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CONTENTS

Election of Speaker –– 1

Routine Proceedings

Speech from the Throne –– 2

An Act To Perpetuate A Parliamentary Right (Bill). Hon. Mr. Smith.

Introduction and first reading –– 8

Filing Reports –– 9

The House met at 2:05 p.m.

This being the first day of the first session of the 33rd Legislative Assembly of the Province of British Columbia for the dispatch of business, pursuant to a proclamation of the Hon. Henry P. Bell-Irving, Lieutenant Governor of the province, hon. members took their seats, after having taken the prescribed oath and having signed the parliamentary roll.

His Honour the Lieutenant Governor, having entered the House, took his seat on the throne.

HON. MR. CHABOT: Members of the Legislative Assembly, I am commanded by his Honour the Lieutenant Governor to announce that he does not see fit to declare the cause of his summoning you at this time and will not do so until you have chosen a Speaker to preside over your honourable body. His Honour the Lieutenant Governor hopes to be able to declare, during the afternoon, his reason for calling you together.

His Honour the Lieutenant Governor retired from the chamber.

HON. MR. GARDOM: Mr. Clerk, I move, seconded by the member for Skeena, that Kenneth Walter Davidson, Esquire, member for Delta electoral district, do take the Speaker's chair and preside over the meetings of this assembly.

CLERK OF THE HOUSE: It is moved by Hon. G.B. Gardom, seconded by Mr. Howard, that Kenneth Walter Davidson, Esquire, member for Delta electoral district, do take the Speaker's chair and preside over the meetings of this assembly. Are there any further nominations?

There being no further nominations, I declare Kenneth Walter Davidson, Esquire, member for Delta electoral district, duly elected as Speaker, and that he do take the chair to preside over the meetings of this assembly.

MR. SPEAKER: Hon. members, permit me to return my humble acknowledgments to the House and express my grateful thanks for the great honour you have been pleased to confer upon me by choosing me to be your Speaker.

Hon. members, as tradition dictates, I now declare a short recess while I leave, to return robed in the appropriate attire. I ask you please to keep your seats, and I will return as quickly as possible.

The House took recess.

Prayers.

MR. SPEAKER: Hon. members, I am asked, following my consultation with the House Leaders, that unanimous consent be sought to permit the hon. second member for Vancouver–Little Mountain (Mr. Mowat) to vote on divisions in this House and in any committee thereof during the duration of this thirty-third parliament by raising his right hand.

Leave granted.

Dear Sir:

RE: General Election, May 5, 1983

His Honour the Lieutenant-Governor, by his proclamation issued on the seventh day of April, 1983, was pleased to dissolve the Legislative Assembly of the province, and it was necessary to hold elections to fill vacancies caused by such dissolution.

The elections were duly held pursuant to the provisions of the Election Act.

I transmit herewith a certificate of the chief electoral officer and registrar-general of voters, setting forth the names of members who have been elected in the electoral district indicated on the certificate.

Office of the Chief Electoral Officer
and Registrar-General of Voters
Victoria, B.C.
V8V IX4

May 31, 1983

Dr. Norman Spector
            Deputy Provincial Secretary
            Parliament Buildings
            Victoria, B.C.
            V8V IX4

Dear Sir:

Re: Provincial general election, 1983

The thirty-second Legislative Assembly of the Province of British Columbia was dissolved on April 7, 1983, and writs were issued on that date calling for a provincial general election. The writs were returnable on or before May 30, 1983.

April 22, 1983 was designated as the day for the nomination of candidates, and May 5, 1983 was designated as polling day.

Requests were made under section 122(l)(c) of the provincial Election Act for partial or complete rechecks in six electoral districts, namely:

 Comox
            Burnaby–Willingdon
            Dewdney
            Maillardville–Coquitlam
            Surrey
            Vancouver–Little Mountain.

The rechecks were performed in conjunction with the final count. Because of the rechecks and-or a delay in the final count completion in certain instances, writ return dates were amended for the following electoral districts:

Because of a request made under section 130(l) of the provincial Election Act for a judicial recount, the date of writ return for the electoral district of Maillardville–Coquitlam cannot be established at this time.

I hereby certify that the following members have been elected to represent their respective electoral districts as set out hereunder:

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                                                                           Yours very truly
                                                                                        Harry M. Goldberg,
                                                                                        Chief electoral officer and
                                                                                            registrar general of voters for
                                                                                               British Columbia

HON. MR. CHABOT: Mr. Speaker, I move that the letter of the Deputy Provincial Secretary and the correspondence of the chief electoral officer of the result of the election of members be entered in the Journals of the House.

Motion approved.

His Honour the Lieutenant Governor re-entered the chamber and took his seat on the throne.

MR. SPEAKER: May it please Your Honour, the House of Assembly has elected me as their Speaker, though I am but little able to fulfil the important duties thus assigned to me. If in the performance of those duties I should at any time fall into error, I pray that the fault be imputed to me and not to the assembly, whose servant I am, and who, through me, the better to enable them to discharge their duty to the Queen and country, humbly claim all their undoubted rights and privileges, especially that they may have the freedom of speech in their debates, access to Your Honour's person at all seasonable times, and that their proceedings may receive from Your Honour the most favourable interpretation.

