MCMICHAEL CANADIAN ART COLLECTION AMENDMENT ACT, 2000 / LOI DE 2000 MODIFIANT LA LOI SUR LA COLLECTION MCMICHAEL D'ART CANADIEN

RUDY BIES

JOY COHNSTAEDT

CANADIAN SOCIETY OF PAINTERS IN WATERCOLOUR

LYNN BEVAN

JOHN MCEWEN

DON LAKE

COMPAQ CANADA

DAVID SILCOX

CONTENTS

Wednesday 25 October 2000

McMichael Canadian Art Collection Amendment Act, 2000, Bill 112, Mrs Johns /
Loi de 2000 modifiant la Loi sur la Collection McMichael
d'art canadien,
projet de loi 112, Mme Johns

Mr Rudy Bies

Ms Joy Cohnstaedt

Canadian Society of Painters in Watercolour
Ms Elizabeth Gilbert

Ms Lynn Bevan

Mr John McEwen

Mr Don Lake

Compaq Canada
Mr John Challinor

Mr David Silcox

STANDING COMMITTEE ON GENERAL GOVERNMENT

Chair / Président
Mr Steve Gilchrist (Scarborough East / -Est PC)

Vice-Chair / Vice-Présidente

Mrs Julia Munro (York North / -Nord PC)

Mr Toby Barrett (Norfolk PC)
Mrs Marie Bountrogianni (Hamilton Mountain L)
Mr Ted Chudleigh (Halton PC)
Mr Garfield Dunlop (Simcoe North / -Nord PC)
Mr Steve Gilchrist (Scarborough East / -Est PC)
Mr Dave Levac (Brant L)
Mr Rosario Marchese (Trinity-Spadina ND)
Mrs Julia Munro (York North / -Nord PC)

Substitutions / Membres remplaçants

Ms Caroline Di Cocco (Sarnia-Lambton L)
Mrs Brenda Elliott (Guelph-Wellington PC)
Mr George Smitherman (Toronto Centre-Rosedale / Toronto-Centre-Rosedale L)

Clerk / Greffière

Ms Anne Stokes

Staff /Personnel

Ms Lorraine Luski, research officer, Research and Information Services
Ms Marilyn Leitman, legislative counsel

The committee met at 1537 in committee room 1.

MCMICHAEL CANADIAN ART COLLECTION AMENDMENT ACT, 2000 / LOI DE 2000 MODIFIANT LA LOI SUR LA COLLECTION MCMICHAEL D'ART CANADIEN

Consideration of Bill 112, An Act to amend the McMichael Canadian Art Collection Act / Projet de loi 112, Loi modifiant la Loi sur la Collection McMichael d'art canadien.

RUDY BIES

The Chair (Mr Steve Gilchrist): Good afternoon, all, and welcome to the third day of hearings on Bill 112, An Act to amend the McMichael Canadian Art Collection Act. We'll call the committee to order and we will move directly to our first presentation. That would be from Mr Rudy Bies.

Good afternoon, sir, and welcome to the committee. Please have a seat at the witness table.

Mr Rudy Bies: Can you hear me?

The Chair: Absolutely.

Mr Bies: I'd like to say good afternoon to the committee and I will begin with my presentation. My presentation to you will start on page 2.

My name is Rudy Bies. My wife, Gloria, would love to be here today but her work schedule does not permit that, so I will do a presentation on behalf of the two of us. This is a presentation from Gloria and Rudy Bies.

To give you a little bit of background about the two of us, neither one of us is an artist, nor are we employed in the art field, either commercial or with a public gallery. I am a practising professional engineer; my wife is a practising professional pharmacist. We are that part of the art world that is called the general public. Part of this general public is made up of art patrons who are often referred to as "the collectors." We could be called collectors but we don't like the term "collector" because we find the word cold and calculating.

We have specialized in collecting Canadian art from the 1970s and 1980s, largely Inuit, native and some contemporary non-native art. Among the artist friends we have collected art from, Arthur Shilling was a great Canadian artist and one of our closest friends. We have collected Inuit and native art and we were delighted when the McMichael gallery added Inuit and later native art to the collection.

As collector-patrons, we not only support public galleries but also we have an opportunity to mentor up-and-coming artists. We often think back to our own start at enjoying art. The McMichael created for us an intimacy and an interaction of art, artist, art lover and nature. We know Bob and Signe McMichael and admire what they have done. Our young, growing family loved to visit the collection. Today, our three children, all in their 30s, are young adults and each one continues to be interested in art, an interest that was born at the McMichael gallery.

Just recently, for my birthday, my youngest daughter bought me a copy of the first edition of the McMichael collection catalogue, dated May 1967. I was delighted to receive this gift from my daughter, and the thoughtfulness that went behind this. I think all of us who have visited the gallery and the collection during the early 1970s have a catalogue signed by A.Y. Jackson. A visit to this gallery was always a happening for our family.

The Group of Seven and their contemporaries, as spelled out in the original McMichael agreement and as currently spelled out in Bill 112, represents a unique benchmark in Canadian art. This group of artists put Canadian art on the international map. They also made many Canadians, like ourselves, appreciate that Canadian artists are good. The Group is a Canadian icon, and this special segment of Canadian art deserves a special home of its own, as the McMichaels established when they founded the original gallery. The McMichael gallery deserves to remain unique, as the original founders' vision saw it.

As citizens of Ontario, we are privileged to be able to live in any of the diverse cities and towns that suits our needs. We have lived in several of Ontario's magnificent cities and enjoyed what each had to offer. In the same way, we want to enjoy the many diverse art galleries that Ontario has to offer. There are many galleries that can provide a home for the newer, modern conceptual art. We feel that public galleries should stress more Canadian content, outside of the McMichael gallery. The intent of Bill 112 is to restore the collection to its original mandate and honour a 35-year-old commitment to the McMichaels by a previous government.

Virtually every public art collection in the world established by people such as the McMichaels was created to include only the great artists chosen by that family. The Frick collection in New York is such an example. It became a model for many other collections and galleries. There is also the Munch Gallery in Oslo, Norway, and the Van Gogh Gallery in Amsterdam. There are many more such galleries in America and Europe that are dedicated to very specific artists and their works. There have always been guidelines for the type of art to be acquired by these galleries, and these guidelines have been honoured.

We feel that the McMichael should be the unique home for the artists spelled out in Bill 112. There are many publicly funded galleries in Canada that can show upcoming Canadian artists, Canadian art prior to and post-Group of Seven. These galleries need to increase their Canadian content so that more art patrons would get the message that Canadian art is good. We are not comfortable when we read or hear statements from Canadian art collectors such as, "I do not buy Canadian art because it is a bad investment." The McMichaels's chosen artists were a showcase to the world through much of the last millennium. Let this continue into the new millennium.

Let me conclude by reading the first two paragraphs from Paul Duval's introduction to that first catalogue of the McMichael conservation collection that I brought with me: "The most interesting personal art collections in the world have been born of a compelling enthusiasm for a particular period or kind of art. Material for such collections may be the work of one painter, one nation or one school of artists. The enthusiasm that founded the McMichael conservation collection was triggered by the art of a legendary Canadian, Tom Thomson, and those Group of Seven painters who shared his devotion to our Canadian landscape."

The intent of Bill 112 is to restore the collection to its original mandate and to honour a 35-year-old commitment to the McMichaels by a previous government. The McMichael gallery deserves to remain unique, as the original founders' vision saw it. In summary, I would like to say that Gloria and I are art collectors. We support Bill 112. The McMichael gallery must remain unique, as the original founders' vision saw it and it was originally agreed to. Other Canadian public galleries can put a little more general emphasis on Canadian art and thus provide a home for contemporary and modern art. That, members of the committee, is my presentation.

The Chair: Thank you very much, Mr Bies. In fact you have taken exactly 10 minutes, so I applaud you on your preparation, you and your wife in the preparing of the report. Thank you for taking the time to come and make those views known to the committee. We appreciate it.

JOY COHNSTAEDT

The Chair: Our next presentation is from Ms Joy Cohnstaedt. Good afternoon. Welcome to the committee.

Ms Joy Cohnstaedt: Thank you very much. I know that the document I have prepared has been circulated, but I'll take a moment to read it into the record.

Thank you very much for the opportunity to meet with you and to share some of my concerns with you about Bill 112. I am speaking as an individual and as a former deputy minister responsible for culture. I am a regular user of the gallery. On my visits, guests from Toronto, other parts of Canada and elsewhere often accompany me. I encourage my York University art history students and others to visit the McMichael because they can see First Peoples art from pre-contact to the present, as well as other Canadian works of art. The most recent show I saw was the Emily Carr exhibit.

I visit and encourage others to visit the gallery because for me it is more than a celebration and monument to the past. As an informed society, we need interpretation and critical analysis of the collection and the other exhibits of historical and contemporary Canadian art presented by the McMichael gallery.

I read in Hansard that the Minister of Citizenship, Culture and Recreation said, "The purpose of this bill is very clear. It is to restore the McMichael collection to sound financial health and to honour the intent of the gallery's original mandate." I have read the arguments for and against changing the legislation, and find those in support of the current mandate and in opposition to Bill 112 compelling.

I have also just now read the presentation prepared by Vincent Tovell, and I would associate myself with it.

However, I want to focus my comments on the impact of Bill 112 and its assumption that passage of the bill will restore the McMichael Canadian Art Collection to "sound financial health."

I have seen no evidence in support of the assumption that the measures to be taken, in particular the narrowing of the collection, will have any positive impact on the finances of the gallery. Indeed there appears to be only the assumption that because other single-focus galleries in the world are viable, this one will be too once the collection is reduced. Where is the analysis to support this assumption? Where is the evidence that exhibiting the Group of Seven and their peers is of international, let alone of sufficient national and regional interest, to sustain the gallery?

The McMichael Canadian Art Collection is located in splendid surroundings, but a visitor to Toronto and to Canada can see fine examples of the Group of Seven and their peers in other galleries, such as the Art Gallery of Ontario and the National Gallery, without traveling outside the urban area. Incidentally, most galleries with a single focus are located in urban areas. Tourists and local residents need not make the trip once, or more than once, unless the programming of the gallery is interesting and changes on a regular basis. What they cannot see is a gallery whose sole purpose is exhibiting not only historical but also contemporary Canadian art.

