October 4, 1945

REQUEST FROM BRITISH MINISTRY FOR INCREASED SHIPMENTS

LIB

James Garfield Gardiner (Minister of Agriculture)

Liberal

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

Mr. Speaker, before motions are called I should like to make a statement to the house with regard to a development in connection with food requirements which I think should be made known not only to the house but to the country.

Yesterday, October 3, about noon, I had a phone call from Sir Ben Smith, British Minister. of Food. The telephone call was to acquaint me with the fact that the food position in Great Britain at the present time is more difficult than at any time since the beginning of the war, and making an appeal to us to help in any way that we possibly can in connection with supplying one particular kind of food, namely bacon.

He stated in that telephone conversation that unless something could be done during the next two months it would be necessary in Great Britain to reduce the ration from three ounces to two ounces per week. It will be recalled by hon. members that the ration throughout the greater part of the war stood at four ounces, and during a considerable part of it the amount was higher than that. But toward the end of the war it became necessary to reduce the ration to three ounces. It is now

Bacon-Increased Shipments ______

suggested that unless within the next two months we can do something to assist, it will be necessary to reduce that ration to two ounces. The cause of this, of course, lies in the fact that Great Britain has been doing everything possible to assist in building up the supplies of food on the continent which are necessary to maintain conditions there.

When that appeal was made I directed the meat board to make a study of our position in Canada, and to communicate further with them in connection with the matter. Through the further communications we have thought it wise to suggest to the British government that an attempt will be made in Canada to increase our shipments of bacon to Great Britain over the next two months.

Our present dommitments or allocations require 11,000 tons in October and 11,000 in November. The suggestion is that if we could increase that amount by 3,000 tons in October and 3,000 in November they could continue their three-ounce ration during those two months, and that probably after that they would be able to take care of the situation. We had suggested to them that we would probably find no difficulty in continuing the

11.000 tons for October, and in increasing to

18.000 tons for November. They came back, however, with the suggestion that it would be most difficult for them to carry on throughout November unless we could increase our shipments in October.

So, Mr. Speaker, what I wish to say to the house, and to the people of Canada generally, is that we believe that if we all cooperate we can make these shipments possible. We anticipate no difficulty from the producers, because we are just now entering upon the period of greatest shipments or greatest marketings of farm products, particularly hogs. We believe that while the hog deliveries will be slightly lower than they were a year ago, sufficient hogs will be coming into the market to make these shipments possible. In the next place it will be necessary for us to operate our packing plants to capacity during that period of time; and in the third place it will be necessary to have available the shipping facilities which will take to the point where it is required the fullest amount we can possibly supply to the market. We do not anticipate any difficulty in connection with shipping facilities or with refrigeration. There can be very little difficulty in the matter of getting the facilities necessary in that direction. So we have undertaken to do everything possible to see to it that this bacon is advanced to the British

within the next two months in an increased amount of 6,000 tons over and above what we had previously been expecting to ship.

I am sure that in making this known to the house and to the country I do not need to make any further appeal than the appeal that has been made by the Minister of Food in Great Britain. I believe it is not only in the interests of humanity that we should send forward the product, but it is in our own interests as a country which is going to have products to sell that we should be able to meet this, which may be the last, appeal made to us to do something a little in advance of what we thought we would be able to do in order to bring to a most successful conclusion our activities in connection with the supplying of food to the European continent during and after war. I believe that every effort will be made to see to it that this product is sent forward.

Topic:   REQUEST FROM BRITISH MINISTRY FOR INCREASED SHIPMENTS
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PC

John Bracken (Leader of the Official Opposition)

Progressive Conservative

Mr. JOHN BRACKEN (Leader of the Opposition):

(Mr. Speaker, I am sure the

house has listened with interest to this advice from Great Britain as to their requirements for protein food. I am sure also that the house will approve the decision made by the government to try to increase the amount that will go forward. I do not want to raise any contentious issue at this time, but I would point out that this gets us back to our failure to increase production. We increased supplies last spring at the very time when our production was down 45,000,000 pounds a month. I think that is where our chief failure lies. This section of the house will support the minister in his effort to try to have the Canadian people supply this additional amount to the old country.

Topic:   REQUEST FROM BRITISH MINISTRY FOR INCREASED SHIPMENTS
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CCF

Major James William Coldwell

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

Mr. M. J. COLDWELL (Rosetown-Bigg&r):

All I should like to say is that this section of the house, as the leader of the opposition has put it, will do everything possible to support the minister in the promises he has made.

Mr. SOLON E. LOW (Peace River): This section too, Mr. Speaker.

