am ready to work with him and the aerospace industry and other sectors which are developing new technologies to try to find a new way of making them competitive with other countries of the world.

[Réal Ménard, Bloc, Hochelaga—Maisonneuve, QC]

Mr. Speaker, my next question contains a solution for the minister, so I would ask him to give me his full attention.

Since the Quebec Minister of Industry is planning to put a program similar to the federal government's DIPP in place, will the minister commit to entering into an agreement with the Government of Quebec to put in place an overall conversion plan for the defence industry?

[John Manley, Liberal, Minister of Industry]

Mr. Speaker, firstly, I believe that the hon. member is also well aware that the federal government and the Government of Quebec already have an agreement on industrial projects and that we really work well together. Take Bell Helicopter for example. We found a way to stimulate the development of technology in high tech companies in the province of Quebec.

I would also note that today, despite the enthusiasm of my Quebec counterpart, Moody's has stated that it is aware of the problems the Government of Quebec is having with its budget. I think that it might be a good idea for Quebec to find a way to regain the international markets' confidence. To do this, they would have to do two things: one, concentrate on their budget problems, and two, finally reverse the loss of confidence caused by the separatist policy proposed by this party and the Government of Quebec.

Inflation

[Ray Speaker, Reform, Lethbridge]

Mr. Speaker, I want to advise the Liberal House leader that we are concerned about the Liberal budget. This morning we got the disturbing news that inflation has risen for the fifth consecutive month some 15-fold to 2.9 per cent. That is a concern.

The only sure way to fight rising inflation is to raise the interest rates. However, unless interest rates are lowered, and fast, Canada will likely go into a recession.

My question is for the minister of financial institutions. What is the government's priority at this time, to contain inflation and thereby risk a recession, or to stimulate the economy and thereby risk runaway inflation?

[Doug Peters, Liberal, Secretary of State (International Financial Institutions)]

Mr. Speaker, fortunately there are more than two choices.

I think the hon. member should analyse the inflation numbers a little better. The 2.9 per cent is well within our target range of inflation. If he looks at the recent history of the Bank of Canada he will find that interest rates have fallen recently and that those numbers are well below budget projections.

I would also like to remind the hon. member that if we are going to have continuing inflation in the country it has to be pressured by wages. The wage increases in the country have been very subdued, very low, which indicates that future inflation will not be out of hand but rather will be very low as well.

[Ray Speaker, Reform, Lethbridge]

Mr. Speaker, the minister well knows that inflation is now hitting the top of the government's target. It is not within the range, it is hitting the top. It is time for the government to be concerned.

I would like to ask the minister for financial institutions this question. The Government of Ontario has decided to lower its

revenue projections by some $2 billion because of the slowdown in economic growth. What is the government doing within the federal Liberal budget at this time to adjust to the slowdown in economic growth?

[Doug Peters, Liberal, Secretary of State (International Financial Institutions)]

Mr. Speaker, I am very pleased to answer the hon. member's question.

Our budget projections were based on very prudent economic assumptions. They were also based on the holding of some reserves. Our budget projections are well within reason.

With interest rates being substantially lower than our budget projections it seems much more likely we will come in with a better budget deficit rather than a higher one.

The Environment

[Bonnie Brown, Liberal, Oakville—Milton, ON]

Mr. Speaker, my question is for the Parliamentary Secretary to the Minister of the Environment.

Last week was environment week and we asked Canadians as individuals and in business to focus on the environment and to assist with its clean up. Canadians expect us to lead by example.

What is our minister doing to clean up the operations of our own government?

[Clifford Lincoln, Liberal, Parliamentary Secretary to Deputy Prime Minister and Minister of the Environment]

Mr. Speaker, the government is moving in four key areas in response to red book commitments.

It is creating the post of commissioner of the environment and sustainable development through Bill C-83, which is going through the House now, which will enable the commissioner to monitor sustainable development strategies on behalf of all the ministries.

The government has proclaimed the Canadian Environmental Assessment Act, making all department projects subject to assessment. The ministers of finance and the environment created a task force on economic instruments whose recommendations will be looked at with regard to the 1996 budget.

All the various departments of government are now trying to green their operations. Through the building initiatives of Natural Resources Canada we are now retrofitting buildings for energy savings, giving huge savings in addition to benefiting the environment. In the inland centre in Burlington we are to save $590,000 a year in addition to protecting the environment.

Voisey Bay

[André Caron, Bloc, Jonquière, QC]

Mr. Speaker, my question is directed to the Minister of Indian Affairs. The Voisey Bay deposit in Labrador, which promises to be one of the richest in Canada and more important for Newfoundland than the Hibernia Project, is located on lands claimed by the Innu. The federal government and the Government of Newfoundland suspended negotiations on land claims during the very month the deposit was discovered.

Can the minister give the Innu guarantees that the federal government will do everything in its power to settle the land claims before the start of mining operations in Voisey Bay?

[Ron Irwin, Liberal, Minister of Indian Affairs and Northern Development]

Mr. Speaker, about three weeks ago I met with Premier Wells in St. John's. This was the main topic of discussion. The premier wants to have the negotiations ongoing. What is being done there is important not only for the Government of Newfoundland but for Newfoundlanders as a whole, including aboriginal people.

This is ongoing; it will be done. It is tremendous for both aboriginal and non-aboriginal people of Newfoundland and Labrador that they have found such resources at Voisey Bay.

Indian Affairs

[John Duncan, Reform, North Island—Powell River, BC]

Mr. Speaker, press reports in B.C. are saying the predictable thing: British Columbians should expect a long, hot summer of blockades, quoting Shuswap band leader Ken Dennis.

Mr. Dennis says blockades will continue because they work-surprise, surprise. Now we have professional consultants, advisers and participants for roving native blockades.

Can the minister assure British Columbians he will commit to consistently involving himself in these disputes rather than passing the buck to the province?

[Ron Irwin, Liberal, Minister of Indian Affairs and Northern Development]

Mr. Speaker, a rare thing has happened in the House which all members now see. Where do we get the blockades? In B.C. where there are so many Reform members.

The hon. member today talked about trust and speaking for all Canadians, not just a privileged few. It is about time Reform takes some of its own advice.

Cuba

[Bill Graham, Liberal, Rosedale, ON]

Mr. Speaker, my question is for the Minister for International Trade.

Senator Jessie Helms and others in the United States continue to attack Canadians for carrying on perfectly legitimate business activities in Cuba. They threaten actions that violate basic principles of international law, undermine trading rules they have argued for and act as if they have the right to dictate conduct to all countries in the western hemisphere.

What is the government doing to tell the American government it does not decide where Canadians go, what we do and that our perfectly legitimate business activities are our concern and not its?

[Mac Harb, Liberal, Parliamentary Secretary to Minister for International Trade]

Mr. Speaker, I agree with the statement of my colleague.

The government is already on record as communicating with the American administration our opposition to the Helms bill. We will continue through the proper channels both through the World Trade Organization and through NAFTA to deal with this issue. It is our hope that whatever resolution will come out of it will be in the best interests of Canadian businesses.

The American administration is already on record as having some concerns with reference to the Helms legislation. That is very encouraging. It is our hope this bill will go down the tubes.

Presence In The Gallery

[The Speaker]

I wish to draw to the attention of members the presence in the gallery of Mr. Anthony Nelson, Economic Secretary to Her Majesty's Treasury from the United Kingdom.

[Some hon. members]

Hear, hear.