Hon. Darren Praznik (Government House Leader): Madam Speaker, first of all, I understand that there may be a willingness of the House to waive private members' hour today.

Madam Speaker: Is there unanimous consent of the House to waive private members' hour? [agreed]

Mr. Praznik: Madam Speaker, it would be my intention to call, with leave, I believe it is Bill 27, which is the amendment to The Essential Services Act, but I understand that there is not leave of the House to do that.

Madam Speaker: Order, please. Does the honourable government House leader wish to have it established on record or not?

Mr. Praznik: No, I do not think that is necessary, Madam Speaker; I just wanted to flag that there was not leave of the House, but it was our intention to call it.

I would ask if the Speaker could call for second readings Bills 14, 24 and 25. Following that, I will be moving the motion to go into Committee of Supply.

Hon. Rosemary Vodrey (Minister of Culture, Heritage and Citizenship): I move, seconded by the Minister of Environment (Mrs. McIntosh), that Bill 14, The Amusements Amendment Act; Loi modifiant la Loi sur les divertissements, be now read a second time and be referred to a committee of this House.

Mrs. Vodrey: Madam Speaker, this is a very short bill, but it will give our Manitoba Film Classification Board important powers to enable it to fulfill its responsibilities to Manitobans. The purpose of Bill 14 is to broaden the scope of The Amusements Act to encompass all current and future electronic formats. In the next few years, it is expected that digital video disks or DVDs will replace videos as the predominant home video format. When the current act was brought into force, there was no way to anticipate the extent or the speed of the development of video technology. The Film Classification Board can and does classify films exhibited in theatres and retail video stores sold or rented for home use; however, it does not currently classify DVDs or video and computer games.

The DVD format is the next generation of optical disk storage technology and can hold video, audio and computer data. DVD is expected to supply home entertainment, computer and business information with a single-disk format. It is anticipated that it will eventually replace audio CD, video tape, laser disk, CD-ROM and perhaps even video game cartridges. With these amendments, the board will be able to classify DVDs and video games. However, this time it is our intent not to introduce a board rating system for video games. Instead, we will be promoting the voluntary use of the entertainment software rating board system or ESRB for classifying video and computer games.

This industry rating system is widely used in North America and appears to be very effective in outlining the contents of games. The government intends to conduct a public information campaign to make parents more aware of the ESRB system and how it can help them determine what is suitable for their children. We will make information on the system available in participating stores through-out the province. This bill is a proactive measure that we believe will enable the Film Classification Board to address the classification of all new forms of video entertainment. It is intended to anticipate entertainment technology developments that could arise in the future and provides the potential for government ratings of video games, if necessary, further down the road. This bill will allow our classification system to respond to fast-evolving technology and enable us to support Manitoba parents in monitoring what their children view.

Madam Speaker, if there are any questions, I am pleased to answer them. Otherwise, we are pleased to support this bill, and we look forward to moving it on to the committee stage. Thank you.

Mr. Daryl Reid (Transcona): I move, seconded by the member for Broadway (Mr. Santos), that debate be adjourned.

Bill 24–The Municipal Amendment Act

Hon. Leonard Derkach (Minister of Rural Development): Madam Speaker, I move, seconded by the Minister of Health (Mr. Stefanson) that Bill 24, The Municipal Amendment Act; Loi modifiant la Loi sur les municipalités, be now read a second time and be referred to a committee of the House.

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Mr. Derkach: Madam Speaker, it is my pleasure to introduce for second reading Bill 24, The Municipal Amendment Act. As members of this House know or will recall, our government had the pleasure of heralding in a new municipal act in 1997. Since then, the new act has served municipal governments very well. However, when legislative acts are completely rewritten, as was The Municipal Act in 1996, there will be a need to amend and clarify certain parts from time to time. This ensures that the act continues to serve the needs of Manitobans, and this is the intent, of course, of Bill 24.

For example, some of the amendments will accommodate local initiatives by some communities to restructure. Two communities that immediately come to mind are Pine Falls and Ninette. These communities have examined or are in the process of examining and changing the fundamental structure of their communities to enhance their viability and sustainability for the long term. An amendment is also being proposed to enable Cranberry Portage, a remote community located in the R.M. of Kelsey north of The Pas, the opportunity for self-sufficiency. This amendment would allow more flexibility to the legislation so that it would recognize and adapt to the unique characteristics of that community.

In other areas, we are proposing some housekeeping amendments, such as extending the leave-of-absence period for municipal employees elected to council. This would coincide with last year's amendment changing the term of office from three years to four years.

We are also proposing a number of amendments related to the municipal tax sale process. These amendments will clarify the process leading up to and regarding when and how tax sales proceed. In addition, they will balance the interests of property owners who may be at risk of losing their properties with the interests of municipalities that rely on the timely payment of property taxes to fund the delivery of municipal services to residents and property owners. For example, we have strengthened considerably the existing requirements to notify owners of the tax sale. Under the proposed amendments, tax sales must also be locally advertised and additional notices are required to be posted in the municipality and/or near the property. In addition, it will be required that the first notice of the impending sale be personally delivered to the property owner, with the new requirement for a second notice to go out to the property owner. This will ensure that property owners are given every opportunity to understand and be aware of the serious consequences for them if the proceedings were to continue to the point of a tax sale.