Topic:   REQUEST FROM BRITISH MINISTRY FOR INCREASED SHIPMENTS
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LIB

James Garfield Gardiner (Minister of Agriculture)

Liberal

Mr. GARDINER:

I do not want to start a discussion on the matter, but I would like to say that in accepting the kind remarks from the three leaders of the different oppositions I do not wish it understood that I am agreeing with the remarks made by the leader of the official opposition in so far as they refer to production.

Topic:   REQUEST FROM BRITISH MINISTRY FOR INCREASED SHIPMENTS
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PC

John Bracken (Leader of the Official Opposition)

Progressive Conservative

Mr. BRACKEN:

I did not expect you

would.

British Children

Topic:   REQUEST FROM BRITISH MINISTRY FOR INCREASED SHIPMENTS
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BRITISH CHILDREN

EXPRESSION OF THANKS ON BEHALF OF GOVERNMENT OF UNITED KINGDOM


Hon. L. S. ST. LAURENT (Acting Secretary of State for External Affairs): Mr. Speaker, I think the house will be interested in hearing the contents of a very gracious telegram which was received on September 30 from the Secretary of State for Dominion Affairs. It is as follows: From the Secretary of.. State for Dominion Affairs To the Secretary of State for External Affairs, Canada London, September 29, 1945. No. 204. Now that almost all the children evacuated to Canada under the children's overseas reception board scheme have reurned to the United Kingdom, I wish, on behalf of His Majesty's government in the United Kingdom, to express our grateful thanks to His Majesty's government in Canada and to all those foster parents, officials, school teachers and private citizens throughout Canada who have cared for these children so generously and sympathetically during the past five years. It will never be forgotten that in the time of our great need you welcomed our children into your homes, and not only fed and clothed and educated them, but gave them that patient care and thoughtful guidance which only parents or the best of friends can give. We realize that the responsibility for these guests from overseas must have pressed heavily on the foster parents at times, especially as the strain of war increased and they had to contend with their own anxieties and problems. Their patience, and that of the officials and social agencies, has never failed, and to that has been added kindness and generosity of countless Canadians who have given freely of their skill, their time and their money to make the Children's stay both memorable and happy. For all this inestimable kindness and generosity, I thank you all most sincerely on behalf of the United Kingdom government and of the parents. Some of our boys and girls have elected to make their homes with you. and we are proud to think that a number have served in the Canadian forces. All are bringing back happy memories of their five years in Canada, and links which have been forged as a result of your hospitality between so many homes in our two countries are based upon real affection as well as of gratitude. Secretary of State for Dominion Affairs. To that gracious telegram the following reply was sent: From the Acting Secretary of State for External Affairs, Ottawa To the Secretary of State for Dominion Affairs, London No. 227 Ottawa, October: 2, 1945. Your telegram No. 204 of September 29. On behalf of the government of Canada I express to you our cordial appreciation of your message of thanks for the reception accorded in Canada to the children evacuated from the United Kingdom under the children's overseas reception board scheme. Your message is being made public here and I am sure that it will be much appreciated by all those in this country who were associated with the care of the Children during the last five years. The imminent dangers which led to the evacuation have passed into memory, we hope never to return. The successful execution of the scheme leaves behind it new and close ties between many families in our two countries and warm friendships which will endure. We are glad that some of those who came to Canada under the scheme will remain with us. Acting Secretary of State for External Affairs.


STATEMENT ON MARKETING-REMOVAL OF 14-BUSHEL LIMITATION FOR PRESENT CROP YEAR,

LIB

James Angus MacKinnon (Minister of Trade and Commerce)

Liberal

Hon. J. A. MacKINNON (Minister of Trade and Commerce):

Mr. Speaker, about two weeks ago I made a statement to the house on wheat prices. At that time I should have liked to be able to deal further with the marketing of wheat, but finality had not been reached at that time. To-day I should like to give the house a statement on the very important matter of wheat marketing. It is a little longer than I should have liked it to be, but I ivant to get the facts in connection with this matter on the record.

Since the crop year 1941-42, the government's wheat programme has included a restriction on the total quantity of wheat to be marketed within any one crop year. In view of the present wheat position, the origin and purpose of the restriction on wheat marketings might be carefully explained.

The following circumstances led to the adoption of a policy of restricting the volume of wheat to be marketed within any one crop year and the volume of wheat to be marketed by any single producer during the same period:

1. In the early years of the war, overseas markets for Canadian wheat were limited and consisted mainly of the requirements for the United Kingdom. Even shipments of wheat to t-he United Kingdom remained at a fairly low level owing to the submarine menace and the shortage of shipping in those days. There was, therefore, no opportunity to market all the surplus wheat which resulted from the large crops harvested in 1939 and 1940.

