February 25, 1927

LIB

Edmond George Odette

Liberal

Mr. ODETTE:

Then I presume our party will take it off, because I believe they will be here for some time to come.

Referring to the reduction in the sales tax, I desire to compliment the Minister of Finance. I believe it is a step in the right direction, but I should like to suggest to the minister that the sales tax on all Canadian-made goods be removed in its entirety, but that the sales tax on imported articles be retained.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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?

Some hon. MEMBERS:

Oh, oh.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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An hon. MEMBER:

Come over and join

us.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Edmond George Odette

Liberal

Mr. ODETTE:

Hon. gentlemen opposite

applaud that suggestion. They may hurl at me the epithet that was hurled at the hon. Minister of Trade and Commerce-that I am a protectionist. Well, if that enunciation proclaims me a protectionist I am willing to be called a protectionist or any other name that my hon. friends may devise. If, by the removal of this sales tax on Canadian made goods, the citizens of Canada would be enabled to buy goods at a lower price, provided they were Canadian made and would, at the same time be able to buy the imported article without having the price increased one cent, then I say it is a good policy.

Let me go further. I sat in the gallery when the Minister of Finance told hon. gentlemen opposite that he proposed removing the excise tax of five per cent on motor cars costing $1,200 or less, and that if the manufacturers did not pass that saving on to the buyers of motor cars he would immediately remove the five per cent excise tax on cars imported from the United States or other countries. By removing the sales tax on

all Canadian made goods, but leaving it on the imported articles the Minister of Finance would have a dub with which he could force the Canadian manufacturer to pass that saving on to the consumers in Canada.

The hon. member for West Calgary (Mr. Bennett), speaking the other afternoon, said this:

My hon. friends opposite are more concerned with foreign trade, and we are more concerned with domestic trade.

As to that I would say this: In the year 1921, when the Meighen government was in power, the imports of manufactured goods into Canada exceeded our exports by $264,000,000, and in 1926 the exports of Canadian manufactured goods exceeded our imports by $23,864,000. So that in 1921 we did a foreign business but it was on the wrong side of the ledger. To-day that foreign business has been increased but the balance is on the right side of the ledger. Even if the Canadian manufacturers had the entire Canadian field to themselves they would still be behind according to these figures. Let me give you an instance of how this would work. The Ford Motor Company of Canada sell every Ford car they possibly can in Canada. Their arrangement with the American Ford company gives them the entire Canadian field, and so the potential demand here for Ford cars is filled by the Canadian Ford company. At the present moment the Ford Motor Company of Canada are employing 6,130 men, and 40 per cent of their production is exported. I ask hon. gentlemen opposite where 2,452 men would find employment if it were not for the export trade of that one company?

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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An hon. MEMBER:

What is the argument?

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Edmond George Odette

Liberal

Mr. ODETTE:

The argument is this, that by making reciprocal trade agreements with other countries that are beneficial to Canada, but in a spirit of give and take, industry will be built up in Canada, and I submit that one of the most beneficial things to Canada at the present moment would be a reciprocal trade agreement with the United States. If hon. members across the floor of the House would only devise ways and means of convincing the Canadian people that they should buy nothing but Canadian-made goods, and should buy no imported goods whatsoever, I am sure the manufacturers of Canada would be very thankful to them indeed. Why, in the galleries of this House we find angle iron stamped "Carnegie, Pittsburg." I do not think this government was responsible for

The Budget-Mr. Odette

the construction of this building. I believe that any Canadian government, no matter whether it be Liberal, Conservative or Progressive, should set an example and buy nothing but Canadian-made goods wherever possible, buying imported goods only when Canadian made goods are not procurable.

The hon. member for West Calgary spoke of unemployment in Vancouver.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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UFA

Donald Ferdinand Kellner

United Farmers of Alberta

Mr. KELLNER:

Just before the hon.

member proceeds, I would point out that the pens on the members' desks were purchased in the United States. I believe the Liberal government is responsible for that.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Edmond George Odette

Liberal

Mr. ODETTE:

If there are pens manufactured in Canada, I think this government or any other government should buy Canadian-made pens.

I was about to remark that I am not very conversant with industrial conditions in Vancouver, but I am conversant with employment and industrial conditions in my own constituency, and I desire to say that on December 31, 1926, there were 574 more men employed in the border cities than there were on the corresponding date in 1925-and that in the face of the employment situation in the city of Detroit, dynamic Detroit, a city famous the world over for its industrial activity. Let me give you the employment figures in the city of Detroit on the same dates. On December 31, 1926, there were 41,262 fewer men employed by the manufacturers and other employers in the city of Detroit than on the corresponding date in 1925. I have heard hon. gentlemen quote in this debate Adam Smith and Stephen Leacock, and I venture to say that if this debate continues long enough, some hon. gentlemen will be quoting King Tut. Allow me to quote an industrial leader in Canada, W. R. Campbell, vice-president and general manager of the Ford Motor Company of Canada. Speaking at a dinner given by the border chambers of commerce at Windsor on January 6, 1927, he said:

I am most optimistic over the outlook for 1927. Having recently returned from an extensive tour of the Dominion, I find that financial, economic and industrial conditions throughout the country to-day are very encouraging. In every province there are indications of expanding business and prosperity. After completing this tour I am amazed at the potential buying power of Canada to-day. I have been through Canada on previous occasions, but was none too enthusiastic. This time, however, I saw- improved buying and absorption power.

The industrial situation in Canada shows a decided improvement. It is on the headv'ay made last year, and from our internal research, that we are contemplating a 20 per cent increase in our production during 1927.

I have given you the employment figures of the border cities. They speak for themselves.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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CON

Otto Baird Price

Conservative (1867-1942)

Mr. PRICE:

Is this not in your opinion

simply a matter of advertising? This firm is in competition with other concerns selling automobiles in this country.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Edmond George Odette

Liberal

Mr. ODETTE:

All right. The Willys-

Overland Company of Toronto have increased their production by 30 per cent.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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CON

Otto Baird Price

Conservative (1867-1942)

Mr. PRICE:

Is that not advertising too?

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Edmond George Odette

Liberal

Mr. ODETTE:

I do not know that this

is advertising particularly.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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CON

Otto Baird Price

Conservative (1867-1942)

Mr. PRICE:

Why, certainly, it is advertising.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Edmond George Odette

Liberal

Mr. ODETTE:

All right. There are 574

more men employed in the border cities today than there were a year ago, so if advertising brings business to my constituency, I say let the advertising continue.

In conclusion, may I say to the hon. Minister of Finance that if he is able to bring down similar budgets providing for a reduction in taxation during the succeeding years of this parliament, he will have an augmented following behind him when the people of Canada are called upon for a pronouncement.

On motion of Mr. Young (Saskatoon) the debate was adjourned.

On motion of Mr. Robb the House adjourned at 10.20 p.m.

Monday, February 28, 1927

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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February 25, 1927