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Once the gallery's mandate is narrowed, where is the programming to be drawn from? It is not the purpose of other galleries in Canada to provide exhibits to meet the new mandate, and there are few-the Art Gallery of Victoria, for example, with an interest in Emily Carr-to provide occasional touring exhibitions that satisfy the new mandate. Where is the plan for exciting new exhibitions to attract new visitors and compel current visitors to return to the McMichael Gallery? Where are the curators and art historians? Where is the funding? Deaccessioning a portion of the collection provides one-time-only funding; the gallery needs long-term, stable and predictable funding. Where is the government's commitment to this?

Finally, I do not believe that the introduction of this legislation, and its goal to restore the collection to sound financial health, is based on any substantive research to demonstrate the measures proposed will accomplish this end. Indeed I believe the passage of this legislation offends the public interest, and I strongly recommend that it be withdrawn until such time as the government can demonstrate its passage will provide the McMichael Canadian Art Collection with sound financial health. Thank you.

The Chair: Thank you. That leaves us with about four minutes for questioning. This time the rotation starts with the Liberals.

Ms Caroline Di Cocco (Sarnia-Lambton): Thank you very much for your presentation. It's no secret here that I, too, feel the bill should be withdrawn. This bill, to me it's not so much that it's dealing with restoration or financial stability, but it appears to be changing the governance, the arm's-length relationship, the governance model that boards of art galleries across this province have had for a number of years. In your experience, if you've taken a look at this advisory committee model they're proposing, what's your interpretation of that advisory committee model in governing the gallery?

Ms Cohnstaedt: Regardless of whether or not the committee is advisory, it appears to me that the decision-making regarding the collection and the programming will rest with a few individuals, some of whom will not be professionally trained. They will have a strong avocational interest. I think the museum and gallery community has moved well beyond this practice at this time, and so, like you, I'm concerned about the relationship between, first of all, the government and the management of the McMichael and within the McMichael, the relationships that will exist among those who are employed there. It's for this reason that I believe that the presentation of the legislation offends the public interest.

Ms Di Cocco: I've received a draft of the audit statements for 1980. I don't know if you have ever been privy to those.

Ms Cohnstaedt: There's no reason why I would be.

Ms Di Cocco: OK. In it, it speaks clearly to the unprofessional perspective of dealing with, let's say, selling and attaining a price, if you want to call it that, under the past governance of the McMichaels. It was astounding to me because in here it suggests that there were times with the corporation, under the McMichaels, when there was some interference when it came to actually pricing some of these works. There was no public tender in some instances in selling off the works of art. As I said, I have the document, and I will be sending it to the minister because I find it just appalling.

When you are selling a piece of art in a gallery-"deaccessioning" I think is the proper term-what is the correct way to do it? The audit says that it wasn't done correctly. Could you tell me what the-

Ms Cohnstaedt: I'm not someone who acts as a dealer in art, so I'd rather not. I think the issue at hand is that there are a variety of individuals who have, in good faith, either given money or given works of art in kind, and they too expect that their wishes be respected. This collection is made up of much more than the donation of a couple, who, by the way I think need to be applauded for what they have initiated, but I believe they have received more than their fair share of benefits from the state for the contributions they have made.

The Chair: Thank you, Ms Cohnstaedt. We appreciate your taking the time to come before the committee this afternoon.

CANADIAN SOCIETY OF PAINTERS IN WATERCOLOUR

The Chair: Our next presentation will be from the Canadian Society of Painters in Watercolour, Elizabeth Gilbert. Good afternoon. Welcome to the committee.

Ms Elizabeth Gilbert: My name is Elizabeth Gilbert and I am here representing the Canadian Society of Painters in Watercolour. The CSPWC is the national organization for professional watercolour artists in Canada. The watercolour society was founded 75 years ago by 12 artists, including A.J. Casson, Franklin Carmichael and Fred Brigden. Now, with over 200 elected members from Newfoundland to the Yukon, we are a very active and diverse group. Within our members' work you would see every imaginable style of art, from incredible realism through to the abstract. What we all share is the passion for painting with watercolours.

We are very concerned about the proposed changes to the McMichael collection. The McMichael Canadian collection is a treasure that continues to play a premier role in Canadian art. In a country where we struggle to define our identity and culture, the McMichael collection is absolutely and beautifully Canadian. The Group of Seven and Tom Thomson saw the Canadian landscape and interpreted it so successfully that it is a foundation for our culture. What the McMichaels have given to the people of Canada is awesome. What they have contributed to the Canadian culture is an immense gift.

But what we are losing with this proposed bill is the very creativity that gave birth to the work that we seek to protect. Thomson, MacDonald, Jackson, Lawren Harris, Lismer, Casson, Varley, Carmichael and Johnston all broke the mould. They experimented, they saw in new ways and developed their own styles. They were original and they were rejected. Artists, to be successful, must learn from those who inspire them, but then must find their own expression in the original. Originality is inherent and essential in the creation of art.

The McMichael collection has played a pivotal role in Canadian art. With the cessation of new initiatives and showing the work of new generations, we are amputating its role in the creative processes of Canadian art. To restrict the collection to only the Group of Seven and to cease showing the work of living Canadian artists, the McMichael collection becomes only the McMichael museum-a museum where history is safely stored, but no longer a place seeing and expressing Canadian culture. The whole character of the McMichael collection is at stake now, as much as if a tremendous tornado ripped through Kleinburg.

The watercolour society feels strongly that the McMichael Canadian collection must remain open to new ways of seeing and expression, and that continued exhibition of living artists is very much in keeping with the philosophies that inspired the original Group of Seven and Thomson. Canadian culture and identity is being put at risk here.

We feel that political interference does not belong in art. Creativity is what makes humans so special and unique among the species. We know that it is seldom logical to be an artist. Consider this: you can be among the best in the country, train for many years and yet struggle to make as much money as a mediocre, unmotivated office worker. We are artists because we are compelled and creative.

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Politically motivated interference in the art world can only have negative consequences. The sell-off of modern works from the McMichael collection will flood the art market. It will depress the prices of new and existing works. The damage from this bill will reverberate across Canada, more like a massive hurricane than a localized tornado.

We ask you to reject Bill 112. We request that you work with the McMichaels, the gallery and living Canadian artists to support the continued, vital and dynamic role of the McMichael collection in the context of its pre-eminent position in our very identity.

Now I'd like to speak as an individual. I love the McMichael gallery, and I have since the first time my high school class walked through those doors. It is my favourite gallery in the world, and I am saying this having been through the Louvre, the Uffizi, the Vatican and countless others. I have not liked everything hung at the McMichael, and I defy anybody to say honestly that they have liked everything. I share with the McMichael family their frustrations with some manifestations of modern creativity. The solution, I feel, is not in this bill. Bill 112 cuts off the creativity and chains the collection to the past.

The artists of the Group of Seven conceived, had vision and created. The McMichaels took that seed, cared for it and planted it. They gave it to the people of Ontario. The seed of the artists' creations thrived and grew into a tree. This tree is much bigger and more complex than the seed that was planted. It is now subject to the wind, the seasons and the environment it stands in. The tree has the strength of the years and complex hardwood supporting it. The leaves come and go each year in a celebration of colours. The tree is always magnificent and alive. At first it was fragile and susceptible to the possibility of poor soil or lack of water. Now, however, it affects the climate around it by cooling, warming and moderating the effect of heavy rains.

The collection is now much, much more than it was when the McMichaels planted it. If we sell off the newer works and stop showing the work of recent and current seasons, we are in effect slicing off the tree at the widest point of the trunk, varnishing it and displaying it, saying, "Count the rings and see the magnificent tree we grew." The McMichael Canadian collection is alive and magnificent. Do not cut it down.

This weekend I have coming up a thrill of my lifetime. I am showing and selling some of my own paintings at the McMichael autumn art sale. Along with 49 other artists, I am participating in this fundraiser for the McMichael volunteer committee. I invite the members of this committee to come, see and talk to living artists in a gallery that is very much alive. Although this is the first time I have been in a McMichael art sale, I predict that you will see there diverse and beautiful images of this diverse and beautiful country.

The Chair: Thank you, Ms Gilbert. That leaves us just over two minutes for questioning. This time it will be for the NDP.

Mr Rosario Marchese (Trinity-Spadina): Thank you, Ms Gilbert, for your presentation. I like some of the poetic imagery you used to describe your feelings.

In my quick two minutes or less, I want to talk to you about the mandate and then ask you a question about that. The original 1965 mandate said the mandate was limited to the Group of Seven and three other named artists, plus others designated by the advisory committee-so it says "others"-"who have made contributions to the development of Canadian art." Is there anything in that mandate that I read to you, from 1965, that the McMichael gallery has strayed away from, on the basis of what I just read to you?

Ms Gilbert: I wouldn't pretend to be an expert on what the mandate was originally or whether or not it strayed away from that. What I see now is a gallery that wants to step back in history and wants to cut off the living part of its existence.

Mr Marchese: I appreciate your answer. My point is that as I read the mandate, we have been consistent with it. I say "we" because I've accepted what the McMichael has done through the course of its history, accept it as part of what the gallery is like, what I believe to be a very good, living, breathing gallery that reflects very much the contributions Canadian artists have made. The government claims we haven't respected that mandate. That's why I read the mandate to you, because it includes the Group of Seven and three others, plus any other artists "who have made contributions to the development of Canadian art." My point is, we've been faithful to that. Why would they want to change it?

Ms Gilbert: If we think it takes eight artists to make a country, something's wrong. It takes many people and it's an evolving process. It's not something we stop in history and say, "This is it. This is what was good. Now we're going to keep that like it was." It's like the tree. It's magnificent when you see one of those big, cut-off trees and you can count the rings-"Gee, this one was here when Columbus sailed"-but it's not a living tree any more. The McMichael is alive.

The Chair: Thank you, Ms Gilbert, and all the best this weekend at the sale.

LYNN BEVAN

The Chair: Our next presentation will be from Ms Lynn Bevan. Good afternoon, and welcome to the committee.

Ms Lynn Bevan: My name is Lynn Bevan and I speak in unqualified support of Bill 112. I would like to say from the outset that I'm not a supporter of any particular political party. Anyone who tried to align me with any party would have difficulty doing so. To me, Bill 112 is not a question of politics, and I've been very sorry to see it reduced to that. To me, Bill 112 is a question of integrity, specifically integrity in governing, and I don't say integrity in government.

