March 11, 1938

LIB

Thomas Alexander Crerar (Minister of Mines and Resources)

Liberal

Mr. CRERAR:

The purpose in reducing

the rate to five per cent-and parenthetically I may say that it has always been five per cent except for a brief period at the beginning-is to bring it more into line with the

rate charged in connection with federal farm loans. I may be wrong but my impression at the moment is that the rate there is five per cent.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

That is so; that is the

minimum. That is the prevailing rate.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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LIB

Thomas Alexander Crerar (Minister of Mines and Resources)

Liberal

Mr. CRERAR:

Yes. I think that under all the circumstances five per cent is a fair rate when you take into account the concessions that have been made in the past to this particular class of returned soldiers.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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CCF

Major James William Coldwell

Co-operative Commonwealth Federation (C.C.F.)

Mr. COLDWELL:

I notice these words:

... it shall be lawful for the board to pay such rates, taxes or assessments or to insure such property as aforesaid and all moneys so expended by the board either before or after the enactment hereof, shall be repaid. . . .

Has it been the practice of the board to pay such assessments up to the present time, and if so -to what total sum? The soldier settlers are in many instances in quite a hopeless position, and what we should require is not the payment of taxes, and so on, which will increase their obligations to the board, but something more than this bill provides, something which will bring the debts down to a point where the settlers themselves can see some possibility of meeting their obligations.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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LIB

Thomas Alexander Crerar (Minister of Mines and Resources)

Liberal

Mr. CRERAR:

I do not think I have the information which the hon. member has just asked for. The explanation of the purpose of the section was given the other day when the resolution was under discussion. It has been found that there were many returned soldiers, for instance, who either could not or neglected to keep up their fire insurance premiums on buildings, and the like. Then there were cases where taxes were not paid. The board was authorized under the legislation creating it to advance moneys to keep these properties in good standing, and it is with the rate of interest on those moneys that this section is concerned. There was one provision in the Soldier Settlement Act which gave warrant for charging seven per cent; there was another provision which could be stretched to the interpretation that five per cent should be charged. The purpose of this section is to make it clear beyond doubt that the five per cent rate obtains and that no question can be raised in the future concerning the charge of five per cent.

The amount that has been advanced in this way on the whole I should think would not be very great.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

The payments to the municipalities for taxes are substantial.

Soldier Settlement Act

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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LIB

Thomas Alexander Crerar (Minister of Mines and Resources)

Liberal

Mr. CRERAR:

Payments to municipalities for taxes probably are substantial, but, in relation to the whole obligation, relatively small.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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SC

Victor Quelch

Social Credit

Mr. QUELCH:

Do the provisions of this bill apply only to soldier settlers, or to all settlers under this act-that is, British settlers, immigrants and others?

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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LIB

Thomas Alexander Crerar (Minister of Mines and Resources)

Liberal

Mr. CRERAR:

The provisions of the bill will apply to soldier settlers, civilian settlers and others who have been beneficiaries of it in the past.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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SC

Victor Quelch

Social Credit

Mr. QUELCH:

Then these are not special concessions to returned soldiers?

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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LIB

Thomas Alexander Crerar (Minister of Mines and Resources)

Liberal

Mr. CRERAR:

No, I do not think they can be so described.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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SC

Victor Quelch

Social Credit

Mr. QUELCH:

It has often been said that they are.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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LIB

Thomas Alexander Crerar (Minister of Mines and Resources)

Liberal

Mr. CRERAR:

All classes coming under the Soldier Settlement Act administration, which includes soldier settlers, civilian settlers who purchased abandoned soldier settlement claims, those who came under the so-called 3,000 British families scheme, and I think there was also the New Brunswick 500 families scheme- these all share alike in the benefits which may be conferred by this legislation.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

All lands under the administration of the soldier settlement board.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
Permalink
LIB

Thomas Alexander Crerar (Minister of Mines and Resources)

Liberal

Mr. CRERAR:

That is right.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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SC

René-Antoine Pelletier

Social Credit

Mr. PELLETIER:

It concerns the payment of rates, taxes, insurance, et cetera, by the board in case of default on the part of the settler. Last year, if my memory is correct, the government brought in a measure by which through agreement with the government of Saskatchewan some $18,000,000 of taxes and various charges due by farmers on their lands was wiped out by the federal and provincial governments. Is the minister in a position to tell us exactly how much benefit was derived by the Soldier Settlement Act administration because of that measure? If there were old taxes accrued against these lands and they were wiped out, the board must have received some material advantage. I should like to know what advantage has been received.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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LIB

Thomas Alexander Crerar (Minister of Mines and Resources)

Liberal

Mr. CRERAR:

The soldier settlers in

Saskatchewan and Alberta did not come under that arrangement. My hon. friend will recall that that was a voluntary arrangement entered into between loan companies, municipalities and the government of Saskatchewan. The government of Saskatchewan was a creditor for very considerable amounts, of farmers all over Saskatchewan, as well as the loan companies and the municipalities. That

arrangement was reached by an understanding come to voluntarily between these various interests. The soldier settlement board had no authority by the legislation under which it operates to come into that scheme. That has been recognized, and as I say, leniency has been shown to the greatest possible extent and the soldier settler was able to enjoy the advantages of that scheme in another fashion, by applying under the Farmers-' Creditors Arrangement Act for an adjustment of his obligations if he felt that he could not carry on.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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CON

Alfred Johnson Brooks

Conservative (1867-1942)

Mr. BROOKS:

In some districts the school authorities have a lot of difficulty, with taxes sometimes two, three and four years in arrears. Is any period specified during which the taxes shall be in arrears on these farms before the board will pay, or is it left until the farms are put up for tax sale by the school district or the municipality?

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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LIB

Thomas Alexander Crerar (Minister of Mines and Resources)

Liberal

Mr. CRERAR:

I think the latter is correct. I cannot speak with definite knowledge, but the soldier settlement board will protect the lands where they are worth protecting.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
Permalink
CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

We went further than that. The minister will remember that during the last few years many municipalities and school districts found themselves in difficulty because they were without money, and we passed a statute-the exact year escapes my memory-by which we provided that the minister might take care of the situation. It is very important that it should be done promptly, for two reasons: one, to relieve the difficulty of the school districts and municipalities, and, second, because penalties accumulate and the amount payable becomes out of all proportion to what it would be if the taxes were paid promptly. I think the minister's deputies will be able to advise him that since the enactment of this legislation an effort has been made to pay within a reasonable time after it became apparent that the settler was unable to pay, and the crown became the collecting agency from the settler, not the municipality.

Topic:   SOLDIER SETTLEMENT
Subtopic:   INTEREST RATE ON REPAYMENTS OF TAXES AND INSURANCE PREMIUMS-ARREARS OR INSTALMENTS SUBJECT TO BONUS PRIVILEGES
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March 11, 1938