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Crucial Fact

  • His favourite word was asbestos.

Last in Parliament October 2015, as NDP MP for Winnipeg Centre (Manitoba)

Lost his last election, in 2015, with 28% of the vote.

Statements in the House

Supply June 6th, 2002

Madam Speaker, I thank the member for his question. My understanding is that the $408 million deals strictly with the mutual fund audit surpluses, but there are other factors involved with the equalization formula that compounded and added to that. The figure that is being used and the figure we see, even in yesterday's Winnipeg Free Press , is $710 million total.

It is true though that for the fiscal year 2000 the overpayment was $168 million above and beyond, but that has been repaid. As of March 2002 Manitoba had to come up with $168 million and give it back to the federal government.

Supply June 6th, 2002

Madam Speaker, I wish the hon. member would use what little time we have to deal with serious issues instead of frivolous questions like that.

What I was getting at and what I would like the government members to address is whether the deal that was being struck between the finance minister of Manitoba and the former federal finance minister will be honoured by the government and by the current Minister of Finance. That is the question I would like to put before the House. I do not wish to engage in some kind of back and forth match with the hon. parliamentary secretary, especially a meaningless debate that we seem to be having which serves no purpose.

I would like to deal with the state of the investigation of the years 1993 to 1997. The hon. parliamentary secretary seems to be knowledgeable with this file. Will he perhaps share with us some of the specifics of the investigation for that period? How is it going? Is the investigation finding gross overpayments? Will it constitute as much money as the years 1997 through 1999?

Supply June 6th, 2002

Madam Speaker, I do not know whether it is the hon. member's comments or the translation but his question did not mean anything to me. I cannot understand what he is saying. Who is they and who is we? I would have to ask what he is talking about?

Supply June 6th, 2002

Madam Speaker, I thank my friend, the NDP finance critic, for sharing some of his time with me. Coming from the province of Manitoba, I felt it very important that I speak to this motion because I believe that the overpayment issue of the mutual trust fund refunds affects my home province in a disproportionate way. In fact the impact is far greater given our financial structure and financial base than it is to some of the other provinces.

Manitobans are very apprehensive, given that a complicated set of negotiations with the former finance minister appears to be at risk. We almost resolved or felt we were getting close to resolving this complex and thorny issue until such time as the person we were negotiating with disappeared from the bargaining table to be replaced by a new finance minister.

Recent headlines give us cause for apprehension. For instance, it says in a recent newspaper that the finance minister sides with the PM on the repayment of provinces and that the Prime Minister took a hard line view that the provinces must repay the money. The former finance minister argued that it was a federal government mistake.

I do not think we are being paranoid when I say that people in my home province are apprehensive that the deal seems to have fallen off the rails. I was very pleased when our finance critic offered me the opportunity to share with the House some of the Manitoba point of view on this issue.

The figure that has been bandied about in other speeches is that the overpayment to Manitoba was roughly $408 million. The figure that we are dealing with is $710 million. For a province with the size of an economy like Manitoba, this has a huge impact in our ability to operate. Of the $3.3 billion, $710 million is the impact on my home province, which is 4% of the population and almost 30% of this debt.

I will back up a little to explain why this has a disproportionate impact on Manitoba. It is true that Manitoba is fortunate to have a robust financial service sector but this means that the federal error has had a greater effect on personal income taxes in Manitoba than any other province. The effect in Ontario is the largest in absolute terms but the largest in practical terms is in Manitoba. These mutual fund trust refunds in other provinces are much smaller and as a result they affect the income tax revenues of both provinces to a much smaller degree.

As I mentioned, the minister of finance for the province of Manitoba had a series of indepth meetings with the former minister of finance federally. What he brought to the attention of the former minister of finance was a similar precedent setting situation. In the late 1980s we had a similar situation arise regarding equalization issues with corporate income taxes.

In this case the refunds were properly netted from the income tax payments remitted to the provinces. However corporate income tax shares were skewed and the entitlements within the equalization program were distorted. Therefore, we had problems because taxes on the capital gains of the mutual trust fund corporations were being included in the province's tax base even though the taxes were also refunded to the companies. Everyone can see this is a serious and very similar problem.

In that example, the federal government took swift, corrective action by amending the equalization regulations and the regulatory change was made immediately and retroactively. In other words, the hon. Michael Wilson, the former federal minister of finance, noted that the failure to act would have created an unjustifiable anomaly within the equalization program. He acted swiftly and corrected it.