We have heard art historians, critics, artists and others say what works of art they would like to see in the McMichael collection. We have even heard some speculate what the Group of Seven would say should be in this collection. But I ask you, does that really matter? This is a collection, and it's a collection that was given on terms and accepted on terms. It is not the first and it is not the only collection created by private donors, attached to a particular location, a particular building. Two examples, of which I'm sure you've heard, are the Frick in New York City and Sir John Soane's Museum in London, England.

I would also like to say that this is not the only place in Ontario or Canada where artists can exhibit. When I hear concerns expressed about the impact on limiting this collection to the basis on which it was given, I find that insulting to other artists and to other institutions. It's to suggest that the only place of value for artists to exhibit is the McMichael collection. It suggests that the only place available to some artists is the McMichael collection. It suggests that unless the McMichael collection accepted gifts of certain artists, their art would have no value. I'm hopeful that you don't listen to those comments without considering what they're really saying.

I also find the comments about deaccessioning being present or not present in this bill mystifying. Deaccessioning is like trying to guess the stock market. Deaccessioning can be done in a rational way. It also again goes to the question, does it suggest that works that may not be suitable for the McMichael collection would have no home elsewhere? Those artists who might not be within the mandate of the collection again might be insulted.

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If there's any doubt as to the scope of this collection, ask the donors, Bob and Signe McMichael, what they meant when they gave their home, their land and their art. There's no need to speculate. They're still alive, and I believe that the treatment they have received is shameful. The government of Ontario has been complicit in that shameful behaviour for the last 20 years. What I find most appalling is that part of that shameful treatment has come from the recent administrators of the collection itself. In press releases, catalogues and interviews, administrators state that the McMichaels made one gift 35 years ago. This statement completely ignores the fact that without that gift there would be no McMichael collection and those administrators and trustees would have nothing to administer. It is not to me a question of narrowing a focus but of restoring it.

It is also incorrect, and I would suggest unfair, to say that the McMichaels made one gift 35 years ago. The McMichaels have made almost yearly gifts of art to the collection since 1965. Those additional gifts are worth over $1 million. The claim of one gift only also ignores the efforts made by Bob and Signe McMichael, both as unpaid curators and promoters to have others donate to the collection, allowing it to grow with a limited acquisition budget.

These same administrators have from time to time claimed that the McMichaels obtained a huge tax relief at the time of their gift. Simple research would show that there was no tax relief for gifts of art in 1965. When relief came later, it was of limited use to the McMichaels, because by then they were unpaid curators with limited income and they were given an extremely short time frame within which to use that retroactive relief.

Not surprisingly, given the source of this apparently official information, the press has repeated these stories over and over again. More recent opposition has become personal and spiteful. The McMichaels have remained steadfast and loyal to the collection that they founded. My own view is that they should have said to the government of the day, whichever one it was, a long time ago, "Give it back. If you can't do what you said you would do-we did what we said we would do-then just give it back." Why would anyone make a similar gift to government in light of the McMichaels' experience?

The McMichaels could still be sitting in their house, with that wonderful view, sharing their extraordinary art collection with a select group of friends. They could have sold their art to private collectors. Instead, they gave it to the people of Canada for all time. What people like the McMichaels give no government can ever create, and we would all be the poorer, in my view, if it were not for gifts of this kind.

When I look at Bill 112, I like to look at it as a reflection of the gratitude of the people of Ontario, speaking through their government, to the McMichaels, but perhaps much more significantly it also recognizes that governments must keep their word if they're going to maintain the confidence of the people. Thank you very much.

The Chair: That leaves us about two minutes for questions. This time it will be from the government benches.

Mrs Brenda Elliott (Guelph-Wellington): Thank you very much for coming before us today. I have very little to question you on other than that I want to compliment you. I think, along with a few other presenters before us, you have come right to the heart of the matter. I think your presentation was very articulate and heartfelt. Are you an artist yourself?

Ms Bevan: I am a lawyer.

Mrs Elliott: You're a lawyer. That's very interesting.

Ms Bevan: But I was a guide at the McMichael gallery in 1965 and it changed my life.

Mrs Elliott: Isn't that interesting. So you have had a very long connection with this particular gallery.

Ms Bevan: I have indeed.

Mrs Elliott: I think what you're saying is what we've been feeling here on the government side, that this is a matter of integrity. It's a matter of restoring it to the spirit of 1965 and indeed honouring the collection. We would agree with you, and I think one presenter put it very well: this collection will be diminished by trying to be everything to everybody all the time. But thank you very much for your comments.

You mentioned at one point you thought that seeing the gallery and seeing the collection change so much over the years, it might have been useful for the McMichaels to say to the government of the day, "Give it back," when they saw it going off the rails, so to speak. It was I think with the Liberal government in 1989 where things really went off the rails. If you look in the Hansard, the minister of the day refers to her vision of the changing collection to be a dynamic collection, a changing collection; not to say that it can't be a dynamic and wonderful collection today, but I think it was at that point where we on the government side felt the direction of the collection in the province was beginning to go off the rails.

I compliment you and I thank you very much for coming before us today. I appreciate the advice from someone who has had a long and obviously a very heartfelt connection with this particular institution.

The Chair: Thank you, Ms Bevan. I appreciate very much your taking the time to come before the committee today.

JOHN MCEWEN

The Chair: Our next presentation will be from Mr John McEwen. Good afternoon and welcome to the committee.

Mr John McEwen: I'm of course the sculptor who made Babylon, which is installed at the McMichael. I've been a sculptor for over half my life, which is more than 28 years, and I've made my living from it exclusively in the last 15. I'd like to read a statement, essentially, into the record, for the speed, about my work.

I was asked recently by Matthew Teitelbaum, director of the Art Gallery of Ontario, whether I considered Babylon, my sculpture at the McMichael Canadian Art Collection, to be site-specific. The answer is a resounding yes. The McMichael is the optimum place of dialogue for Babylon. It was, after all, specifically designed to be installed along the long, winding driveway into the collection, which it was meant to introduce. "Site-specific" means that a sculpture is so thoroughly integrated into its site, both physically and contextually, that to move it would effectively sever the intended dialogue.

Babylon was originally commissioned for a two-year period, and had it not been bought and donated to the McMichael, it would after the two years have been returned to me, and it would have been up to me to find a new place of dialogue. That is the life of any artwork that isn't more than a shiny jewel in a vault.

The attack on my work at the McMichael is both rhetorically crude and, in the end, sentimental. You might consider the vault, but first consider the word "Babylon." I like how it sounds, I like its origin in Psalm 137 and I like how I came across it in Rivers of Babylon, a song from Jamaica-reggae music by the Melodians. Babylon is a classic tale of the fit we feel in the landscape. Obviously, the Israelis didn't feel a good fit several millennia or so ago.

Babylon is about a longing to be in one's landscape. Babylon may even be a longing for a lost landscape but not an unpeopled one. My wolf stands next to the satellite dish. That's our landscape, neither unpeopled nor blank.

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Art is alive when it's reviewed and revisited. My time at the McMichael left me with a renewed interest in the Group of Seven and people like Northrop Frye who thought deeply about them. Yes, you can think about art.

Removed from the McMichael or not, my work will continue to think about our nature and our place in the Canadian landscape. Two new works of mine do just that. The work being sent by the city of Mississauga to its sister city in Japan does that-that, by the way, is a bear and canoe-and so does the 20-foot-high Rocky Mountain ram's horn that I am currently developing in Calgary.

In reality, Bill 112 destroys the very idea of dialogue. In 1995 I created a memorial in Coronation Park here in Toronto to the contribution made by Canadians at home and abroad during the Second World War. That's my parents' generation. In the memorial there are 50 words for peace that would be recognizable in today's Toronto. That's quite different from the Toronto of my parents. But the word "peace" was a result of their generation and that makes the memorial a dialogue between generations.

Situated at the McMichael, Babylon is also a dialogue between generations.

The Chair: Thank you very much. That allows us about four minutes for questioning. This time the rotation will take us back to the Liberals.

Ms Di Cocco: Thank you for your presentation about the spirit and the intent of an artist that is exhibited at the McMichael. My biggest concern about this process is that what we're discussing are curatorial definitions. What we're doing here with this act, in my estimation, is deciding what is constituted as Canadian art. That's what, unfortunately, seems to be the topic. What I'd like to know from you, if I could, because it seems to me you said Bill 112 destroys the idea of dialogue: can you expand just a little bit on that when it comes to how this bill is affecting you as an artist who has exhibited and has been there for the length of time that you have?

Mr McEwen: I'm not sure whether it will have an effect in the future for me. The opportunities and the kind of work I'm doing will not be affected, but the basic reality is that the young always win, and 20 years from now they're going to win over me. You can't keep a dialogue going as an ostrich, basically.

Ms Di Cocco: The argument the government gives in regard to this bill is that it's going to restore financial stability. Do you have any comments on that?

Mr McEwen: No, not really.

Ms Di Cocco: None at all.

Just one other item, if I could, with regard to the McMichael. Did you donate your-

Mr McEwen: No, it was bought by a collector and donated. As I said, had it not been bought, then it would have been my problem to place it in a new kind of dialogue.

Ms Di Cocco: Thank you. I have no more questions.

The Chair: Thank you for taking the time to come and make your presentation before us.

DON LAKE

The Chair: Our next presentation will be by Mr Don Lake. Good afternoon, Mr Lake, and welcome to the committee.

Mr Don Lake: I speak here as a member of the small business community. I own a gallery in Toronto at 1199 Yonge Street. I have a firm of five people. The firm has been in business since 1978. My concerns are with the marketplace and what I believe this bill represents. My firm pays a considerable amount of taxes, including taxes on approximately 12,000 square feet of retail space in Toronto, which is getting more expensive.

