May 2, 1939

LIB
CON
LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

I never ask a newspaper to desist from anything.

Topic:   DEPARTMENT OF FINANCE
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CON

John Ritchie MacNicol

Conservative (1867-1942)

Mr. MacNICOL:

Someone should ask them to be a little bit courteous and not misrepresent us in regard to the support that the west has always received from the east.

Topic:   DEPARTMENT OF FINANCE
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CCF

Major James William Coldwell

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

Mr. COLDWELL:

I do not think western papers or western members have criticized eastern members of the house for the attitude [DOT] they have taken in regard to these matters. My observation has been that when the people of the east were appealed to, during the difficult times through which we passed, they responded splendidly to those appeals. But what we have criticized, both as members and as newspapers, is a fiscal policy which we believe favours the interests of the east and penalizes the people of the west. Because of that possibly the opinion has grown up that the western papers and members are sometimes critical of the attitude of eastern people towards these great problems. May I ask the committee to distinguish between those two things. If hon. members do that I think they will realize that western people have been grateful for the assistance given, but that we feel that the fiscal policies of parliament have favoured the east and penalized the west in days gone by, and made the west unable to withstand the terrific economic circumstances under which it laboured.

Topic:   DEPARTMENT OF FINANCE
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SC

John Charles Landeryou

Social Credit

Mr. LANDERYOU:

Not only have the fiscal policies been inimical to the interests of western Canada, as the hon. member for

Supply-Finance

Rosetown-Biggar suggests, but trade, tariff and monetary policies and many other factors have entered into the matter. In that connection I should like to ask the minister a question. Was that grant to Saskatchewan to prevent default or to assist in agricultural distress?

Topic:   DEPARTMENT OF FINANCE
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?

Some hon. MEMBERS:

Carried.

Topic:   DEPARTMENT OF FINANCE
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SC
LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

The grant to Saskatchewan is for governmental purposes. We do not earmark it for any purpose.

Topic:   DEPARTMENT OF FINANCE
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SC

John Charles Landeryou

Social Credit

Mr. LANDERYOU:

"Governmental purposes" naturally includes their obligations. Is this vote made with a view to assisting them in meeting their obligations, or just for agricultural-

Topic:   DEPARTMENT OF FINANCE
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LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

For the purpose of assisting them to meet their obligations of every kind, except maturities of provincial debt.

Topic:   DEPARTMENT OF FINANCE
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SC

John Charles Landeryou

Social Credit

Mr. LANDERYOU:

Then I would ask the minister another question: Did this not assist them to get into a financial position which would enable them to meet their obligations better than if the money had not been granted to them?

Topic:   DEPARTMENT OF FINANCE
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?

Some hon. MEMBERS:

Carried.

Topic:   DEPARTMENT OF FINANCE
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SC

John Charles Landeryou

Social Credit

Mr. LANDERYOU:

There has been a

question of discrimination. Alberta charges discrimination, and we charge discrimination. We say that Alberta has not been dealt with as fairly as other provinces of western Canada. We are not opposed to assistance being given to other provinces, but we are opposed to discrimination. We are opposed to members from eastern Canada rising in their places and saying that they are assisting western Canada, from the great lakes to the Rocky mountains; for they are giving very little assistance to Alberta. In fact the cost to that province of the trade, tariff and monetary policies of this government totals a good deal more than the assistance it is given. That does not hold true in respect of other provinces of western Canada.

Topic:   DEPARTMENT OF FINANCE
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Item agreed to.


LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

I understand there is an arrangement to proceed with the budget debate, and I do not wish to get in the way of it. I would therefore move that the committee rise, report progress and ask leave to sit again. We should sit again as soon as possible.

Progress reported.

Topic:   DEPARTMENT OF FINANCE
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THE BUDGET

DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE


The house resumed from Monday, May 1, consideration of the motion of Hon. Charles A. Dunning (Minister of Finance), that Mr. Speaker do now leave the chair for the house to go into committee of ways and means, and the amendment thereto of Mr. Lawson, and the amendment to the amendment of Mr. Coldwell.


SC

Joseph Needham

Social Credit

Mr. JOSEPH NEEDHAM (The Battlefords) :

Mr. Speaker, when the house rose

last night I was dealing with one item of expenditure in the budget, namely the cost of loan flotations. In last year's budget that item was a cost of 84,555,000. The estimate for this year is $4,975,000. In the discussion last night I showed that one loan floated in November last for $40,000,000 was bought at a discount of $1,100,000, and that the expenses in connection with it were 8808,367.98. The people of Canada received a credit from that loan of $38,900,000 out of a loan of $40,000,000, at three per cent for thirty years.

What I wish to impress upon hon. members is a comparison of the amount of money or credit we get from a loan flotation of this kind, and the amount of money required to redeem that loan. In other words there was created a credit to the people of Canada of $38,900,000, and we are expected to pay back $40,000,000 of principal and $36,000,000 of interest. It will be noticed that we received $38,900,000 but that we are expected to pay back a total of $76,000,000. Will someone tell me where that $37,100,000 is to come from?

Topic:   THE BUDGET
Subtopic:   DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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May 2, 1939