Mr. Speaker, I will state at the outset that the government will not be supporting Bill S-211 but we want it to be completely understood that we do support and I support the need to reduce the human misery that results from gambling addiction.
However, we do disagree with the bill's approach of stripping the provinces and territories and their residents of their current ability to make local decisions locally.
We all want to end gambling addictions and its attendant economic misery, family hardship, employee theft and suicide. However, there is a very basic choice that Parliament must make, in light of Bill S-211, on the subject and, as we all know, when it comes to federal, provincial and territorial relations it is the delicate subject of decision-making relating to gambling and any other activity.
Will the federal government play big brother and take away the decision-making that the provinces and territories now have under the Criminal Code with respect to provincial government lottery schemes, or will local decision-making be left to the provinces and territories? It is as simple and yet as complex as that.
The general scheme in the gambling provisions of the Criminal Code is to prohibit all forms of gambling except those that are specifically permitted by the code. In 1969, Parliament expanded the legalized gambling provisions of the Criminal Code. A parliamentary joint committee had examined this topic, along with others, in the mid-1950s and recommended some expansion of legalized gambling.
By the time that Parliament was considering gambling amendments to the Criminal Code in the 1960s, some states in the U.S. had already amended their state constitutions, in some cases, in order to legalize a state lottery that could benefit the state economically. When Parliament amended the Criminal Code in 1969 to expand the forms of legalized gambling alongside the recommendations from joint committee reports of the 1950s, Canadian legislators of the day added permission for the provincial and federal governments to conduct a lottery scheme and permission for provincial government to license certain lottery schemes.
Later, in a 1976 federal-provincial-territorial agreement, Canada agreed not to use its permission to conduct a federal lottery scheme and the provinces agreed to make an annual payment to Canada that now amounts, in current dollars, to some $60 million.
In 1983, Parliament enacted permission for the federal government to conduct pool betting operations and provinces went to court arguing that these looked very much like lottery schemes that the federal government in 1976 had agreed not to pursue. The federal government, for its part, commenced litigation against certain provinces for operating schemes that it saw as illegal pool betting operations.
The litigation was resolved in 1985 with a new federal-provincial-territorial agreement that required the federal government to use its best efforts to place a bill before Parliament to remove from the Criminal Code the permission for the federal government to operate a lottery scheme. The provinces and territories agreed to pay to Canada $100 million to be used for the 1988 Calgary Olympics.
In 1985, a bill was tabled and passed that removed the permission in the Criminal Code for the federal government to operate a lottery scheme. It also clarified that a province or territory could itself operate a lottery scheme on or through a slot machine and a video lottery terminal, or VLT, a form of a slot machine, but a province or territory could no license to others to operate a lottery scheme on or through a slot machine.
The speed of play, games and internal computerization is essentially the same for what we traditionally think of as slot machines, which pay out by coin, and what we think of as VLTs, which pay out by a printout. Also, both traditional slot machines and VLTs meet the definition of a slot machine in subsection 198(3) of the Criminal Code:
...“slot machine” means any automatic machine or slot machine
(a) that is used or intended to be used for any purpose other than vending merchandise or services, or
(b) that is used or intended to be used for the purpose of vending merchandise or services if
(i) the result of one of any number of operations of the machine is a matter of chance or uncertainty to the operator,
(ii) as a result of a given number of successive operations by the operator the machine produces different results, or
(iii) on any operation of the machine it discharges or emits a slug or token, but does not include an automatic machine or slot machine that dispenses as prizes only one or more free games on that machine.
The premise of Bill S-211 is that Parliament should attack the problem of compulsive gambling by disqualifying, through an amendment to the Criminal Code, certain venues as sites for video lottery terminals that are operated by the provincial government.
Whether this would be a good idea or a bad idea is a matter for debate certainly, but what the government is saying is that we should maintain the existing Criminal Code approach that permits a provincial or territorial government to make that decision about where VLTs will be placed, if the province or territory chooses to operate any at all.
Bill S-211 would eliminate the possibility for provinces to place VLTs in locations other than racetracks or casinos. It is not just a matter of saying that Canada will pay any losses by provinces in moving provincial government VLTs from bars to racetracks and casinos. Clearly, this would affect federal-provincial-territorial relations even with provinces and territories that, to date, have chosen not to place VLTs in bars. None of the three territories place VLT terminals in bars and Ontario and British Columbia do not place VLT terminals in bars. Quebec, the Prairie provinces and the Atlantic provinces do place VLTs in bars which, of course, are age controlled premises that by law are not permitted to cater to minors.
Some Prairie provinces have held municipal referenda to remove VLTs from bars. They have respected those votes and removed VLTs from such establishments in those municipalities. A few years ago in New Brunswick there was a provincial referendum on whether to remove video lottery terminals from bars and the decision was to keep them. In fact, some Prairie and Atlantic provinces and Quebec have taken decisions to reduce or cap the number of VLTs that will be placed at bars in the province.
The choice that we have with this bill is to keep the jurisdiction for the video lottery schemes where it is currently with the provinces and territories or to take that back into the federal realm. The government's position is that we will leave that to the provinces and territories, which will allow for local decision making. Ultimately, residents of a province or territory are free to make their provincial or territorial government accountable for its decisions at the polls. Also, there is ample room for public debate on VLTs in the assemblies and legislatures of the provinces and territories.
As I just said, those debates and those referenda in some provinces and in individual municipalities are taking place, they have taken place and they will take place. It is at that level that individuals can have input into their own communities. There is no need for the federal government to change the existing provisions.
While advocates of Bill S-211 would prefer to do one stop shopping here in Parliament rather than to fight the battle in each province that places VLTs in bars, I am convinced that provincial and territorial governments and their residents should be left to determine what is appropriate in their local circumstances.
Therefore, I urge members of this House to vote against Bill S-211 and to leave provinces and territories the ability to make local decisions with respect to where they will place their provincial or territorial VLTs. We may disagree with the decision they take but that is for the province, the territory and, in some cases, the municipalities and their residents to determine.
This is an area that has been handed over to the provinces and we encourage residents to give input to their local province, territory, municipalities when these issues arise. It is the government's position to leave that local decision-making at the local level.