July 15, 1942

LIB

John Gordon Ross

Liberal

Mr. ROSS (Moose Jaw):

It is therefore

about time the government made some real reductions in tariffs in order to start this thing going. It is recognized that the sentiment of the people, in this country, in Great Britain, and in the United States of America, has changed greatly in regard to trade matters. A majority in all these countries is of the opinion that trade between the democratic nations of the world should be unfettered.

Customs Tariff

I repeat, I do not know how we are going to be able to do anything about it after the war if we are not ready to do it now. Therefore I am sorry that this budget has not provided for drastic reductions in the tariff.

I think something should be said by hon. members with a view to seeing that those changes are made when the next budget comes down. Is it not ridiculous that Canada, a highly industrialized country, which is giving to Great Britain the greater part of a billion dollars in war goods manufactured in this country, for the purpose of helping her and ourselves in this war, and deferring until after the war the repayment of a loan of some $700,000,000, should be sending these goods to Great Britain in that way because it is impossible for Great Britain to pay for them in goods?

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

Is it not

part of our contribution to the common effort, not a gift at all?

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
LIB
NAT

John Ritchie MacNicol

National Government

Mr. MacNICOL:

What has it to do with

this item?

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
LIB

John Gordon Ross

Liberal

Mr. ROSS (Moose Jaw):

It has this to do with it, that even if Great Britain wanted to pay with goods, we, the Canadian people, through our tariffs, are saying, "No; your goods cannot come into this country, even to help pay your debt to us." That is a ridiculous situation and should be corrected.

I have spoken here before for freer trade, and I intend to keep on doing it. I think this country and the world at large is at last beginning to see the light of that kind of reasoning, and I hope the Minister of Finance will be able to see some more of it before the next budget.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
SC

Ernest George Hansell

Social Credit

Mr. HANSELL:

I am greatly surprised

that the minister has seen fit to place such an enormous tax upon "machinery and apparatus for operating oil sands by mining operations and for extracting oil from the sands so mined, and complete parts of the foregoing." Thirty-five per cent is a tremendous tax on that machinery at a time when the people of this country are anxious to develop our oil resources.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

I am not putting it on; I

am taking it off.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
SC

Ernest George Hansell

Social Credit

Mr. HANSELL:

Well, take it completely off-that is what I ask. Perhaps the minister might explain what this is. There seems to be some confusion.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
NAT

John Ritchie MacNicol

National Government

Mr. MacNICOL:

The confusion is at

your end. It is free. You do not want anything better than that.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
SC
LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

I have before me two

columns, on page 16 of the ways and means resolutions. The first column contains the proposals; the second column-which is divided into three parts, as is the first- contains the present rates. The present rates for certain of these articles are, free, 27i per cent, and 35 per cent; and for others, 10, 27i, and 35 per cent. All these duties are being removed and the articles placed on the free list under all classifications.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
SC

Ernest George Hansell

Social Credit

Mr. HANSELL:

Then I shall have to

make the same speech but instead of castigating the minister I shall have to compliment him. The fact of the matter is that we in Canada are anxiously trying to develop our oil resources. This item will apply particularly to the Fort McMurray tar sand development, in which we in this corner of the house are particularly interested. The development of these sands will aid tremendously the building of the Alaska highway, and that highway will aid greatly the defences of that northern territory. In my study of this matter I find that one of the obstacles encountered is that it is difficult to mine those sands and extract the oil in competition with oil obtained from drilled wells. This will help the tar sand producers to compete.

I was pleased to hear the Minister of Munitions and Supply say not long ago that they are sending men in there to review this whole situation and bring about further development of the Fort McMurray tar sands. I urge upon him that he do this speedily. Let the government develop them, or give every possible inducement to their development, without delay.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
LIB

George Henry Ross

Liberal

Mr. ROSS (Calgary East):

Will the tariff be removed on rotary drilling rigs such as those used in deep drilling in Turner Valley, for instance?

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Item 410d, which was inserted last year, provides that the following shall be duty free:

Well-drilling machinery and apparatus, and complete parts thereof, for use exclusively in drilling for water, natural gas or oil, or in prospecting for minerals, not to include motive power; machinery and apparatus of a class or kind not made in Canada for maintenance and testing purposes in connection with gas or oil wells; well-packers and complete parts thereof, for oil or gas wells; seamless iron or steel tubing of a class or kind not made in Canada, for use in casing water, natural gas or oil wells.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
LIB

George Henry Ross

Liberal

Mr. ROSS (Calgary East):

That does not exempt the motive power used in drilling.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

That is correct.

Customs Tariff

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
LIB

George Henry Ross

Liberal

Mr. ROSS (Calgary East):

Is there any reason why it should not be exempted?

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

I do not know of any. That is the question that was raised by the hon. member for Moose Jaw. I have made inquiries to ascertain whether there have been any communications or complaints with regard to diesel engines and the like. I find there have not, and it is now a little late to suggest that in connection with this budget.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
LIB

George Henry Ross

Liberal

Mr. ROSS (Calgary East):

Then could it be considered for next year's budget?

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink
LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Yes, it can be considered. There may be reasons against it which I do not know, but we have not considered it; that is all.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF
Permalink

July 15, 1942