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Honourable Members of the Senate.
Members of the House of Commons:
I have the honour to welcome you to the Second Session of the 32nd Parliament of Canada.
Canadians had the great pleasure of welcoming their Royal Highnesses, The Prince and Princess of Wales on an extended tour in June and July of this year. All who saw them were impressed by their friendly, out-going manner and their youthful dignity. As well, since April 1980, we have had the pleasant duty of hosting and meeting with fourteen foreign Heads of State visiting Canada.
We join fellow Canadians in looking forward to the scheduled visit to Canada in 1984 of Her Majesty, the Queen, and His Royal Highness, the Duke of Edinburgh, who will tour the provinces of Ontario, New Brunswick and Manitoba.
You recently completed an historic session of Parliament. The Constitution was brought home and with it came the final attainment of full Canadian sovereignty. The entrenchment of the Charter of Rights and Freedoms will forever help protect the liberty of our citizens. The vital energy and transportation industries are being transformed by the passage of the National Energy Program and the Western Grain Transportation Act. A co-operative national campaign to cut the rate of inflation in half was initiated through the 6 and 5 program. Members and Honourable Senators present all played an active part in these momentous events.
We meet today in a perilous time. East-West tensions are rising. Violence stalks many lands. The resort to force is a daily occurrence. The nuclear threat preys upon the hopes and dreams of every man and woman on the planet. The pursuit of peace must be the paramount goal of mankind. In this quest we must not fail.
For the past several years Canadians, indeed all people, have coped not only with the melancholy of the nuclear threat, but with the reality of the worst recession since the 1930s. This recession, which left more than thirty million people unemployed in the industrialized nations alone, is fortunately ending. Unemployment in all countries will remain too high for too long. But Canada has dramatically reduced the inflation which was the origin of this downturn. Our regained strength, combined with the proper mix of public policies, can now return the country to economic health and move us to new achievements.
So wc musi work for two goals central to the well-being of Canadians-to secure peace and to secure prosperity.
Abroad, the Government has begun the task of helping to construct a global partnership for peace.
At home, the Government's efforts will be directed to building a national partnership for prosperity.
To attain these goals, a comprehensive program will be presented:
to seek fresh approaches to world peace;
to encourage economic growth so that more Canadians can own a home, learn a trade, expand a business, participate in the ownership of our resources and gain a fair share of the abundant benefits this country can provide;
-to develop new partnerships among business, labour, government and other groups so that together we will build a better future; to preserve Medicare, increase pensions for the elderly, improve public safety, extend native rights, and further protect the freedom of individuals; and -to reinforce Canada's identity through enhanced recognition of our cultural heritage and increased support for our creative artists by new broadcasting, telecommunications and copyright policies.
I. Canada's Role in Seeking World Peace
Thirty-five million people have been killed in wars since 1945, and the possibility of a major conflict is a danger no nation can ignore. In the four decades since the Second World War, Canada and its allies have sought to preserve peace through substantial contributions to Western collective defence and sustained efforts to resolve differences with our adversaries. Yet the current international situation is cause for considerable concern, even anguish.
The Government, in close consultation with our allies, intends to devote its full resources to exploration of every possible means to restore confidence and trust to the international scene. It will continue to advance proposals to slow the steady spiral of the arms race, halt the spread of nuclear weapons and create the conditions for greater security at lower levels of armament.
Canada will continue to make a responsible contribution to collective defence, in fulfillment of its obligations to the North Atlantic Treaty Organization and the North American Air Defence Command. The Government will maintain its commitment to 3 percent real growth annually in defence expenditure, thus ensuring that our forces are equipped with modern conventional weapons. Canadian forces will not be armed with nuclear weapons. Announcements will be made regarding conventional weapons procurement programs.
Renewed attention, too, will be given to the contribution Canada can make to peace and stability through peacekeeping operations under the control of the United Nations, particularly where local crises risk escalation into wider conflict.
Improving the climate among nations requires knowledge, creativity and a determination to find solutions. Reflecting Canada's concern about current international tensions, the Government will create a publicly funded centre to gather, collate and digest the enormous volume of information now available on defence and arms control issues. Fresh ideas and new proposals, regardless of source, will be studied and promoted.