HON. MR. CHABOT: Mr. Speaker, I am commanded by His Honour the Lieutenant-Governor to declare to you that he freely confides in the duty and attachment of the House of Assembly to Her Majesty's person and government, and not doubting that their respective proceedings will be conducted with wisdom, temper and prudence, he grants, and upon all occasions will recognize and allow, their constitutional privileges.

I am commanded also to assure you that the assembly shall have ready access to His Honour the Lieutenant-Governor upon all seasonable occasions, and that their proceedings, as well as your words and acts, will constantly receive from him the most favourable construction.

SPEECH FROM THE THRONE

HON. MR. BELL-IRVING: Mr. Speaker, and members of the Legislative Assembly, I extend greetings to you all, on behalf of our sovereign, on the opening of this first session of the thirty-third parliament of British Columbia. May I express the wish that your goals and aspirations and the needs of the people you represent will be met in the course of your service as individual members and as the Legislature of our magnificent province.

In March of this year, all British Columbians were honoured by the presence of Her Majesty Queen Elizabeth II and His Royal Highness the Duke of Edinburgh. Our memories of the royal tour were enriched by the grace of the royal family on their visits to various communities in the province and by the warm reception our people accorded them.

My government was especially pleased that Her Majesty took the time to extend an invitation to some 156 nations to participate in Expo 86, a world's fair and international celebration on the themes of transportation and communication. About 35,000 people participated in this ceremony. We were all thrilled to hear 7,000 student voices fill the new domed stadium at B.C. Place, opened officially this past Sunday, with sounds of the Royal Anthem and O Canada.

It is gratifying that in the course of your most difficult deliberations during the past session you took time to pause and remember those who have gone before you and who have now departed.

You noted the passing last April of Mrs. Isabel Dawson, who sat as a member of this assembly through the years 1966 to 1972. You also marked the death last May of Dr. Lorenzo Giovando, who served our people as an assembly member from 1952 to 1956.

In August of last year a third former member of this House passed from us. He was William Campbell Moore, who served our people from 1952 to 1956. We were saddened at the passing in July of last year of Mrs. Shirley Owen, widow of our late honoured Lieutenant-Governor, the Hon. Walter Owen. And in February of this year we learned of the deaths of two former members — Lydia Arsens, who served from 1953 to 1956, and Leslie Harvey Eyres, who served from 1937 to 1941 and from 1945 to 1949.

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Since we last met, the people of British Columbia have elected this new parliament. It is appropriate at this time for me to offer my congratulations to the members who now sit in the assembly. I want particularly to welcome those who are seated here for the first time, as I am certain their knowledge will benefit the deliberations of this House. I would also like to thank those no longer here who served their province in the thirty-second parliament.

I am advised that the most severe international recession since the 1930s plagued the international economy in 1981 and 1982. Total production in the major industrialized countries is estimated actually to have declined in 1982. The Canadian economy was particularly hard-hit with real GNP declining by 4.8 percent and employment by 5.1 percent.

The British Columbia economy has not remained immune from the effects of the international recession, as was the case during the milder recession of 1980. The downturn began in the third quarter of 1981, when labour-management disputes shut down our province's forest industry. It deepened as factors beyond our borders reduced foreign demand for our forest and mineral products, and it intensified as excessively high interest rates caused a decline in business investment and housing construction in the province. Mortgage rates threatened homeowners, interest rates plagued businesses and employment declined severely.

The revenues of my government plummeted and continue to be depressed, putting maximum stress on the ability to deliver essential services at the very time such services are most in demand. Individuals, families and communities are being tested as they have seldom been before.

I am advised that our people are extending a helping hand to the weakest members of our society, and that my government has been in the lead in this regard. Although government revenues were severely curtailed by recessionary forces, Health expenditures increased last year by 13 percent and Human Resources by 32 percent.

My government has undertaken strong, positive measures to deal with the effects of the international recession. It has demonstrated leadership in fostering economic recovery in Canada by introducing a comprehensive restraint-on-government program, including a Compensation Stabilization Act that has served as a model for other jurisdictions.

The maintenance of existing jobs and creation of new ones requires that our national government demonstrate economic leadership. My government believes that federal-provincial cooperation is essential, and calls upon the federal administration to convene at an early date a first ministers' conference on the economy.

Despite the strong policies pursued by my government, the severity of the international recession necessitated borrowing in the past year to meet essential obligations. I am advised that this transpired in a year in which my government had the lowest overall increase in spending of any government in Canada, and in which actual expenditures were lower than had originally been forecast.

I am advised that since the introduction of the restraint-on-government program some progress has been achieved in restoring the fundamental prerequisites to economic health and prosperity. And it is most gratifying to be able to report to this Legislature that we are now witnessing the advent of several positive signs in the resumption of economic activity.

Inflation in British Columbia has been cut by more than half and is now below the national average. In recent months mortgage rates have been reduced by about seven points and housing starts have increased both in Canada and in the United States. Interest rates have been lowered by more than five points and we have witnessed actual declines in the cost of living. Recent reports indicate that there has been a perceptible increase in the level of consumer confidence. Above all, I am pleased to report to the members of this House that since January 67,000 jobs have been created in British Columbia.

