April 19, 1943

NAT

Gordon Graydon (Leader of the Official Opposition)

National Government

Mr. GRAYDON:

I shall send this information over to the minister and perhaps on another occasion, before the Easter recess, he will give us an answer. It has an important bearing on our whole man-power situation.

Topic:   LABOUR CONDITIONS
Subtopic:   REPORTED MOVEMENT OP CANADIAN FARM LABOUR TO THE UNITED STATES
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LIB

Humphrey Mitchell (Minister of Labour)

Liberal

Mr. MITCHELL:

I shall be glad to do that to-morrow or the next day.

Topic:   LABOUR CONDITIONS
Subtopic:   REPORTED MOVEMENT OP CANADIAN FARM LABOUR TO THE UNITED STATES
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ANNOUNCEMENT OF SETTLEMENT OP DISPUTE AT ARVIDA PLANT OF ALUMINUM COMPANY


On the orders of the day:


LIB

Humphrey Mitchell (Minister of Labour)

Liberal

Hon. HUMPHREY MITCHELL (Minister of Labour):

I ami glad to announce for the information of hon. members that the dispute which existed at the Aluminum Company of Canada, Arvida, has been settled by our conciliation staff. The Aluminum Company of Canada, Arvida, has an agreement with its employees made through the National Catholic Syndicate which was renewed at the beginning of 1943 by reason of the fact that no notice of cancellation was given in 1942 and under its terms the agreement was subject to renewal automatically at the end of

1942. At the time the agreement was renewed representations were made by the union affiliated with the American Federation of Labour that the National Catholic Syndicate did not represent the majority of the employees.

This jurisdictional dispute had been causing some difficulty for several weeks, and our conciliation officer was able, after protracted negotiations, to bring about an understanding which was satisfactory to (a) the company, (b) the National Catholic Syndicate and (c) the union affiliated with the American Federation of Labour. The requirements of the understanding are:

1. The union affiliated with the American Federation of Labour will be given representation on the joint employees committee.

2. The union affiliated with the American Federation of Labour has given a declaration to the Aluminum Company of Canada that its members will abide by the present agreement between the company and the syndicate.

It is further agreed that just prior to the time the agreement next comes up for renewal at the end of 4943, arrangements will be carried out which will give definite evidence as to which union has as its members the majority of the employees of the company.

Topic:   ANNOUNCEMENT OF SETTLEMENT OP DISPUTE AT ARVIDA PLANT OF ALUMINUM COMPANY
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REPORTED NEGOTIATIONS FOR IMPORTATION OP FEED WHEAT INTO UNITED STATES FROM CANADA


On the orders of the day:


CCF

Major James William Coldwell

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

Mr. M. J. COLDWELL (Rosetown-Biggar):

Neither the Minister of Trade and Commerce (Mr. MacKinnon) nor the Minister of Agriculture (Mr. Gardiner) is in his seat, but before the house adjourns I should like to get some information from one. of them with respect to a news report in the Globe and Mail and the Montreal Gazette stating that the United States agriculture department is attempting to negotiate for the importation of feed wheat from Canada to meet a serious prospective shortage of high protein feeds. Could either minister give some information to-morrow regarding this matter? It will be of material interest to the western farmer.

Topic:   REPORTED NEGOTIATIONS FOR IMPORTATION OP FEED WHEAT INTO UNITED STATES FROM CANADA
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LIB

James Layton Ralston (Minister of National Defence)

Liberal

Hon. J. L. RALSTON (Acting Leader of the Government):

I shall have a note made and see if it is possible.

Munitions and Supply Act

Topic:   REPORTED NEGOTIATIONS FOR IMPORTATION OP FEED WHEAT INTO UNITED STATES FROM CANADA
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MUNITIONS AND SUPPLY ACT

AMENDMENTS TO BRING ACT OF 1939 INTO CONFORMITY WITH PRESENT PRACTICES


The house resumed from Friday, April 16, consideration in committee of Bill No. 7, to amend the Department of Munitions and Supply Act-Mr. Howe-Mr. Bradette in the chair. On section 7-Munitions contract.


LIB

Clarence Decatur Howe (Minister of Munitions and Supply)

Liberal

Mr. HOWE:

I will ask my colleague to move the following amendment:

That section 13 of the said act be amended by adding thereto a new subsection, to be known as subsection 4, which shall read as follows:

If the minister is satisfied, upon an examination of accounts and records of a person who has entered into a munitions contract, that the contract price paid and payable to such person contains an unreasonable profit, he may direct such person to re-negotiate the contract price and may direct that there be withheld from such person any amount of the contract price which in the opinion of the minister represents an unreasonable profit, and may direct such person to pay to the receiver general of Canada forthwith any amount which such person has received which in the opinion of the minister represents an unreasonable profit.

