July 21, 1942

LAYING OFF OF MEN IN PROVINCIALLY OPERATED MINE IN NOVA SCOTIA


On the orders of the day:


CCF

Clarence Gillis

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

Mr. CLARENCE GILLIS (Cape Breton South):

I should like to address a question to the Minister of Labour based upon a telegram which I received this morning from the secretary of the mine workers' union at Inverness, Nova Scotia, pointing out that 150 men are idle at that mine as a result of changed conditions brought about by the provincial government, which are the operators of the mine. The wire is lengthy, and I sent a copy of it to the minister. Has his department any knowledge of the situation, and if so, what steps are proposed to be taken to remedy it?

Topic:   LABOUR CONDITIONS
Subtopic:   LAYING OFF OF MEN IN PROVINCIALLY OPERATED MINE IN NOVA SCOTIA
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LIB

Humphrey Mitchell (Minister of Labour)

Liberal

Hon. HUMPHREY MITCHELL (Minister of Labour):

I appreciate my hon. friend's

sending me a copy of the telegram, but as I have been under pressure this morning I have not been able to read it. So far as the department is concerned we have no knowledge of the situation except from the telegram. I shall be glad to look into the matter.

Topic:   LABOUR CONDITIONS
Subtopic:   LAYING OFF OF MEN IN PROVINCIALLY OPERATED MINE IN NOVA SCOTIA
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NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Hon. R. B. HANSON (Leader of the Opposition):

I also received a telegram in

connection with this matter. It would appear that these miners had a contract with the provincial government, which contract has been altered entirely without any notification to or consultation with the miners. One hundred and fifty men have been thrown out on the street because of the non-operation of one ship It does seem to me that at a time when coal is needed so urgently, it should be demonstrated that there is some justification for this action. Will the Minister look into the whole situation and make a statement?

Topic:   LABOUR CONDITIONS
Subtopic:   LAYING OFF OF MEN IN PROVINCIALLY OPERATED MINE IN NOVA SCOTIA
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LIB

Humphrey Mitchell (Minister of Labour)

Liberal

Mr. MITCHELL:

I shall be glad to do that. CANADIAN ARMY

Topic:   LABOUR CONDITIONS
Subtopic:   LAYING OFF OF MEN IN PROVINCIALLY OPERATED MINE IN NOVA SCOTIA
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INQUIRY AS TO PROVISION OF SULPHA DRUGS IN ARMY KITS


On the orders of the day:


NAT

Douglas Gooderham Ross

National Government

Mr. D. G. ROSS (St. Paul's):

Mr. Speaker,

I should like to ask the Minister of National Defence, in view of a report I saw in the press that sulpha drugs are being included in every man's kit in the United States army, whether we are doing the same thing in this country?

Topic:   INQUIRY AS TO PROVISION OF SULPHA DRUGS IN ARMY KITS
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LIB

James Layton Ralston (Minister of National Defence)

Liberal

Hon. J. L. RALSTON (Minister of National Defence):

I shall be glad to make inquiries.

Topic:   INQUIRY AS TO PROVISION OF SULPHA DRUGS IN ARMY KITS
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TAR SANDS-SYNTHETIC RUBBER REQUEST FOR COMMITTEE OF THE HOUSE TO INVESTIGATE AND REPORT


On the orders of the day:


SC

Charles Edward Johnston

Social Credit

Mr. C. E. JOHNSTON (Bow River):

Will the government consider appointing, when the house reassembles, a committee of the house to investigate the progress that is being made in the development of the Athabaska tar sands and in the manufacture of synthetic rubber in Canada? They are most important' questions.

Topic:   TAR SANDS-SYNTHETIC RUBBER REQUEST FOR COMMITTEE OF THE HOUSE TO INVESTIGATE AND REPORT
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LIB

William Lyon Mackenzie King (Prime Minister; Secretary of State for External Affairs; President of the Privy Council)

Liberal

Right Hon. W. L. MACKENZIE KING (Prime Minister):

Mr. Speaker, that is a matter of government policy which will be announced in due course.

Topic:   TAR SANDS-SYNTHETIC RUBBER REQUEST FOR COMMITTEE OF THE HOUSE TO INVESTIGATE AND REPORT
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WAYS AND MEANS


The house in committee of ways and means, Mr. Yien in the chair.