As we begin to emerge from the winter of our adversity, I am pleased to observe that British Columbians are proving equal to the challenge. Rather than sinking into despondency and pessimism, our people are demonstrating pride, resilience and strength. Our institutions are withstanding the strain, and British Columbians are today beginning to exude a cautious optimism. We are witnessing a restored sense of the cooperative spirit and a renewed recognition of the rewards of working together. Both are fundamental for economic recovery.

For those who are employed and those on fixed incomes, declining inflation and other signs of economic progress to date are welcome news. However, for those without employment — especially those whose unemployment insurance benefits have expired — continued progress is essential.

The foundations of enduring economic recovery are being laid by my government. A continuation and intensification of these bold policies is required if the recovery gains we have achieved to date are not to be lost and if British Columbians are to reap the full rewards of economic prosperity. Our task at this time is twofold: to preserve existing jobs and to create the environment within which new jobs can be created. Members of this assembly will be asked to approve many of these policies as part of the budget to be considered during this first session.

The prospect of continuing deficits looms for the next several years. The task at this stage is to manage our expenditures so as to restore balance over time within our financial affairs.

The mandate entrusted to my government by the people of British Columbia is to pursue economic recovery through restraint on the public sector and encouragement of the private sector. It is a mandate to downsize government by eliminating some programs that may be desirable but are not essential, and by transferring other activities to the private sector. It is a mandate to reduce the duplication of government activities — including the multiplicity of boards and commissions that surround government — and to strive for maximum efficiency and effectiveness in delivering programs. It is a mandate to improve our industrial relations so as to foster greater productivity and international competitiveness — the only sure ways to preserve existing jobs and create new employment. And it is a mandate to encourage private-sector confidence — by eliminating regulatory roadblocks, allowing greater scope for the free play of market forces and creating a stable investment climate so that business small and large — and existing and new industries — can create permanent jobs in our province.

My government will continue to pursue job creation in the public sector by accelerating highway construction, bridge replacement and diking and drainage projects. These projects convey a continuing economic return to our people, and it is good business to undertake them at this time.

In addition, several short-term job-creation activities are continuing, and training programs will be emphasized during this period of high employment [sic]. British Columbians must have the necessary skills, both in the traditional trades

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and in new technology, to contribute to the prosperity of our province and to their own individual and family satisfaction.

My government believes, however, that it is only through private-sector investment that existing employment can be secured and permanent jobs created. During the course of my government's mandate you will be asked to approve measures that will maintain a stable environment for private sector activity.

Continued restraint on government spending — a hallmark of my government's management — is essential if economic health is to be restored and the progress we have seen to date not lost. My government believes that an intrusive and overweight public sector, far from being part of the solution to our economic difficulties, is in fact part of the problem.

Members of this assembly have shown leadership in restraint. And I am advised that over the past year my government has put in place the most stringent controls on ministerial travel and expenses to be found anywhere in Canada.

My government remains committed to the principles of the compensation stabilization program introduced last session. I am advised that considerable progress has been achieved in moderating public-sector wages in a fair and equitable manner. It is gratifying to note that, in contrast to other jurisdictions, collective bargaining is continuing within the public sector in British Columbia, and that to date all settlements under the CSP have been achieved through the voluntary guidelines.

However significant these achievements, a great deal remains to be accomplished if British Columbians are to benefit fully from the economic recovery that is within our grasp. Accordingly, you will be asked to approve amendments to the Compensation Stabilization Act to reflect the restrained ability of the taxpayer to support public services.

You will also be asked to approve amendments to this act to enlarge the scope of productivity bargaining in the public sector. While restraint will continue to be the overriding principle of public-sector management, productivity must be given equal significance now and in future years if our taxpayers are to be well served.

Many of those working in the private sector have been subject to marketplace controls — bankruptcies, unemployment, layoffs, low or non-existent wage increases — and in many cases actual decreases. And the weakest members of our society have been sheltered as far as possible through the provision by my government of essential social programs.

On the other hand, those working in the public sector have been largely sheltered from the impact of the recession. While wage increases have moderated, it is evident that taxpayers and the unemployed can no longer support the level of public services, including attendant employment levels, that has grown up in the last 30 years.

My government has developed a plan for reducing the size of the public service in the next few years. It is the intention to develop a leaner, more productive government which can meet the needs of the people of British Columbia at a lower cost. You will be asked to approve legislative measures to realize this objective. Individual public servants will be expected to do more with less, but strong efforts will be made to simplify procedures and eliminate obstacles to higher productivity. The result should be a greater level of job satisfaction as well as improved service to the public.

My government has given careful attention to the successive layers of agencies, boards and commissions that have grown up around governments within the last 15 years. Measures will be introduced to streamline the operations of some of these bodies, eliminate those whose functions have become unnecessary in light of market conditions, better define the respective responsibilities of agencies and the courts, and introduce restraint measures where such bodies continue to exist.

As part of the general effort to increase efficiency and encourage the growth and development of the private sector, my government will be proposing opportunities for transferring to the private sector activities currently undertaken by the public sector. A wide range of commercial functions and many government-produced services which are, or could be, produced privately will be candidates for privatization.

The promotion of a leaner, more affordable and more productive public service is not restricted to internal operations. My government will continue to seek the commitment to restraint of those in the education and health systems, municipalities, school boards and all agencies that spend taxpayer dollars either directly or indirectly.

