April 2, 1943

CIVIL AIR TRANSPORT

STATEMENT WITH RESPECT TO POLICY AS TO DOMESTIC AND INTERNATIONAL AVIATION

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):

I should like to make a statement of the policy of the government on civil air transport. First with respect to domestic aviation:

1. During the war a remarkable expansion of Canadian aviation has taken place-in the training of air and ground personnel, in the construction of airports and air navigation facilities, in the manufacture of aircraft, and in the extension of air transport services. Details of this expansion in aviation cannot be revealed at present, and therefore its magnitude is not generally appreciated. The Canadian government is aware of the importance of the developments in aviation now in progress and intends that the people of Canada shall benefit from them to the fullest possible extent.

2. The expansion of air transport services during the period of the war has been confined to war requirements. Canada has concentrated on the development of the British Commonwealth air training plan and on combat flying and, as a result, by agreement with our allies, military air transport in the

Civil Air Transport

northwest has largely been undertaken by the United States army and on the northeast ferry routes by the ferry commands. When war necessities permit and suitable equipment can be obtained, the government will encourage the further development within Canada of air transport services, to supplement and form part of an up-to-date transportation system for Canada by land, water r and air. Transport by air requires close 1 supervision on the part of the government.

] The board of transport commissioners will be ; responsible for regulating traffic matters and 5 for allocating new routes apart from the lines brought under the Trans-Canada Air Lines Act. The civil aviation branch of the Department of Transport will be responsible for the administration of traffic and safety regulations and for the physical development of airways. The government intends to plan a number of routes suitable for post-war air services and offering traffic possibilities that [DOT] will warrant a service. These routes will make use of aerodromes that have been developed for war purposes. The government will also continue to develop airports and other facilities for weather reporting and communications, which will contribute to the expansion of Canadian air transport.

3. While the employment in a peace-time air transport service of all the air and ground personnel of the Royal Canadian Air Force and all the men and women now employed in the aircraft industry in Canada will be impossible, a considerable number will be absorbed into the peace-time aviation industry. To this end the government has undertaken the design of distinctive Canadian types of transport aircraft suitable for post-war industry, in the hope that, when the war ends, a part at least of the equipment for Canadian air transport will be furnished by Canadian factories.

4. Trans-Canada Air Lines will continue to be the instrument of the government in maintaining all trans-continental air transport services and in operating services across international boundary lines and outside Canada. The government will encourage the company to obtain modern aircraft which will keep present services up to modern standards and will expand these services to the fullest extent that post-war conditions permit. The development of supplementary routes will continue to be left to private enterprise, unless considerations of public interest indicate that certain of these routes should be designated by the government as routes to be operated by T.C.A. The operations of T.C.A. will continue to be limited to important services

of a mainline character, where the volume of passenger and mail traffic would justify it.

With respect to international aviation:

5. Canada has a geographical position that will enable it to play an important part in the development of international air transport routes. During the war, the development of international civil air routes must be deferred in favour of military aviation. Canada to-day is the fourth greatest military air power among the united nations, and in the postwar period Canada can make an equally great contribution to civilian air transport.

6. The future of international air transport will be determined in large measure by negotiations between the governments of the united nations. The policy of the government at the moment in dealing with all questions which affect international air transport is to make temporary arrangements, leaving the issues open so that Canada may be able to support, in international negotiations when they take place, whatever policy appears best at that time. The government, however, intends to press vigorously for a place in international air transportation consistent with Canada's geographical position and progress in aviation. All concessions and privileges that have been granted by Canada to other countries as part of the war effort will terminate at the end of the war or almost immediately thereafter.

7. T.C.A. has by its charter the right to operate international air transport services and has already been designated as the instrument of the Canadian government in air transport service across the north Atlantic, and in Canadian services to the United States. The fact that international negotiations of great importance must shortly take place confirms the wisdom of government policy under which its freedom of action in international negotiations is not limited by the existence of private interests in international air transport services.

8. The government has established an interdepartmental committee on international civil aviation to advise it on all matters of international air transport which affect Canada, and particularly on the attitude which Canada should adopt towards post-war developments. This committee has already been at work for a considerable time.

9. The problems of international air transport are, of course, immense and cannot be solved by one country. We are determined, however, that our influence on the course

Civil Air Transport

of events will be in the direction of international co-operation and collaboration. The Canadian government is in complete agreement with the United Kingdom government that "some form of international collaboration will be essential if the air is to be developed in the interests of mankind as a whole, trade served, international understanding fostered and international security-gained."

Conclusion:

10. The policy of the Canadian government on air transport may be summed up as follows:

(a) The government sees no good reason for changing its policy that Trans-Canada Air Lines is the sole Canadian agency which may operate international air services.

(b) Within Canada, Trans-Canada Air Lines will continue to operate all transcontinental systems, and such other services of a mainline character as may from time to time be designated by the government. Competition between air services over the same route will not be permitted whether between a publicly-owned service and a privately-owned service or between two privately-owned services. There will remain a large field for the development of air transport in which private Canadian companies may participate, and, while preventing duplication of services, the government will continue to encourage private companies to develop services as traffic possibilities may indicate.