2. On July 31, 1940, the carry-over of Canadian wheat was 300 million bushels, and the 1940 wheat crop was estimated at 514 million bushels for the prairie provinces, making total supplies of over 800 million .bi/ihels for the crop year 1940-41, with a prospective export market of about 230 million bushels. The

Wheat Marketing Statement

1940-41 programme provided for seasonal delivery quotas but no over-all restriction on the marketing of wheat. Consequently, the government took the necessary steps to see that producers had an opportunity of marketing all of the wheat which they desired to market in the crop year 1940-41. During the crop year, producers delivered 456 million bushels of wheat and at the end of the crop year; very little remained) on farms. Marketing of the entire 1940 wheat crop was only possible because arrangements were made to provide temporary storage facilities both at the lakehead and at country elevator points.

When the grain policy for the succeeding crop year, 1941-42, was under discussion, it appeared that the carry-over of wheat at July 31, 1941 would be in the neighbourhood of 500 million bushels, practically all in the licensed storage facilities of this country which in pre-war days had a capacity of some 450 million bushels. This meant that country elevators would be congested at the start of the new crop year and the physical ability to take delivery of wheat was severely restricted.

3. Under these circumstances the suggestion was advanced in western Canada from responsible quarters that the government should permit the marketing of that amount of wheat which could be sold at home or abroad during the crop year 1941, and the stockpile as at July 31, 1941, should be carried as a war-time reserve. This suggestion was accepted by the government, and the 1941-42 grain programme included a restriction of marketings to 230 million bushels-an estimate of the volume of wheat which could be disposed of in domestic and export markets during the crop year 1941-42.

4. Having arrived at an absolutely safe position in respect to quantities of wheat required in the prosecution of the war, it was becoming increasingly evident that war-time demand was gravitating to live stock and live stock products. This demand came not only from the United Kingdom and from our growing armed forces, but from the domestic market which had been expanding steadily. The government, therefore, decided that positive steps should be taken to increase the production of live stock and live stock products, necessitating an increase in feed grain production. To that end the Wheat Acreage Reduction Act of 1941 provided financial benefits for the diversion of wheat acreage to other grains and summer-fallow, which proved to be effective.

The same basic wheat situation and livestock situation continued in Canada in the succeeding years, and the limitation on wheat

marketings has remained an important feature of the dominion government's wheat policy in each crop year since 1941-42.

The necessity of this provision is indicated by the following table, which shows the carryover of Canadian wheat, annual production in the prairie provinces, and total available supplies for the four crop years from 1941-42 to1944-45: July 31, TotalStocks New crop supplies(Million bushels) 1941-42 ... 480 296 7761942-43.... . . . 424 528 9521943-44 ... 595 268 8631944-45. ... ... 356 411 767

During this period, carryover figures ranged from 355 million bushels in 1944-45 to 595 million bushels on July 31, 1943. Total supplies of wheat in Canada ranged from 952 million bushels in 1942-43 to 776 million bushels in 1941-42. These figures indicate the extent to which war-time reserves of wheat were continuously carried in Canada and the enormous quantities available in relation to immediate needs. It is obvious that without over-all restriction of marketings a situation might have arisen, and in fact did arise in 1942-43, where it was impossible to take delivery of all wheat offered by producers. The limitation on marketings provided the basis upon which all producers would share alike in any quantity of wheat which could be marketed within any one crop year. Otherwise, marketing opportunity would have been available in the first instance to producers at delivery points where grain storage happened to be more adequate.

Throughout the years under review, and even down to the present crop year, the government has never advocated expansion in wheat acreage, but on the contrary has advocated the maintenance and expansion where possible of the production of live stock and live stock products. This does not mean that the government did not recognize the necessity of maintaining a large volume of wheat for importing countries when the war in Europe ended. The figures which I have quoted indicate the extent to which this objective was kept in mind throughout the years. On D-day about 300 million bushels of wheat were available in Canada with the 1944 harvest sixty days away. On V-E day about 320 million bushels of wheat were on hand, with substantial quantities still to be delivered by producers prior to July 31, 1945, and the 1945 crop not far away. We had these supplies after providing the United States with over 160 million bushels of wheat in 1943-44 to supplement their feed grain supplies.