Canadians want more than ever to become personally involved in the quest for peace. The Government will increase its funding for voluntary associations and private research groups interested in security, arms control and disarmament issues. Resources for research and development of verification procedures, the basis of successful arms control agreements, will be expanded substantially.
Economic progress is a crucial contributor to peace and stability. Recognizing the urgent needs of developing countries, the Government will maintain its commitment to overseas development aid. Canada will achieve aid goals of 0.5 percent of the Gross National Product by 1985, and 0.7 percent of the GNP by the end of this decade. Increased involvement of voluntary organizations and the co-operative movement will be sought in the delivery of this aid. Particular attention will continue to be given to the growing world food crisis, through existing programs, and the new International Centre for Ocean Development.
II. Opportunities through Growth
Lasting employment for all Canadians wanting work is a critical national objective. Since last December, 353,000 new jobs have been created by the
economy. Through the injection of close to $5 billion in stimulus, the April 1983 Recovery Budget set in motion hundreds of needed capital projects across Canada, and helped make possible a return to much higher rates of private sector investment.
But even with a strong recovery, the Government believes direct action to create jobs continues to be essential. And young people are the priority.
Therefore, a larger portion of the Government's job creation expenditures will be devoted to unemployed youth and these programs will be delivered more effectively. Using re-allocated and new resources, a $1 billion Youth Opportunity Fund will assist young Canadians in acquiring new skills and in finding jobs in the private, voluntary and public sectors. In particular, substantial resources from this Fund will be allotted to a career access program which encourages the private sector to provide work and training to those entering the workforce for the first time. To intensify the Government's efforts for young Canadians, a Minister of State for Youth will be appointed.
While young people will receive special attention, the employment strategy of the Government will touch every group in society. Additional funds for this winter will be allocated to the Canada Works Program. Job opportunities in forestry, mining and the fishery will be enhanced through flexible uses of Unemployment Insurance funds.
Two new programs will be introduced. Canada's massive, diverse and vital voluntary sector will receive incentives to hire Canadians through a National Voluntary Service. A conservation corps-Environment 2000-will be created to employ Canadians to carry out essential tasks in reforestation and national park development.
Developing our Regional Strengths
Direct action to create jobs is essential. But the major opportunity for increasing employment is through the expansion of our industrial and resource sectors. We must reconstruct the basis for long-term economic growth and seize the opportunities provided by the recovery.
Wc must start by building on our regional strengths.
To ensure a strong national economy capable of providing jobs and meeting the needs of all Canadians, wherever they may live, federal programs and funding have already been re-organized in a new Industrial and Regional Development Program. It will support recovery through concrete initiatives, taking maximum advantage of the strengths and attributes of every region.
A new era of federal-provincial planning and consultation is being launched. Federal economic development activities will more effectively support regional economic opportunities and the reduction of regional disparities. To this end, negotiations are underway to sign comprehensive Economic and Regional Development Agreements with the provinces. These agreements will include such key sectors as agriculture, forestry, minerals, tourism, transportation and industrial development. The first of these agreements was recently concluded with the Province of Manitoba. Federal purchases of goods and services, worth over $6 billion annually, will be planned in co-operation with the private sector to maximize regional and industrial benefits.
An Aggressive Trade Drive
Canada is a trading nation and a substantial part of our future growth must be led by exports. To spur this growth, the Government proposes a series of policy initiatives.
The scope of the successful Program for Export Market Development (PEMD) will be extended to support service industries and to encourage private trading houses.
Under current import duty remission procedures, "duty free export zones" will be established for the manufacturing and processing in bond of goods for export; as well, the Customs Act will be streamlined and modernized.
Active pursuit of world product mandates by Canadian subsidiaries of multinational corporations, and the winning of additional export markets by Canadian companies, will be assisted by competition policy and direct funding.
To promote Canada's position as a Pacific Rim nation, the Government will move to facilitate establishment of the Asia Pacific Foundation of Canada.
While seeking new markets in the Pacific Rim, Europe and the developing world, we must continue to expand business and improve relations with our largest trading partner, the United States. Sectoral trade agreements with the
United States will be examined in such areas as specialty steel products, urban transportation equipment, petrochemicals, textiles and clothing.
Competitive World-Class Industries
To compete in the world economy, Canada needs to modernize capital facilities, develop new industries and rebuild plant and equipment.
