July 24, 1944

NAT
LIB

James Angus MacKinnon (Minister of Trade and Commerce)

Liberal

Mr. MacKINNON (Edmonton West):

No. I can give the hon. member some information along that line. The principal variation as between the two leases is in the matter of responsibility for maintenance costs. I am speaking of the lease that is in existence now and the lease that is in process of negotiation and pretty nearly concluded. The current lease provides in clause 1 (b) that the lessee will:

Keep the demised premises, including the said buildings, terminal separators, machinery, erections, fixtures, tools and other equipment and appurtenances in good and substantial repair, working order and condition, and from time to time replace, renew and reinstate any parts thereof which may become broken, lost, or unfit for use, reasonable wear and tear, and damage [DOT]by fire, lightning, tempest, flood, explosion or unforeseen events occurring through the act of God only excepted.

Alaska Highway

Topic:   EDITION
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NAT
LIB

James Angus MacKinnon (Minister of Trade and Commerce)

Liberal

Mr. MacKINNON (Edmonton West):

I had better continue with this. Further, by paragraph 2 (b) the lessor covenants to:

Make and pay for all major repairs and replacements not necessitated through the negligence of the lessee or its employees.

These two clauses are somewhat at variance and left some doubt as to the responsibility of the lessor and lessee to make various repairs and replacements which became necessary from time to time. The proposed lease, paragraph 5 (2), obligates the lessee to:

Maintain and repair in a proper and workmanlike manner machinery and/or equipment of the lessor installed or which may hereafter be installed.

Paragraph 8 requires the lessee to spend on repairs during the five-year term of the lease $25,000 in the aggregate and not less than $2,000 in each year of the said term.

The lease further provides, paragraph 7 (b) that the lessor will:

Keep the said elevator and other property referred to in schedule "A" hereto attached, in a good state of repair.

Schedule A includes all buildings, except temporary annex and feed warehouse, all railway tracks, except the spur track running from No. 1 track past the feed warehouse to, the bag conveyor, dust collectors-not including motors-except those listed under schedule B which are the property of the lessee.

I may say that a very great deal of work has been put on this lease, and we have been considering it for a considerable time. We advertised the warehouse for lease, and received one tender. We have been negotiating with the tenderer for some weeks.

Item stands.

Progress reported.

Topic:   EDITION
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At eleven o'clock the house adjourned, without question put, pursuant to standing order. Tuesday, July 25, 1944


July 24, 1944