November 23, 1945

LIB

Clarence Decatur Howe (Minister of Reconstruction; Minister of Munitions and Supply)

Liberal

Mr. HOWE:

No; contracts that have been cancelled, but before final settlement can be arrived at a very large proportion of our contracts require over-all audit and renegotiation to bring about a fair and reasonable price. The negotiation of direct contracts with, the department is not difficult, but in addition to the direct contracts there were many thousands of sub-contracts. The main contractor would contract with other contractors to manufacture his component parts. We have found over the years that, .whereas we could1 keep close control of the main contract, we did not have the same control of the sub-contracts. There have been cases where sub-contractors have made inordinate profits, and1 it is the practice of the department to examine these subcontracts and, if the profit is found to have been excessive, we bring the contract price down to allow of a reasonable profit and adjust it accordingly. That is the main work of renegotiation to-day. I made a statement last evening on the number of contracts renegotiated to date, and the figure standing in my mind is that there has been a recovery of $300 million to the crown. -

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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PC

Grote Stirling

Progressive Conservative

Mr. STIRLING:

And a thousand contracts yet to come?

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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LIB

Clarence Decatur Howe (Minister of Reconstruction; Minister of Munitions and Supply)

Liberal

Mr. HOWE:

Yes. The main contracts have been renegotiated and the recovery in the future will not be as great, but there is a still substantial sum to be recovered from profits which we regard as excessive, namely from sub-contractors.

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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PC

Grote Stirling

Progressive Conservative

Mr. STIRLING:

That applies to contracts which have been terminated?

Reconstmction and Supply

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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LIB

Clarence Decatur Howe (Minister of Reconstruction; Minister of Munitions and Supply)

Liberal

Mr. HOWE:

Yes.

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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PC

Grote Stirling

Progressive Conservative

Mr. STIRLING:

What volume of contracts is still outstanding with Munitions and Supply?

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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LIB

Clarence Decatur Howe (Minister of Reconstruction; Minister of Munitions and Supply)

Liberal

Mr. HOWE:

Very few indeed. At Research Enterprises Limited we have certain contracts, mainly for the United States and the United Kingdom, for types not in production in those countries which they desire to have completed to a certain extent. Certain of those contracts will continue until next April. Beyond that there are very few contracts that are continuing. A few ships were finished to a point where it was decided to finish them. All the gun contracts I think are finished.

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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PC

Grote Stirling

Progressive Conservative

Mr. STIRLING:

The minister referred to the United States. Are there contracts still outstanding for the allied nations, and what about the other dominions?

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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LIB

Clarence Decatur Howe (Minister of Reconstruction; Minister of Munitions and Supply)

Liberal

Mr. HOWE:

The only outstanding war contracts are for the United Kingdom, mainly ships so nearly completed for United Kingdom account that the United Kingdom asked us to finish them at their expense.

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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PC

Harry Rutherford Jackman

Progressive Conservative

Mr. JACKMAN:

Do the new contracts for ships for European countries come under this department? How are they handled?

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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LIB

Clarence Decatur Howe (Minister of Reconstruction; Minister of Munitions and Supply)

Liberal

Mr. HOWE:

They are placed through purchasing agencies. The French have a purchasing mission here which is placing contracts for ships for the French government.

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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PC

Harry Rutherford Jackman

Progressive Conservative

Mr. JACKMAN:

It does not go through any government department here?

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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LIB

Clarence Decatur Howe (Minister of Reconstruction; Minister of Munitions and Supply)

Liberal

Mr. HOWE:

No, except that the Department of Trade and Commerce has a certain oversight of the manner in which government loans to these other countries are expended. But that does not extend to the placing of the contract or to the policing of the contract. That is a matter for the French government.

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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PC

Harry Rutherford Jackman

Progressive Conservative

Mr. JACKMAN:

Can the minister say how large the combined staffs of Munitions and Supply, and Reconstruction are at the present time, and how large he expects them to be in 1946, say at the beginning or the end of the year?

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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LIB

Clarence Decatur Howe (Minister of Reconstruction; Minister of Munitions and Supply)

Liberal

Mr. HOWE:

The present strength of the Department of Munitions and Supply is about 2,500, and of Reconstruction something less than 300. The combined department by January 1 will have a strength of about 2,500, and by April 1, about 2,000.

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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PC

George Russell Boucher

Progressive Conservative

Mr. BOUCHER:

Is C.B.C. and T.C.A. under this department?

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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LIB

Clarence Decatur Howe (Minister of Reconstruction; Minister of Munitions and Supply)

Liberal

Mr. HOWE:

I have nothing to do with C.B.C.

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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PC

George Russell Boucher

Progressive Conservative

Mr. BOUCHER:

Not as regards granting permits?

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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LIB

Clarence Decatur Howe (Minister of Reconstruction; Minister of Munitions and Supply)

Liberal

Mr. HOWE:

That is under the Radio Act. The air services branch of the Department of Transport is under my administration by the Transfer of Duties Act put through in 1939.

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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PC

Wilfrid Garfield Case

Progressive Conservative

Mr. CASE:

The intention is that the

Department of Munitions and Supply will disappear ultimately?

Topic:   RECONSTRUCTION AND SUPPLY
Subtopic:   ESTABLISHMENT OF DEPARTMENT TO ASSUME FUNCTIONS OF RECONSTRUCTION AND MUNITIONS AND SUPPLY
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November 23, 1945