That subsections 4, 5, 6, 7, 8 and 9 of the said section be re-numbered 5, 6, 7, 8, 9 and 10.

Topic:   MUNITIONS AND SUPPLY ACT
Subtopic:   AMENDMENTS TO BRING ACT OF 1939 INTO CONFORMITY WITH PRESENT PRACTICES
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LIB

Colin William George Gibson (Minister of National Revenue)

Liberal

Mr. GIBSON:

I so move.

Topic:   MUNITIONS AND SUPPLY ACT
Subtopic:   AMENDMENTS TO BRING ACT OF 1939 INTO CONFORMITY WITH PRESENT PRACTICES
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NAT

Gordon Graydon (Leader of the Official Opposition)

National Government

Mr. GRAYDON:

Would the minister give us some indication as to what circumstances caused him to bring in this amendment? It seems to me it has some far-reaching implication.

Topic:   MUNITIONS AND SUPPLY ACT
Subtopic:   AMENDMENTS TO BRING ACT OF 1939 INTO CONFORMITY WITH PRESENT PRACTICES
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NAT

Grote Stirling

National Government

Mr. STIRLING:

Before the minister

answers may I ask him in what way he has hitherto been able to handle this very difficult question. Considering the vast amount of contracts that the minister has had to handle, this point must have arisen many times, particularly so, I should imagine, in connection with contracts which have been let on target prices, where the value of the work to be done was not easily ascertainable. In these cases there was little precedent and the minister doubtless has had to proceed on a trial and error basis in arriving at a price. He must, I think, have had to deal with the difficulty in connection with which this amendment is moved.

Topic:   MUNITIONS AND SUPPLY ACT
Subtopic:   AMENDMENTS TO BRING ACT OF 1939 INTO CONFORMITY WITH PRESENT PRACTICES
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LIB

Clarence Decatur Howe (Minister of Munitions and Supply)

Liberal

Mr. HOWE:

This is a clause giving the department power to re-negotiate any contract. The tendency is for many types of war contracts to give an increasing profit as time goes on. In repetition work the plant becomes more efficient, the workmen become more skilled, and the result is that the cost drops. It has been the practice of the department to re-

IMr. Ralston.]

negotiate these contracts very frequently. I think we hardly have a continuing contract that has not been re-negotiated two or three times and new prices fixed.

Reference has been made to target price contracts. That is a very good example. In that case the target is fixed, perhaps at too high a level, and it is necessary to revise the target frequently or to change from a target price contract to a firm price contract. We have had no great difficulty in the past in working out [DOT] these re-negotiations. Industry lias been fair and cooperative, and by mutual consent we have been able to arrange a new price level. We have the power in any event to cancel contracts, and we have the power to make new contracts, but recently we have been re-negotiating some very large contracts, and my officers believe we should have the power of re-negotiation expressly covered by the act. Therefore we are asking for it at this time.

Topic:   MUNITIONS AND SUPPLY ACT
Subtopic:   AMENDMENTS TO BRING ACT OF 1939 INTO CONFORMITY WITH PRESENT PRACTICES
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PC

George Russell Boucher

Progressive Conservative

Mr. BOUCHER:

Is it not a fact that in nearly all target contracts the minister has made provision for re-negotiation and has given himself power to raise or lower the price?

Topic:   MUNITIONS AND SUPPLY ACT
Subtopic:   AMENDMENTS TO BRING ACT OF 1939 INTO CONFORMITY WITH PRESENT PRACTICES
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LIB

Clarence Decatur Howe (Minister of Munitions and Supply)

Liberal

Mr. HOWE:

Y'es, that is true.

Topic:   MUNITIONS AND SUPPLY ACT
Subtopic:   AMENDMENTS TO BRING ACT OF 1939 INTO CONFORMITY WITH PRESENT PRACTICES
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PC

George Russell Boucher

Progressive Conservative

Mr. BOUCHER:

That is stipulated in the contract itself?

Topic:   MUNITIONS AND SUPPLY ACT
Subtopic:   AMENDMENTS TO BRING ACT OF 1939 INTO CONFORMITY WITH PRESENT PRACTICES
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April 19, 1943