March 23, 1920

UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Hon. C. C. BALLANTYNE (Minister of Marine):

Topic:   SUPPLY.
Subtopic:   GOVERNMENT SHIPBUILDING. VOTE OP 520,000,000.
Permalink
L LIB

Emmanuel Berchmans Devlin

Laurier Liberal

Mr. DEVLIN:

Could the minister give

the dates of the different contracts?

Topic:   SUPPLY.
Subtopic:   GOVERNMENT SHIPBUILDING. VOTE OP 520,000,000.
Permalink
UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

I am sorry I cannot, at the present moment, give the hon. member the information he desires, but I shall be very glad to get it for him if he so wishes. The contracts are spread over a period from, we shall say, March or April, 1918, up to within a few weeks ago. The average cost of these 63 vessels, including the contracts that were let during the war and since the armistice was signed, is $191.92 per ton. During the war contracts were let at from $180 per ton for the larger vessels to 5215 per ton.for the lake size. Since the armistice has been signed, we have been able to contract for the large size at 5167.50 per ton and for the lake size at $180.

The contracts have been placed with the following yards:

Canadian Vickers, Ltd.-

Ships. Tons. Tone. Tons.2 4,575 9,15010 8,390 83,900

93,050

Harbour Marine Company, Victoria-

2 8,390 16,780

Collingwood Shipbuilding Company

7 3,890 27,230

Kingston Shipbuilding Company-

2 3,890 7,780

Port Arthur Shipbuilding Company-

4 3,400 13,600

2 4,375 8,750

1 3,890 3,890 26,240

Halifax Shipyards, Ltd.-

2 10,800 21,600

2 8 390 16,780 38,380

Tidewater Shipbuilders Ltd.-

4 5,100 20,400

Davie Shipbuilding- Company-

2 5,100 10,200

1 8,390 8,390 18,590

British American Shipbuilding Company-

Ships. Tons. Tons. Tons.

2 4,575 9,150

Midland Shipbuilding Company-

1 3,890 3,890

Dominion Shipbuilding Company-

2 3,500 7,000

J. Goughian & Son-

6 8,390 50,340

Wallaoe Shipyards, Ltd.-

2 4,575 9,150

2 5,100 10,200

2 8,390 16,780

36,130

Prince Rupert Shipbuilding Company-

2 8,390 16,780

Nova Scotia Steel and Coal Company-

3 2,800 8,400

Then as to deliveries made: 7 ships have been completed of type No. 2, 8,300 tons; 4 ships have been completed of type No. 3, 5,100 tons; 4 ships have been completed of type No. 4, 4,500 tons; 8 ships have been completed of type No. 5, 3,400 to 3,900 tons, and 1 ship has been completed of type No. 6, 2,800 tons. Of the 8,300 ton type, 5 are being equipped with oil fuel apparatus and 13 of the same type are being fitted with refrigerating space.

The expenditure to date is as follows: Total payments up to April, 1919, $19,510,322.35; total payments from April, 1919 to March 1, 1920, -$24,194,639.78-grand total, $43,704,962.13. Balance available on March 1, 1920, from vote for current year, $15,505,361.22.

There has been some criticism in the press, but very little I am happy to say, in regard to the cost of the Government ships, and 1 wish to take advantage of this occasion to make a comparison between our cost and the cost of ships contracted for in Canada by the Imperial Munitions Board for Great Britain, also the cost of ships built for Great Britain in foreign countries, and the cost of similar types of steel ships built in the United States.

Topic:   SUPPLY.
Subtopic:   GOVERNMENT SHIPBUILDING. VOTE OP 520,000,000.
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L LIB

William Duff

Laurier Liberal

Mr. DUFF:

Would the minister be good enough to give us the date of the last contract he made?

Topic:   SUPPLY.
Subtopic:   GOVERNMENT SHIPBUILDING. VOTE OP 520,000,000.
Permalink
UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

It was about a

month ago; I cannot give the exact date at

Topic:   SUPPLY.
Subtopic:   GOVERNMENT SHIPBUILDING. VOTE OP 520,000,000.
Permalink

CARGOES CARRIED FROM PACIFIC PORTS.


"Canadian Volunteer"-Genoa Bay to Gars-ton, England, 2,085,5'69 feet of lumber. "Canadian Trooper"-Vancouver to London, 1,956,216 feet of lumber. ''Canadian Aviator"-Vancouver to Garston, England, 1,934,938 feet of lumber. "Canadian Raider"-Genoa Bay to Melbourne, 2,005,857 feet of lumber. "Canadian Importer"-Vancouver to Melbourne, general cargo, consisting principally of the following: Corsets frrfm the Dominion Corset Company, Quebec.



