ORDERS OF THE DAY

Hon. Jim Ernst (Government House Leader): Madam Speaker, would you please call Bill 3, The Maintenance Enforcement (Various Acts Amendment) Act, for second reading.

SECOND READINGS

Bill 3--The Maintenance Enforcement (Various Acts Amendment) Act

Hon. Rosemary Vodrey (Minister of Justice and Attorney General): Madam Speaker, I move, seconded by the Minister of Family Services (Mrs. Mitchelson), that Bill 3, The Maintenance Enforcement (Various Acts Amendment) Act; Loi sur l'exécution des ordonnances alimentaires - modification de diverses lois, be now read a second time and be referred to a committee of this House.

Motion presented.

Mrs. Vodrey: Madam Speaker, it is my privilege to present the second reading for this government's maintenance enforcement legislative initiative, which is designed to enhance Manitoba's ability to collect maintenance payments.

These measures are quite extensive. In addition to substantial amendments to The Family Maintenance Act, we are also introducing corresponding changes to The Personal Investigations Act, The Highway Traffic Act, The Pension Benefits Act, The Garnishment Act and The Parents' Maintenance Act. This government's approach acknowledges that the end of a relationship does not release an individual from their obligation to support their family.

In our society today it is unfortunately true that families can face a variety of pressures and influences which may result in their breakup. It has been shown that the disintegration of the family very often has a significant and negative economic impact on children. It is commendable that our system of family law attempts to bring some degree of stability into these situations through the Maintenance Enforcement Program.

Many of the payers enrolled in the program do live up to their obligations for child or spousal support and do so co-operatively. However, there remain many other individuals who deliberately seek to avoid or ignore their financial obligations as determined by the courts. At the present time in Manitoba, 95 percent of the 11,700 orders administered by our Maintenance Enforcement Program involve child support for over 20,000 children. These children rely on the program to protect them and, under present legislation, we are unable to protect all of them adequately.

Our responsibility to protect the rights of Manitobans of all ages has resulted in the amendments placed before this House. This government is asking the honourable members of this House to help us reach those individuals who seek to abandon their financial obligations and undermine our court system. We do not believe it is acceptable to have families and children live in poverty because court-ordered maintenance payments are ignored.

These measures should send the strong message that paying maintenance is a payer's first obligation. The best interests of the family demand that these payments be made. These changes will substantially strengthen enforcement efforts, provide invaluable information on the location and assets of delinquent payers and help us get more money into the hands of children and families.

With input from various sources across the province, we have formulated a set of initiatives which focus on insuring the well-being of children and families being served by our maintenance enforcement program.

Madam Speaker, the major areas of reform to expand our enforcement power being placed before this House are on reporting delinquent payers to the Credit Bureau. Under this action we are proposing amendments to The Personal Investigations Act and The Family Maintenance Act. These changes will give the maintenance enforcement program the ability to report persons who fail to pay support payments to the Credit Bureau.

Maintenance defaulters will find their credit ratings within the community downgraded or seriously impaired as a result of their actions. Unlike other reporting to the Credit Bureau, the program will not be obligated to disclose the address of the maintenance recipient.

Suspending and refusing driver's licences and vehicle registrations--to further expand the maintenance enforcement program's authority, we are introducing changes to The Highway Traffic Act and The Family Maintenance Act. As an enforcement measure, the program will have the authority to request a delinquent payer's driver's licence and vehicle registration privileges be suspended.

We believe this will operate as a serious incentive to pay for many defaulters. Prior to this measure being taken in a case, the program will serve notice on the defaulting payer. It will indicate that within 30 days of the notice they are required to either meet with the program staff to arrange suitable repayment plans or request a court hearing to set up a repayment schedule. If the defaulter does not address the arrears in an appropriate manner within the 30-day limit, the suspension of his or her driver's licence and the vehicle registration privileges in the province of Manitoba can occur. I would remind the House that in Manitoba, the penalties for driving while suspended are severe and are heavily enforced.

Under the proposal, the payer can have these privileges suspended if they do not attend a court hearing to set payments or if they default on a repayment plan. After suspension, the payer may still make arrangements with the program to comply with a repayment plan or order, in which case the privileges will be reinstated. If the program is unable to serve the payer with notice then it may request the Department of Highways to refuse to renew the person's driver's licence or vehicle registration.

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A defaulting payer may not appeal this action to the Licence Suspension Appeal Board. Their recourse is to deal with the arrears through the program or through the courts. The payer can apply for a court order reducing payments, reducing or cancelling arrears, or suspending enforcement if justified in his or her circumstances.

Attaching pension benefit credits: Our initiative proposes amendments to The Pension Benefits Act and The Garnishment Act. These amendments will eliminate some problems relating to garnishment of pension and other payments, where employees can request receipt of these payments on termination of their employment, but they have simply chosen not to make the request. Designated officers will also be given the ability to garnish a payer's pension benefit credits. This action will make Manitoba the only jurisdiction in Canada allowing these credits to be garnished.

This is a significant departure from the rule that a person's pension benefit credits are protected from seizure to pay one's debts. This proposal clearly reflects our view that defaulters should not be able to avoid their obligation to support their families while building up a fund for their own retirement. Other creditors, and even the payer, will have no access to these credits. We recognize that under Manitoba's marital property law, other people, such as a new spouse, can acquire interest in a payer's pension. The amendments will preserve the fixed right of such a person to a division of the payer's credits.