I have copies of the correspondence that went back and forth between the former minister of finance, Mr. Clayton Manness, in Manitoba and the former federal minister, Michael Wilson. That arrangement, as I say, was quite satisfactory. They saw the problem, identified it, dealt with it and resolved it.

I do not think the people of Manitoba were as concerned then as they are today. They feel they are not getting that same sort of co-operation or recognition of the impact on Manitoba. It would be of no benefit to anyone if we were to penalize Manitoba by retroactively going back to 1993 and demanding full payment on all these overpayments. Other speakers have pointed out that especially in today's surplus environment it is particularly wrong to be going after this money in such a seemingly aggressive way.

I would like to point out that the $710 million the government says that the province of Manitoba should pay back is equal to one month's surplus in the EI account. The EI fund is showing a surplus of $750 million a month. Less than one month's surplus of the EI account could forgive this terrible burden that Manitoba is carrying. In my riding of Winnipeg Centre $20 million a year is pulled out of the riding in EI claims that would have been allowed under the old rules but are not under the current rules. That is just one example of how we are in an era of unprecedented surpluses. It is a terrible time in federal-provincial relations to go aggressively after the provinces, especially provinces like Manitoba where the impact would be severe.

The principles previously agreed to during the negotiations with the two finance ministers to resolve the issue were that the settlement arrived at should be comprehensive and fair. Both parties were willing to concede that. The approach should be responsible, and that should go without saying. Also revenue stability must be addressed. These have been detailed in Manitoba's position paper and they have been reiterated in a letter of March 22 from the Manitoba minister of finance to the former federal minister of finance. We felt that we were making inroads along that route and that we could look forward to a satisfactory resolution.

Therefore I do not understand the shift in mindset on the federal government side. What happened in the changing of the guard? Why can we not count on a deal that we thought we had with the previous finance minister? We do not have to revisit the case. If we were close to a resolution that both the federal government and the provincial government was satisfied with, why then is that deal in jeopardy today?

I would ask that question of members of the other side. I hope, in speeches from the Liberal Party members, they can answer that question in a more specific way because I have not heard them address it in any positive way. I have heard platitudes about the glory of the equalization program of which we are all in favour. The transfer of funds and the equalization of standards of living around the country is the greatest single achievement of Canadian federalism. However that is not what we are here to discuss. The motion we have before us deals with a specific overpayment regarding these mutual trust refunds, especially as they pertain to the provinces that are so negatively impacted by that.

The other thing we need to mention is that the four provinces affected are not the only ones impacted. The corrections are still being reviewed and we do not know the total effect of this. However of the $3.3 billion we are dealing with today, 90% of that was accumulated during the years 1997, 1998 and 1999. The years 1993 to 1997 are still under study. We do not really know the full effect of this anomaly yet.

I would argue that any resolution that we come to to deal with the outstanding $3.3 billion should also apply to whatever is found in the detailed auditing of the 1993 to 1997 period because that could be equally as large and we could be faced with the same debate one year from now when that study is finished.

I would appeal to the members on the government side and I would appeal to the current Minister of Finance and the Prime Minister to revisit their notes from the negotiations that took place between the finance minister of Manitoba and the former federal finance minister and honour the principle of those negotiations and the agreements that were tentatively struck. The people of Manitoba deserve that sort of recognition. It is also within the capacity of the federal government to show that to the other provinces as well.

Canada Post Corporation Act June 5th, 2002

Madam Speaker, I am very pleased to be here once again to debate this important issue of providing rights to rural route mail couriers.

As was mentioned in previous speeches, I had a private member's bill that was virtually the same. It was debated in the last parliament. I was very optimistic at that time that the bill had support on all sides of the House but in the final vote, as some members may remember, the count was 114 against and 110 for; in other words, at that time we lost the vote by 4 votes. Two people voted the other way. We were very disappointed but we were committed not to let the issue drop.

In spite of what the member from Mississauga would have us believe, the issue is about the workers' rights, not about any one union trying to expand its membership.

Rural route mail couriers are the only group of workers in the country who are specifically barred from free collective bargaining. I should point out that free collective bargaining is a right and a freedom guaranteed to all Canadian workers under the Canada Labour Code, the Canadian Charter of Rights and Freedoms and all international conventions and covenants of all sizes, types and shapes. Therein lies the rub.

When the Canada Post Corporation Act was implemented in 1980, the corporation did not want these employees to be viewed as employees for the purposes of the Labour Relations Act so it put in a clause that would specifically bar this group of workers. It says that even though for all intents and purposes these people look, walk and act like employees, because in fact they are employees, from here on forward they will be considered independent contractors and therefore not subject to the Canada Labour Code.