Strong measures have been pursued by my government to induce restraint on the part of all those who spend tax dollars, and these measures have home fruit. My government will produce at this session a bill to revise the system of property assessment and taxation in the province. The legislation produces a more locally sensitive and equitable method of financing municipal services, and permits municipalities in 1983 to hold the line on property taxation for general municipal purposes. These measures will prevent a recurrence of the large and unacceptable shifts in tax burden caused by fluctuations in property values in the past few years.

I am pleased to note that my government's policies in regard to education financing have enabled school boards, too, to hold the line on school property taxation in 1983.

For those who are unemployed there are no quick fixes, no magical solutions. My government believes that we must earn our way out of the recession, because we cannot spend our way out of it. And my government believes that the road to recovery lies through the private sector. Our markets are external, and we must compete against other suppliers if we are to protect existing jobs and create new ones. In order to compete successfully, moderate demands and increased productivity are absolutely essential.

As British Columbia and the rest of Canada begin to emerge from the depths of one of the most severe economic recessions experienced in modern times, my government is undertaking a number of bold and innovative endeavours to ensure that our province leads the country in economic recovery.

My government will emphasize balanced economic growth in all areas of the province, enhanced encouragement for manufacturing and processing companies with concentration on high-technology opportunities, increased trade and export activity and substantial support for the small business sector. Those goals will be achieved in the context and spirit of the restraint program, through a judicious reallocation and rededication of existing resources.

To keep British Columbia manufacturers competitive in a rapidly changing technological world, my government will be implementing significant new initiatives to encourage the development and expansion of high-technology industries in British Columbia.

In the northern sector of the province, development of mines, rail lines, the new community of Tumbler Ridge and

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all related infrastructure is progressing on schedule. In these difficult times, the only megaproject underway in Canada will be providing 2,230 permanent operating jobs in mining, transportation and port-handling, as well as creating thousands of additional supply and service jobs throughout the province and the rest of Canada. I am advised that the construction of this mammoth project is providing 13,000 man-years of direct employment, with a peak workforce of 6,800 on the job this year. This represents over 12 percent of the total construction workforce in British Columbia. I am pleased to note that the first coal deliveries will be shipped from the northeast later this year.

In the southeastern sector of our province, massive investment in rail capacity upgrading is planned. This investment — which is crucial to the future of British Columbia as a trading province and which would dwarf investment in northeast coal infrastructure — is on hold pending resolution of the Crowsnest Pass freight-rate issue. You will be asked to give your unanimous approval to a resolution expressing British Columbia's interests in this matter.

Members of the House will be aware that a number of other major industrial developments will be assisting the economic recovery of British Columbia. For example, Toyota Motor Co. of Japan will be constructing an aluminum alloy wheel manufacturing plant that will supply their Japanese assembly works and the North American after-market. In the initial stage,100 people will work in this facility when it is completed.

The small business sector is vital for the prosperity of British Columbia. It accounts for about 98 percent of all registered enterprises and employs half our workforce. As part of my government's strategy for small business, the recently announced LIFT program has already elicited inquiries from over 12,000 business people or potential entrepreneurs. The nearly 700 projects currently being evaluated will help create or preserve 7,800 jobs.

The vitality of this province's economy, employment levels and the high standard of living enjoyed by our people are directly and inextricably linked to the ability of our industrial sector to export its goods and services. Canada, together with other developed nations, is becoming increasingly dependent on international trade to maintain its economic well-being. British Columbia, as one of the premier trading provinces, has a growing portion of its workforce engaged in producing for the export market. To keep these and other British Columbians gainfully employed on the road to economic recovery, we must enhance our cost-competitiveness and ensure that the major driving force — our ability to increase export sales — is encouraged to the greatest extent possible. To this end my government will continue an aggressive and coordinated program of export development activities, with particular emphasis on the countries of the Pacific Rim. This not only will maintain markets for British Columbia goods and services, but will also act to counter any moves towards protectionism that could threaten access to our traditional markets.

The agriculture and food industry continues to be a stable and dependable force in our provincial economy even in these very difficult times. The industry in British Columbia has fared better than agriculture in Canada as a whole. I am advised that the gross value of agriculture production in British Columbia increased by 5 percent and continued to outpace growth in Canada as a whole. I am also pleased to note that over the past decade the number of British Columbia farmers has increased and farmland under cultivation has been expanded at a faster rate than in the rest of Canada. My government is committed to build on this strength in future years.

British Columbia's financial sector continues to perform strongly, and Vancouver has become an important international financial centre. The raising of venture and risk capital is becoming increasingly competitive and is fundamental to economic recovery, job creation and the development of high-technology industry.

The mining industry — a backbone of the provincial economy — has experienced severely depressed markets. However, I am advised that the stable investment climate resulting from the recent election will translate into one of the most active exploration years ever in our province.

Markets for British Columbia's gas are also depressed. My government recognizes fully the need to explore alternative markets such as that for liquefied natural gas in the Pacific Rim. Public hearings concerning the Vancouver Island pipeline will also take place during this session. My government is exploring alternative strategies and mechanisms for increasing sales of British Columbia gas in export markets and will continue to work with the Alberta and federal governments in exploring alternative pricing arrangements that could increase sales abroad.

