Ralph Goodale

[Devco, November 15th, 1999]

Mr. Speaker, what I explicitly said was as a result of the roof falls which have created a very serious safety situation in the mines, naturally we would review all aspects of the previously existing human resources package in the context of fairness, in the context of the precedents that exist on both sides of the equation and in the context of fiscal responsibility. I put that on the record in the House earlier today.

[Devco, November 15th, 1999]

Mr. Speaker, what the people of Cape Breton need is the financial support that is being provided by the Government of Canada and serious and conscientious ideas about how to develop a better future on the island. What they do not need are the histrionics and hyperbole of a desperate political leader.

[Devco, November 15th, 1999]

Mr. Speaker, the government is not. When we examine the record stretching back to 1967, the Government of Canada has invested over $2 billion in the operations of Devco, either on the coal mining side or on the industrial development side.

In the course of immediate circumstances we are providing a human resources package, an economic development package, all of that in addition to what would normally be done by agencies like ACOA and ECBC.

The Government of Canada has a longstanding commitment to the people of Cape Breton and that will carry on.

[Cape Breton Development Corporation Divestiture Authorization And Dissolution Act, November 15th, 1999]

moved that Bill C-11, an act to authorize the divestiture of the assets of, and to dissolve, the Cape Breton Development Corporation, to amend the Cape Breton Development Corporation Act and to make consequential amendments to other acts, be read the second time and referred to a committee.

Mr. Speaker, the legislation which is now coming before the House for debate, Bill C-11, is an important component in the reshaping of the coal mining industry on Cape Breton Island. I hope that all hon. members will be able to give this legislation their prompt and favourable attention.

The bill is quite simple. It provides the legal authority for the Cape Breton Development Corporation, otherwise known as Devco, to sell all or substantially all of its assets consistent with a privatization plan recommended by Devco's board of directors and agreed to by the Government of Canada in January of this year.

Timely passage of this bill will allow us to proceed as quickly as possible to secure a purchaser for Devco's assets and to finalize a transaction which can help lift some of the clouds of uncertainty about the future of coal mining on Cape Breton Island and confirm the maintenance of good solid private sector jobs.

Let me put this bill into context. For some 300 years coal mining has been an integral dimension of Cape Breton's existence. It is ingrained not only in the island's economy, but also in its heritage, its culture and its very way of life. For the past three decades, since 1967, Devco, as a federal crown corporation, has been the principal instrument by which mining activity has been undertaken. There are strong historic bonds between the corporation and Cape Bretoners which cannot be taken lightly and which must be treated respectfully.

Any accurate reading of the present day realities and future possibilities would indicate that a turning point has indeed been reached. The time has come for some fundamental change.

It is instructive to note that as far back as the Donald Commission of 1966, in a report entitled “The Cape Breton Coal Problem”, a recommendation was made to phase out coal mining on Cape Breton and shift the local economy to other more viable alternatives. Devco was created as a result of that particular report. Its mandate was to discontinue uneconomic coal mines while providing other employment outside the coal industry and diversifying Cape Breton's economic base.

Since 1967, as a Devco shareholder, the Government of Canada has invested approximately $1.6 billion in keeping the corporation's coal mining operations afloat. The federal treasury has also provided more than $500 million over that same time period for economic development initiatives beyond coal, first through Devco's industrial development division and after 1998 through the then newly established Enterprise Cape Breton Corporation, known as ECBC. Everyone would agree that this is a great deal of money, particularly the operating subsidies for Devco.

Beginning in the early 1990s, shortly after the economic development mandate was shifted from Devco to the ECBC, successive federal ministers in successive governments established target dates by which Devco was to have implemented business plans to attain commercial viability in its coal operations without the need for ongoing subsidization. Most recently, in 1996 my immediate predecessor fixed 1999 as such a target date and provided Devco with a federal loan of some $69 million to be drawn upon over that three year period while commercial viability was being achieved.

The board of directors, the management and the employees laboured mightily toward that important goal. However, unfortunately, by late 1998 it became evident that the goal was simply unattainable. Chronic geological problems, productivity levels that were below industry standards, quality considerations, uncompetitive costs and pricing led the board of directors to some serious and unavoidable conclusions.

They requested that their 1996 loan obligations of $69 million be forgiven, plus they identified a further requirement of some $81 million to keep Devco functioning through the year 2000. The board of directors recommended that when the specific mining operations then under way in Devco's Phalen mine were completed in about 15 to 24 months' time, Phalen should be closed. They also recommended that a private sector buyer should be sought to purchase all of Devco's remaining assets, that being the best and most realistic way to sustain as many coal mining jobs as possible, estimated at perhaps up to 500 jobs, in a commercially viable operation.

The board of directors further recommended a human resources compensation package for those employees, estimated at approximately 1,000, who would not likely find work with a new private owner. That package, including early retirement incentives for about one-third of the affected employees and severance and training arrangements for the other two-thirds, was costed at approximately $111 million. The package is fully consistent with the requirements of the collective agreements between Devco and its unions, and in some respects it exceeds those requirements.