That is simply not true. I have been in labour relations for much of my working life and there are a series of tests in law that one must meet to be considered an independent contractor. At best, these workers are dependent contractors, wholly dependent on one source for all of their earnings and income. What makes it completely unfair is that the Canada Labour Board ruled in their favour and said that they were wholly dependent and therefore employees. However because of that one clause, that one provision in the Canada Post Corporations Act, they could not avail themselves of all the rights that other workers enjoy.

It is a complete red herring to say that it is CUPW trying to expand its membership on an organizing drive because nothing in what the rural route mail couriers have said even mentions any specific union. They might form their own association but they do want the right to bargain collectively, and implicit with that right comes protection under the Canada Labour Code regarding strikes, lockouts and the use of arbitration and mediation. All those rights stem from the definition of being defined as an employee.

I worked very closely with the rural route mail couriers over the course of these many years. I opened up my office to them so that they could come to Ottawa and lobby on the Hill. They worked out of my office for two weeks while they came and visited members of parliament to try and explain to them the inherent unfairness of this. They are the only group of workers in the country who, for purely economic reasons, are barred from the right to organize, the right to bargain collectively and all the other rights that stem from that.

There is no justification for that other than economic. André Ouellet, the president of the Canada Post Corporation, has admitted that it was the corporation's motivation in 1980. At that time, the Canada Post Corporation was hundreds of millions of dollars in debt. I do not think its operating deficit was that much but it did have an accumulated debt of that much. It was simply trying to streamline its operations by not paying fair wages in rural Canada.

Fair wages benefit the whole community, whether it is a rural community or an urban community. No one can deny that it is unions that have elevated the standard of wages and working conditions to create the middle class which makes Canada great today.

Even the member from Mississauga grudgingly admitted that the unions had played a role in elevating the standards to the middle class, but yet we now have a disparity. We have a group of employees delivering mail in the city who are making, on average, $17 or $18 an hour, about $35,000 a year. It is not a fortune but it is a fair and living wage. However we have a group of employees in the country whose average take home pay, under the current contracting system, is less than the minimum wage paid to a McDonald's employee.

The current contracting system has been abused. The member from Saskatchewan, who spoke just prior to me, claimed that he knew of no abuse. Well many of the almost 7,000 rural route mail couriers on contract have come to me with graphic examples and illustrations showing how the contracting system has been abused, in that for the same contractors to keep their contracts they get a phone call from Canada Post telling them them that there is an awful lot of interest in their contracts and that for them to be guaranteed their routes they had better lower their bids a couple of bucks, and so it is jacked down again.

Those contractors have to pay for their own fuel, gas, insurance, car and all the other expenses that an independent business person would have to pay. They do not receive any benefits. They do not pay into a Canada pension plan, UI or worker's compensation and they receive no sick days, and it is all because they are not deemed to be employees for the purposes of the act . However, instead of their salaries going up with the cost of living and cost of inflation, they are being negotiated down. That is not a free tendering contract system. That is interference, dominance and abuse of power for Canada Post to call the people and tell them that if they want to keep their contracts they will have to take a little less.

When the Canada Post Corporation Act was first created over 20 years ago some of the rural route mail couriers were keeping their heads above water. However some of them are getting less now than they were then, for heaven's sake. Clearly the system has failed them. It is like it has been l throughout history. When a group of workers did not get to share in the benefits of this great nation, they were motivated to come together, to act collectively and to form their own association.

The rural route mail couriers have never said that if they were granted the right to organize and to bargain collectively that they would join the Canadian Union of Postal Workers. They may join the Canadian Autoworkers Union or form their own inhouse association for collective bargaining purposes. We do not know. It is a complete red herring to assume that it is just the Canadian Union of Postal Workers that is trying to expand its membership.

I thank the member for Chambly for raising this important issue on behalf of working people around Canada. It is at their request that we are keeping the issue alive. I am disappointed that the reason the vote on my bill lost was because of deliberate misinformation being spread by that side of the House. Everyone knew that we were only talking about rural route mail couriers being allowed to organize and bargain collectively. They took it to mean that all mail contractors would be included, in other words airline and trucking companies that had been contracted to carry mail on behalf of Canada Post.

That was never the purpose or the point and we had made that abundantly clear. However at the 11th hour, even though we had enough Liberal MPs willing to vote for us, especially those from rural Canada who knew the reality of rural route mail couriers, they were interfered with and misinformation was spread that it would have been a huge complicated thing that would involve trucking companies, shipping firms and airlines. That was nonsense and tripe.

