Mr. Deputy Speaker:

Is the House ready to continue debate?

Hon. Otto Jelinek (Minister of State (Fitness and Amateur

Sport)): Mr. Speaker, in listening to the comments of our socialist NDP friend, and I listened very carefully, I did not recognize the fact that he was speaking on the Bill which is before the House. He touched on many subjects, all of which have nothing to do with the Bill presently before us. The fact is that the Hon. Member totally and absolutely misses the point as to what is happening here today, and yet he has been here long enough to realize what is going on.

Perhaps I should reiterate what, in fact, is stated in the Bill and why this Government finally took the only honourable step

November 8, 1984

to wind down the Canadian Sports Pool Corporation. It was done for numerous reasons. The first and main reason, of course, is the fact that there was a 1979 agreement with the provinces giving the provinces the jurisdiction for gaming operations. I did not hear any reference from the Hon. Member in that regard. In order to establish a spirit of co-operation between the federal Government and the provinces-rather than the spirit of confrontation which has existed over the past decade or more fostered by the previous Liberal administration-we took the step of closing down the sports pool and are now in the process of legislating that decision in order to create harmony between this Government and the provinces.

Second, of course, because the sports pool was such a well run operation-typical of the Liberal administration-it was losing over $1 million a week, which made the decision that much easier.

There were some individuals who suggested to us that we not close down the sports pool but improve upon it, make it more comprehensive and simple and then use it as a tool to try to get money out of the provinces in order to close it down. We rejected that option because that is exactly the way the previous Government operated. It used to have a big stick in order to deal with the provinces. That sort of federal-provincial relationship is out of the window as of September 4 last, I can assure you of that.

My main purpose in participating in this debate today, Mr. Speaker, is once again to assure Canadians of this Government's commitment to contributions for the Calgary Games of $200 million despite the closure of the sports pool. As I stated at a press conference on September 21, and I quote:

This Government unconditionally accepts the commitment to provide financial support for the 1988 Olympics in Calgary to a total of $200 million.

I will expound in a few moments, Mr. Speaker, as to our commitment and where we intend to raise the money for that commitment. However, I would like to take a few comments to follow up on some of the historical background of the sports pool and lotteries in general, following on the statements made earlier today by my colleague, the Minister of National Health and Welfare (Mr. Epp). As you may know, Mr. Speaker, the first lottery initiated goes back to 1973, which was the Olympic lottery. This was initiated by the Liberal Government at that time for the purpose of trying to raise funds for the Montreal Olympics, which were held three years later in 1976. There were problems immediately and the Conservative Party, in Opposition at that time, made those problems known to the House and to the Canadian people. We suggested that the Government should not get itself involved in the lottery business at that time. However, being in the position we were as Opposition, we did not get very far.

It is somewhat ironic that in those days I happened to be the critic for fitness and amateur sports, for the Olympics and for lotteries. It was under those conditions that on February 27, 1976, and again on March 29 of the same year, I brought numerous and specific facts to the attention of the House regarding irregularities concerning advertising and ticket sales

Sports Pool Corporation

with which the lottery was fraught. Specifically, on June 1, 1976, I went on to call for an investigation into the Olympic lottery. However, in spite of numerous concerns outlined not only in this House but across the country, Loto Canada followed the Olympic lottery and was established just after those horrendous problems which developed in the Olympic lottery on June 7, 1976.

We continued, Mr. Speaker, to try to clean up the operation because we were promised by the Government in power at that time that the lottery would continue only as long as it took to pay for the overrun of the Montreal games. It is for that reason, and that reason only, that we eventually supported the formation of that lottery on a temporary basis, with the understanding that it would be closed down after the overrun of the 1976 Olympics was paid for. That was not to be the case, unfortunately, and, as you know, Mr. Speaker, the Government went on to create other lotteries, and so we found ourselves in the situation in which we are today.

When the Progressive Conservatives eventually formed a government in 1979, we stuck with the initial principle which we had from the very beginning when lotteries were developed in this country. That was to say, let us get out of the lottery business, let us get out of gaming and gambling. We do not want to be in it. The federal Government has really no right to be in it. An agreement was signed in 1979, with the unanimous consent of the provinces, giving the rights and the jurisdiction of lotteries and gaming to the provinces. Shortly thereafter the Liberal Government was elected, and immediately it went into action, ignoring this duly signed agreement between the provinces and the federal Government, and started to wind its way into the sports pool, directly breaking the agreement that existed between the provinces and the federal Government. That was just another example of the terrible lack of co-operation between the federal Government and the provinces. The rest is history.

The status of the two corporations today, Loto-Canada and the Canadian Sports Pool Corporation, is as follows. Regarding Loto-Canada, on November 1, 1984, some $15.5 million was paid to the Receiver General for Canada and $250,000 was retained to pay outstanding accounts. That was because even after all those years Loto-Canada was still in existence. In fact, the Auditor General said in his report on July 29, 1983, that the lottery was ill-founded by monies that were legally due but not paid to the Receiver General for Canada. He went on to say that he was concerned about the high level of expenses incurred by Loto-Canada. As a result of these inherited irregularities, this Government moved quickly to take the action I just outlined.

