June 19, 1954

QUESTIONS

NATIONAL HOUSING ACT

LOANS IN REGINA, ETC.

CCF

Mr. Ellis:

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

1. How many loans have been approved by the Central Mortgage and Housing Corporation in Regina, under the new National Housing Act as of June 1, 1954?

2. How is the lending value on a house established (a) when the house is built for speculative sale to the general public: (b) when the house is built as a result of a contract entered into by the home purchaser and contractor?

3. Does Central Mortgage and Housing Corporation exercise any control over prices charged by builders for homes financed under the National Housing Act?

4. Are chartered banks permitted to require a deposit of from $300 to $400 over and above the down payment before approving loans for home construction under the National Housing Act?

Topic:   NATIONAL HOUSING ACT
Subtopic:   LOANS IN REGINA, ETC.
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LIB

Mr. Bourgei: (Parliamentary Assistant to the Minister of Public Works)

Liberal

1. Central Mortgage and Housing Corporation have given undertakings to insure 24 loans.

2. (a) The lending value on a house including land is established by Central Mortgage and Housing Corporation after appraisal of the applicant's plan, specifications and the location of the proposed structure. The rates used in the appraisal are computed for each branch office and are based on a fair cost for the area.

(b) Same as for (a).

3. The maximum selling price for houses built by builders for sale and financed under the National Housing Act is determined by Central Mortgage and Housing Corporation and is generally in the same amount as the lending value. The amount of the loan is conditional upon the sale of the house to a home purchaser at a price not in excess of the maximum selling price so determined. If the house is sold by the builder at a price exceeding the determined selling price, the amount of the loan is reduced to not more than 90 per cent of the approved loan.

4. Under the National Housing Act an approved lender is not restricted from taking additional security. Where the applicant is building his own house, by contract or otherwise, it is the policy of most approved lenders to require that the applicants have cash or its equivalent available in excess of the difference between the estimated cost

and the mortgage loan, to meet the contingency that most houses cost more than home owners expect. The amounts of this requirement vary and are determined between the borrower and the approved lender.

Topic:   NATIONAL HOUSING ACT
Subtopic:   LOANS IN REGINA, ETC.
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QUESTION PASSED AS ORDER FOR RETURN

MANUFACTURING, INVESTMENT, PRODUCTION, ETC.

PC

Walter Gilbert Dinsdale

Progressive Conservative

Mr. Dinsdale:

For the period 1947 to the end of 1953:

1. What is the dollar value of total new Investment in manufacturing in Canada, and what percentage of this in each of the provinces?

2. How many new manufacturing plants have been established, and what percentage of these was established in each of the provinces?

3. How many new jobs have been created in manufacturing in Canada and what percentage of these jobs have been created in each of the provinces?

4. What is the total dollar value of production from Canadian manufacturing industries, and what is the percentage of this production figure in each of the provinces?

Topic:   QUESTION PASSED AS ORDER FOR RETURN
Subtopic:   MANUFACTURING, INVESTMENT, PRODUCTION, ETC.
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Pori Arthur):

Return tabled. NATURAL GAS

Topic:   QUESTION PASSED AS ORDER FOR RETURN
Subtopic:   MANUFACTURING, INVESTMENT, PRODUCTION, ETC.
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DECISION OF FEDERAL POWER COMMISSION AGAINST EXPORT TO NORTHWESTERN STATES


On the orders of the day:


PC

Howard Charles Green

Progressive Conservative

Mr. Howard C. Green (Vancouver-Quadra):

Could the Minister of Trade and Commerce give the house any information concerning the decision of the United States federal power commission announced yesterday which appears to make it impossible for Canada to export natural gas to the northwestern states? I have in mind particularly whether the government has given consideration to making any protest to the United States government in view of the fact that the decision seems to be based in part at least on broad government policy, and also whether this need necessarily prevent Peace river gas being supplied to British Columbia?