In my opinion, and I have prepared a brief, these are what the facts are. Mr and Mrs McMichael gave their collection to the public-to the public-in 1965. All relevant parties agreed the enabling legislation was appropriate and fair. Over a long period of time, in my opinion, the McMichaels have tried to regain control of this collection. Successive boards of the McMichael have been forced to go into deficits, to a large degree as a direct result of the high cost of ongoing litigation brought on by the McMichaels. Notwithstanding the immense pressure of McMichael, the boards and staff have been able to build a very significant collection. No provincial government has been prepared to defend the public interest by directly defending and paying for the public's right to control its own assets in a professional curatorial manner. The current government has in fact decided to back the interests of McMichael, not the public's.

The McMichaels' view of the tradition of this collection is false. The Group of Seven was not an exclusive group at a certain time in history. Rather, the group was inclusive, doing a series of shows where a broad range of artists were invited to participate. The Canadian Group of Painters grew directly from the group shows, which were disbanded in 1931. The tradition of the Group of Seven is open, inclusive. In its inception it was a radical rupture with the past. May I say that I have a Group of Seven show on as we speak. I have a big position in the Group. I am a big believer in the Group. I believe their tradition is not narrow.

Successive boards of the McMichael have developed a wonderful and important collection of Canadian art of all periods, particularly the collection of First Nation artists. The McMichael board has ensured outstanding scholarship and publications which are very important to all Canadians.

It is my opinion that this government has a duty of care, and that duty of care is very broad. It is not simply to the McMichaels' version of what this collection is all about. Neither the public nor the government owes anything to McMichael. The gift was given, a great thanks was bestowed and McMichael received the appropriate considerations under the tax act and related legislation of the day. Indeed, McMichael even received lodging at the expense of the public.

There is a duty of care to the rights of the public. That duty is best exercised by creating a professional board and staff that act in the best interests of Canadian art and the public. The board and staff must be independent of government and any particular interests. There is a duty of care to the immediate surrounding community. A substantial level of economic growth has occurred directly as a result of the vibrant programming of the staff and board of this institution. An attempt to shortcut this programming will have a negative impact directly in 905. Please allow me to disclose that my firm had an opportunity to purchase a property at the right price on the main street in Kleinburg recently. We decided that given the political tampering with the gallery, which is the main reason why any art gallery would be in Kleinburg, the risk that this town could be destroyed by political interference was significant enough for us to conclude that an investment in this town at this time would be unwise.

There is also, in my opinion, a duty of care to tourism and the many children who attend this institution via buses. If the collection becomes stagnant as a result of a very narrow and false view of Canadian art, visitors will have no reason to keep attending and seeing the same narrow collection. Let me point out that this collection is definitely inferior to the AGO and the National Gallery in the Group of Seven. Both of those collections are in Ontario. If one wishes to see a great Group of Seven collection, one, generally speaking, would not go to the McMichael. However, it does contain many other important collections, especially Inuit, and that is of great international interest and that does bring tourism and that does bring dollars to this province.

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There is also a duty of care to the artists in Ontario and Canada. The promotion of contemporary art makes that art economically viable. Taxpayers have a substantial investment in art education. As most artists in Canada live at or below the poverty line, it is politically prudent to show support and create markets for this art.

There is also a duty of care to the donors, who have also very generously given, as the McMichaels have given, to this collection. That art should be removed because of political interference raises grave questions about the character of political interference in this collection, which leads to liability, and I don't think this government needs to create any new liability.

We live in a democratic society governed by Parliament. All members of our society should be treated equally. If one donor-collector is treated in a certain fashion, then all donors and collectors can and should be treated in the same fashion. What is to stop other institutions from changing the way they operate and also commencing to treat their donors in the same way that McMichael will be treated in this proposed legislation?

The current government or governments in the future can start to change the arm's-length relationship between themselves and public institutions. Lobbying could commence immediately for other institutions to change the manner in which they are treated or the way in which their board is treated. McMichael is not the only donor who wishes to have his cake and eat it too. Believe me, there are some very aggressive donors out there.

What is to stop other donors from bringing class actions or individual actions against this government or this institution if there is an attempt to disperse their art, which they have given in good faith, in the same good faith that Mr McMichael gave his material? I have spoken-and believe me, this is so-to a number of collectors who have given art to this collection in good faith, and they would be immediately prepared to join a class action if there were an attempt to disperse their gifts. That would of course also be true for artists, such as the last speaker. A deal is a deal is a deal not only for Mr McMichael, whatever he may allege. There were many other gifters here. I don't think you want the liability.

Conclusions: This act will have an entirely negative impact on the institution and the taxpayers. This act will open up a new level of liability to the taxpayers. This act will change via political interference the arm's-length relationship between government and institutions. The precedent that this political tampering will set will create a situation that is not in the public interest.

Recommendations:

(1) This committee recommends that this legislation not be passed.

(2) The committee recommends that new overriding legislation be introduced that forbids any gifts being given to the province that have any conditions whatsoever placed upon them.

(3) The committee recommends that the province closely look at the way that boards are constituted in Ontario. The principle of arm's-length relationships should be enshrined. Governments put people on boards based on patronage rather than merit, and that's true for all three parties in this room. The people whom governments put on boards are most often not qualified, and that's an understatement. They do not understand the dynamics of these institutions or the art market. A successful car parts manufacturer may know how to run a large company and he may be a wonderful party supporter, but it does not follow that he knows how to run a gallery.

(4) Government involvement must be only in cases of irregularities on the part of boards.

(5) The current government is concerned with the efficient expenditure of tax dollars. The only way this can be guaranteed is if institutions are professionally run, boards are constituted on merit, not nepotism, and those in control of public assets do not have a separate agenda. Therefore, the original enabling legislation that all parties agreed to must be allowed to stand in the best interests of the public.

The Chair: Thank you, Mr Lake. You went slightly over, but clearly we appreciate the perspective you've brought. Thank you for taking the time. Best of luck in your show. I see that your new venture is starting up on December 1.

COMPAQ CANADA

The Chair: The next presentation will be from Compaq Canada. Mr John Challinor, good afternoon. Welcome to the committee.

Mr John Challinor: Good afternoon, Mr Chairman.

Ladies and gentlemen, on behalf of the senior management team and employees at Compaq Canada, I want to thank you for the opportunity to appear before this standing committee to offer counsel on Bill 112, An Act to amend the McMichael Canadian Art Collection Act.

The reason for Compaq Canada's appearance this afternoon is really quite simple: as the official technology supplier to the McMichael Canadian Art Collection, the company has invested more than $500,000 at the McMichael as part of a three-year sponsorship agreement announced on November 16, 1999, less than a year ago. We want to ensure that our investment continues to be valued by all concerned and, further, that it continues to be protected. The context for Compaq Canada's submission today is as follows.

Compaq Canada empathizes with the position the government of Ontario finds itself in today. The financial position of the McMichael came as a surprise to the government. It most certainly came as a surprise to Compaq. The government is no doubt disappointed with a number of parties associated with the McMichael, possibly even the board of directors and those individuals who were appointed by the government to ensure that its investments were being properly managed.

Given the national significance of the collection at the McMichael, the government has a burdensome responsibility regardless of the financial position of the McMichael. The McMichael has to be a financially sound, fiscally responsible institution, yet remain open and accessible to all Canadians, which are somewhat historically disparate goals in the cultural community. Most Canadians don't understand the high wire museums tread in their attempts to achieve these sometimes conflicting objectives. All they want to do is view the art whenever they feel the urge to do so.

Rightly or wrongly, the government of Ontario will be held accountable by all Canadians, and particularly Ontarians, if the McMichael does not remain accessible. Thus, the government not only has a responsibility to ensure that the McMichael continues to be a viable entity but, to use the marketing vernacular of the new millennium, that the McMichael remains an experience and a destination.

Compaq Canada is fully supportive of the government of Ontario's requirement that the McMichael be managed in a fiscally responsible manner, and that the board of directors at the McMichael reflect that government dictum and not only be responsible for ensuring that the institution is managed in a fiscally responsible manner, but also be ethical in their dealings with sponsors like ourselves and other partners, the government itself and the general public.

Compaq has some questions. We seek clarification of article 1, which states, "The bill also recognizes that the focus of the collection has changed over time and that it is appropriate to return the collection to, and then maintain it in, the spirit of its original focus." Unless this article is well defined, in our view any debate that has taken place vis-à-vis focus will continue unabated.

Compaq seeks clarification of article 4, which states, "The art advisory committee is ... empowered to designate the artists who have made contributions to the development of Canadian art." As written, this committee would have a substantial level of authority within the McMichael, perhaps beyond that of the board or the executive director. Beyond that, this committee appears to have been afforded authority that could be viewed as being beyond the McMichael's mandate. In our opinion, any responsibility beyond the mandate of the McMichael is the purview of Heritage Canada.

Compaq seeks clarification of subsection 3.l(1), which states, "Robert McMichael, founder director emeritus, and Signe McMichael are trustees for life or until they are unable or unwilling to continue to be trustees." If the McMichaels are unable to continue to be trustees, how will that be determined and dealt with in a sensitive manner that is in the best interests of both parties? Further, how is the public interest being served in permitting them to select trustees to replace themselves?

Compaq seeks clarification as to the general authority and responsibilities of the Minister of Citizenship, Culture and Recreation when it comes to the management of the McMichael Canadian Art Collection. It appears that the minister's involvement extends beyond policy direction to include operational management.

Compaq seeks clarification as to the general authority and responsibilities of the executive director of the McMichael, particularly as they relate to the Minister of Citizenship, Culture and Recreation, the board of directors and the art advisory committee. It appears that the executive director will have little authority, yet a continuing considerable amount of accountability. It also appears that the executive director will be responsible to the minister, to the board and perhaps even to the art advisory committee.

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In closing, the legislation appears draconian in nature, given the real issue at hand at the McMichael, as Compaq Canada understands it. We aren't convinced that amending legislation was ever required to deal with what we see as a financial management matter. Our solution is this: financially enlightened senior management is most certainly required, as is an involved and active board of directors that is fiscally responsible, socially conscious and politically accountable.

Those are my comments, Mr Chairman.

The Chair: Thank you. That leaves us about three minutes for questioning.

Mr Marchese: Mr Challinor, thanks for your presentation, because you raised good questions that we're all asking ourselves. For me, I want to get right to the heart of the problem. My concern is that this government, through this bill, is violating the original agreement.

Interruption.