The Government of Canada accepted those recommendations from the Devco board of directors and it added a further initiative, an incremental $68 million in a fund to further promote economic adjustment and development on Cape Breton in addition to what would normally be undertaken by either the ECBC or the Atlantic Canada Opportunities Agency, or the federal department of Human Resources Development Canada or any other federal department or agency. I announced all of these decisions last January.

Since that time there has been a number of further developments, some of them good and some of them bad. On the good side, the Government of Nova Scotia has come forward with an incremental $12 million to add to the economic development funding, bringing the available total for economic development now to $80 million.

As requested by Cape Bretoners, local consultations have been undertaken to obtain the very best possible local advice about how to use that new funding. Everyone wants wise decisions to be made to achieve sustainable, long term economic diversification and growth. Community groups, the clergy, labour organizations, industry and business representatives, local authorities, academics and private citizens have been putting forward some very creative and innovative ideas to reshape and reinvigorate the local economy.

The panel that was assigned to conduct these consultations with Cape Bretoners is now preparing its summary report of what it heard. Federal and provincial officials will use that information as the basis upon which to design an economic investment strategy for Cape Breton. The initial elements of that strategy should be operational during the first quarter of the year 2000.

Also on the positive side, Devco has engaged the firm of Nesbitt Burns to serve as its financial adviser and to see out potential purchasers of Devco's assets. The assets for sale include the Phalen and Prince collieries, the Donkin Mine site, the corporation's coal pier and railway, its coal preparation plant and related mine infrastructure. Private sector expressions of interest are expected in December.

The legislation now before us is the key to moving that process forward. The future hinges in large part upon that process being successful, and of course Devco and the Government of Canada will be most interested in a buyer who will make the most tangible and long term commitment to Cape Breton.

On the negative side of the equation, since our announcement last January Phalen Mine has experienced two very serious roof falls which have raised questions about human safety. The board of directors consequently took the position, and I think everyone agrees rightly so, that for safety reasons first and foremost Phalen had to be closed now, not sometime in the latter part of next year which had been the original expectation last January.

This early closure precipitated by very serious safety considerations punched a $70 million hole in Devco's business plan due to lower revenues on the one hand and higher expenses on the other. It also raised questions in the minds of those employees who based upon our January announcements were expecting certain specific benefits at a certain time under the human resources package, all predicated upon Phalen being in operation about a year longer than that which has turned out to be the case.

I am pleased to confirm that we have successfully reprofiled the timing of some of the funding that we announced last January. We have also increased that funding by another $70 million. This will allow us to sustain the corporation through the current fiscal year, that is to April 30, 2000, and to ensure the human resources benefits remain intact as originally expected.

We have of course received many representations calling for that original human resources package to be revised. On this point I do not want to raise any expectations because any room to manoeuvre on this point financially is very limited.

However, because of the new and unexpected situation created by the roof falls and consequently the early closure of Phalen, the human resources package is being assessed in the context of fairness among different groups of employees, relevant precedents, both those from the past and those that might be anticipated in the future, and overall fiscal responsibility. If any adjustments are made in the overall package, I would expect them to be relatively modest.

Returning explicitly to the privatization process and Bill C-11, it is important to note that the bill is not only required to complete any potential sale of assets. It is also an integral and key element in the whole privatization process. It sends a clear signal of serious intent. It will help to bring prospective buyers to the table and keep them there, leading hopefully to an early and successful conclusion.

Beyond providing the legally required sale authority, the bill creates no new ministerial powers and no delegated authorities. It maintains what is called the general advantage of Canada clause which will ensure that the Canada Labour Code will continue to apply, a point that is important to Devco's unions and employees. That is in the bill.

Also there are the usual provisions about the continuation of previously existing legal proceedings. For example, the United Mineworkers Union has initiated a grievance proceeding under subsection 17(4) of the existing Devco Act. While the new bill would eliminate that particular section, it would not affect the outstanding grievance because that grievance was started while the previous provision was in the law so the rights that existed under that particular provision are continued.

During our consultations the province, the Cape Breton community and Devco's workers asked that the proceeds from any sale of Devco's assets remain in Cape Breton. Subclause 2(2) of the new bill will ensure that happens.

Devco will also continue to be accountable to the government. The terms and conditions of any proposed sale of Devco's assets must be approved by the Government of Canada. After the sale the current Devco board of directors will remain in place to ensure that all other obligations are properly looked after.

The Financial Administration Act also ensures accountability with respect to how Devco uses the proceeds. It must as a crown corporation operate within an approved business plan, summaries of which are tabled in the House.

The changes I have outlined are contained in the first five clauses of Bill C-11. The consequential amendments that follow in the remainder of the bill remove various provisions that are no longer applicable or would no longer be necessary under the current act.

