Hon. CHARLES A. DUNNING (Minister of Finance) moved that the house go into committee at the next sitting to consider the following proposed resolution:
That it is expedient to bring in a measure to authorize the Minister of Finance with the approval of the governor in council to enter into agreements with urban or rural municipalities to make loans not exceeding in the aggregate $30,000,000 to enable such municipalities to pay the whole or part of the cost of constructing or making extensions or improvements to or renewals of a municipal waterworks system, municipal gas plant, municipal electric light system or any other self-liquidating municipal project, provided that the province in which the municipality is situated approves the application for the loan and the project to be financed with the proceeds of the loan, and agrees to guarantee the repayment by the municipality of the principal of and interest on any such loan; and to provide that the interest on any such loans shall be two per centum per annum payable half yearly, and that any loan shall be amortized by semi-annual payments sufficient to pay off the full amount of the loan during a period not longer than the estimated useful life of the project; also to provide for the employment and payment of a temporary staff necessary for the administration of this measure.
He said: His Excellency, the Governor General, having been made acquainted with the subject matter of this resolution, recommends it to the favourable consideration of the house.
Motion agreed to.