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JOURNALS of the LEGISLATIVE ASSEMBLY of the Province of Saskatchewan Fro!)l the 18th day of November, 1976, to the 10th day of May, 1977 In the Twenty-sixth Year of the Reign of Our Sovereign Lady, Queen Elizabeth II, BEING THE THIRD SESSION OF Tl!Ji.: EIGHTEENTH LEGISLATURE OF THE PROVINCE OF SASKATCHEWAN Session, 1976-77 REGINA: R. s. REID, QUEEN'S PRINTER 1977 VOLUME LXXX:11 CONTENTS Session, 1976-77 JOURNALS of the Legislative Assembly of Saskatchewan including QUESTIONS AND ANSWERS Pages 1 to 261 JOURNALS of the Legislative Assembly of Saskatchewan Pages 1 to 256 QUESTIONS AND ANSWERS: Appendix Pages 257 to 261 MEETING OF THE LEGISLATIVE AS5EMBLY GEORGE PORTEOUS, lieutenant Governor, (L.S.) CANADA PROVINCE OF SASKATCHEWAN ELIZABETH THE SECOND, by the Grace of God of the United Kingdom, Canada and Her other Realms and Territories QUEEN, Head of the Commonwealth, Defender of the Faith. To OUR FAITHFUL the MEMBERS elected to serve in the Legislative Assembly of Our Province of Saskatchewan, and to every one of you, GREETING: A PROCLAMATION H. M. KETCHESON, . WHEREAS , It• IS expedi ent f or causes Ac ing Deputy t and consI"d erations · to convene th e Uorney enera A G l Legislative Assembly of Our Prov- ince of Saskatchewan, WE Do WILL that you and each of you and all others in this behalf interested on THURSDAY, the EIGHTEENTH day of NOVEMBER, 1976, at Our City of Regina, personally be and appear for the despatch of Business, there to take into consideration the state and welfare of Our said Province of Saskatchewan and thereby do as may seem necessary, HEREIN FAIL NOT. IN TESTIMONY WHEREOF we have caused Our Letters to be made Patent and the Great Seal of Our said Province of Saskatchewan to be hereunto affixed. WITNESS: Our right trusty and well beloved THE HONOURABLE GEORGE PORTEOUS, M.B.E., C.M., Lieutenant Governor of Our Province of Saskatchewan. AT OuR CAPITAL CITY OF REGINA, in Our said Province, this NINETEENTH day of OCTOBER, in the year of Our Lord ONE THOUSAND AND NINE HUNDRED AND SEVENTY-SIX, and in the TWENTY-SIXTH year of Our Reign. By Command, L. J. BEAUDRY, Deputy Provincial Secretary. JOURNALS 0F THE LEGISLATIVE ASSEMBLY Province of Saskatchewan THIRD SESSION EIGHTEENTH LEGISLATURE Regina, Thursday, November 18, 1976 3 :00 o'clock p.m. Mr. Speaker informed the Assembly that he had received a communica­ tion from the Private Secretary to His Honour the Lieutenant Governor stating that His Honour would open the Session at three o'clock p.m. today, Thursday, the Eighteenth day of November, 1976. 3 :03 o'clock p.m. His Honour the Lieutenant Governor entered the Chamber and, having taken his seat upon the Throne, was pleased to open the Session with the following Speech:- MR. SPEAKER, MEMBERS OF THE LEGISLATIVE ASSEMBLY: It is my privilege to welcome you to the Third Session of the Eighteenth Legislature of Saskatchewan. THE ECONOMY Saskatchewan's economy continues to he strong in 1976. The rate of growth is moderating hut growth remains satisfactory. This year's wheat crop of over 550 million bushels is the largest in the Province's history. Our labour force continues to increase and our unemployment rate remains among the lowest for the provinces of Canada. Investment expenditures in Saskatchewan during 1976 are expected to set new records. However, there are clouds on the horizon. Agriculture is still the most important industry in our Province and recent declines in grain and hog prices give cause for concern. Despite the record wheat crop, farm cash receipts and net farm income are expected to decline this year. These developments may well have· some adverse effects· in other areas of our economy. 6 THURSDAY, NOVEMBER 18, 1976 Notwithstanding these possible difficulties, Saskatchewan people can approach 1977 with modest confidence. INFLATION Inflation 7emains a cause for concern. Rapidly-rising prices pose a particular threat to the well-bemg of people on fixed incomes and others who have little or no control over their gross income. While the need to wage a battle against sharply-rising prices remains clear, the measures adopted by the federal government have failed to distribute the burden of this battle fairly. My Government did not adopt the federal anti-inflation program but introduced a provincial program involving restraints on rent, on charges made by provincial and local government bodies, and on wages and salaries paid by provincial and local governments. A surcharge has been imposed on higher incomes and restraint on government spending has been introduced. You will be asked to consider amendments to The Residential Tenancies Act, 1973 to improve the operation of the rent restraint program. FEDERAL-PROVINCIAL RELATIONS Important questions for Saskatchewan and for Canada are now under discussion between -the federal and provincial governments. My Government is deeply concerned about the announced intention of the federal government to withdraw the revenue guarantee and to change in a fundamental way the basis for sharing