November 4, 1949

LIB

Alphonse Fournier (Minister of Public Works; Leader of the Government in the House of Commons; Liberal Party House Leader)

Liberal

Mr. Fournier (Hull):

The question has been put. I think the hon. member can say the same thing in committee.

Topic:   GOLD MINING
Subtopic:   AMENDMENT OF ACT RESPECTING EMERGENCY
Sub-subtopic:   PRODUCTION OF GOLD IN CONCENTRATES
Permalink
PC

Arthur Leroy Smith

Progressive Conservative

Mr. Smith (Calgary West):

All right; but I do not think we should adjourn without a statement tonight.

Motion agreed to and the house went into committee, Mr. Beaudoin in the chair.

Topic:   GOLD MINING
Subtopic:   AMENDMENT OF ACT RESPECTING EMERGENCY
Sub-subtopic:   PRODUCTION OF GOLD IN CONCENTRATES
Permalink
LIB

Colin William George Gibson (Minister of Mines and Resources)

Liberal

Mr. Gibson (Hamilton West):

I hope it may be possible to have this resolution passed tonight so that the bill may be distributed and discussion may take place on the second reading and in committee.

The Emergency Gold Mining Assistance Act was passed to provide assistance to the mines in defraying part of the post-war increase in the cost of production during the years 1948, 1949, and 1950, during the time that the product they were producing was selling at a fixed price. It has been of great assistance to the mines and has enabled some of them to continue in operation where they would otherwise have been forced to cease production, with resulting hardships to mining areas.

Experience has shown that some amendments to that act are desirable, and the amendments that are proposed come under three headings. The original act provided assistance on gold produced in excess of two-thirds of the production in the base year; that is, in the year ended June 30, 1947. The first amendment provides that assistance will be payable to mines when, through no fault of their own, production has decreased below production of the base year. Assistance will be payable on one-third of total production in such cases. I may say that several mines have continued in operation in expectation that this legislation will be passed.

The second amendment in this bill is necessary because of the difficulty that occurs when gold is produced in concentrates. In some cases mines produce gold in concentrates during one year, but do not reduce the concentrates into bullion until a later year. As a result, costs of production of an ounce of gold have been considerably lowered in the year the bullion is produced, while the heavy costs of production take place in years when the ore is taken from the mine. This amendment provides that the governor in council may regulate the manner in which

the costs of production shall be calculated, so that the assistance payment will be truly related to the actual cost of producing the gold.

Topic:   GOLD MINING
Subtopic:   AMENDMENT OF ACT RESPECTING EMERGENCY
Sub-subtopic:   PRODUCTION OF GOLD IN CONCENTRATES
Permalink
PC

Arthur Leroy Smith

Progressive Conservative

Mr. Smith (Calgary West):

Do you mean that, on gold produced several years ago and kept, you are going to go back?

Topic:   GOLD MINING
Subtopic:   AMENDMENT OF ACT RESPECTING EMERGENCY
Sub-subtopic:   PRODUCTION OF GOLD IN CONCENTRATES
Permalink
LIB

Colin William George Gibson (Minister of Mines and Resources)

Liberal

Mr. Gibson (Hamilton West):

No; gold which has been mined in one year and is in concentrate form and has not been reduced from the concentrate to bullion until a later year. It is much cheaper to produce gold bullion from the concentrate than it is to mine the ore. Consequently, the gold bullion will be related back to the year in which the ore was produced.

The third amendment recognizes the adjustment in the exchange value of the Canadian dollar and provides for the reduction in the amount of assistance payable to any mine during the year 1950, by an amount equal to $3.50 for each ounce of gold to which the rate of assistance applies. This amending act is to be retroactive to June 15, 1948, when the original bill came into force.

Topic:   GOLD MINING
Subtopic:   AMENDMENT OF ACT RESPECTING EMERGENCY
Sub-subtopic:   PRODUCTION OF GOLD IN CONCENTRATES
Permalink
PC

Arthur Leroy Smith

Progressive Conservative

Mr. Smith (Calgary West):

I am going to move adjournment of this debate. It is two minutes to eleven by the clock that I am looking at.

Progress reported.

Topic:   GOLD MINING
Subtopic:   AMENDMENT OF ACT RESPECTING EMERGENCY
Sub-subtopic:   PRODUCTION OF GOLD IN CONCENTRATES
Permalink

BUSINESS OF THE HOUSE

LIB

Alphonse Fournier (Minister of Public Works; Leader of the Government in the House of Commons; Liberal Party House Leader)

Liberal

Mr. Fournier (Hull):

On Monday we shall move to go into supply, call one item of External Affairs, and allow it to stand. Then we shall take up Bills Nos. 64, 65, 120, 133, and the bill based on the resolution passed this evening concerning the amendment to the Animal Contagious Diseases Act. If we conclude this business, we shall return to supply and take up Veterans Affairs or Labour or some other department; I am not too sure yet which one it will be.

I should have mentioned that, at the request of many hon. members on account of events that will take place on Monday and Tuesday, we shall not discuss the budget on either of those days.

Topic:   BUSINESS OF THE HOUSE
Permalink

At eleven o'clock the house adjourned, without question put, pursuant to standing order.



Monday, November 7, 1949


November 4, 1949