INCOME WAR TAX ACT


7. (1) That the total taxes payable by any taxpayer under the normal rate of tax and the graduated rates of tax shall be reduced by the amount paid by the taxpayer in respect of (a) payments into any approved superannuation, retirement or pension fund or plan, paid as a term of employment and not repayable during the continuance of such employment; (b) premiums on life insurance policies in force prior to the twenty-third day of June, 1942; (c) principal payments on a mortgage on one residential property*, provided such mortgage was registered and in effect prior to the twenty-third day of June, 1942; Provided, however, that such reductions shall not exceed the amount of the refundable portion of the tax as provided for in resolution 6 above; and the said refundable portion shall be reduced accordingly; (2) That in the case of a taxpayer over sixty-five years of age with income less than three thousand dollars, the total taxes payable under the normal rate of tax and the graduated rates of tax shall be reduced by the refundable portion of the tax as provided for in resolution 6 above, and the said refundable portion shall be eliminated accordingly.


LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Mr. Chairman, I have certain amendments to propose to this resolution and I shall submit them to the committee in a moment. Before I do so, however, there is a statement that I would like to make in reference to "income tax flying", so-called, to which I referred on Friday night. Exception has been taken to that statement by the officers in the Department of National Defence for Air, who have asked me to bring to the attention of the committee certain information.

There seems to have been some impression created that I was making a general charge

Income War Tax Act

against the administrative officers, but if you will look at page 43(33 of Hansard, you will see that I used this language:

I did not learn until recently, a few weeks ago, of the practice which apparently has arisen -I do not know how extensive it is-

Mr. Ross (Souris): Fairly extensive.

Mr. Ilsley: -on the part of administrative officers of the air force of "flying in" their income tax-

And so forth. I thought I made it clear that I did not know how extensive it was, and I did not say or intend to say in the remainder of my remarks anything at variance with that statement.

The Department of National Defence for Air have asked me to bring to the attention of the committee the number of administrative officers who had more than 100 hours of flying in the year 1941. Before I do that I want to review briefly the arrangements that were made.

The provision that certain incomes shall not be liable to taxation, including incomes of commissioned officers of the said forces while on active service beyond Canada or on active service in Canada whose duties are of such a character as are required normally to be performed afloat or in aircraft, was contained in the budget of June 24, 1940, and the first official determination of the principle that was to be applied is contained in a memorandum to inspectors of income tax, memorandum No. 67, issued by the commissioner of income tax on December 24, 1940. That lays down the principle that one-half of the average flying hours will be taken as a basis, and that if an officer flies one-half or more than one-half he will be treated as coming within the exemption. That was the rule laid down in December, 1940.

I learn that in September, 1941, the air force notified their officers that the half of the average had been determined for the year 1940 to be 115 hours. The sentence in the routine orders of September 12, 1941, which is relevant, reads:

The service pay and allowances of all officers who flew in service aircraft at the rate of 115 hours or more during the calendar year 1940 were exempt from 1940 dominion income tax. Officers are cautioned that no agreement has been reached respecting similar exemption for 1941.

The rule applicable to 1941 and subsequent years was determined in March, 1942. The memorandum issued by the commissioner of income tax determining 100 hours as the correct figure for 1941 and subsequent years was issued on March 7, 1942, and a few days later the members of the air force were

notified by the Department of National Defence for Air that those who flew 100 hours or more in 1941 or in subsequent years would be exempt from income tax, and that is the rule in existence at the present time. The general and routine orders of the Royal Canadian Air Force referring to that bear date March 13, 1942.

The number of officers at Royal Canadian Air Force headquarters and command headquarters on the strength on December 31,' 1941, was 1,011, and of those, 48 officers flew more than 100 hours for the year 1941. Of those 48 officers, 13 were on the non-flying list and 35 were on the general list.

It has been thought desirable by the Department of National Defence for Air that this statement be brought to the attention of the committee.

Topic:   INCOME WAR TAX ACT
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NAT

James Arthur Ross

National Government

Mr. ROSS (Souris):

What is meant by

"command headquarters"? Would there not be other administrative officers throughout Canada who came under that ruling?

Topic:   INCOME WAR TAX ACT
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July 21, 1942