(c) In order to prepare for forthcoming international negotiations on air transport, the government is studying carefully the problems which will have to be dealt with in the negotiations.

(d) The Canadian government strongly favours a policy of international collaboration and co-operation in air transport and is prepared to support in international negotiations whatever international air transport policy can be demonstrated as being best calculated to serve not only the immediate national interests of Canada but also our overriding interest in the establishment of an international order which will prevent the outbreak of another world war.

Topic:   CIVIL AIR TRANSPORT
Subtopic:   STATEMENT WITH RESPECT TO POLICY AS TO DOMESTIC AND INTERNATIONAL AVIATION
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NAT

Gordon Graydon (Leader of the Official Opposition)

National Government

Mr. GORDON GRAYDON (Leader of the Opposition):

Will the Prime Minister indicate when he expects the negotiations between the various nations, which he has announced, to begin? Will he indicate also whether or not there have been any preliminary discussions on this point between the united nations or others who may be involved?

Topic:   CIVIL AIR TRANSPORT
Subtopic:   STATEMENT WITH RESPECT TO POLICY AS TO DOMESTIC AND INTERNATIONAL AVIATION
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LIB

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

Liberal

Mr. MACKENZIE KING:

I am not in a position to indicate when negotiations will be formally commenced between the united nations. With respect to the other question, I should like to have it stand as a notice, and I will give my hon. friend more exact information at another time.

Topic:   CIVIL AIR TRANSPORT
Subtopic:   STATEMENT WITH RESPECT TO POLICY AS TO DOMESTIC AND INTERNATIONAL AVIATION
Permalink

DAIRY PRODUCTS

ANNOUNCEMENT OF PRICE AND SUBSIDY ARRANGEMENTS FOR 1943-44 PRODUCTION SEASON


On the order of motions:


LIB

James Garfield Gardiner (Minister of Agriculture)

Liberal

Hon. J. G. GARDINER (Minister of Agriculture) :

' Mr. Speaker, in view of the fact that most of our dairy programme becomes effective as of yesterday, I should like to announce the price and subsidy arrangements that will apply on cheese, butter, milk used for fluid milk consumption and milk used for concentration purposes into whole milk products during the 1943-44 production season.

An agreement is being completed with the British ministry of food for 150,000,000 pounds of cheese to be shipped from Canada from the production of the year commencing April 1, 1943, on a price basis of 20 cents per pound at factory or grading shipping point. The shipping point basis has been substituted for the Montreal basis because when cheese is requisitioned inequalities result in returns which otherwise do not occur where cheese is sold for local consumption. The price of 20 cents at shipping point means an increase of % cent to one cent per pound, depending on the location of the factory or grading station. Quality premiums of one cent per pound for

93 score cheese and two cents per pound for

94 score cheese payable by the dominion government are being continued. Apart from provincial subsidies which may be provided, the maximum return for cheese for export will therefore be 22 cents per pound at shipping point.

I wish to announce also the establishment of minimum prices for first grade creamery butter, delivered to the purchaser as follows:

Alberta B.C. P.E.I.Saskatchewan Ontario N.S.Manitoba Quebec N.B.c. per lb. c. per lb. c. per lb.May, 1943 ... 30 32 33June, 1943 ... 301 321 33fJuly, 1943 ... 30J 323 331Aug., 1943 . ... 311 331 341Sept., 1943 . ... 314 334 344Oct., 1943 . ... 311 331 341Nov., 1943 . ... 323 343 353Dec., 1943 to Apr., 1944 .. 321 34f 351

Oil Control

The dairy products board has been authorized to support the butter market as may be necessary to maintain these minimum prices, by purchasing butter on the basis of the minimum prices specified for butter delivered at Vancouver, Toronto or Montreal during the month purchased. In addition to these measures a dominion government subsidy of 8 cents per pound will be paid to producers for butterfat used in the manufacture of creamery butter during the months from May,

1943, to December, 1943, both inclusive, and a subsidy of 10 cents per pound for butterfat for the months from January, 1944, to April,

1944, both inclusive.

Provision likewise has been made for the payment of a dominion government subsidy for the production year commencing May 1, 1943 of 25 cents per hundred pounds on such milk used for fluid milk consumption as the agricultural food board may determine. Producers of milk used for concentration purposes into whole milk products will be paid a dominion government subsidy of 25 cents per hundred pounds of milk used for this purpose during the period from October 1, 1943, to April 30, 1944.

Topic:   DAIRY PRODUCTS
Subtopic:   ANNOUNCEMENT OF PRICE AND SUBSIDY ARRANGEMENTS FOR 1943-44 PRODUCTION SEASON
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NAT

Richard Burpee Hanson

National Government

Mr. HANSON (York-Sunbury):

May I

ask the minister if any provision is being made for what is commonly known as dairy butter?