Madam Speaker, the amendments we are proposing would also allow for greater flexibility in the way municipalities and property owners might arrange payment of taxes. Our intent is to ensure that the tax sale option is truly a measure of last resort. Part of the flexibility would be to ensure that properties that have only nominal taxes in arrears be excluded from tax sales. Amendments also are being introduced that will place restrictions on who can purchase properties at tax sale auctions. This would not only ensure objectivity, openness and fairness in the tax sale process, it would, more importantly, assure the public that the process is objective, open and fair.

The amendments I am introducing today will result in continued improvements to The Municipal Act. The amendments will also ensure that municipalities and local governments are able to meet the changing needs of Manitobans. Thank you, Madam Speaker.

Mr. Daryl Reid (Transcona): I move, seconded by the member for Brandon East (Mr. L. Evans), that debate be adjourned.

Hon. Leonard Derkach (Minister of Rural Development): I move, seconded by the Minister of Highways and Transportation (Mr. Praznik), that The Municipal Assessment Amendment Act; Loi modifiant la Loi sur l'évaluation municipale, be now read a second time and be referred to a committee of the House.

Mr. Derkach: Madam Speaker, it is my pleasure to introduce for second reading Bill 25, The Municipal Assessment Amendment Act. The Municipal Assessment Act was rewritten in 1990. Since then a number of amendments have been made to streamline the assessment process.

A number of amendments that have been proposed will enable us to make some additional changes which are of a housekeeping nature. For example, we propose to amend the definition of mobile home to bring it into line with recent amendments in The Municipal Act. Similarly, to be consistent with the definition contained in The Municipal Act, we propose to amend the definition of municipal administrator.

Other amendments are being proposed which are somewhat more significant. These are amendments which are in reaction to recent court interpretations of the statute. The Court of Appeal has heard and ruled on a number of important issues over the past year. The court's decisions were not in accordance with what the act had originally intended. Therefore it is being proposed in Bill 25 that the appeal provisions of the act be amended. This will serve to clarify the authority of the Board of Revision and the municipal board to allow them to increase an assessment on appeal, authority that this Legislature had approved in the past.

Madam Speaker, the proposed amendment aims to clarify for the courts that the municipal board has the ultimate authority to revise an assessment to any amount necessary in correctly determining value.

The amendments I am introducing today to The Municipal Assessment Act will do a number of things. First, they will result in continued improvements to the act. Secondly, they will restore the authority of the municipal board to decide on an assessment appeal as it deems proper.

There are two additional issues which have arisen since our legislative proposals were submitted in August of 1998. The first issue deals with the tax status of the Elmwood Cemetery in Winnipeg. Currently, private and profit cemeteries are subject to taxation on lands and buildings, with the exception of where internment exists. Meanwhile, cemeteries owned and operated by a municipality or a religious denomination are exempt from taxation under The Municipal Assessment Act.

A group known as the friends of Elmwood Cemetery incorporated recently acquired ownership of the property and has requested exemption from municipal and school taxes. The Elmwood Cemetery has been in financial difficulty for some time. The previous owner set aside $1.3 million to serve as a perpetual care fund to maintain the property. Since the money falls short of what is required, friends of Elmwood Cemetery hope to raise $5 million for the perpetual care fund.

Madam Speaker, the loss of municipal and school taxes by exempting the cemetery from paying taxes is somewhat minimal. Therefore, this bill also seeks tax exemptions for the Elmwood Cemetery as well as for cemeteries owned or operated by nonprofit corporations.

The second issue that has arisen relates to the assessment of small craft harbours in the province. The federal government is currently in the process of divesting itself of responsibilities for operating and maintaining recreational harbours and plan to lease their fishing harbours to local harbour authorities. Manitoba has 21 recreational and 38 fishing harbours operated by the federal government.

Under the current provisions, the federal government has made payments in lieu of taxes on land and buildings associated with harbours but has not paid taxes on wharves and docks. However, with groups taking over these harbours from the federal government, they become taxable.

In the case of one harbour in particular, the revenue generated from the harbour is not even sufficient enough to cover the annual tax bill. The implications of exempting small craft harbours are minor, since the total payable on all harbours in Manitoba is less than $12,000. It is therefore proposed that The Municipal Assessment Act be amended to allow for an exemption of the real property used as a harbour by a harbour authority.

Madam Speaker, I seek the thoughtful consideration of all members of this House in moving forward with Bill 25, The Municipal Assessment Act. Thank you.

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Mr. Daryl Reid (Transcona): I move, seconded by the member for Osborne (Ms. McGifford), that debate be adjourned.

Hon. Darren Praznik (Government House Leader): Madam Speaker, I would move, seconded by the honourable Minister of Rural Development (Mr. Derkach), that this House do now resolve itself into a committee to consider of the Supply to be granted to Her Majesty.