Mr Marchese: I may be wrong. That's my opinion, and that's why I think this government is wrong. The original mandate says the following. Were you here earlier? I'll read it again: the mandate is limited to the Group of Seven and three other named artists, plus others designated by the advisory committee, "who have made contributions to the development of Canadian art." That's the spirit that I think the McMichael has operated out of since 1965. It's in that spirit that Mr McMichael continued to the 1980s, when he was the director from 1972 to 1980.

In law, when that Conservative government of the old days changed the mandate to specify that all works of art must not be "inconsistent with the general character of the collection," I read it as in the same spirit as 1965. I wouldn't have changed it, but the Tories at the time decided to do it, in law, and that's what we've got. There are various changes made to the mandate, but I see them as all consistent with the original agreement.

Have you had a chance to look at the original mandate, to see whether you think these people are right, and that they might be violating the spirit of the 1965 agreement?

Mr Challinor: I have not viewed the original agreement. The only concern we have with respect to the issue you've raised is that it be well defined. I think it has been open to interpretation, and I think we all know that whenever things are open to interpretation, they're open to interpretation by just about anybody. That is the issue.

Our concern of course is this: if the collection becomes too narrowly defined, it will not have an awful lot of public value, and if it doesn't have a lot of public value that means there will be fewer people going through the gallery, which means fewer people will see our contribution to that gallery.

Mr Marchese: You're absolutely right. I'm concerned about that focus. They say, "and return it to the spirit of its original focus," which is what I was reading out of the mandate of 1965, and I'm concerned that the McMichaels, through the so-called advisory committee, which is really in charge of acquisitions, are going to decide who also will be in the McMichael collection in addition to the Group of Seven, so it'll be left to them. You're worried about the possible narrow focus. At least it should be defined somehow.

Mr Challinor: It should be very clearly defined, as to what the focus of the gallery will be. I can tell you-and I think this is not news to anybody who sits around this committee, because we're all consumers-the museum community has had to change considerably in the last 30 years. They have had to change their attitude considerably. I just spoke at a museum association meeting in Victoria two weeks ago on this subject, the subject of sponsorship. They've all had to find more creative ways to keep people coming through the gates to maintain their financial stability. If anything, that speaks to actually increasing, not decreasing, the focus of what they do, but within the parameters of their mandate. Sometimes that mandate has to change.

The Chair: Thank you, Mr Challinor. I appreciate your taking the time to come before us this afternoon.

DAVID SILCOX

The Chair: When the agenda was typed up, the clerk informs me there was one error. There should have been written in at 4:40 Mr David Silcox. Mr Silcox, would you come forward, please. The floor is yours.

Mr David Silcox: Good afternoon, members of the committee. I want to thank you very much for having me here this afternoon. I apologize for not having been here last week. I had hoped to hear what was being said by some of the other people who appeared before you.

My credentials for coming to talk about this issue go back some 40 years, during which time I've been involved with art gallery and museum policy, starting at Hart House at the University of Toronto, where I'm now the director of the art center there, at the Canada Council, where I initiated the museum's assistance program, and on through various capacities including the assistant deputy minister responsible for culture and museums at the federal level and the Deputy Minister of Culture and Communications for this province for five years.

I've also written on the artist Tom Thomson and David Milne, particularly David Milne-although the book on Tom Thomson sold better-and I've appeared before a number of Senate committees, House of Commons committees and legislative committees over the years.

I find it a little unsettling that this issue, which has seized so many people in the cultural community, has been so structured that a lot of people whom you should be hearing from are not getting enough time to really discuss the issue substantially.

This legislation, in my view, is a form of cultural liposuction. It's cosmetic, it's risky, and I think some of the results that it may achieve may be unexpected. The facts, as I see them, are that the original mandate, which was established back in 1965, has been followed by all subsequent boards, curators, directors and staff who have served the McMichael with many, many hours of volunteer time over the years.

The Group of Seven, which is the core of the collection, stood for both revolution and tradition. It was 30 or 40 years after the Group of Seven was formed before Mr McMichael came upon the scene and began to form his collection.

The Group of Seven inspired many of the artists they lived with during the 1920s and 1930s and they inspire artists today, artists who draw their inspiration from Tom Thomson, J.E.H. Macdonald, Lawren Harris, David Milne and people of that generation. I suspect none of today's artists, or very few, would support this legislation, and I very much doubt that the original members of the Group of Seven would, if they were here to talk about it. Mr McMichael and a few friends, none of them professional curators, directors, artists or arts administrators, disagree because they basically want control of the McMichael collection again.

The collection was a gift to the people of this province, who now own it and who paid for it and paid for it over the years. The donors, Robert and Signe McMichael, had been very well compensated through taxes and through direct payment for their gift. That Mr McMichael wants to control this collection again I understand, but that the government would allow him to do so I find quite frankly incredulous.

It's not a question of this collection and the place it's in being frozen in time. No institutions I know are frozen in time. They've cited the Frick collection, I understand. It has changed; it still adds to its collection. The Wallace collection in London, even the Barnes collection, are having to face up to the fact that they can't remain static forever.

What's wrong with this legislation is that it's wrong-headed and inappropriate, I think, on four counts.

First of all, nothing is broken. The policies, the practices, the administrative structures, the reporting and the auditing processes that are set up for this public institution are all in place and they're all working. It's really only Mr McMichael who thinks it's broken, and I disagree with him. You have a responsible board, you appoint members to the board-the government has that opportunity-there's a professional staff and there are sister institutions who would let you know pretty fast if there was anything really wrong at the McMichael.

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Second, the governance issues: I think that creating an advisory committee in the way that's proposed by the legislation, which Mr McMichael will control, undercuts the board and sets a very bad example. It's too much concentration on too few people. I don't quite understand how the board can fulfill its proper function in the face of an advisory committee which basically gets an opportunity to second-guess it. This legislation may mollify the original donors-and this is my third point-who have already been exceptionally, and excessively, one would say, mollified, but it betrays all other donors, who both greatly outnumber the McMichaels and outweigh them in terms of the gifts they have given to public institutions in this province.

I really believe that that betrayal of the trust is something that really has to be looked at. I'll set aside the issue of the financial implications of it, but if you deaccession any work, the institution is going to have to pay the cultural property review board quite handsomely for that. The tax, by the way, is 30% for any works deaccessioned that were acquired in the last 10 years, and in the case of the McMichael that comes close to nearly $5 million. So you figure it out. It's $1.5 million that'll be due if the works of the last 10 years were to be put up to auction.

Finally, my fourth point is that this legislation really throws the institution into a financial limbo. It has been there really for the last two or three years because of the confusion and uncertainty. The donors of both art and money will go elsewhere if there is uncertainty, and I think it's a very bad signal. I simply don't think that is the way to structure a public trust, which is what the McMichael is.

I'm surprised that in the face of a united collection of opinion from museum professionals from across the country-the museums association, Ontario Association of Art Galleries-you would actually proceed with this legislation. Some legislation, I quite understand, is unpleasant but necessary, taxation bills being a good example, but this legislation is just plain wrong and the unpleasant consequences are, unfortunately, predictable.

I support the Canadian Museums Association's call for a thorough review. I wish you would suspend the process of going ahead with this legislation, and I would certainly urge Compaq to go on hold until they find out exactly how this institution is going to be structured.

The Chair: Thank you very much, Mr Silcox, and you have timed it perfectly. I appreciate your taking the time to come before the committee and be our final presentation for this portion of the parliamentary proceedings.

Mr Silcox: I hope you take my comments to heart. Thank you.

The Chair: I'm sure all the members will. Thank you very much.

With that, we will move into clause-by-clause consideration of Bill 112. The Chair will deliver the appropriately ordered packet of amendments. I believe there are 10 in total. The first motion is a government motion. Mrs Elliott?

Mrs Elliott: I move that section 2 of the bill, paragraph 3 of section 1.1 of the act-that paragraph 3 be removed and replaced with the following-

Interjection.

Mrs Elliott: Sorry. I have to read the exact words.

The Chair: Forgive me, Mrs Elliott. I neglected to notice that section 1.1, so we'll have to approve section 1 first, after any debate. Is there any debate on section 1 of the act? Seeing none, I'll put the question.

All those in favour of section 1?

Mr Marchese: On a recorded vote.

The Chair: A recorded vote has been requested by Mr Marchese.

AYES

Barrett, Dunlop, Elliott, Munro.

NAYS

Di Cocco, Marchese, Smitherman.

The Chair: That section carries. Now over to you, Mrs Elliott.

Mrs Elliott: This is in section 2?

The Chair: Yes.

Mrs Elliott: I move that paragraph 3 of section 1.1 of the act, as set out in section 2 of the bill, be struck out and the following substituted:

"3. Robert and Signe McMichael had a vision that the gallery and the art collection that it housed would continue to retain the spirit that they had originally created by remaining true to its focus on those artists who had celebrated the nation's beauty in a uniquely Canadian way."

The Chair: Do you wish to speak to the amendment?

Mrs Elliott: This is reflective of some of the comments we heard in the presentations. We believe, for instance, by changing "nation" from "province," it reflects a broader appreciation and more truly reflects the nature of the collection.

The Chair: Further debate?

Ms Di Cocco: I'm going to go back to some of the other submissions that have been made regarding the public interest. This is a public gallery. It's been paid for over and over again by taxpayer dollars. There was a vision that was set out. There was an agreement, and that agreement has changed over the years. This motion says, "Robert and Signe McMichael had a vision that the gallery and the art collection that it housed would continue to retain the spirit that they had originally created by remaining true to its focus on those artists who had celebrated the nation's beauty in a uniquely Canadian way."

If they had a specific vision that they wanted at the time of the agreement in 1965, with all of the, if you want to call it, legal opinion, why did they not put it in there? Why are you, as the government, putting into legislation personal visions for an art gallery? I disagree with it vehemently. It's a breach of trust of your role in the conduct of governance in this province on crown corporations such as the McMichael gallery.

Mr George Smitherman (Toronto Centre-Rosedale): One further point. I agree with what my colleague said. I think it's interesting that the words contained here are "remaining true" when we know that over time there have been what I would call temperamental vacillations with respect to what was in and what wasn't. The list has not been a consistent list. There are paintings by artists that were purchased during a time when Mr McMichael was in control of the decisions around what to purchase that don't make the final list. So to suggest "remaining true to its focus on those artists who had celebrated the nation's beauty," to suggest there is some consistent list that was there in 1965 and which continues until now in some consistent fashion is erroneous and I think makes a mockery of this paragraph 3.