A key element in sustaining Canada's growth and creating jobs will be the increased use of micro-electronic technology. Legislation will be introduced to confirm the tax incentives for research and development announced in the April Recovery Budget. Further steps will be taken to implement the technology policy announced earlier this year, including creation of a national micro-electronics design network. The Natural Sciences and Engineering Research Council will receive additional funds. A newly created Office of Industrial Innovation will work closely with Canadian industry to develop commercial application of new technologies.
The automobile industry is crucial to our economic well-being. Stabilizing employment in automobile manufacturing and its supplier industries is an essential task. The Government intends to seek a Canada-Japan Auto Agreement for the benefit of both countries, leading to additional production facilities and parts procurement in Canada.
Planning for industrial reconstruction and new investment must be based on busincss-labour-government consensus. Sectoral collaboration is at the core of the Government's industrial policy. Three business-labour task forces, on the automotive, aerospace and forestry industries, have now reported and are receiving responses. Another task force on the petro-chemical industry is underway. The benefits of such collaboration are already evident-in aerospace, more than 8,000 new, permanent, high-technology jobs and potential new export sales of over $20 billion will result from the Government's initiatives with Bell Helicopter and Pratt & Whitney. Additional task forces are planned on information technology, private trading houses, textiles and clothing, shipbuilding and a deep-sea fleet, and selected elements of the service sector.
Small scale entrepreneurs are the unsung heroes of the recovery. Small businesses are a perpetual source of inventiveness, valuable export earnings, and vast job creation potential. To assist this sector, an expanded Shop Canadian program will be launched. Access to federal programs for small businesses will be improved using the Federal Business Development Bank for delivery.
Tourism is a source of income for hundreds of thousands of Canadians and is particularly important to the small business sector. A national tourism strategy, developed in co-operation with the industry and the provinces, will promote each region's special features. Canada's attractions will be aggressively marketed both at home and abroad, and especially in the United States.
Young Canadians want to know their country better. Older Canadians deserve a chance to see the land they have built. A new Canadian rail pass, similar to the Eurailpass, and other forms of discount fares will be initiated.
Additional attention will be given to the needs of the travelling public. Domestic air transportation will be reviewed with the object of reducing fares. The safety of air travel will be improved through funding for a new independent Aviation Safety Board.
The Via Rail system will be upgraded through construction of new maintenance facilities in Western, Central, and Atlantic Canada. New trains will be developed for light density routes. Passenger services will be extended where traffic volumes warrant.
Building on our Resources
As part of the Government's thrust for growth, measures will be introduced to modernize and upgrade the fishery, forestry, mining and agriculture.
The Government of Canada recently took the lead in a restructuring of the Atlantic fishing industry. Above and beyond the funds for restructuring itself, nearly $200 million is being put to work improving fish grading, freezer facilities and for other measures of benefit to independent processors and individual fishermen. Funds for the fishing vessel assistance program will be increased for 1983-1984.
The fishery agreement with the Province of Newfoundland marked a turning point in the Government's relations with that province. It provides a promising basis for future co-operation in the best interests of Newfoundlanders.
The Pacific fishery-commercial, sports and native-is an important national resource. The Government recognizes that the problems of this essential west coast industry require urgent attention.
In addition to monies already provided for capital facilities, substantial funding to assist the Quebec fishing co-operative will be announced shortly.
Many Canadian communities depend on mining or forestry as their sole industry. The new regional development agreements will pay particular attention to the mining sector. The Government's forest renewal strategy will also be extended via these agreements, through the conservation corps-Environment 2000-and by additional funding for forestry research and development.
To help ensure that food production will continue to be one of Canada's longterm strengths, a livestock stabilization program will be established in cooperation with the provinces. Amendments will be proposed to the powers of the National Farm Products Marketing Council. A commission of inquiry will study the problems of potato marketing in Eastern Canada. The maximum for advance payments for grain will be increased. Amendments will be introduced to the Western Grain Stabilization Act to make it more responsive to the needs of producers.
Abundant clean water is a precious Canadian resource. Investment in Prairie water and soil requirements will expand, especially through the work of the new hydrology laboratory in Saskatoon. The Government welcomes the United Slates Government's increased recognition of our mutual problems of water quality. The negotiation of an agreement with the United States on acid rain will be pursued and efforts to reduce Canadian sulphur emissions will proceed.