Topic:   DAIRY PRODUCTS
Subtopic:   ANNOUNCEMENT OF PRICE AND SUBSIDY ARRANGEMENTS FOR 1943-44 PRODUCTION SEASON
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LIB

James Garfield Gardiner (Minister of Agriculture)

Liberal

Mr. GARDINER:

Not in connection with this particular arrangement, but there are separate arrangements made in connection with dairy butter.

Topic:   DAIRY PRODUCTS
Subtopic:   ANNOUNCEMENT OF PRICE AND SUBSIDY ARRANGEMENTS FOR 1943-44 PRODUCTION SEASON
Permalink

CONFERENCE TO CONSIDER POST-WAR PROBLEMS- CANADIAN PARTICIPATION

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, on Wednesday, March 31, the hon. member for Rosetown-Biggar (Mr. Caldwell) asked, as reported at page 1725 of Hansard, whether Canada would participate in the conference to be held in the United States on April 27 to consider long range post-war food problems; and if so, how and by whom this country would be represented.

May I say in reply that the Canadian government warmly welcomes the initiative of the President of the United States in issuing invitations for the discussion of questions connected with the distribution and consumption of food in the post-war world, and will be represented at these discussions. How and by whom will be stated in due course.

Topic:   CONFERENCE TO CONSIDER POST-WAR PROBLEMS- CANADIAN PARTICIPATION
Permalink

OIL CONTROL

EMPLOYEES IN ONTARIO BRANCH-REFERENCE TO QUESTION OF PRIVILEGE RAISED ON MARCH 31

LIB

Clarence Decatur Howe (Minister of Munitions and Supply)

Liberal

Hon. C. D. HOWE (Minister of Munitions and Supply):

Mr. Speaker, on Wednesday's orders of the day the hon. member for Lake Centre (Mr. Diefenbaker) raised a question of privilege concerning the reply made by the Department of Munitions and Supply to a question of the hon. member regarding Lawrence B. Lougheed. It was the contention of the hon. member that incorrect information had been given in the reply, inasmuch as the reply stated that Lawrence B. Lougheed was not an employee of the oil control branch, whereas evidence taken under oath in a court case in Toronto would indicate that he was.

I now find that the reply given to the question is quite correct. Lawrence B. Lougheed is not now, nor has he ever been, an employee of the oil control branch. I am informed that Lawrence B. Lougheed is an enforcement officer of the wartime prices and trade board. Had the question been framed in more general terms this information would have been given. As it was, the question asked specifically whether Mr. Lougheed was an employee of the oil control branch; and a specific answer was given.

Topic:   OIL CONTROL
Subtopic:   EMPLOYEES IN ONTARIO BRANCH-REFERENCE TO QUESTION OF PRIVILEGE RAISED ON MARCH 31
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PC

John George Diefenbaker

Progressive Conservative

Mr. DIEFENBAKER:

Have enforcement officers been engaged to look after the enforcement of oil control regulations?

Topic:   OIL CONTROL
Subtopic:   EMPLOYEES IN ONTARIO BRANCH-REFERENCE TO QUESTION OF PRIVILEGE RAISED ON MARCH 31
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LIB

Clarence Decatur Howe (Minister of Munitions and Supply)

Liberal

Mr. HOWE:

Not by the oil controller. Enforcement is handled by a separate organization, administered as a branch under the direction of, and as part of the organization of, the wartime prices and trade board.

Topic:   OIL CONTROL
Subtopic:   EMPLOYEES IN ONTARIO BRANCH-REFERENCE TO QUESTION OF PRIVILEGE RAISED ON MARCH 31
Permalink
PC

John George Diefenbaker

Progressive Conservative

Mr. DIEFENBAKER:

Mr. Speaker, on a question of privilege arising out of the statement by the minister, I asked a question based upon the sworn testimony of Lawrence B. Lougheed and the other men named, wherein these men, called by the representative of the oil controller, Mr. J. C. McRuer, K.C., swore to the following statement:

Q. Mr. Lougheed, on August 14 last you were employed to do some special investigation by the oil controller of Canada?

A. Yes, sir.

The minister now says that the witness, an agent provocateur, who gave evidence in Toronto, as the result of which a conviction was registered, gave false testimony.

Topic:   OIL CONTROL
Subtopic:   EMPLOYEES IN ONTARIO BRANCH-REFERENCE TO QUESTION OF PRIVILEGE RAISED ON MARCH 31
Permalink
LIB

Clarence Decatur Howe (Minister of Munitions and Supply)

Liberal

Mr. HOWE:

May I say that Mr.-McRuer was not engaged by the oil controller. He was engaged by the Department of Justice. And I think that a reading of the evidence, with a knowledge of the facts, will indicate

Canadian Alliance Insurance

that the answers given in the examination are not inconsistent with the situation which I have disclosed.

Topic:   OIL CONTROL
Subtopic:   EMPLOYEES IN ONTARIO BRANCH-REFERENCE TO QUESTION OF PRIVILEGE RAISED ON MARCH 31
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April 2, 1943