The forest industry is vital for the economic health of our province, and the key market for our lumber is the United States residential construction industry, which normally consumes approximately 60 percent of production. For the second consecutive year United States housing starts barely exceeded one million units in 1982, compared to a cyclical peak of more than two million units in 1978. The prolonged recession in the United States housing market led to numerous sawmill shutdowns on both sides of the border.

I am advised that the severity of the downturn contributed to a concerted effort by a relatively small group of United States lumber producers to have a countervailing duty imposed on Canadian softwood lumber imports into the United States. The imposition of a significant duty would have had a devastating impact upon the British Columbia economy and upon employment in the industry. I am pleased to report that my government played an active, measured and responsible role, in cooperation with industry and the federal government, to ensure that the threat of the duty was not realized.

The decline in United States interest rates which commenced in mid-1982 is now fueling the beginnings of an upturn in our forest industry. To date the impact on lumber producers has been felt mainly in the interior, with coastal mills still operating well below capacity. The consumption of pulp and paper lags many sectors and is closely tied to the overall level of economic activity. As a result, the demand for British Columbia newsprint and market pulp is still weak. It will be several years before the forest industry recovers from the staggering losses it has suffered in the recent past.

My government is committed to the goal of realizing the maximum contribution of available forest resources, now and in the future, toward the social and economic well-being of British Columbians. The fulfilment of this goal requires the identification of development opportunities. A surplus of available pulpwood and wood residues in southeastern British Columbia has been identified. To promote the utilization of this fibre, my Minister of Forests has designated this area a new pulpwood area and has invited development proposals. Proposals will be considered from both new companies and

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companies already engaged in the wood-processing business.

A full and enduring economic recovery, the preservation of existing jobs and our future economic strength depend vitally on sound labour-management relations, a cooperative environment, improved productivity and enhanced cost-competitiveness. Accordingly, you will be asked to consider measures to improve the state of industrial relations in our province.

In the area of housing, consumer confidence has reached an extremely high level, and the market factor is taking hold. Moreover, I am advised that vacancies in the rental market are at a level that has not been seen in several years.

The B.C. Home Program, introduced in September last year and launched a month later, has attracted widespread public interest, and applications have poured in from all areas of the province. The program provides supplementary mortgage interest payments for those suffering the effect of high mortgage rates. In the first six months of the program, 50,000 homeowners received $40 million in loans, which were transferred by electronic mail directly into individual bank accounts.

I am advised that substantial progress has been made this year in a major land development project in Coquitlam. In the first of three development phases the Riverview Heights subdivision will provide 160 single-family lots, a townhouse complex and two apartment sites. The first offering of single-family lots was well received by the public in February.

When the Riverview Heights project is completed in three years' time, it will provide 1,050 housing units, a school site and a 65-acre park. The park, with a land value of $2 million, will be donated to the people in Coquitlam for public recreation as a gift from my government.

For seniors, my government has announced 18 new projects to provide 595 housing units throughout the province, with an emphasis on small communities where no suitable rental accommodation exists. This new construction will allow our seniors to continue to live in the communities in which they have grown up and still have friends and family.

For the disabled and handicapped, my government has announced a program of 230 housing units to be provided through non-profit societies. This is part of my government's commitment to deinstitutionalize those people who can lead productive lives within a community setting.

I am advised that significant progress has been made this year in the release of crown land for agricultural purposes, principally in the Prince George and Fort Nelson areas.

Four new provincial parks have opened last year, including Mount Terry Fox — a towering peak in the Rocky Mountains named after that courageous young man who came to mean so much to us all. And the province's newest wilderness park, the Valhalla Provincial Park, contains 50,000 hectares of natural wilderness on the western edge of the Kootenays.

Two smaller parks were established: East Pine Park, which provides boating access to the beautiful Pine River as well as the Peace, and McDonald Creek Park located on the Arrow Lake system.

I am advised that our provincial parks are gearing up to handle an anticipated 16 million people this year, up from last year's record of 15 million.

Tourism's proliferating benefits and its vital contribution as an economic and employment stabilizer during these difficult economic times are well recognized. Confidence in the future of our third-largest industry is demonstrated by the inauguration of flights to Vancouver by two additional international carriers — West Germany's Lufthansa and Hong Kong's Cathay Pacific. My government welcomes these airlines to British Columbia skies and is encouraged by the provision of direct, scheduled air service from two of our fastest growing markets.

My government is planning a top-calibre exposition that will focus the world's attention exclusively on our province for at least six months. At least 15 million visits are expected at Expo 86, creating thousands of jobs in the process. Three years prior to the event, 16 nations have already indicated they will participate in the world's fair, a major highlight of which will be a World Festival of cultural presentations. Expo 86's theme of transportation and communication will be highlighted by a fully functioning rapid transit system in Vancouver.

I am advised that following Expo 86 Vancouver not only will be regarded as one of the world's most picturesque cities, but also as a world cultural centre, meeting place, vacation destination and gateway to the fascinating and exciting outdoor experiences available throughout our province.

The tourism industry is capitalizing on the many opportunities this world's fair offers all regions of our province by enlarging and intensifying its marketing efforts. At the same time, the ministry is working with the industry to improve and expand its services and facilities as more and more tourists are today insisting on value for money. Warm hospitality and comfortable amenities are essential if we want to benefit from repeat visits.