Energy policy must continue to command the attention of Canadians. The framework for achieving our national goals of energy self-sufficiency and increased Canadian ownership was put in place with the passage of the National Energy Program. It now forms an integral part of the long-term planning of energy companies, large and small. Petroleum Incentive Payments, in particular, encourage both new sources of supply and enhanced Canadian ownership. The Government will continue its strong commitment to the NEP in order to ensure that our goals are reached. Legislation will also be introduced to confirm the Canada-Nova Scotia Energy Agreement-a stimulus to new large-scale development off Canada's east coast.
III. Partnership for Recovery
In its early stages the recession, in combination with high rates of inflation, caused a deterioration in our sense of community. Each major group in society sought to blame economic decline on someone else. Later, however, Canadians recognized that to avert the downward spiral they needed to turn away from past divisions and work together to restore growth and prosperity. This new cooperative spirit has already produced tangible results in sharply reduced inflation, renewed growth, and enhanced employment prospects. But more is required.
The Minister of Finance has already begun a new round of economic consultations with provincial governments and other economic partners. Building on this initiative, the Government intends to introduce more permanent mechanisms of consultation. Regular economic outlook conferences involving labour, business, government and other interested parties will be called to pool information, to exchange views about the prospects ahead and to improve the basis for co-operative action. A new Industrial and Regional Development Board, jointly chaired by representatives from labour and business, will be formed to give practical advice on how best to implement the Government's industrial policy.
Work with the other economic partners to consolidate the gains from the 6 and 5 program of June 1982 will proceed.
While stimulating job creation, the Government will hold to a fiscal policy track which will contain and then curb the federal deficit as recovery strengthens. Administered prices will not be allowed to run ahead of other prices.
Following extensive and continuing consultations with the private sector and the provinces, the Government will introduce a new competition policy to bring market forces to bear in the continuing fight against inflation. The legislation will modernize conspiracy, monopoly and merger provisions, and promote the interests of consumers and small business through a freer marketplace. Amendments will also facilitate consortia to compete abroad for export sales and development projects.
To develop new ways in which co-operative, credit unions and caisses populaires can make even more of a contribution to the economy, the Government will support the formation of a task force. It will explore how co-operatives can work alongside the private and public sectors to pursue an expanded role in the fishery, communications, manufacturing services and international trade.
Opening the Door to Labour
Labour has been and should continue to be a full partner in the process of economic recovery. Workers deserve a fair share of the recovery's benefits and an equal voice in the resolution of issues like technological change and productivity improvement.
North American, European and Japanese experience shows that productivity is a co-operative endeavour, not a punitive process of seeking more work for less reward. Greater productivity results from a combination of progressive management, ingenious technology, and high employee morale. It is the main long-term guarantor of increased real wages for Canadians.
A system of awards will be inaugurated to recognize the contributions of companies, labour organizations and individuals to Canada's productivity and competitiveness.
New technologies are a major hope for improving the quality of many monotonous and dangerous jobs. Workers in such jobs welcome new technology that is introduced in a planned and sensitive manner and that helps to create a safer environment and more secure employment. A fund will be created for Labour Canada to support research into the effects of technological change and to conduct joint information exchanges between management and workers.
The Government has worked closely with labour and business representatives to establish a new centre for productivity and employment growth. Reconciling the advantages of technology with the needs of workers will be one of the main tasks of this centre. Consultations to create the centre are being completed and linked with efforts to forecast and plan better for future labour requirements.
This Government believes that the maintenance and improvement of workers' rights are fully consistent with, and indeed essential to, increased productivity.
A fundamental aspect of productivity is a secure, safe environment for workers. Changes will be introduced to the Canada Labour Code to improve occupational safety and health, to establish labour standards relating to sexual harassment, and to upgrade standards on parental leave. Legislation will provide for consolidation under a single act of occupational safety and health standards that apply to federally regulated industries, and for the extension of the same standards to federal public servants.
Selected Crown corporations and units of the public service will be encouraged to test new methods of co-operative productivity improvement. These may have wider application in both public and private sectors.
The framework for the accountability and control of federal Crown corporations will be improved and a bill will be introduced to confirm in legislation the Canada Development Investment Corporation to better manage certain Crown assets. Labour representatives will be invited to join the boards of directors of selected Crown corporations. For many years, there has been an exchange of senior executives between corporations and the Government. This program. Interchange Canada, will now actively seek labour participants as well.
