May 21, 1946

DAIRY PRODUCTS

INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS

LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Right Hon. J. L. ILSLEY (Acting Prime Minister):

Mr. Speaker, when the Minister of Agriculture (Mr. Gardiner) a few days ago announced the changes in the subsidy policy concerning fluid milk, he said that it was necessary to give further consideration to the subsidies on milk entering into cheese and into processed milk.

Dairy Products

I am now in a position to state that the subsidy on milk entering into the production of cheese will be increased by ten cents per hundred pounds, that is from 20 cents to 30 cents per hundred pounds, and that the subsidy on milk entering into the production of concentrated milk products and the production of milk sugar will be increased by eight cents per hundred pounds, that is from 15 cents to 23 cents.

These increases are effective as from May 1, 1946. The subsidy on milk entering into the production of cheese will continue for the full year, that is until April 30, 1947, unless in the meantime it is absorbed in the price. The subsidy on milk entering into processed milk will continue until September 30, 1946. With regard to what is done about milk entering into processed milk for the period after that, further consideration will have to be given to the matter.

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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PC

John Thomas Hackett

Progressive Conservative

Mr. HACKETT:

Will the minister say

whether the expression "absorbed in the price" means absorbed into the ceiling price?

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

What I meant was added to the price.

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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PC

John Thomas Hackett

Progressive Conservative

Mr. HACKETT:

The minister means it

would be added to the price.

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Yes; if before the end of the full year the subsidy is withdrawn, it would be added to the price.

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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PC

John Thomas Hackett

Progressive Conservative

Mr. HACKETT:

Does that mean to the fixed price?

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

The ceiling price.

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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PC

John Thomas Hackett

Progressive Conservative

Mr. HACKETT:

Is that all within the

control price?

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Most of the cheese goes

to the United Kingdom, and it would have to be added to that. Presumably it would have to be added at the same time to the price in Canada.

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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PC

Mark Cecil Senn

Progressive Conservative

Mr. SENN:

The minister mentioned processed milk. Did he include powdered milk?

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

I am sorry, but I cannot answer all these questions, because they are within the knowledge of the Minister of Agriculture to a much greater extent than they are within mine. But the term used in the order in council is "milk entering into the production of concentrated .milk products and the production of milk sugar."

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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PC

John Bracken (Leader of the Official Opposition)

Progressive Conservative

Mr. JOHN BRACKEN (Leader of the Opposition):

Perhaps the Acting Prime Minister cannot answer this question either, but it appeared to me that the removal of the subsidy on fluid milk and the provision of a 63260-I09J

subsidy on milk used for other purposes will have the effect of discouraging the production of milk for fluid purposes and increasing the production for milk-manufactured products to be sent overseas. I gather that that is the effect of it.

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

I feel incompetent to answer that question. The returns on fluid milk are considerably higher than the returns on milk for other purposes.

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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PC

John Bracken (Leader of the Official Opposition)

Progressive Conservative

Mr. BRACKEN:

May I have a copy of that statement.

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Yes, but it was partly oral.

Topic:   DAIRY PRODUCTS
Subtopic:   INCREASES IN SUBSIDIES ON MILK ENTERING INTO MILK PRODUCTS
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COST OF ASSISTANCE IN CONNECTION WITH FLUID MILK


On the orders of the day:


PC

William Alexander McMaster

Progressive Conservative

Mr. W. A. McMASTER (High Park):

I should like to direct a question to the Minister of Finance. According to a statement in this morning's papers Donald Gordon is reported to have said that the cost of assistance given in connection with fluid milk is $20,000,000. whereas a return made a few days ago by the Minister of Agriculture gives this amount as $12,671,000. Would the Minister of Finance find out whether something is being withheld by the department?

Topic:   COST OF ASSISTANCE IN CONNECTION WITH FLUID MILK
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May 21, 1946