Safe, reliable and efficient transportation systems are vital for economic recovery. Accordingly, you will be asked to approve measures to maintain the free flow of people and goods by way of the province's transportation facilities and services.

My government's enhanced highway program will include the completion of the new access highway to the northeast coal development, major upgrading of the highway and bridges affording access to the southeast coal mining areas in the Elk Valley, and continuation of major projects in the Coquihalla and at Annacis Island.

New projects throughout the province will include vital bridge replacements as well as repaving and reconstruction of important sections of existing highways. These activities will not only provide needed jobs at this time but will reduce future road maintenance costs and provide the fully efficient highway system needed to achieve our economic recovery.

Opening of the Liard Highway from Fort Nelson to Fort Simpson in the Northwest Territories is scheduled for June 1984. The provincial section will be completed to an all-weather standard in the current year, and completion of the federal section in the Territories will follow. This highway route will attract traffic to the B.C. Railway terminus at Fort Nelson from as far north as the Mackenzie River in the Northwest Territories.

A reinvigorated economy and restored prosperity are fundamental if we are to meet the needs of our people. My government believes that a sound economic policy is the best means available to secure our social services. My government realizes that it has no money of its own and that its programs depend on the ability of the taxpayer to finance them. In this period of fragile and tentative economic recovery, the task at hand is to husband our resources in such a way as to preserve essential services.

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British Columbia's education system — already among the finest in Canada — has been undergoing a period of transition. In the years ahead, greater emphasis must be placed on early technological and computer literacy in order to provide our children with the skills that will be required to function successfully in the information society.

New directions in education must be pursued within the context of fiscal restraint and enhanced productivity. My government will be seeking maximum flexibility and cooperation on the part of all participants in the education system.

In the space of one generation, a single institution concentrating on undergraduate teaching has grown into a university system consisting of three public institutions with international reputations for scholarship and research. British Columbia scholars now play a prominent role in the intellectual life of the country and the cultural life of our community. I am pleased to note they continue to receive more than their proportionate share of national honours.

I am advised that our universities have been especially cooperative during these times of restraint. My government will continue to encourage the universities to realign their priorities so as to place greater emphasis on programs that are integral to our development. To this end, my government will make available funds to permit the construction of engineering facilities at the University of Victoria, and will also assist in the establishment of a pulp and paper research institute at the University of British Columbia.

However difficult may be our fiscal situation, my government's commitment to maintaining first-class health care services is absolute. I am advised that spending in this area increased last year at almost twice the rate of overall provincial spending, and that health care will continue to be the largest single component of the province's budget. Prudent management, realistic demands, efficient delivery and maximum cooperation are absolutely essential if health services are to be maintained.

I am advised that British Columbia continues to be at the forefront of medical progress, and that the installation of digital radiography at the Victoria General Hospital marks a world innovation. This new hospital represents one of the most advanced designs to be found anywhere and is an accomplishment to which all British Columbia can point with pride.

The completion of several new facilities across the province demonstrates my government's commitment to quality health care. These facilities include the new 150-bed extended-care facility at Cedarview on the North Shore, the new eye-care clinic at Vancouver General Hospital, the new Victoria General Hospital, phase one of St. Paul's Hospital and the new Children's-Grace Hospital.

I am advised that my government will continue significant capital replacement in hospitals in order to ensure up-to date equipment is available to our health-care providers and their patients.

My government wishes to assure our senior citizens, who have done so much to build British Columbia, that budgetary allocations will continue to provide for their health-care needs. In the coming year provision will be made for 456 long-term care beds. These beds are in addition to the services already provided to more than 46,000 senior citizens through the long-term care program.

One of the most significant responsibilities of government is to provide for those who are most in need. At the same time, the role of the family and individual responsibility are cardinal features of our society. My government will institute measures to ensure that separated and divorced people bear their proper responsibility through regular payment of child and spouse support.

My government believes that economic development is consistent with protection of our environment; with new waste, wildlife and overall environmental legislation in hand, my government will continue to provide leadership, and will address new areas such as the handling of special wastes.

The heavy flooding of recent years underlines the dependence of many parts of our province on flood protection. My government has initiated an accelerated program to increase the security of those living in floodplain areas and protect the environment.

My government continues to assign high priority to the cultural and recreational life of our people and to programs which encourage the cultural diversity of our province and enable members of all communities to share the richness of our life in British Columbia. This year the Premier's sports award program, administered until recently by the late Harry Jerome, will sign up its 100,000th participant. This grassroots program teaches basic athletic skills to young children and helps to set early patterns in active participation that will serve individuals and the province well in the years to come. My government will introduce a new fitness program this year that will encourage British Columbians to partake of regular physical activity to maintain good health and well-being. This program will have an indirect beneficial impact on productivity across all sectors of society.

I am advised that the B.C. Games continue to set new records for participation and achievement. In fact, they are now the largest event of their kind in North America, involving at various stages of competition more than 250,000 athletes. Initiated by my government in 1978, the Summer and Winter Games bring together people from all parts of the province and provide an excellent example of the volunteer spirit that is alive and well in British Columbia. In 1983 the Summer Games will be held in Maple Ridge, and the Winter Games in Fort St. John.