Part-time work is a growing trend. Consultations on pension rights and fringe benefits for the part-time work force will be undertaken with provincial governments, labour and business.
IV. Strengthening the Safety Net
The number one social priority of the Government is to reduce poverty among the aged. One of the first acts of the last session was to increase by $35 per month per household the Guaranteed Income Supplement. Indexation of the GIS means that this income has been fully protected against inflation. But more is required to help the single pensioner who is in need. Legislation will be introduced to increase the supplement for single pensioners providing additional assistance to more than 700.000 Canadians.
Beyond helping the elderly most in need, the pension system itself must be reformed to reduce poverty in the future.
The Government is committed to improving the adequacy and fairness of our retirement income system at the earliest possible date and in a manner that will not impede economic recovery. The report of the Parliamentary Task Force on Pension Reform will soon be published. Based on consensus, the Government will take steps to strengthen both public and private pension plans so that Canadians
can be better assured of security, dignity and fulfillment in retirement. Reforms to be pursued under the Pension Benefits Standards Act will include improvements in coverage, vesting, portability, survivor benefits, benefit protection and mandatory splitting of pension credits. Concurrence of provincial governments will be sought on changes to pension benefit standards and to the Canada and Quebec Pension Plans in order to ensure that pensioners receive comparable benefits wherever they live in the country.
The health care system is of central importance to all Canadians. The Government is committed to maintaining the equitable system, built up over the past two decades, for payment of medical care and hospital costs. It must not be eroded and eventually destroyed through extra charges to the sick. A new Canada Health Act will be introduced to clarify the objectives of Canada's health insurance system and ensure that universal access to health care continues.
Financial assistance to the provinces for medical care, hospital care and postsecondary education programs will be greatly increased this year. More than $500 million, above and beyond the $13 billion estimated at the start of the year, will be transferred to the provinces in 1983-84. This increased level of financial support, at a time when resources are limited, demonstrates the strength of the Government's commitment to maintaining the quality and integrity of our country's health services and post-secondary education.
The Government will continue its efforts to help reduce the long-term costs of health care through attention to preventive programs, health facilities design, indoor air quality, physical fitness and support for para-medical services.
New Protection for Homes and Businesses
Canadians require improved security against losing their home or business.
The Government recognizes the concerns of homeowners and potential home buyers about the uncertainty of future mortgage costs. Legislation and other measures will be proposed to further strengthen confidence in the housing market by giving greater protection to homeowners. The choice of mortgage instruments will be broadened. These measures should increase the accessibility and security of home ownership, provide a greater measure of confidence and stability to the homebuilding industry, and enhance the flexibility of the mortgage market.
Attention will also be given to the need for long-term farm, fishery and small business financing.
High interest rates have taken a substantial toll among businesses, and especiaJly among farmers, revealing important weaknesses in our bankruptcy laws. Revisions will be sought to increase the flexibility of these laws, to introduce a system of pre-bankruptcy arbitration for farmers, and to give greater protection to the wages of workers.
Personal Safety and Security
Canadians are increasingly concerned about the incidence of violent crime. Flowing from a complete review of the Criminal Code, legislative proposals will include increased mandatory sentences for violent offenders. Law enforcement to prevent importation of illegal drugs and trafficking will be improved. Stiffer penalties and procedures will be introduced to keep drunk drivers off our roads and highways. Support for voluntary crime prevention programs such as Neighbourhood Watch will be strengthened.
Victims of crime must receive more consideration. Greater flexibility will be provided to allow restitution to victims. Amendments to the Criminal Code will help speed up the administration of justice to ensure that victims do not suffer twice-during the crime and then during the wait for a trial.
Hard core pornography, which often emphasizes violence and degradation of women, has no place in Canadian society. The Government will act immediately to introduce amendments to the Criminal Code on pornography. It will also consider further legislation after receiving the reports of two expert committees, on pornography and prostitution; and sexual offenses against children.
You will be asked to consider revised legislation to create a Canadian Security Intelligence Service. A bill will be introduced to give full protection to the personal privacy and rights of individual Canadians in the conduct of the Service's activities. Changes to the Royal Canadian Mounted Police Act will provide for improved attention to grievances by private citizens.