Whereas of the date of service of the garnishing order a person does not have a fixed right to a division of the payer's credits, the garnishing order will take priority. In that case, the other person will only be entitled to his or her share out of the remaining credits, if any.

If a pension plan administrator is served with a garnishing order for pension benefit credits, and they know or suspect that another person has an entitlement to a division, a process is set forth for the court to determine the issue with notice to the spouse and other interested parties.

Attaching jointly held monies: This amendment affects The Garnishment act and will enable the program to garnish monies a payer holds jointly with other persons. This measure will ensure that payers cannot avoid their obligations by placing money in joint bank accounts and therefore out of reach of the program. Under this change, the money will be presumed to be the sole property of the payer. However, the right of bona fide joint holders will be protected. The payer or other joint holders may ask for a court order determining the payer's actual interest and requiring any excess monies be paid out to the actual owners. The person applying for the court order will be required to prove the payer does not own all of the monies involved.

Also, under The Garnishment Act, we are amending sections concerning debts for maintenance payments. Currently, only those garnishing orders against wages remain in force indefinitely, so long as the support order or employment continues. We have proposed that garnishing orders issued for monies other than wages will now remain enforced indefinitely for maintenance debts. This is very important when payers are not paid as employees, or other monies become payable to them after the date the garnishing order is served.

The amendments will also make garnishing orders against wages effective the day after service rather than the Monday following service. This applies only to garnishing orders against wages for maintenance debts.

Increased penalties. Madam Speaker, our changes also clarify procedures at show cause hearings. We have increased maximum penalties to 90 days in jail from 30 and from $500 up to a $1,000-fine for persons found to be in wilful default. The burden will be on the payer to show that he or she is not wilfully in default.

Madam Speaker, other amendments included in this Maintenance Enforcement initiative concern The Family Maintenance Act and The Parents' Maintenance Act. These various other amendments confirm that court orders of support cannot be overridden by support agreements. The program can require payments be made in specific ways, clarify the duties of a designated officer permitting them to ascertain default as well as enforce payments. It will greatly increase the powers for the program to seek information about the payer's financial situation, employment and address as well as the recipient's address.

This also means time frames for compliance are set forth. Court orders for compliance may be obtained, and the program cannot be charged a fee for obtaining this information. It will clarify the deputy registrar's duties to advise the program of information obtained at the hearing attended by the payer. It will state that there is not any limitation period for collecting lump sum support orders. There is presently such a provision in place for periodic payments, and it confirms that information obtained by the program will be confidential except for enforcement purposes.

Under these and other amendments, although the recipient's views will be considered, orders to repay arrears made by deputy registrars will no longer be reviewed automatically by a judge or a master at the recipient's request. Orders will be reviewed by the program, which will determine if it is necessary to refer it to a judge or a master for redetermination.

Hearings which have commenced will be continued before the same judge or master, if an adjournment takes place, to ensure consistency in dealing with defaulters. We have also added justification for adjournments. Appeals from masters' orders will no longer be pursued by holding a completely new hearing, which can be time consuming and costly. Appeals will be based on the transcript and other evidence considered by the master in the same manner appeals from judges' orders are handled.

We have made provisions for program immunity for any enforcement action taken in good faith. For any orders under The Parents Maintenance Act, enforcement will be undertaken in the same manner as other support orders. This eliminates the possibility of different or contradictory enforcement schemes.

Madam Speaker, this government is making changes to force those individuals who are defaulting on maintenance and support payments to live up to their obligations. With these amendments we are strengthening the Maintenance Enforcement Program and creating the most effective deterrents for those seeking to evade its reach. These changes will have a direct and very influential impact on defaulting payers. They will experience specific consequences for their actions, consequences they will not enjoy in any way.

Madam Speaker, this government is serious about its intention to enhance the program's ability to reach defaulting payers. The seriousness of this intent is reflected in the wide-ranging amendments before this House.

We are closing loopholes, adding new avenues of access and increasing our ability to protect Manitobans of all ages relying on the program for support. I wish to assure the honourable members of this House that I will continue to pursue support from my federal counterpart to further maximize our efforts.

Madam Speaker, we are doing everything possible to force individuals who are defaulting on maintenance and support payments to live up to their obligations. Flagrant maintenance default will not be tolerated in Manitoba. We are serious and we are serving notice to payers flaunting the system. With or without their co-operation we will hold them to their maintenance obligations.

The initiatives before us now will make it even more difficult for identified payers to evade these obligations or place their assets beyond the reach of the maintenance enforcement program. Our changes will substantially strengthen enforcement efforts, provide invaluable information on the location and the assets of delinquent payers and help us to get more money into the hands of children and families.

Thank you.

Ms. Becky Barrett (Wellington): I move, seconded by the member for Osborne (Ms. McGifford), that debate be adjourned.

Motion agreed to.

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Hon. Jim Ernst (Government House Leader): I move, Madam Speaker, seconded by the Minister of Urban Affairs and Housing (Mr. Reimer), that Madam Speaker do now leave the Chair and the House resolve itself into a committee to consider of the Supply to be granted to Her Majesty.

Motion agreed to, and the House resolved itself into a committee to consider of the Supply to be granted to Her Majesty, with the honourable member for La Verendrye (Mr. Sveinson) in the Chair for the Department of Industry, Trade and Tourism; the honourable member for Sturgeon Creek (Mr. McAlpine) in the Chair for the Department of Education and Training; and the honourable member for St. Norbert (Mr. Laurendeau) in the Chair for the Department of Health.