Topic:   DECISION OF FEDERAL POWER COMMISSION AGAINST EXPORT TO NORTHWESTERN STATES
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Right Hon. C. D. Howe (Minister of Trade and Commerce):

The ruling of the federal power commission has been brought down denying the application of Westcoast Transmission Company Limited to supply gas to the Pacific coast states. I suppose the finding of the commission is comparable to a finding of the board of transport commissioners in

Inquiries of the Ministry Canada, namely, it represents a judicial decision. I hardly think a protest by this government would be effective. I have not seen the judgment but I am told that the chairman of the commission made a report in which he dissented in part from the finding and suggested that Canada apply for permission to export gas to the inland empire, that is the area around Spokane. I have not read the report, but I was informed of that fact by one of my officials.

The government of Canada did everything possible to facilitate the application. Any suggestion from the company that government action would help was followed by action on the part of the government. I myself called on the federal power commission in the hope that I could resolve any doubts they may have had about the Canadian position. I had a very satisfactory interview with the full commission.

Answering the second part of the question, there is nothing to prevent gas being transmitted to Trail and Vancouver except the question whether the volume of gas will be sufficient to allow the gas to be delivered at a price that will be interesting to the purchasers.

Topic:   DECISION OF FEDERAL POWER COMMISSION AGAINST EXPORT TO NORTHWESTERN STATES
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CCF

Herbert Wilfred Herridge

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

Mr. Herridge:

I was very interested in the minister's explanation. In view of the great need for co-operation between Canada and the United States in the development of the resources of northwestern America, particularly the resources of the Columbia river, can the minister say whether the federal power commission gave any consideration to the necessity for this very close co-operation between the two countries when dealing with this application?

Topic:   DECISION OF FEDERAL POWER COMMISSION AGAINST EXPORT TO NORTHWESTERN STATES
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Port Arthur):

I suppose the doubt expressed by the federal power commission about the wisdom of having a source of supply outside their own country is similar to doubts I have heard expressed in the House of Commons about the wisdom of bringing gas to Toronto from Buffalo. Such doubts are somewhat natural. I was hoping that the geographical and other facts of the situation would overcome that natural feeling. Apparently they did not. However, the matter will be explored and if there is anything the government can do to improve the situation I can assure you that it will be done.

Topic:   DECISION OF FEDERAL POWER COMMISSION AGAINST EXPORT TO NORTHWESTERN STATES
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PC

Edmund Davie Fulton

Progressive Conservative

Mr. Fulton:

May I ask the minister if he would feel himself in a position to comment on the likelihood or possibility of some tie-up being made of the Pacific Northwest Company's pipe line with Westcoast Transmission so that even though the pipe line in the Pacific northwestern states was that of the Pacific Northwest Company, Westcoast's

line might bring gas down from the Peace river through British Columbia to supplement it in the feeding of that market, which would of course have tremendous advantage for us in the interior of British Columbia?

Topic:   DECISION OF FEDERAL POWER COMMISSION AGAINST EXPORT TO NORTHWESTERN STATES
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Pori Arthur):

That would seem to me to be a possibility, but it is a matter for private negotiations. As I read the newspaper statement, the decision is based on the fact that the federal power commission did not like to make a foreign source of supply the sole source of gas for the area. Possibly, if the area has a domestic supply, that can be supplemented later by a supply from Canada. Obviously, that is a matter for private negotiations.

Topic:   DECISION OF FEDERAL POWER COMMISSION AGAINST EXPORT TO NORTHWESTERN STATES
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PC

Edmund Davie Fulton

Progressive Conservative

Mr. Fulton:

But there is no difficulty in the way from this end?

Topic:   DECISION OF FEDERAL POWER COMMISSION AGAINST EXPORT TO NORTHWESTERN STATES
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Pori Arthur):

No.

Topic:   DECISION OF FEDERAL POWER COMMISSION AGAINST EXPORT TO NORTHWESTERN STATES
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PC

James MacKerras Macdonnell

Progressive Conservative

Mr. J. M. Macdonnell (Greenwood):

May I

ask a supplementary question of the Minister of Trade and Commerce? I was puzzled by what he said about the decision being a judicial one. Would he add a word of explanation to that? It would seem to me as if, in effect, although superficially it is different, it is a matter of trade policy. Does the minister not agree with that?

Topic:   DECISION OF FEDERAL POWER COMMISSION AGAINST EXPORT TO NORTHWESTERN STATES
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June 19, 1954