Mr. MacEachen:

-he concluded by saying:

Oral Questions

I continue to hope we can resolve our differences over resource management and revenue sharing despite the fact that two legal actions have been launched. In the meantime, while these two court actions proceed, the federal government remains committed to working co-operatively with the government of Newfoundland in order to ensure that current oil and gas activity in the offshore continues.

I assure the hon. member that it is not our intention to bully; it is our intention to work co-operatively with the government of Newfoundland in the way indicated.

Mr. Crosbie:

What is the date of the letter?

Hon. James A. McGrath (St. John's East):

Madam Speaker, my question is directed to the Acting Prime Minister who will know that this unprecedented legal action will be seen as an affront to the integrity of the Supreme Court of Newfoundland and an insult to the people of Newfoundland; he knows that.

Hear, hear!

Oh, oh!

Mr. McGrath:

I want to ask the minister why the Government of Canada did not respond to the reasonable request of the government of Newfoundland, made as recently as May 4, whereby it once again asked the Government of Canada to set aside the question of ownership during the period of negotiations and permanently, if there was an agreement; and the very reasonable position of the province which called not only for shared management and revenue sharing but for setting aside permanently the question of jurisdiction? Why, in the face of that very reasonable proposal, did the Government of Canada affront and provoke the people of Newfoundland by this unprecedented action?

Hon. Allan J. MacEachen (Deputy Prime Minister and Minister of Finance):

Madam Speaker, that question was also dealt with in the letter of the Prime Minister to Premier Peckford, in which the Prime Minister said:

You have insisted that the federal government agree, in advance of serious negotiations, to set the issue of legal ownership aside permanently and commit itself to a framework for resource management that could produce a stalemate which would not be in anyone's interest.

The Prime Minister went on to say that pre-conditions of that kind obviously make meaningful negotiations quite impossible.

Hon. James A. McGrath (St. John's East):

Madam Speaker, I ask the Acting Prime Minister what is more important, the creation of a stalemate or the development of this very important resource for Canada? This is the question which must be addressed. Does the Acting Prime Minister expect the House to believe that reasonable negotiations can resume in the light of this unnecessary provocation? He knows that there can be no negotiations as long as this question has been

May 19, 1982

Oral Questions

referred to the Supreme Court of Canada, while it is before the Newfoundland Court of Appeal. Why have they not responded to the request of the Newfoundland government to sit down and negotiate the reasonable proposition which was put to the Government of Canada on January 25 and which, incidentally, was supported by almost 62 per cent of the people of Newfoundland who voted in the last provincial election?

Order, order.

Madam Speaker:

Order, please.

Hon. Allan J. MacEachen (Deputy Prime Minister and Minister of Finance):

Madam Speaker, the hon. member knows that it is possible to secure and work out arrangements between the federal government and the provinces. I remind the hon. member, who is normally a reasonable person, that the Government of Canada has succeeded in working out arrangements or agreements with three western producing provinces, and that we were able to work out an agreement on the offshore, after intensive negotiations, with the province of Nova Scotia. I believe that what has been possible with four other provinces is possible and can be attained, with good faith on both sides, with the province of Newfoundand as well.

Right Hon. Joe Clark (Leader of the Opposition):

Madam Speaker, could the Acting Prime Minister tell the House of Commons when cabinet took the decision to refer the offshore question to the Supreme Court of Canada?

Hon. Allan J. MacEachen (Deputy Prime Minister and Minister of Finance):

No, Madam Speaker, I do not have that information. I do know that the order in council was signed this morning, but I have no other information which I can give. The Prime Minister will be in the House later, and the Right Hon. Leader of the Opposition may want to follow up that question, but I have no further information on the point.

Right Hon. Joe Clark (Leader of the Opposition):

Madam Speaker, just for the purposes of clarification, will the Prime Minister be in the House before the end of question period?

Hon. Allan J. MacEachen (Deputy Prime Minister and Minister of Finance):

Madam Speaker, the Prime Minister is meeting with the Prime Minister of Australia, and I expect him to be in the House before three o'clock.