April 12, 1957

LIB

Louis Stephen St-Laurent (Prime Minister; President of the Privy Council)

Liberal

Mr. St. Laurent (Quebec East):

I do not

know to what the hon. member refers as roadblocks. I do not think there are any roadblocks. The whole matter depends on arriving at a conscientious decision that it is something that will add more to the national economy than it will take out in the annual carrying charges.

Topic:   IRRIGATION
Subtopic:   SOUTH SASKATCHEWAN RIVER
Sub-subtopic:   INQUIRY AS TO PRESENT POSITION
Permalink
CCF

Alfred Claude Ellis

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

Mr. Ellis:

Mr. Speaker, is the Prime Minister not aware that the government over the years has been setting up conditions which have always been met by the Saskatchewan government, with no results from the federal government?

Topic:   IRRIGATION
Subtopic:   SOUTH SASKATCHEWAN RIVER
Sub-subtopic:   INQUIRY AS TO PRESENT POSITION
Permalink
LIB

Louis Stephen St-Laurent (Prime Minister; President of the Privy Council)

Liberal

Mr. St. Laurent (Quebec East):

No, Mr. Speaker.

Topic:   IRRIGATION
Subtopic:   SOUTH SASKATCHEWAN RIVER
Sub-subtopic:   INQUIRY AS TO PRESENT POSITION
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REFERENCE TO SOURCES OF LIBERAL CAMPAIGN FUNDS


On the orders of the day:


CCF

Erhart Regier

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

Mr. Erhart Regier (Burnaby-Coquitlam):

Mr. Speaker, I should like to address a question to the Prime Minister, as a result of some of his statements yesterday as well as today. Is the Prime Minister telling us that he assumes no responsibility whatsoever for the source of Liberal party campaign funds?

Topic:   REFERENCE TO SOURCES OF LIBERAL CAMPAIGN FUNDS
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LIB

Louis Stephen St-Laurent (Prime Minister; President of the Privy Council)

Liberal

Right Hon. L. S. St. Laurent (Prime Minister):

No, Mr. Speaker, I assume no responsibility whatsoever for the source of what the hon. member is pleased to call Liberal party campaign funds. I have never attempted to secure any, and have no knowledge about the matter whatsoever.

The house in committee of supply, Mr. Robinson (Simcoe East) in the chair.

Topic:   REFERENCE TO SOURCES OF LIBERAL CAMPAIGN FUNDS
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INTERIM SUPPLY


The house resumed, from Thursday, April 11, consideration in committee of the motion of Mr. Harris: Resolved, that a sum not exceeding $1,651,674,050, being one-half of the total of the amounts of the items set forth in the main estimates for the fiscal year ending March 31, 1958, laid before the House of Commons at the present session of parliament; and in addition thereto a sum not exceeding $7,298,566.67, being one-third of the total of the amounts of items 52, 57, 116, 117, 131, 132, 156, 248, 281, 322, 324, 328, 355, 399 and 460 of the said estimates; a sum not exceeding $697,069.25, being one-quarter of the total of the amounts of items 153, 158, 252 and 397 of the said estimates; a sum not exceeding $3,640,012.17, being one-sixth of the total of the amounts of items 16, 71, 134, 217, 218, 219, 227, 361, 364, 391, 422, 428 and 432 of the said estimates; and a sum not exceeding $2,383,999.92, being one-twelfth of the total of the amounts of items 28, 69, 129, 221, 223, 224, 233, 234, 300, 321, 333 , 424 , 425 , 430 and 503 of the said estimates; in addition thereto a sum not exceeding $9,635,679.50, being one-half of the total of the amounts of the items set forth in the supplementary estimates for the fiscal year ending March 31, 1958 laid before the House of Commons at the present session of parliament; a sum not exceeding $16,166.67, being one-third of the total of the amounts of items 626 and 654 of the said estimates; and a sum not exceeding $208,333.34, being one-sixth of the total of the amounts of items 621 and 640 of the said estimates; and in addition thereto a sum not exceeding $7,000,000, being two-sevenths of the total of the amount of item 663 set forth in the further supplementary estimates (1) for the fiscal year ending March 31, 1958 laid before the House of Commons at the present session of parliament; a sum not exceeding $30,555,555.56, being four-ninths of the total of the amounts of items 664, 665, 666, 667, 669 and 670 of the said estimates; and a sum of $1,000,000, being two-thirds of the total of the amount of item 668 of the said estimates, be granted to Her Majesty on account of the fiscal year ending March 31st, 1958.