Mr Marchese: I ask your indulgence before I speak to this. I'll put all my objections to this bill on the table either now in relation to this amendment or get rid of this amendment and then I'll speak later. It's up to you.

The Chair: Feel free to put all of your comments on the record now, Mr Marchese.

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Mr Marchese: Thank you very much, unless Mrs Elliott would like to speak in advance of me. Would you like to do that? I can wait. Mrs Elliot, would you like to go first?

Mrs Elliott: It doesn't matter to me, Chair.

Mr Marchese: I'd like to hear what she has to say.

Mrs Elliott: I was just going to say that perhaps my colleagues across the way are forgetting that this is a purpose clause. This part of the bill is to set the stage as to what was in the past. If you look at the bill carefully, 1 to 3 indicate this is the way it was. By replacing the word "province" with the word "nation," we're reflecting artists like Emily Carr, for instance, who were in the original collection, but it then says in point 4 under section 2 that "The focus of the collection has changed over time." The part we're amending speaks to what we believe was the original focus of the agreement.

Mr Marchese: I'm just going to start by saying that I'll be voting against the entire bill because the premise is fundamentally wrong and the amendments really don't do anything. What this government is doing is dumb, politically. I'll tell you why. You recall when the government came in in 1995 they said they wanted to get government off your back. Do you remember that? I remember that too. Rather than having the government off your back on many issues, man, do they climb all over you when they want to.

This is one example where the government ought to stay away from political interference, and they decided to directly intervene in an area where, in my view, they have no understanding and/or intelligence.

To get to the mandate, my view is that this government through this bill is violating the original agreement. It's actually violating it. As opposed to getting it on the right track, they're in my view getting it off track. I'm going to review the mandate for Mrs Elliott's benefit because I think they need to know this stuff; we're going to debate this for third reading.

The original agreement said that the mandate is limited to the Group of Seven and three other named artists plus others designated by the advisory committee "who have made contributions to the development of Canadian art." So it's open-ended. It means anybody, any artist who has made a contribution to the development of Canadian art. Quite apart from the Group of Seven plus three others, we have accepted many more artists, who are Canadian, who have made a contribution, on the basis of that 1965 agreement. Mr McMichael was part of it.

Interruption.

Mr Marchese: Sorry. Those "who have made contributions to the development of Canadian art" is open-ended and, yes, you're right, they're not designated.

The mandate is limited to the Group of Seven and three other named artists plus others designated by the advisory committee. So in my view we have respected the mandate of 1965. I say "we" because, having been a minister in 1990, I accepted that mandate. I wasn't foolish enough to change course, as you people are doing. I think you're making a tremendous political mistake. It's a political blunder that all of you will suffer for. You don't think so now. You think you're doing something decent and trying to bring the mandate back to what perhaps Mr-

Mr Garfield Dunlop (Simcoe North): That's exactly what we think.

Mr Marchese: Yes, I know, Mr Dunlop, but I'll continue. I'm waiting for your interventions in a few moments.

In 1972 you Tories introduced a law-you guys, not them, the Libs; you, your predecessors. I know you probably don't like them very much, but they did this in 1972. The mandate was changed to specify that all artworks must not be "inconsistent with the general character of the collection." I find that consistent with the 1965 mandate, even though they reworded it as they did, in law, in 1972. Mr McMichael was there at the time, and he was named director from 1972 to 1980. He was part of all of this then, and the government did this with Mr McMichael, your government, the Conservatives, in 1972.

In 1982, the Conservatives again changed the law. That would be you again.

Mr Dunlop: We understand when you're pointing over here. We don't have a problem with that.

The Chair: Order, Mr Dunlop.

Mr Marchese: Take your time, take it easy. I'm going to listen to you too.

The "mandate is changed to restore list of 10 specified artists"-the seven plus the three-"and in addition art by indigenous peoples"-so we included indigenous peoples, which wasn't part of the original-"is to be collected; and work by other artists who have made contributions to the development of Canadian art, `and whose artworks and objects will be consistent with the general character of the collection.'"

Again, in 1982 you guys changed the mandate again. I've got to admit, I don't find it inconsistent with the 1965 mandate. I still find it consistent. Something happened here, because the director emeritus-that would be Mr McMichael-left by some deal in 1980. There was some deal that was struck. I'm not quite sure what that deal was.

I want to submit something that was given to us, which is the financial statement and report of the audit for the year ending March 31, 1980. Ms Stokes, if you don't mind passing it out, because I think the members should see it. We can get a clearer copy, perhaps a longer one, if they need it.

Why Mr McMichael left had to do with a lot of problems that were being experienced while he was there. It has to do with the valuation of works of art, which the auditor points to as a particular problem; a special fund that they speak about; unreported taxable benefits; directors' expenses; housekeeping; internal audit being recommended, because there was none; works of art on loan and the problems associated with that; receiving of goods and sale of works of art.

They have nothing to do with anything, you might add. You might argue that when it is your turn. I think it speaks to some of the problems, and if indeed there might have been some financial problems this perhaps speaks to them, and I think you should see it. It might have some bearing on this bill that you're passing in terms of what you may or may not want to do with it.

I introduce it at this time because before you pass the bill you might want to consider it and defer it. I would recommend it. There were problems at the time that the auditor speaks to that most of you in the business world would find a bit troublesome. I raise it for your interest. If you don't touch on this today and if you don't deal with this today, I'll deal with it in third reading in the Legislature. That's not a problem for me. I will raise it at the time.

I have a few more points. In 1989, the mandate was changed again by the Liberals. The "mandate is changed to drop italicized phrase from 1982 law, and to allow gallery to collect art by artists who make, as well have made, contributions to the development of Canadian art." I find that as consistent as every other mandate that was changed, in 1982, in 1972 and consistent with 1965.

You people are saying, "We've got to get back to the original focus," meaning the original mandate, the agreement that was struck in 1965. I read to you the original agreement. I'm saying, as Mr Silcox has said-who was the deputy minister for five years-that we have kept to the spirit of that mandate. It is my argument. Liberals are making this argument. Many of the others have made the same argument. Yet some of you continue to hold the view, for one reason or another, that no one has kept to the spirit of the 1965 agreement.

I'm telling you that you're making a political blunder. Your interventions are wrong and stupid. You're getting into a field of which you know little. In my view, you're making a mockery of the ministry and a mockery of culture and the arts with your complete lack of understanding of what you're doing. You're giving the power to this advisory committee that has the power for acquisition and deaccessioning, exhibition and display, which, in the view of one of the speakers, is a non-professional committee. It is completely opposed to professional practices elsewhere.

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It is not an advisory committee. You shouldn't say it is an advisory committee if you mean it to have different power. If they have the power to acquire, to deaccession, to show exhibits and to display, it's not an advisory committee. You're giving that group of five-Mr McMichael and spouse and a few other people nominated by Harris, who obviously are in tune with your new bill-the power to do those things which are not advisory.

If it's an advisory committee it means they're giving advice to the board on what a professional curator says we should or shouldn't buy. That's not what this advisory group is doing.

That's why I say to you it's political stupidity, that you people don't know what you're doing and you're an embarrassment to the cultural community in Ontario and Canada and beyond.

You argue that by going back to the original mandate, which is the one I say you are in violation of, that somehow you will restore financial stability. I argue and others argue-in fact, Mr Silcox argued this-that you're creating financial instability once again. You have no certainty whatsoever that doing what you're doing-which I tell you is wrong, and putting that aside even if you disagree-does not give financial security to the McMichael gallery.

One lady who wrote me, whom I quoted in the Legislature and named her, said, "The government claims that it is necessary to pass Bill 112 to solve the gallery's financial problems. What financial adviser has suggested that the present owners and sponsors be dumped in order to hopefully get new ones? Yet this is the risk that will be exposed with this bill." She's absolutely right. This is not a political, partisan opinion. This is an opinion by someone who's gravely concerned about what you're doing.

Even if she or others agreed that the mandate you are introducing through this bill were correct, even if they agreed, they don't believe that what you're doing will put it on a financial footing that is pleasing to you. We used to fund the McMichael collection 100%. It was then 80% under our government. It's now 40% under yours. Financial institutions are struggling desperately to make up for that shortfall. Some of them are lucky and doing well in spite of all the good efforts of the board members and the volunteers and the donors-in spite of all those efforts. I argue that governments need to be there and need to fund these cultural institutions in ways that they're not getting through you. But if you believe or if you think that somehow you're going to get more money by doing what you're doing, you're wrong.

Mr Silcox suggested to you that there is a 30% tax on any of the works that you deaccession and he argues that would be a cost to you of $1.5 million, unless, of course, you decide that you're not going to get rid of the works of art but you're just going to hide them in the vaults. That's an answer, I suppose. You don't have to sell them; just hide them. They don't have to be seen, I suppose, and then you won't have to incur a cost.

I think there are other legal obligations that you have to the donors and just a moral obligation that you have to those donors. But we don't know what's going to happen, because the McMichaels are the ones who will determine which works of art will be in the vault, will be deaccessioned, will be displayed. Who knows what else they intend to do with it? They are the only ones who will decide. That's the power you're giving them through this bill. I find that wrong.

You are essentially doing the same thing as we have in the 1965 agreement. It's the same thing except you're saying to Mr McMichael that he, his wife and three other people will have the power to decide who will be shown, displayed at the McMichael gallery. It's the same mandate except you now have said, "They are the ones in charge of who will be deaccessioned, on display, what works of art will be bought and so on." That's what you're doing.

Interjection.

Mr Marchese: No, well I'm waiting for you, Ms Elliott, to speak so that I can rebut. It'll be interesting to hear what you have to say, given there's so many people who have so much expertise in this field who have told you the contrary. I'm still fascinated to think that you might have arguments in disagreement with them.

I'm profoundly worried by what you're doing. Many questions have been raised by those who have presented today. The implications are very political and they impinge on the arts world in a way that you don't understand.

You think that Premier Harris having had lunch or dinner with some friend of Mr McMichael or indeed Mr McMichael solves the problem. It's profoundly wrong and dumb. I thought I'd put that on the record because I've spoken against the entire bill. No amendment can fix it, because the premise is wrong. So I wanted to put that on the record and look forward to Ms Elliott's comments.