All we are talking about is an issue of basic fairness to correct an historic injustice perpetrated by André Ouellet himself. We want the minister to intervene and to order and direct Canada Post Corporation to extend to rural route mail couriers the same rights and privileges that all Canadian workers enjoy and the protection of the Canada Labour Code. It is the very least we should be able to expect. It frustrates me that year after year goes by and we have yet to make this important step.

Aboriginal Affairs June 5th, 2002

Mr. Speaker, that is not much help to anyone involved.

I would like to ask a question of the Minister of Veterans Affairs. Thousands of first nations men and women voluntarily enlisted to serve their country in the second world war and the Korean conflict, but after the wars first nations veterans found that the benefits provided to the average Canadian soldier were not available to them. First nations veterans have been waiting for 50 years for justice on this issue.

Will the Minister of Veterans Affairs act immediately to remedy this historic injustice? Will he act now to give first nations veterans the equal recognition and compensation they so richly deserve?

Aboriginal Affairs June 5th, 2002

Mr. Speaker, it is very clear to everybody concerned that the first nations governance initiative has been an absolute disaster so far. Not only have relations between government and first nations been set back 50 years, Canadians may still see a long, hot summer of protests and demonstrations right across the country.

If the minister believes that the merits of his proposed bill are so strong, will he agree now to delay the introduction of the bill and spend the summer working with aboriginal leadership to develop legislation that really does meet the needs of aboriginal people?

Supply June 4th, 2002

Mr. Chairman, I would like to ask a question that merges two of the minister's portfolios. The government owns 68,000 buildings under public works, many of which are not energy efficient because of the time they were built. Would the minister commit to energy retrofitting more of those buildings to save operating costs, create jobs and reduce harmful greenhouse gas emissions? What sort of a schedule would he recommend to rehabilitate those energy wasteful buildings?

Supply June 4th, 2002

Mr. Chairman, moving from that, the issue of sole source contracting keeps coming up. Certainly the auditor general commented on that.

Under the current rules, sole sourcing is an exception to the competition process. It is acceptable, under government contract regulations, when there is a pressing emergency, when the contract is valued at less than $25,000, when it is not in the public interest to solicit bids or when only one person or firm is capable of doing the work.

When public works wants to sole source, it has to do an advance contract award notice. I believe it is called an ACAN. An ACAN is used to publicly advertise the government's intention to award a sole source contract. Given that it is only acceptable in emergencies or when the contract is $25,000 or less, in 1997 contracts over $25,000 totalled $3.9 billion and $1.34 billion of that was sole sourced. Clearly, more than 25% was sole sourced.

How does the department justify that? Is that still the current situation? Is there as much sole sourcing now as those rather dated statistics?

While I am at it, I have more specific questions. Of those, an examination was done in 1999 by the auditor general. Of a sample of 50 sole sourced contracts that were examined, 25% were neither adequately justified or linked to program objectives, 95% did not include an analysis of alternatives that were adequate to support the decision to contract and in 46% of the cases the statement of work and requirements, the expected performance and the outcome, the level of effort, the value and the costs were completely unclear. They were incomprehensible in fact.

It is a long question regarding the issue of sole sourcing. What is the current status? How much of the overall spending is sole sourced? Do we continue to be plagued by the problems that the auditor general identified in that practice?

Supply June 4th, 2002

Mr. Chairman, as I have a few minutes left, I will ask one more sponsorship related question.

Compass Communications is a Halifax firm owned by a Tony Blom, who was a Liberal strategist in the last election and the cousin of former provincial Grit party president, Gerry Blom. He seems to get all of the contracts in Manitoba.

Only twice since I have been a member of parliament has a Liberal cabinet minister allowed me to deliver money in my own riding. Usually that is done for me by neighbouring Liberals. Both sponsorship contracts were from communications-public works. Both times they were little rinky-dink cheques and both times they had to be administered from Halifax by Compass Communications. I could not understand that a lousy $50,000 contribution to a great big music festival had to be administered for a fee from Halifax.

Would the minister, as part of this new commitment to try to be more equitable regionally, not admit that if the money is to be delivered within Winnipeg we can find a Winnipeg communications company, that is, if he has not repatriated by then and delivered it himself?

We have skilled and talented people in the province of Manitoba, some who have communications skills as well. Would the minister make commitment to us that in the future we do not need to farm this out across the country?