As I said at the outset, the bill we are discussing today is straightforward and simple. It is a bill that is as much about Cape Breton's economic future as it is about Devco's past. It is as much a beginning as it is an end. We are trying our very best to move forward along the best available path.

We all know that none of this is easy. The challenges that are to be faced are enormous, but by allowing a private sector operator to purchase Devco's mining assets we are taking a tangible step to try to maintain the maximum possible number of coal mining jobs in Cape Breton in a commercially viable context for the long term.

May I once again give my assurance to Devco, most especially the employees and their families but also the management and the board of directors, that the Government of Canada takes the issues surrounding the Devco situation very seriously. We wish to work in a very constructive way with all of those affected to try to arrive at the end of the day at the very best possible situation for all concerned. We must be most concerned about the future of Cape Breton.

[The Late Alfred Pullen Gleave, November 3rd, 1999]

Mr. Speaker, it is with great respect that I rise in the House today to speak of the passing of a man who gave his life and his energy to the well-being of the people of Saskatchewan and the people of Canada, Mr. Alfred Pullen Gleave.

Though born in West Zorra Township in Ontario, Alf Gleave's heart and home were on the prairies. Living in Biggar, Saskatchewan, with his family from 1918, he was first and foremost a farmer and very proud of it. He built his life in this honourable profession, so inherently important to the province of Saskatchewan. The farming community, in turn, looked to him for leadership on many issues. He was a life member of the National Farmers' Union. In the first 20 years of his working life he served as a director and then president of the Saskatchewan Farmers' Union and then the National Farmers' Union respectively. His dedication to farming will be fondly remembered by the people of the Biggar district and indeed by farmers all across Canada.

His deep commitments carried Mr. Gleave into the political arena. From 1968 until 1974 he was the elected member of parliament for the constituency of Saskatoon—Biggar. A member of the New Democratic Party, Mr. Gleave earned the respect of members from all parties. He was chairman of the NDP caucus from 1968 until 1972 and served as the party's agricultural critic.

His priorities were always clear in his writing, in his speeches and in the issues that he chose to pursue locally, nationally and internationally. One could never have any doubt about where he stood.

It is fitting, I suppose, that we mark his passing at a time when a federal byelection is under way to fill a vacancy in the House for the very riding which he once represented. Always a competitor, Alf Gleave would be thoroughly enjoying the race.

On behalf of the Government of Canada, I want to join all hon. members in extending our sympathies to his wife and family, as well as his very broad circle of friends.

[Off Reserve Aboriginal People, November 3rd, 1999]

Mr. Speaker, the legal responsibility in the law with respect to first nations people living on reserves is clearly with the Government of Canada.

In relation to other aboriginal peoples, the solutions that we need to find in the country to enhance our relationship with aboriginal people and improve their quality of life is a partnership arrangement involving not just the Government of Canada but also the provinces and all others, including those in the private sector who can make a genuine contribution.

We all need to take this issue fundamentally very seriously.

[Plutonium Imports, November 3rd, 1999]

Mr. Speaker, all countries have a duty to support nuclear non-proliferation. Through Canada's nuclear sites, we can make a real contribution to world efforts for disarmament.

On this issue, the Canadian government has sought public views on the shipment of these samples. We have briefed local officials. We have held public forums. We have provided all answers to all questions. We have provided a public comment period. All of that input is now being weighed very carefully by the government and particularly by the Department of Transport before a final decision is taken.

[The Environment, November 2nd, 1999]

Mr. Speaker, Canada has engaged the active assistance of provinces, environmental organizations and the private sector all across the country in developing a Kyoto implementation plan. That work is going forward with a great deal of vigour. We are working on areas like energy conservation, energy efficiency, diversity among our energy sources, CO2 sequestrations, carbon sinks, new science and technology and international mechanisms like trading, the clean development mechanism and joint implementation projects.

Canada will be a responsible environmental citizen.

[Agriculture, October 29th, 1999]

Mr. Speaker, for me this is a never ending crusade in concert with the Prime Minister, the Minister for International Trade, the Minister of Foreign and the Minister of Agriculture and Agri-Food.

I pushed for our Canadian trade arguments in personal meetings with Secretary Glickman of the United States and Commissioner Fischler of the European Union. I have done the same with the Australians, the Argentinians, the Brazilians, the Chinese and at the OECD in Paris. I met with the U.S. wheat associates organization and with the trade representatives of 13 U.S. wheat producing states. Just last weekend I carried the same message when I met with the North American millers association in the United States. On this file we hammer on all fronts all the time.

[Agriculture, October 29th, 1999]

Mr. Speaker, the Government of Canada turns its back on no children.

The message about the importance of Canadian children is very clear, both in the throne speech and long before that in the policies and actions of this government.

It is our hope that the existing programming plus the incremental programs that we have put in place in the last year and the additional consideration that we are giving at the present time will be helpful to all Canadians in addressing these issues, particularly farm children in western Canada.