With regard to the Canadian Sports Pool Corporation, approval for $36.5 million was obtained on October 26, 1984, by this Government to be allocated in the following manner. Some $20 million was allocated to forgive the start-up loan. The Liberals borrowed $20 million to start up this mess. Then

November 8, 1984

Sports Pool Corporation

another $16.5 million was allowed to pay outstanding accounts which were derived as a result of losses.

I believe, Mr. Speaker, to put an end to this whole thing now, that the remaining matters relating to this corporation will be cleared up in the very near future. It is in very good and capable hands, that of the Minister of National Health and Welfare and officials of the Treasury Board and of the Department of Justice, and I am confident that this will soon be behind us.

To go back to the Olympic commitment and how we are going to raise the necessary funds, that is the number one question. Let me point out, Mr. Speaker, that it was never expected or intended that the full $200 million would be funded entirely from the sports pool profit. The previous Government saw this as only one of several sources of funding, and at least some of those we are actively considering. Others that we have in mind were not, as far as we know, considered by the previous Government.

Now, because the positive spin-off from the games by way of social, economic and cultural benefits will be realized by all provinces and regions of Canada, it is no secret that I have been negotiating and discussing with the provinces not only to engage them in partnership to help fund the Olympics, but also to work together in supporting and improving fitness and sports programs in a more co-ordinated fashion. I have had the opportunity to meet with my provincial counterparts responsible for fitness, sports and recreation, with some of them on numerous occasions now, and I can assure you that a true feeling of federal and provincial co-operation and consultation has become more than evident. I have also met and am continuing to meet with provincial Ministers responsible for lotteries. Of the ten Ministers who are fitness and sports or recreation Ministers, only four are responsible for lotteries. The other six are in different portfolios. I can report that progress is being made in forging the type of partnership between this Government and the provinces that I referred to earlier.

That is one way. There are other ways and means at which we are currently looking to help fund the Calgary Olympics, indeed, to help fund fitness and sports programs in the long run. For example, we will be introducing legislation to create an Olympic coin program, which should generate between $30 million and $50 million, depending on the price of silver and gold at that time. At present, the proposed program would involve 12 issues of one $20 silver coin, with a maximum mintage of six million units, and one issue of one $100 coin, with a maximum mintage of 350,000 units. An agreement for the use of the Olympic marks is currently being negotiated with the Mint, the Canadian Olympic Association and the International Olympic Committee. We are also seriously pursuing increased corporate sponsorship in the area of amateur sports and examining various ways to encourage the corporate sector to become more involved on a long-term basis after the games are held.

I truly believe, Mr. Speaker, that with some effort on our part the private sector can play a far greater role in both the

funding of the Olympics as well as in being more directly involved in assisting fitness and sports programs, not only between now and 1988 but beyond that time. I am very seriously looking into ways and means of coming up with some form of incentives for the private sector to do just that.

I prefaced my address, Mr. Speaker, by emphasizing that this Government will be honouring its commitments to provide financial support for the 1988 Winter Olympic Games in Calgary. Indeed, we take this $200 million commitment very seriously. As I indicated previously, I would like to take this opportunity to expound a little on the allocation of those funds. Perhaps the most important of all the federal monies in the long term is the $30 million for the Olympic Endowment Fund. This is in fact a legacy for our athletes, both present and future Olympians. The fund will be used toward maintenance and operation of the Olympic facilities and will ensure that our national team athletes have world class training centres, such as the speed skating oval and the Olympic Park. In addition, these facilities will draw world class athletes and coaches from all over the world to train in Canada. This is yet another benefit which will stay as a legacy. Most important, these facilities are going to be used by the Canadian people themselves, from minor leaguers and beginners right up to those who are training for international events. So the legacy of the Olympics will live on after 1988. It is with pride that the Canadian people are going to look toward 1988 as the best ever Olympics.

Other funding includes $27.8 million toward the budgeted cost of the Olympic Saddledome; $35 million for the Olympic Oval, which is to be constructed by the University of Calgary; $62.2 million toward the Canada Olympic Park, which includes the ski jumps, the luge and bobsled runs; $30 million towards the Olympic Endowment Fund, to which I just referred; and $45 million toward operating funding for OCO '88, it being the Calgary Olympic Organizing Committee. To date we have expended $48 million of the $200 million commitment. In addition to direct funding, we have promised to provide essential federal services such as security, immigration and customs. The Government of Canada may also provide certain discretionary services on a cost-recovery basis.

Having said all this, Mr. Speaker, we are very proud that we were able to move as quickly as we did in closing down the sports pool in good faith with the provinces, a move which made good economic sense as far as the taxpayers are concerned because of the $1 million to $1.5 million loss per week. 1 can report to you that the funding to replace this $200 million commitment is proceeding on schedule. I can also report to you that the construction projects in Calgary to which I just referred are proceeding according to schedule. Having seen the sites myself and having met the top notch organizers of OCO '88 in Calgary and across the country, I am confident that the Winter Games in Calgary in 1988 are going to be the most successful ever held anywhere in the world and that Canadians will be proud of what we, along with the organizers, are doing and will do between now and then.

November 8, 1984

Mr. Deputy Speaker:

I must remind the Hon. Member that the time allotted for questions and comments is now over.