Sewing machines from Cleveland. Rubber tires from the Goodyear Rubber Company, Toronto. Underwear from Hamilton. Bicycles from Western Ontario. Newsprint from the Canadian Export Paper Company. Chocolates from Toronto. Newsprint from Powell River Company, British Columbia. Canned Herrings from the Canadian Fishing Company. Mantles, lumber, laths, whitelead, etc., from various shippers. This will give some idea of what a general cargo means. Referring to our smaller vessels that are on the West Indian route, hon. members will be interested to know the vast quantities of raw sugar that were brought from the West Indies to Montreal, Halifax, and St. John, N.B. If it had not been for the Canadian Government ships I think I can say that there would have been a sugar shortage in this country. The sugar carried from the West Indies to St. John and Halifax was 47,266 tons. The total tonnage at present loaded and en route to St. John and Halifax is 14,155 tons. In addition to the above these vessels have undertaken to load before the end of April and deliver at Canadian ports 28,400 tons making a grand total of 89,821 gross tons valued at $13,164,160.40. The number of voyages that ourv ships have made is as follows:


VOYAGES MADE TO FEBRUARY 6. 1920.


To West Indies . . . . Voyages. .. 27 To Buenos Ayres . . . . 4 To London To Liverpool . . 9 To Glasgow . . 1 To United Kingdom from Van- couver, via Panama Canal . . . . 3 To Bordeaux . . 1 To Havre . . 1 To Australia and New Zealand . . 1 To St. John's, Newfoundland . [DOT] ' 4 56 I now come to what must be the most interesting part to hon. members and to the public generally. It is not often that ships, railways or other things are managed and operated by governments in such a way as to show a balance on the right side, but I am happy to say that from the figures I will give in the moment you will see that although 19 of these ships have only been in commission for a short time, not one of them having been in commission for a full year, the balance is on the right side. I wish to explain how the net earnings are arrived at. The Canadian Government Merchant Marine follow good business practice. They had to put on a new organization and to open up new trade routes. After providing for organization, overhead expenses, operating expenses, depreciation, insurance and five and a half per cent on cost, the ships have made a remarkably good showing. I think it is only fair that as Minister of Marine, and on behalf of the Government of Canada, I should pay a tribute to Mr. D. B. Hanna and his board of directors of the Canadian Government Merchant Marine for having accomplished such a fine result as I am going to refer to in a moment, not withstanding all the difficulties inseparable from new routes and a new organization. I am immensely pleased as the minister responsible, so is the Government, and I am sure that hon. members and the people of Canada will also be pleased. The profit statement is as follows: . Up to the end of December, 1919, there were delivered 19 steamers. Many of these were received during the late summer and fall, so that only 13 had completed voyages by the end of the year. As already mentioned, routes were opend to South America, West Indies and the United Kingdom. By December 31 28 voyages had been ,completed. The total gross earnings of all boats amounted to $3,448,030.25, and the net earnings to $1,406,000. This net will provide interest at 5J per cent on the Government's investment, full reserve for depreciation and a handsome margin in addition. These earnings are held by the company in the shape of bank balances, Victory bonds and accounts receiyable. In view of the fact that many of the boats were only in service for a portion of the year, and also as the initial expenses in placing boats in commission are extremely heavy, I- think you will agree with me that the operations of the Government's Merchant Marine present an exceedingly satisfactory showing. It will be of interest, I am sure, to the House to know that the Government boats enabled the exportation of Canadian products last year to the value of $21,362,000, much of which would not have been shipped if the shipping facilities had not been provided by the Government. It will be also interesting to know that since the first of the year, the shipyards on the Pacific Coast have delivered three boats, the " Canadian Raider," the " Canadian Importer," and the " Canadian Exporter," all of which will be employed in the Canadian-Australian trade. The " Canadian Raider " and " Canadian Importer " have already sailed with a full cargo of lumber in the one case, and a full cargo of confectionery, newsprint, lumber, rubber tires, etc., in the other. The " Canadian Exporter " is loading at the present time. It'is expected that with the service which the Canadian Government Merchant Marine will be able to provide between Canada, Australia and New Zealand very important business will be established. I wish also to explain how the Government transferred these ships, built and paid for by public money, to the Canadian. Government Merchant Marine. By Order in Council these ships were transferred to the Canadian Government Merchant Marine at the, contract' price. In lieu of that the Canadian Government Merchant' Marine issued notes payable to the honourable the Minister of Finance bearing interest at thfe rate of 5i per cent. It is incumbent upon the Canadian Government Merchant Marine not only to meet the interest on the cost of construction on these vessels at 5J per cent but also to pay the principal from time to time out of earnings. I am very happy to announce that notwithstanding, as I have already explained, that only v19 vessels were for a portion of the year in commission, yet, out of earnings the Canadian Government Merchant Marine have issued a cheque to the consolidated revenue fund of Canada for $500,000 which meets the interest at the rate of 5i per cent up to the end of December 31, 1919. Hon. members will see that the Canadian Government Merchant Marine are paying their way although they have hardly got started. It may interest hon. members to know' what our sister Dominion of Australia is doing. Australia has half our population but is still a nation of great vision, energy and capability. Here is what Australia has done with regard to shipbuilding: Australian Shipbuilding Programme. In the early days of the war, Australia acquired by purchase 15 second hand Brit ish vessels with a tonnage of approximately 100,000 tons. In addition the Commonwealth Government undertook a local building programme The original programme provided for the construction of 24 steel vessels of about 5,500 tons deadweight each and 24 wooden vessels of about 2,600 tons do'i Jweight each. A second programme v^as subsequently undertaken which provided for the construction of 14 steel ships of about 6,000 tons deadweight each. In addition contracts were placed by the Australian Government for the construction of 6 vessels in United Kingdom yards of about 12.000 tons deadweight. When Australia completes her programme she will possess a total tonnage of 348,400 tons net, a very good merchant marine for our .-overseas Dominions to have.


