HomeMy WebLinkAboutZurich Citizens News, 1976-05-05, Page 7Jottings by Jack from Queen's Park
Wants judicial inquiry
The facts that are known and
undisputed about the events
surrounding the receivership
of Essex Packers Limited of
Hamilton, convinced me that
there should be a full judicial
• inquiry, which I asked the Attorn-
ey General in the Legislature,
this week, to consider.
The Attorney General did
not think that a Judicial Inquiry
was necessary but that he would
be willing to answer any question
to the best of his ability that I
niay wish to ask about the manner
in which the Government assign-
ed the lease of the Guelph Centre
Plan to the De Jonge Group.
There have been many allega-
tions .made which I cannot repeat
here because they lack solid
documented evidence but I
thought the only way to clear
up any doubts about the way the
Government conducted the busi-
ness was, with an inquiry.
It is a fact that the $900,000
meat packing plant which the
Provinceowns at the Guelph
Correction Institute has been
leased to the De Jonge Group, a
term applied to brothers, Mike,
Bennie and John De Jonge who
control several meat packing
companies in the Province. The
lease was assigned to the De
Jonge Group without calling
public tenders. Bennie De Jonge
was convicted in 1972 of fraud
involving short weighing cattle
bought by farmers. The Minister
of Correctional Services said he
was fully aware of the fraud
conviction, yet recommended that
De Jonge's take' over the opera-
tion of the Guelph. Plant. Mr.
Smith, the Minister of Correction-
al Services, said other proposals
to take over the Guelph Centre
were rejected because those
offers did not include any assist-
ance for the Essex Packers Plants
in Hamilton.
It is my feeling that a Judicial
Inquiry should establish why the
fate of Essex was linked to the
Guelph Centre' lease. The Pro-
vince had a clause in its lease
with Essex enabling it to cancel
a lease, yet it chose not to exer-
cise the option.
A Judicial Inquiry should
examine the events leading up
to the original lease with Essex
Packers to determine the reason
that Essex was chosen in the first
place. The Inquiry should
examine the reasons why the
Government failed to cancel
the lease to Essex when Essen
was forced into receivership by
the Bank of Nova Scotia, on
October 31st. The lease remained
with Essex until March 18th,
when Cabinet assigned it to the
De Jonge Group. The Inquiry
should examine the financial
records of Essex Packers includ-
ing bank records and activities
and the manner in which creditors
were paid and not paid in the
week leading up to October 31st.
The Inquiry should examine the
claims of Frederick and Harrud
Inc. of Detroit, that the receivers
managed Essex poorly and credit-
ors were losing assets. The
Inquiry should examine the terms
and conditions of the De Jonge
Group's offer to help the Essex
Plant. It is my opinion that the
De Jonge's could quite conceiv-
ably cease the operations of the
Essex Plants in Hamilton, after
a six month period of time, as
it is the modern plant at the
Guelph Correctional Centre which
has the greatest potential.
Finally the Inquiry should
make recommendations to pro-
tect farmers from financially -
crippling blows of a similar
nature in the future. There is
a clear need for some form of
protectittii for those who sell
their cattle to meat packing
companies.
Many farmers feel that the
best interests of beef farmers
were dealt away by the Pro-
vincial Cabinet for political
motives and if this is the case
then it is understandable why the
Attorney General is not pre-
pared to conduct a Judicial
Inquiry. I intend to pursue this
matter further for there are some
farmers who lost thousands of
dollars in the entire transaction.
The .largest labour demonstra-
tion in the history of Queen's
Park took place this week in
protest against the Government's
restraint programme. Thousands
of workers filled the lawn . and
pavement from the steps leading
into the Legislative Building to
the curb at College Street.
The size of the crowd brought to
Queen's Park by the Ontario
Federation of Labour, and its
affiliated unions, was seen by
union leaders as vindicating their
position that they speak for their
members in condemning the
Government's spending ceilings
as they affect social and commun-
ity services. Each year repre-
sentatives of the Ontario Federa-
tion's views on a wide range of
current issues, and this year the
meeting reflected labour's op-
position to the federal wage con-
trol programme and the pro-
vince's acceptance of it, with the
focus on the Government's
restraint programme and ceilings
on grants to municipalities,
cutbacks in hospitals, including
hospital closings and the impact
of the restraint programme on
social services.
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This past week the Minister
of Housing announced that
Ontario's rent -geared -to -income
housing units will no longer come
f
under the -Provincial rent review
programme, an amendment
which the Liberal Party will
support. The Opposition voted
originally to include public
housing under the rent review
legislation because it was con-
cerned that the rent-greared-to-
income scale was not working
fairly. Now that a review of this
scale is underway, it is un-
necessary to maintain another
level of costly bureaucracy.
In connection with housing in
the Province, Liberal Leader
Stuart Smith challenged the
Minister of Housing about his
plans, if any, to encourage
building of more rental units
to avert "skyrocketing" rents
when controls are removed next
year. The Minister indicated
that he really had no answer to
the question of what could be
done to encourage ' the private
sector to cope with the situation.
Dr. Smith said "there should be
more incentives to builders and
municipalities and, if necessary,
a partnership arrangement be-
tween government and private
industry".
United Asbestos Inc. was
ordered to close this month by the
Government because of the
unsafe asbestos -fibre readings
at its Matachewan plant. The
plant was ordered to clean up
or close permanently. According
to James Bullbrook, M.P.P.
(Liberal -Sarnia) legislation is
needed to force corporations
such as United Asbestos to pay
employees who suffer financially,
in this type of situation. The..
Minister of Natural Resources
Citizens News, May 5/ 76 -Page 7
Jack Riddell
Huron -Middlesex
said there is nothing the Govern-
ment can do to force the firm to
pay employees laid off because of
the clean-up. However,. Mr.
(Bullbrook said, "We are a
legislative body. Let's pass a
statute forcing them to".
Tell it to
the News
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