The Chair: Any further debate or motion on the floor? Seeing none, I'll put the question.

All those in favour of the amendment?

Mr Marchese: On a recorded vote always, Mr Chair.

AYES

Barrett, Dunlop, Elliott, Munro.

NAYS

Di Cocco, Marchese, Smitherman.

The Chair: That amendment carries.

Ms Elliott, you will be reading government motion number 3.

Mrs Elliott: I just want to be clear. The committee is looking at the papers that were presented by the clerk that would be numbered page 3.

The Chair: Yes, that's correct.

Mrs Elliott: I move that paragraph 7 of section 1.1 of the act, as set out in section 2 of the bill be struck out and the following substituted:

"That there should be an art advisory committee to advise on matters related to the composition and display of the collection."

The Chair: Do you wish to speak to that?

Mrs Elliott: What we have done here is added the words "composition and display." This is simply done to clarify the role and make it a little more specific for the art advisory committee.

The Chair: Further debate?

Mr Marchese: Could I ask her a question?

The Chair: You can always ask a question.

Mr Marchese: What is the relationship of this advisory committee to the other advisory committee? Do we now have two different advisory committees?

Mrs Elliott: This is the same art advisory committee. We are simply clarifying their role. In the original wording of the bill we proposed, it said under point 7 that there should be an art advisory committee to advise on matters related to the collection. We're proposing an amendment that has more specific wording in it, that adds words, "to advise on matters related to the composition and display of the collection."

Mr Marchese: Just to be clear on this, I'm referring to section 7 for a second. If I understood her correctly, this advisory committee-perhaps you can help me, Ms Elliott-is replacing the other advisory committee?

Mrs Elliott: No.

Mr Marchese: No. Is that correct?

Mrs Elliott: It's the same advisory committee. We're just altering the wording as to what they would do. Instead of simply saying, "The art advisory committee will advise on matters related to the collection," we're saying they advise on matters related to the composition and display of the collection."

Mr Marchese: So that is all that they would do now? So that original advisory committee that had the power to purchase, to deaccession, to display-it will not have that power any longer. Is that what you're clarifying for me?

Mrs Elliott: You have always been under the impression that somehow the art advisory committee had increased powers. First of all, this is in the purpose section of the clause. The actual abilities of the art advisory committee are in subsection 5(2), "The functions of the art advisory committee are," and there are five different points there. What we're referring to here is in the purpose clause of the bill.

Mr Marchese: OK. Ms Elliott, Mr Chair, further classifications. In section 8, "The board shall ensure that the collection reflects the cultural heritage of Canada and is comprised of art works and objects and related documentary materials" and it proceeds to say, "other artists who have been designated by the art advisory committee, under clause 4.1(2)(e) for their contributions to the development of Canadian art." What happens to that?

The Chair: We're not at that section, Mr Marchese.

Mr Marchese: Are you changing that section?

Mrs Elliott: I don't believe there are-

Mr Marchese: So that remains. Is that correct?

Mrs Elliott: No, there are no amendments proposed for that.

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Mr Marchese: OK. In section 8 there is such an advisory committee that will determine who shall ensure that the collection reflects the cultural heritage and is comprised of works of art and other artists who have been designated by the art advisory committee. So this art advisory committee will decide, I argue still, as others have argued, that they have power to acquire, deaccession, exhibit and display.

Mrs Elliott: No, that's wrong. You have to go back to what the powers of the art advisory committee as proposed-I'm sorry, Mr Chair.

The Chair: You have the floor. Go ahead.

Mrs Elliott: If you go back to section 5(2), it says:

"The functions of the art advisory committee are,

"(a) to make recommendations to the board with respect to the acquisition of artworks and objects and related documentary materials for the collection."

The art advisory committee has the ability to make recommendations to the board on acquisitions.

"(b) to make recommendations to the board with respect to disposal of artworks" and so on.

"(c) to make recommendations to the board in respect of temporary exhibits ...

"(d) to make recommendations to the board in respect of the display ...;

"(e) to designate artists."

The art advisory committee has the power to designate and to make recommendations to the board, but the board always, in this bill proposed, has the final say to what will be acquired and how the collection will actually function.

Mr Marchese: OK. So that art advisory committee has the power to designate but the board could ultimately say no.

Mrs Elliott: That's right. That's correct.

Ms Di Cocco: I see some staff saying no, that's not the case, so I want the clarification again. My understanding from what I read with regard to the role of the advisory committee is that it gives them not only this advisory capacity related specifically to composition and display of the collections; it still has the power to designate, because it really does have more than an advisory capacity. At least that's my interpretation.

I'm hoping that Ms Elliott is not giving us the wrong impression here. If the board has its regular governance authority, it means that the board is the one that in the first place should be appointing an advisory board, but obviously you're appointing it. Whatever the recommendations are made by the advisory board, it's crucial that we understand this, that whatever the advice, recommendations or designation given by this advisory board, it is only that. If it has more power than just that, please clarify again. I really do need it clarified.

Mrs Elliott: Perhaps I was not clear. I will go back and try this again. We are not proposing amendments to change the function of the art advisory committee. In the bill it's proposed that the art advisory committee will have the ability to make recommendations to the board with respect to acquisitions, to make recommendations to the board with respect to disposal, to make recommendations to the board with respect to temporary exhibits, to make recommendations to the board with respect to the display of art. The last subsection, (e), is different. It says "to designate artists," and so the art advisory committee will have the ability to designate artists to the board. That's their ability: acquisition, disposal, exhibit and display are the decision of the board.

Ms Di Cocco: Just further to that, the composition of this advisory committee that you call it is, again, the two McMichaels-just to reclarify-and they're there in perpetuity, I guess, because they can designate other individuals to sit on their behalf, I understand. Is that correct?

Mrs Elliott: Yes. While they're alive.

Ms Di Cocco: While they're alive. And then you have two people appointed by the minister, I presume, or the Lieutenant Governor.

Mrs Elliott: We are making a proposal that that be changed. It was to be by the board, three people to be chosen by the board.

Ms Di Cocco: By the board. Three people elected by the board. OK.

In this section here, the advisory "related to the composition and display of the collection," that just means exactly what it says. In other words, however the display is set up, if this advisory board doesn't like the way a display is set up, they have a say in this.

Mrs Elliott: In the bill they have the ability to make recommendations to the board. But again I turn your attention to the fact this is in the purpose clause, so this is saying that the art advisory committee would be able to advise on matters related to composition and display. It's exactly the same. We believe it reflects exactly what is already proposed in the body of the bill.

Ms Di Cocco: You're going to change the governance as you move on, you've said. You're going to have three people there who are going to be appointed by the board. What if the board decides that they do not agree with what the advisory board has submitted to them?

Mrs Elliott: With regard to?

Ms Di Cocco: Their recommendations and/or their designation and/or their advice. What if the board as a whole says, "We don't agree in that direction"?

Mrs Elliott: According to the body of the bill as proposed, the board would have the ability to disagree or not to act, whatever the advisory committee recommends, if they are recommending on acquisition, disposal, exhibit or display.

Ms Di Cocco: Or display. But the advisory board has the ultimate say in the artists, in the designation of the artists. Is that correct?

Mrs Elliott: Correct.

Ms Di Cocco: So the artists who constitute the art heritage of Canada or whoever are designated as appropriate Canadian artists. They are the ones who have the final say, not the board.

Mrs Elliott: Yes. They would designate the artists, the art advisory committee.

Ms Di Cocco: Can you clarify why?

Mrs Elliott: Again, the whole purpose of this bill is primarily to restore the McMichael collection to the spirit of the 1965 agreement.

Ms Di Cocco: I hope you get a good chance to read the audit from 1980, because the essence of control restored to the McMichael would be very much in question, as my colleague Mr Marchese sent around-we have received this audit. I think it's of grave concern with regard to the ethics in this whole issue of the role that's being played by the advisory board. I suggest that you have an opportunity to look at it and, as I said, I've sent a copy to the minister as well, because it may bring to question exactly what the advisory board is in its composition.

Mr Marchese: I'm suggesting to Mrs Elliott that they have to review this a bit more carefully. Section 8 says, "The board shall ensure that the collection reflects the cultural heritage of Canada and is comprised of artworks and objects and related documentary material created by or about," and it lists the names, the original seven plus three others. So remember it "shall ensure that the collection reflects the cultural heritage ... and is comprised of...." That's the role of the board. Subsection (b) says, "other artists who have been designated by the art advisory committee," and it has a few other words, "under clause 4.1(2)(e) for their contributions to the development of Canadian art."

Nowhere does it say that "designates" means "recommends." In all the other clauses it's "recommends." In that particular clause it says "designates," and it suggests that they have the power to do that and it is not subject to the review of the board, as Mrs Elliott says.

Mrs Elliott: No. I was very clear on that. We went back and we were very clear on that.

1730

Mr Marchese: Let me go back to it. You said the board has the ultimate authority, decision. That's what you said.

The Chair: No. With the greatest respect, she read the sections and made it clear I think to all members of the committee that there was a difference in that last clause.

Mrs Elliott: Yes.

The Chair: I'm sorry. I heard her very clearly, Mr Marchese.

Mrs Elliott: I was very clear on that. I'll say it again if you want.

Mr Marchese: Yes, go ahead. Well, depending-

The Chair: Mr Marchese, I would remind you too that we had agreement that we would end at 6. I just wanted to draw your attention to the clock.

Mr Marchese: That's fine. When it ends, you can-

The Chair: I would draw your attention to the fact that the House motion on red tape has given us the time frame, so I want you to know that if we go over 6 o'clock, you will be losing one of the possible three days we can hold hearings on that bill.

Mr Marchese: You're kidding.

The Chair: No, I'm not kidding.

Mr Marchese: Could you explain, Mrs Elliott, what you mean again, because I'm saying "designates" means they have the power to designate the works of art.

Mrs Elliott: We agree with you.

Mr Marchese: Oh, you agree with me.

Mrs Elliott: That's what we're asking.

Mr Marchese: Ah, sorry. Obviously I missed something, then, either with what you answered-is that it?

Ms Di Cocco: She clarified it for me.

Mr Marchese: So what did you clarify again? Sorry, I didn't hear it.