L LIB

William Duff

Laurier Liberal

Mr. DUFF:

Before the minister leaves

the subject of net profits, will he be good enough to tell us how much of the profits has been set aside to. rest account for depreciation.

Topic:   SUPPLY.
Subtopic:   VOYAGES MADE TO FEBRUARY 6. 1920.
Permalink
UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

I have not with me at the present time all the details of the organizations' bookkeeping.

Topic:   SUPPLY.
Subtopic:   VOYAGES MADE TO FEBRUARY 6. 1920.
Permalink
L LIB

William Duff

Laurier Liberal

Mr. DUFF:

Could the minister give the *gross amount?

Topic:   SUPPLY.
Subtopic:   VOYAGES MADE TO FEBRUARY 6. 1920.
Permalink
UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

That has been set aside to rest account?

Topic:   SUPPLY.
Subtopic:   VOYAGES MADE TO FEBRUARY 6. 1920.
Permalink
L LIB

William Duff

Laurier Liberal

Mr. DUFF:

Yes, to rest account for depreciation.

Topic:   SUPPLY.
Subtopic:   VOYAGES MADE TO FEBRUARY 6. 1920.
Permalink
UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

I am sorry I cannot give that information at the moment. I have given the gross earnings and the net earnings, and explained how these sums were arrived at, but just ihow much has been set aside to rest account I cannot say. I know that up to to-day the organization has in the bank, in the shape of cash and victory bonds, the large amount of one and one-half millions, but just what portion of that has been set aside for depreciation I cannot at present state. However, I shall endeavour to get the information for the hon. gentleman before the discussion on this item is finished.

Topic:   SUPPLY.
Subtopic:   VOYAGES MADE TO FEBRUARY 6. 1920.
Permalink
L LIB

William Duff

Laurier Liberal

Mr. DUFF:

I would like to have the information if possible before the debate closes.

Topic:   SUPPLY.
Subtopic:   VOYAGES MADE TO FEBRUARY 6. 1920.
Permalink
L LIB

Emmanuel Berchmans Devlin

Laurier Liberal

Mr. DEVLIN:

Is that over and above

the $500,000 cheque that was placed with the Department of Finance?

Topic:   SUPPLY.
Subtopic:   VOYAGES MADE TO FEBRUARY 6. 1920.
Permalink
UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

The cheque of $500,000 was paid out of the net earnings as I have stated. \

Topic:   SUPPLY.
Subtopic:   VOYAGES MADE TO FEBRUARY 6. 1920.
Permalink
L LIB

Emmanuel Berchmans Devlin

Laurier Liberal

Mr. DEVLIN:

I might state that since asking for the dates of the contracts, I have received the desired information.

Topic:   SUPPLY.
Subtopic:   VOYAGES MADE TO FEBRUARY 6. 1920.
Permalink

March 23, 1920