Right Hon. J. G. Gardiner (Minister of Agriculture):
Mr. Speaker, before motions are proceeded with I should like to make an announcement with regard to the freight assistance on western feed grains.
The present freight assistance policy establishes four main receiving zones, three in eastern Canada and one in British Columbia. The rate of assistance is calculated on a different formula for each zone. In eastern Canada it is arranged so that the ratio of assistance to freight costs increases as the zones move east.
Zone 1 is old Ontario and western Quebec, in which all points have a common rail freight rate from the lakehead, known as the Montreal freight rate zone. Zone 2 is eastern Quebec beyond the Montreal zone, except the Gaspe. Zone 3 is the Atlantic provinces and the Gaspe. Zone 4 is British Columbia.
The present assistance rates are now fixed in relation to the freight rates prevailing on January 26, 1955, the date of the order. As a result of the recent freight rate increase the assistance bears a lower relation to freight costs than formerly. The comparison, for typical points in each zone, is as follows:
Percentage Freight Assistance of Freight Cost Before After
Freight Increase Freight Increase
41 per cent 37 per centZone 2
57 per cent 51 per centZone 3
72 per cent 65 per centZone 4
54 per cent 48 per cent
It is decided that the rates of assistance be revised so as to restore in each zone approximately the same percentage relation between freight assistance and freight costs as prevailed before the recent freight increase.
Subtopic: FEED GRAINS-ANNOUNCEMENT OF INCREASE IN SUBSIDY