Mrs Elliott: That part of the bill is not being proposed for amendment. We are saying that the art advisory committee has-

Mr Marchese: Yes. I understand what the art advisory committee-by your suggestion. I understand that. I was worried about the fact that it has the power to designate artists and that it's not to be disputed, it's not to be refuted, by the board or it's not up to challenge and so on. So you agree with that.

Mrs Elliott: No. It has the power very clearly to designate-

Mr Marchese: Right, because when I originally asked you, you said that the power-

Mrs Elliott: I'm sorry. I thought I was telling you accurately and I did go back to that to make sure it was accurate.

Mr Marchese: That's good. I'm glad we clarified that for the record.

The Chair: Further debate? Seeing none, I'll put the question.

Mr Marchese: Always on a recorded vote.

The Chair: Yes, that's fine, duly noted.

AYES

Barrett, Dunlop, Elliott, Munro.

NAYS

DiCocco, Marchese, Smitherman.

The Chair: That amendment carries.

The next amendment is a Liberal motion.

Ms Di Cocco: In trying to look at this bill and decide that-this is section 4 I believe, is it not?

The Chair: The page is numbered 2 in the upper right-hand corner.

Ms Di Cocco: The motion basically is to move-and I put these in only to see if there is real discussion on the financial matters-that paragraph 7 of section 1.1 of the act, as set out in section 2 of the bill, "There should be an art advisory committee to advise on matters related to the ... collection," be struck out. The reason being, of course, to retain the integrity of the board's position.

The Chair: Any debate?

Mrs Elliott: Clearly, Mr Chair, we disagree. We think that an art advisory committee is essential to keep the spirit of the original agreement and we will be voting against this amendment.

The Chair: Any further debate? Seeing none, I'll put the question. A recorded vote.

AYES

DiCocco, Marchese, Smitherman.

NAYS

Barrett, Dunlop, Elliott, Munro.

The Chair: That amendment is lost.

Shall section 2, as amended, carry? Carried.

Section 3: Mrs Elliott.

Mrs Elliott: I move that subsections 3(1) and (2) of the act, as set out in section 3 of the bill, be struck out and the following substituted:

"Composition of board

"3(1) Subject to section 3.1, the board shall consist of up to 23 trustees appointed by the Lieutenant Governor in Council.

"Number

"(2) The Lieutenant Governor in Council may from time to time determine the number of trustees to be appointed.

"Term

"(2.1) A trustee may be appointed for a term not exceeding three years and may be reappointed for one or more further terms."

The Chair: Further debate? Seeing none, I'll put the question.

AYES

Barrett, Dunlop, Elliott, Munro.

NAYS

DiCocco, Marchese, Smitherman.

The Chair: That amendment is carried.

Shall section 3, as amended, carry? Carried.

Section 4: Mrs Elliott.

Mrs Elliott: I move that subsection 4(2) of the act, as set out in subsection 4(1) of the bill, be struck out and the following substituted:

"Bylaws

"(2) The board may make bylaws regulating its proceedings and establishing committees composed of trustees, employees and volunteers of the corporation for the control and conduct of its internal affairs.

"Voting

"(2.1) Only trustees may vote on any matter before a committee of the board."

The Chair: Do you wish to speak to the amendment?

Mrs Elliott: Again, we're reflecting what we heard from various presenters who came before the committee. We're adding the word "volunteers" to this section, and we're also indicating that only trustees can vote at committee meetings. That means, therefore, that all employees and volunteers can be non-voting members of the board committee, as desired.

The Chair: Further debate? Seeing none, I'll put the question.

AYES

Barrett, Dunlop, Elliott, Munro.

NAYS

Di Cocco, Marchese, Smitherman.

The Chair: That amendment is carried.

Shall section 4, as amended, carry? Section 4, as amended, is carried.

The next amendment will be page 7.

Mrs Elliott: Section 5:

I move that paragraphs 3 and 4 of subsection 4.1(1) of the act, as set out in section 5 of the bill, be struck out and the following substituted:

"3. So long as a person appointed by Robert McMichael under subsection 3.1(2) or (5) is a trustee, the person shall be a member of the art advisory committee and the number of trustees appointed under paragraph 5 shall be reduced accordingly.

"4. So long as a person appointed by Signe McMichael under subsection 3.1(3) or (4) is a trustee, the person shall be a member of the art advisory committee and the number of trustees appointed under paragraph 5 shall be reduced accordingly.

"5. Three trustees appointed by the board from amongst the trustees appointed under subsection 3(1)."

The Chair: All those in favour of the amendment?

AYES

Barrett, Dunlop, Elliott, Munro.

NAYS

Di Cocco, Marchese, Smitherman.

The Chair: The amendment is carried.

Next up is page 8.

Mrs Elliott: Also to section 5.

I move that subsection 4.1(3) of the act, as set out in section 5 of the bill, be struck out and the following substituted:

"Same

"(3) If any member of the art advisory committee is unable or unwilling to continue to be a member of the committee and that condition continues for more than 30 days, the board may appoint another trustee to fill the vacancy."

The Chair: Debate? Seeing none, I'll put the question.

AYES

Barrett, Dunlop, Elliott, Munro.

NAYS

Di Cocco, Marchese, Smitherman.

The Chair: That amendment is carried.

Page 9.

Mrs Elliott: I move that subsection 4.1(5) of the act, as set out in section 5 of the bill, be struck out and the following substituted:

"Quorum

"(5) A quorum for the transaction of business is three members of the committee, whether present in person or represented by proxy exercised by another trustee on a committee member's behalf.

"Notice

"(6) Notice of the time and place for the holding of a meeting of the committee shall be given to every committee member by sending a notice 14 days or more before the date of the meeting by prepaid mail or personal delivery to each committee member's latest address as shown on the records of the corporation.

"Same

"(7) A notice that is mailed shall be deemed to have been received by the committee member on the 10th day after mailing.

"Same

"(8) A member of the committee may permit notices required by subsection (6) to be delivered by means other than those mentioned in that subsection."

The Chair: Any debate? Seeing none, I'll put the question.

AYES

Barrett, Dunlop, Elliott, Munro.

NAYS

Di Cocco, Marchese, Smitherman.

The Chair: That amendment is carried.

The next amendment is yours, Ms Di Cocco.

Ms Di Cocco: Again, I'm going to go to the premise of the minister, suggesting that it is a financial issue that is the reason this bill was brought forward.

I move that section 4.1 of the act, as set out in section 5 of the bill, be struck out and the following be substituted:

"Financial advisory committee

"4.1 The board shall establish a financial advisory committee, to evaluate and propose solutions to fundraising and funding issues which arise from time to time."

You strike out the advisory board, as it states, and you suggest that the board, in its format now, appoint a financial advisory committee, because nowhere in this bill does it deal with financial issues. All it does is give more control to the original donors, but nothing about how we are going to deal with the financial matters that you are saying are problematic in this institution.

That is my motion. I want to see if the government has any real intent to deal with financial matters, if that is really their issue in this bill.

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The Chair: Further debate?

Mrs Elliott: Obviously we think the financial situation at the McMichael collection is very important and have been quite concerned that the deficit has suddenly grown, within 10 months, from $300,000 to over $2 million, as one presenter indicated.

In this bill, we have proposed an art advisory committee in reflection of the true spirit of the original agreement. There is nothing in this legislation that would preclude the board, a future board, from establishing a financial advisory committee for fundraising or any other issues. However, we do not feel it is appropriate to put it in the legislation, because the legislation, as we're designing it, is to reflect the original 1965 agreement, so we will be voting against the amendment.

Mr Marchese: In relation to what Mrs Elliot said, she doesn't really know yet how much the deficit of this McMichael collection is going to be in the next couple of years. It will throw it so out of whack. You're going to have so many financial problems you just won't know why it happened. I'm telling you now, you're creating a disaster financially and a political disaster for the arts community in general with this political blunder of yours.

Mr Smitherman: I think on this point it's interesting that the government uses the concerns with respect to financial mismanagement to justify so much of their action here, and yet when a practical solution is presented, which says not only should any legislation deal with a return to the original mandate but one that actually deals with and speaks to the need for people to be focusing on financial issues, that's rejected out of hand. That exposes this for what it is, which is simply a play on behalf of some people who have given the gift that keeps on giving and who can't cede to other people, who have also made extraordinary contributions, the right to be involved. The government's rejection of this very sensible motion tells much of the story that's going on here.

The Chair: Any further debate? Seeing none, I'll put the question on Mrs Di Cocco's motion.

AYES

Di Cocco, Marchese, Smitherman.

NAYS

Barrett, Dunlop, Elliott, Munro.

The Chair: That amendment is lost.

Shall section 5, as amended, carry? Section 5, as amended, is carried.

Shall section 6 carry? Section 6 is carried.

Section 7, Ms Di Cocco.

Ms Di Cocco: I move that clause 8(b) of the act, as set out in section 7 of the bill, be struck out and the following substituted:

"(b) other artists who have been designated by the board for their contributions to the development of Canadian art."

What it does is in actual fact give to the board its authority to designate other artists as designated by the board and not just the advisory committee.

The Chair: Further debate? Seeing none, I'll put the question.

AYES

Di Cocco, Marchese, Smitherman.

NAYS

Barrett, Dunlop, Elliott, Munro.

The Chair: That amendment is lost.

Shall section 7 carry? Section 7 is carried.

Shall section 8 carry? Section 8 is carried.

Shall section 9 carry? Section 9 is carried.

Shall the title of the bill carry? The title of the bill is carried.

Shall Bill 112, as amended, carry? Bill 112, as amended, is carried.

Shall I report the bill, as amended, to the House?

Ms Di Cocco: Chair, can we have a recorded vote for that?

The Chair: Absolutely.

Ms Di Cocco: For the last motion, please.

The Chair: You're a little late for that. But you can for the last one if you'd like.

Ms Di Cocco: OK, for the last one.

The Chair: A recorded vote. Shall I report the bill, as amended, to the House?

AYES

Barrett, Dunlop, Elliott, Munro.

NAYS

Di Cocco, Marchese, Smitherman.

The Chair: That is carried.

Thank you to all the witnesses. Thank you to the committee members. I appreciate the spirit and tone in which debate was carried out. I will report the bill to the Legislature.

This committee stands adjourned.

The committee adjourned at 1745.