Wheat Marketing Statement

Early in 1943 the market situation improved largely because of the large imports required by the United States. But at this point a new factor entered the grain picture. This was the difficulty of securing sufficient transportation to move the quantities of wheat and feed grains required in the domestic market and in the export market. Since that time, transportation has been the controlling factor in the volume of wheat and other grains which could be made available for export. In 194344, in the fifth year of the war, the railways were called upon practically to double the volume of transportation available for the movement of grain, and even with these increased transportation facilities it was very difficult to keep up with available demand at all times. Since the crop year 1943-44 we have always had to bear in mind that the transportation factor had to be considered as well as the current and prospective demand. Not only were there large quantities of wheat to move, but by this time we were producing large surpluses of feed grains which had to be distributed in deficit areas in Canada and in the United States, and transportation became a vital consideration in the government's grain policy.

When policy was under discussion for the crop year 1945-46 we felt that the transportation situation was such that we would have a carryover of wheat on July 31, 1945, of about 325 million bushels, the equivalent of about a full year's export under the then existing conditions. We thought that a small crop of, say, 300 million bushels would give us total wheat supplies of over 600 million bushels in addition to 150 to 200 million bushels of marketed feed grains, or total supplies which would press upon the capacity of our railroads and port facilities having regard to other forms of war-time traffic which they were carrying. We also realized that if the 1945 crop were a large crop we would have to face extremely difficult conditions in respect to the movement of marketed grain. This fact, accompanied by the intensification of the demand for feed grains and live stock and live stock products, provided ample grounds for retaining the over-all marketing restriction in 1945-46. We also had another important consideration in mind. We knew we had on hand a very large volume of wheat which could be used to meet overseas requirements in case the war ended; all the wheat which Canada, as one of the wheat exporting countries of the world, could be excepted to carry to meet early post-war requirements.

In one respect our calculation of our wheat position early in 1945 was not borne out by subsequent events. V-E day resulted in the

raising of exports in the crop year 1944-45 by about 65 million bushels, and the reduction in our July 31 stocks from an anticipated 325 million to 258 million bushels, with, of course, some of the post-war European demand already met. The 1945 prairie wheat crop has turned out to be a crop of moderate size-some 300 million bushels. Whereas we expected wheat supplies of perhaps 650 million bushels for the crop year 1945-46, our total supplies will aggregate about 550 million bushels, with an additional 170 million bushels of feed grains to be marketed and transported during the present crop year. The supply of some 150 million bushels less wheat than we expected early in 1945 will, none tne less, tax the capacity of our railroads during the first half of the present crop year, and particularly our ability to move grain through available Canadian and United States ports.

During the present crop year we expect to export about 325 million bushels of wheat, leaving between 75 to 100 million bushels of wheat on hand July 31, 1946. Since V-E day over one-half of the wheat going into Europe has been Canadian wheat, and that percentage will be fully maintained during the present crop year.

The average yield per acre in western Canada this year is not large. Most of the surplus from the 1945 crop will be marketed within the 14-bushel limitation. There are some areas, however, and many producers who will have wheat in excess of the 14-bushel delivery limitation. If the restriction on the limitation on marketings is lifted for the balance of the present crop year, it will probably mean an additional 15 million bushels of wheat available for importing countries during the present crop year. In view of the efforts which this country is making to provide food for Europe, the government feels that if a little more wheat can be provided by lifting marketing restrictions for the present crop year, this action should be taken. It has therefore been decided to remove the 14-bushel limitation for the present crop year.

Topic:   STATEMENT ON MARKETING-REMOVAL OF 14-BUSHEL LIMITATION FOR PRESENT CROP YEAR,
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PC

John Bracken (Leader of the Official Opposition)

Progressive Conservative

Mr. JOHN BRACKEN (Leader of the Opposition):

I wish to make just an observation with respect to the statement of the Minister of Trade and Commerce. His review of the marketings of wheat during the war years has been very interesting, but the point he was leading up to, I gather, is that the restrictions formerly imposed with respect to marketing have been removed.

Topic:   STATEMENT ON MARKETING-REMOVAL OF 14-BUSHEL LIMITATION FOR PRESENT CROP YEAR,
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LIB

James Angus MacKinnon (Minister of Trade and Commerce)

Liberal

Mr. MacKINNON:

For this crop year.

Civil Service Hours

Topic:   STATEMENT ON MARKETING-REMOVAL OF 14-BUSHEL LIMITATION FOR PRESENT CROP YEAR,
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PC

John Bracken (Leader of the Official Opposition)

Progressive Conservative

Mr. BRACKEN:

For this crop year. In

view of the need of food overseas and in view of the situation now existing in Canada, I think the government's decision in this respect is to be commended.

