Hon. C. D. HOWE (Minister of Transport) moved the second reading of Bill No. 29, to amend The Trans-Canada Air Lines Act, 1937.
He said: Mr. Speaker, hon. members will
note that this is a very short bill. As I stated in speaking to the resolution it has two purposes in view, both of which I think were contemplated when the priginal legislation was passed but were more or less inadvertently omitted.
The first section amends paragraph 14A of the bill to permit Trans-Canada Air Lines to purchase a share of the company which will operate the transatlantic air transport service, such purchase being an obligation of the government of Canada. The memorandum entered into provides that 24i per cent of the stock of the operating company shall be owned by such company as the government of Canada may designate for that purpose, and it is the intention of the government to designate Trans-Canada Air Lines as the Canadian shareholder of the transatlantic company.
The second purpose of the bill is to permit the extension of the trans-Canada contract to lines outside Canada. As originally drawn the bill permitted the company to operate outside Canada, but such guarantees as might be given by the Post Office Department to the company were limited to points within Canada. The route of the airway crosses a portion of the state of Maine, and it is also probable that the airway will operate two or possibly three international connections. At the present moment it is operating an international connection between Vancouver and Seattle. The purpose of the second paragraph is to enable the guarantees under the trans-Canada contract to extend to these operations.
Motion agreed to, bill read the second time and the house went into committee thereon, Mr. Johnston (Lake Centre) in the chair.
On section 1-Transatlantic business.