Recent events have once again confirmed how fortunate we are in British Columbia to benefit from the democratic system of government. These events also have made evident the numerical bias that exists in the system at present. Hon. members will be asked to consider measures to improve the representativeness of our electoral process.

I am advised that my first minister and his colleagues across the country met recently to discuss the question of native rights and that some progress was achieved on this complex issue. In order to implement the terms of an accord signed by first ministers, you will be asked to consider a resolution authorizing a constitutional amendment to give effect to an ongoing process, the equal status of native men and women, clarification of the term "treaty rights," and guaranteed consultation in the event of future constitutional change affecting native people.

Hon. members, you now begin a most important and demanding session. Our people are coming through very painful times, yet there is considerable distance still to travel. I pray that in carrying out your duties you will reflect fully on the example of your decisions and their effect on the people of our province and country. The difficulties our people face

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today must be viewed as opportunities for continued progress.

Through the continued leadership of my ministers and the work of this assembly, you must strive to build a stronger British Columbia. May Divine Providence attend your deliberations. In our Sovereign's name I thank you.

His Honour the Lieutenant-Governor retired from the chamber.

[Mr. Speaker in the chair.]

MR. SPEAKER: Hon. members, in order to prevent mistakes I have obtained a copy of His Honour the Lieutenant-Governor's speech.

Introduction of Bills

AN ACT TO PERPETUATE A
PARLIAMENTARY RIGHT

HON. MR. SMITH: Mr. Speaker, it is my honour to carry out a tradition that reaches back almost four centuries in asserting and preserving the supremacy of parliament, and in that regard I ask leave to introduce a bill intituled An Act to Perpetuate a Parliamentary Right.

Leave granted.

Bill 1 introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.

HON. MR. BENNETT: Mr. Speaker, I move that the speech of His Honour the Lieutenant-Governor be taken into consideration at the next sitting of the House and that this order have precedence over all other business, except introduction of bills, until disposed of.

Motion approved.

HON. MR. CHABOT: Mr. Speaker, I move that the Votes and Proceedings of this House be printed, being first perused by Mr. Speaker, and that he do appoint the printing thereof, and that no person but such as he shall appoint do presume to print the same.

Motion approved.

HON. MR. BENNETT: Mr. Speaker, I move that the select standing committees of this House for the present session be appointed for the following purposes:

(1) On Standing Orders and Private Bills;

(2) On Public Accounts and Economic Affairs;

(3) On Agriculture;

(4) On Municipal Affairs and Housing;

(5) On Labour and Justice;

(6) On Health, Education and Human Resources;

(7) On Transportation and Communications;

(8) On Environment and Resources;

(9) On Crown Corporations; which said committees shall severally be empowered to examine and inquire into all such matters and things as shall be referred to them by this House, and to report from time to time their observations and opinions thereof, with power to send for persons, papers and records; and that a special committee be appointed to prepare and report, with all convenient speed, lists of members to compose the above select standing committees of this House under standing orders 68(l) and 72A(l), said committee to be composed of Hon. G.B. Gardom, Hon. J.R. Chabot, Hon. H.W. Schroeder, and Messrs. Reid, Segarty, Veitch, Howard, Cocke and Hanson.

MR. HOWARD: Mr. Speaker, this affords us an opportunity to suggest there may be a deficiency on the part of the government in considering subject matters that should be dealt with and should be examined. I want to move an amendment in that regard, seconded by the hon. second member for Victoria (Mr. Blencoe), that the motion be amended by adding "(10) On Ethics in the Banking Industry."

Interjections.

MR. HOWARD: And if government had any ethics it wouldn't treat such a serious matter so lightly.

Some time ago a very well regarded and well respected Social Crediter said: "It doesn't matter who controls the government. What counts is who controls our money." The lending institutions and the banking industry in this province and in this nation not only control our money, but they also control our government. They end up with excessive profits when interest rates are moving upwards; they end up with excessive profits when interest rates are moving down. No matter which way interest rates go, lending institutions reap the benefit and the general public reaps the misery. They reap this benefit by way of adjusting and juggling the spread between what they pay on interest for deposits and what they charge for money that they lend out, the attempt being to make that spread as wide as possible.

High interest rates affect us even more than do low interest rates, obviously, because the average wage earner and average person has to pay out more under a high interest rate program than under a low interest rate program. It's interesting in that regard that just a few years ago the Premier of this province advocated that the federal government follow a high interest rate policy and endorsed and lauded the federal government and the Bank of Canada for following that route. The result was that a number of homeowners — and I'm only going to talk about homeowners and people who have mortgages, although it affects as well other consumers who deal with credit found themselves locked into mortgage rates in the 20, 21, 22 percent range. Interest rates having moved downward, many of those people find they're in an awkward position, being unable to get out of the locked-in position with the high interest rate and having to pay penalties for seeking to rewrite the mortgage at the lower or current interest rate.

I think, Mr. Speaker, it is inexcusable for government in this province to remain silent about that difficulty and the problems faced by people who can least afford to pay the consequences of high interest rate policies. There's an opportunity for us to show some leadership in that direction. I submit to you that the establishment of a committee of this Legislature would afford the opportunity to conduct studies in public, to receive information from people affected by usury, and be able to make recommendations as to how we

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can alleviate the situation. The general public deserves our support in this trying time, more than in any other set of circumstances, and I suggest that unanimity of the House with respect to this amendment would be a most delightful move.