Topic:   STATEMENT ON MARKETING-REMOVAL OF 14-BUSHEL LIMITATION FOR PRESENT CROP YEAR,
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RAILWAY TRANSPORTATION

STATEMENT WITH RESPECT TO CONTINUANCE OP REDUCED PARE RESTRICTIONS

LIB

Lionel Chevrier (Minister of Transport)

Liberal

Hon. LIONEL CHEVRIER (Minister of Transport):

I have received representations

from various groups, associations and individuals in connection with the cancellation of reduced rates on railways over the week-end for dominion and provincial holidays, and also for parties of ten or more. I have considered these representations and I should like to make a statement to the house.

For some years it has been found necessary in order to assure the maximum use of railway facilities for the prosecution of the war to suspend or cancel certain reduced fares for holiday and excursion travel which in normal times have been afforded by the Canadian railways to the travelling public.

There are now in force the following orders:

Order in council P.C. 2557 of March 30, 1943, extended to November 15, 1945, which prohibits the sale of reduced fares for dominion or provincial holidays, weekends and parties of ten or more;

Orders of the Transport Controller:

T.C. 01P of June 24, 1942, cancelling special tariffs of reduced rates or fares covering agricultural exhibitions, celebrations, coach excursions, horse races, organized excursion parties and other special fares;

T.C. 02P of July 30, 1942, cancelling bargain fares, eastern to western Canada, prairies to pacific coast, and certain conventions;

T.C. 07P of June 25, 1943, suspending home visitors' fares and summer tourist fares.

The Canadian railways report that the movement of the armed forces is now taxing their facilities to capacity, and that in September the capacity of their equipment was exceeded. I expect that the return of service personnel from Europe to Canada will continue over the next few months in sufficient numbers to require the maximum use of all available railway trains, accommodation and operating crews. The repatriation and demobilization of the armed services place a great strain on the operation of the Canadian railways which during the war years have shouldered the increased burden of transportation demands

with vigor and efficiency. Great credit is due the railways for their important contribution to the war effort and final victory.

In addition to this expected movement, a large number of British prisoners of war and internees from the Pacific will travel across Canada, and this will take a lot of railway equipment, but it can be done advantageously by the use of sleeping car equipment returning from the Pacific coast.

During the period of demobilization it behooves the travelling public to refrain as much as possible from unnecessary railway travel on pleasure or for visits to their rela-ties until after the service movement is finished which will be about the end of next April. During the month of December, I expect that the railways will again be called upon to handle inbound troop movements through the port of Halifax, necessitating longer hauls for equipment. December is ordinarily an unusually heavy month for the railways on account of Christmas holiday travel, and the additional movement of service personnel may tax the railways beyond the capacity of their equipment.

It is with regret that I have to announce that there will be no removal of the restrictions now in effect on reduced fares for railway travel until after January 1, 1946, when the whole question will again be reviewed. I hope to be able to announce the lifting of the restrictions on reduced fares by the middle of January, but of course this will depend upon the traffic conditions prevailing at that time.

Topic:   RAILWAY TRANSPORTATION
Subtopic:   STATEMENT WITH RESPECT TO CONTINUANCE OP REDUCED PARE RESTRICTIONS
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CIVIL SERVICE

REVERSION ON NOVEMBER 1 TO PRE-WAR HOURS OF WORK

LIB

Paul Joseph James Martin (Secretary of State of Canada)

Liberal

Hon. PAUL MARTIN (Secretary of State):

Mr. Speaker, on the second of July last one-half of the extra hour which the members of the civil service had been working during the war was restored to them. It has now been decided that, effective on November 1, the civil service will return to its pre-war hours of work.

The net result of the change will be that the extra hour which the civil service worked during the war will now be returned to them.

In view of transportation difficulties it will be necessary to retain staggered hours of arrival and departure where these are at present in effect, for the time being at any rate.

The government, and I am sure the house generally, wishes to express its wholehearted appreciation to the members of the public service for their work during the war. Many have come to Ottawa from all parts of Canada

Old Age Pensions

for several years of strenuous service in the war effort. Many have been loaned by industry; many have left their household duties, or their well-earned leisure hours of retirement, to take their place in civil service ranks.

The permanent civil service has accomplished a splendid piece of work during the war. To all these the government and the house expresses its sincere appreciation and gratitude.

Topic:   CIVIL SERVICE
Subtopic:   REVERSION ON NOVEMBER 1 TO PRE-WAR HOURS OF WORK
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October 4, 1945