the costs of medical care, hospital insurance, and post-secondary educa· tion. Ceilings have already been imposed on the federal share of the costs of medicare and post-secondary education. Notice has been given to terminate the current agreements by which the costs of hospital care are paid. The federal government proposes to replace current arrangements with a formula entirely divorced from actual eosts of operating these basic social programs. The likely result will be twofold: 1. Increases in costs of these programs will fall largely on provincial taxpayers; and 2. Programs in poorer provinces will fall further and further behind those offered in richer provinces. My Government will continue to press for federal-provincial arrangements which guarantee a high quality of service for all Canadians wherever they live and which spread the risk of cost increases fairly between federal and provincial governments. The withdrawal of the revenue guarantee will mean a loss of $37 million a year for Saskatchewan, the equivalent of five personal income tax points or over $100 per tax· payer. The federal government proposes also to make the change in the method of calculating the revenue guarantee retroactive to 1974 and 1975. This establishes a most undesirable precedent. My Government recognizes that huge federal deficits of recent years call for action to effect cuts in federal spending. It is regrettable that this objective is being pursued by cutting large sums from what would otherwise have been paid to provincial governments. My Government is also participating in the ongoing discussion on the patriation of Canada's constitution. In recent weeks, the provincial premiers have reached agreement on a number of items whieh would be desirable in a new constitution. My Government awaits further consultation with the federal government on this matter. AGRICULTURE In recent years, while grain producers have enjoyed almost unparalled prosperity, Saskatchewan's cattle producers have been caught in a serious cost-price squeeze. THURSDAY, NOVEMBER 18, 1976 7 My Ministers believe that some measure of price stability for the beef industry can only he provided t�rough a national program. They have repeatedly requested federal actmn. No such action has been taken. In the absence of an effective national program ' my Government has moved to assist cattle producers. In 1974, the Calf Cash Advance Program was introduced and $35 million in interest­ free loans was provided to over 12,000 producers. In 1975, the program was extended. Almost 14,000 farmers borrowed $41.8 million. This October, my Government announced new measures to assist cattle producers. The cash advance was made available for another year and a one-time cash grant of $50 per cow was made available to cow-calf producers. These programs underline my Government's commitment to maintaining a firm agri­ cultural base for our Province's economy. The development and preservation of the family farm is still an important priority for my Government. The Land Bank Program has assisted more than 1500 young farmers to set up viable farm units. Amendments will he proposed to The Land Bank Act, 1972 which will improve the operation of the program. RESOURCES The strength of the Saskatchewan economy in the decades ahead will depend to a great degree on revenue from our natural resources, particularly our mineral resources. In the development of these resources, my Government has insisted that substantial benefits should accrue to the people of Saskatche�an. This objective will continue to be pursued. If steps previously taken to ensure Saskatchewan citizens of a fair return for their resources are judged to be invalid, you will be asked to consider measures to remedy this situation. My Government is determined to ensure that Saskatchewan re­ ceives adequate revenues from resources. A year has passed since plans were announced to regain for Saskatchewan a greater measure of control over the Province's most important non-renewable resource - potash. Toc!ay the Potash Corporation of Saskatchewan, a Crown enterprise, is producing potash and selling it to customers in the United States and overseas. This has been achieved through the purchase of the Duval mine near Saskatoon. That mine, a wholly­ owned �uhsidiary of the Potash Corporation, ha!! been renamed PCS Cory Limited in recognition of the district in which it is located. My Ministers will, at this Session, table a report which contains the independent evaluation of this mining property by a distinguished mining consultant. The hulk of the capital funds required for the Duval purchase was provided from oil royalty revenues accumulated in the Energy and Resource Development Fund. Negotiations are currently under way with ot,h.er potashcompanies. My Government has been concerned with the action of the Justice Department of the United States in alleging that conduct of Canadian companies and officials of the Government of Saskatchewan constitutes a criminal conspiracy.

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