So that individual Canadians and their communities can be better prepared for unanticipated events, the federal Government will work in co-operation with the provinces to give increased attention to emergency planning, during the coming year.
Securing Individual Rights
The Charter of Rights and Freedoms, the Privacy and Access to Information legislation and other measures taken by the Government reaffirm our belief in the primacy of the individual. A bill will be introduced to revise all federal laws so that they conform to the Charter.
The rapid pace of social change in Canadian society has been reflected in a much higher divorce rate. You will be asked to consider a new Divorce Act to make this painful legal process more equitable and less complex. Work will continue with provincial governments to strengthen procedures for enforcement of maintenance and custody orders.
More funding will be provided for women's voluntary organizations and for research on women's issues. The recommendations of the Federal-Provincial Task Force on Family Violence will be pursued by continuing to allocate social housing units to provide shelters for the victims of such violence. The subject of day care has been placed on the agenda of a federal-provincial meeting of ministers responsible for the status of women, to be held early in the new year. A progress report on the decade since the United Nations' International Women's Year will be prepared.
Pilot projects will be undertaken to improve access to public transportation for the physically disabled. A national plan of action will continue the work of removing other obstacles to full participation of the disabled in our society, and Parliament will be given the opportunity to review progress in attaining this goal.
Action will soon be taken to respond to the report of the Parliamentary Committee on Indian Self-Government. The Government will introduce a bill to remove the long-standing grievance of discrimination against Indian women under the Indian Act. Funding will be provided for continued job creation programs on Indian reserves.
In March 1984, at the second Constitutional Conference on Aboriginal Rights, the Government will address equality rights, aboriginal title, treaties, aboriginal and treaty rights, land and resources, and aboriginal self-government.
V. Pursuing our Canadian Identity
We Canadians know that our diversity-our lack of pressure to conform to a single mold-is an integral part of our identity. Canadian variety, tolerance and civility are to be treasured and nurtured.
If Canadians are not to be strangers in their own land, however, radio and television must both inform us and enlarge our horizons. To this end, legislation will be presented to implement the new National Broadcasting Policy. This policy will assure greater Canadian content on the Canadian Broadcasting Corporation, extend French language program services, improve international marketing of Canadian cultural products, enhance regional and native access to broadcasting services, and provide incentives for private production of programs.
In recognition of the proliferation of electronic technologies, new policies for film, video and sound recording will be introduced to strengthen the private production industry. Revised telecommunications legislation will also be advanced. Proposals will be made to change the copyright laws to provide greater protection for the work of artists, authors, and entertainers.
The definition of a registered charity under the Income Tax Act and related matters will be referred to a joint parliamentary task force.
Immigrants have always brought new ideas, energy, and talent to Canadian society. A new act will be introduced to give statutory recognition to the Government's policy of multiculturalism. To recognize the valuable contributions of immigrants over 65 years of age, most of the formal requirements for Canadian citizenship, aside from residency, will be relaxed for those over that age. The Government will continue to promote a wider knowledge of our two official languages, and to support the voluntary sector in over a thousand projects of heritage language instruction, offered to 125,000 students. The Government will give early attention to the report of the Parliamentary Task Force on Visible Minorities and will act to strengthen laws against hale literature.
Appointments
The Government will continue to promote balanced development of the Yukon and Northwest Territories, to settle aboriginal claims, and to foster the evolution of responsible government in the North. Funds will be provided through the Northern Oil and Gas Action Plan to ensure that northerners are involved in preparing for oil and gas development. In view of the need to sustain more permanent communities in the North, an early announcement will be made regarding the taxation of northern benefits.
The Government invites all Members to support its program for growth, opportunity, security, partnership and peace. The months ahead will be decisive ones for Canada. Special efforts will be made to consult with other parties on the timing of legislative measures. Constructive amendments proposed by the Opposition will be given full consideration.
Immediate action is proposed on recommendations by the all-party committee regarding parliamentary reforms. The Government will continue to take an active interest in the work of the Senate-House Committee on Senate Reform.
Members of the House of Commons:
You will be asked to appropriate the funds required to carry on the services and expenditures authorized by Parliament. You will be asked to consider a budget. You will be asked to consider other legislation required for the resolution of specific economic, social and legal problems.
Honourable Members of the Senate:
Members of the House of Commons:
May Divine Providence guide you in your deliberations.