On the amendment.

HON. MR. BENNETT: In rejecting the amendment, I would advise that the government is not unsympathetic, but it cares very much about the concerns people have with financial transactions. However, the government feels there will be ample opportunity in the coming session for members to make their positions clear, and the government rejects this amendment.

MR. BARRETT: Mr. Speaker, we're dealing with the establishment of a separate committee. I understand that the government's position is that there are enough committees already, or that there will be opportunities in future debate to deal with the subject. I ask for the government's reconsideration of its position. This special committee is focused on one single area, and one single area alone.

The fact is, Mr. Speaker, as there has been more and more demand for public funds raised from the taxpayers, there has been a subtle but insidious development in the private banking system that has allowed the private banking system to now be a competitor for those tax dollars. Rather than dealing with the root cause, as this committee would do, governments have been responding to high interest rates with such programs as subsidizing those rates, or giving loans through those rates, and allowing the banks to make excessive profits not only directly out of the loans to a homeowner or to a small business person, but also making profits out of the general revenue of taxpayers per se.

In a time of restraint and a time of recession, when there are competing demands from health care, welfare and from public spending, the last place public funds should go is in the area of subsidizing bank profits. This is an opportunity for this government to demonstrate an examination of legislation that is already on the books of this province to enable us to go into a near banking system on the public's behalf. It's also an opportunity to examine the fact that a draw on taxpayers' money to subsidize private banks is not acceptable by any taxpayer, particularly at this time.

So I ask on behalf of the people of this province, who are the taxpayers, that we now examine openly, honestly and fairly, after an election campaign, whether or not we wish to see taxpayers' money going to subsidize banks while our people are hard pressed to pay their own taxes.

Amendment negatived on the following division:

YEAS — 20

NAYS — 33

Division ordered to be recorded in the Journals of the House.

Motion approved.

HON. MR. GARDOM: Mr. Speaker, I move, seconded by the hon. member for Skeena (Mr. Howard), that William Bruce Strachan, Esq., member for Prince George South, be appointed Deputy Speaker for this session of the Legislative Assembly.

Motion approved.

HON. MR. GARDOM: Mr. Speaker, I move that on each Tuesday and Thursday of this session there shall be two distinct sittings, one from 10 a.m. to 12 p.m. and one from 2 p.m. to 6 p.m.; and on each Monday and Wednesday one sitting from 2 p.m. to 6 p.m.; and on each Friday one sitting from 10 a.m. until 1 p.m., unless otherwise ordered.

Motion approved.

HON. MR. GARDOM: Mr. Speaker, I move that report no. 9 of the Select Standing Committee on Standing Orders and Private Bills adopted by this House on February 27, 1973, relating to oral questions be adopted by this House for the present session.

Motion approved.

Presenting Reports

The following reports were presented:

By Hon. Mr. Gardom:

The second annual report of the Ministry of Intergovernmental Relations as at March 31, 1982.

By Hon. Mr. Chabot:

The annual report of the Ministry of Provincial Secretary and Government Services for 1981-82.

The annual report of the British Columbia lotteries branch for 1981-82.

The annual report of the British Columbia lotteries branch for 1982-83.

The Public Service Labour Relations Act report for 1982.

The First Citizens' Fund administration's approved applications from January to December 1982.

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The annual report of business done in pursuance of the Legislative Assembly Allowances and Pension Act, part 2, for the year ended March 31, 1982.

The annual report of business done in pursuance of the Pension (Public Service) Act for the year ended March 31, 1982.

The annual report of business done in pursuance of the Pension (Municipal) Act for the year ended December 31, 1981.

The annual report of business done in pursuance of the Pension (College) Act for the year ended August 31, 1982.

The annual report of business done in pursuance of the Pension (Teachers) Act for the year ended December 31, 1981.

The annual report of business done in pursuance of the Public Service Benefit Plan Act for the year ended March 31, 1982.

The annual report of the British Columbia Heritage Trust for 1982-83.

The annual report of the British Columbia Buildings Corporation for 1982-83.

The Pacific National Exhibition report and financial statements as at March 31, 1982.

By Hon. Mr. Fraser:

The annual report of the Ministry of Transportation and Highways for the fiscal year 1981-82.

The annual report of the British Columbia Railway for 1982.

By Hon. Mr. McGeer:

The annual report of the Knowledge Network of British Columbia as at June, 1982.

The annual report of the Ministry of Universities, Science and Communications for 1981-82.

By Hon. Mr. Heinrich:

The 111th annual report of the Ministry of Education as at June 30, 1982.

By Hon. Mr. Hewitt:

The 70th annual report of the superintendent of insurance, 1981.

By Hon. Mr. Waterland:

The annual report of the Ministry of Forests for 1981-82.

By Hon. Mr. Phillips:

The annual report of the Ministry of Industry and Small Business Development for 1982-83.

The annual report and financial statements of the B.C. Cellulose Company as at December 31, 1982.

Hon. Mr. Gardom moved adjournment of the House.

Motion approved.

The House adjourned at 3:34 p.m.