CCF

Stanley Howard Knowles (Whip of the Co-operative Commonwealth Federation)

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

Mr. Knowles:

Mr. Chairman, I wish to

commence by saying to the Prime Minister that he cannot slough off questions based upon facts by objecting to what those facts may seem to imply. He cannot avoid questions by alleging that those who are asking such questions are conveying insinuations. I refer, of course, to the answer the Prime Minister gave to my question on the orders of the day this morning. He knows that the questions which I have asked this week in

this field have been based upon facts, even if at the time I asked them he was not aware of some of those facts.

At the beginning of the week it appears that the Prime Minister did not know that Mr. Barrington was a full-time salaried employee as head of the government-owned Polymer Corporation Limited. Later he learned from his colleague the Minister of Trade and Commerce that Mr. Barrington is on salary and does get quite a good salary as the full-time head of that corporation.

The Prime Minister did not know at the beginning of the week that Mr. Barrington had been made a director of Mclntyre-Porcu-pine Mines Limited. I gather he did not know either that there had been consultation between the Minister of Trade and Commerce and someone connected with Mc-Intyre-Porcupine Mines Limited concerning Mr. Barrington's appointment as a director of that private company. I hope he now knows about those consultations; I hope he now knows whether it was a case of Mr. Tory or Mr. Hewett of Mclntyre-Porcupine discussing the matter with the Minister of Trade and Commerce or vice versa.

Earlier in the week the Prime Minister did not know that Mr. W. J. Bennett, the salaried head of three crown corporations, Atomic Energy of Canada Limited, Eldorado Mining and Refining Limited, and Northern Transportation Limited, was also a director of Investors Mutual of Canada Limited. By yesterday he had ascertained that that was a fact, although he was able to report from Mr. Bennett that on March 1 Mr. Bennett gave notice of his desire to be relieved of his duties as a director of Investors Mutual of Canada Limited. Action has not yet been taken on Mr. Bennett's resignation by the board of this investment house, so that at this moment he is still the salaried head of three crown corporations and at the same time a director of an investment firm.

I hold in my hand a copy of the 1956 annual report of Investors Mutual of Canada Limited, and I find on page 1 of this report a list of the directors. The third one-as a matter of fact he is the first one to be listed after the chairman and president-I am sorry; that may have no particular significance, because I see that they are in alphabetical order. The entry reads: "W. J. Bennett, president, Atomic Energy of Canada Limited and president and managing director, Eldorado Mining and Refining Limited."

That, incidentally, answers the question asked the other day by the Minister of National Revenue as to whether it was the same Mr. W. J. Bennett I was talking about. It is quite clear that Mr. Bennett was during

Interim Supply

1956 and still is, until his resignation is accepted, a director of this particular investment house.

I would draw attention to the fact that despite Mr. Bennett's statement, which we must accept, that he was not consulted regarding the purchase of uranium stocks, it is still a fact that this company of which Mr. Bennett is a director does hold investments in companies engaged in the mining of uranium. On page 19 I find in the list of common stocks held by Investors Mutual of Canada Limited the names of a number of companies that are engaged in the mining of uranium: Consolidated Denison Mines

Limited, Faraday Uranium Mines Limited and Gunnar Mines Limited. There may be one or two others in the list that I do not recognize as being engaged in uranium.

On page 24 of this same report under the heading "Bonds held by the Investors Mutual of Canada Limited," I find reference to Algom Uranium Mines Limited, Can-Met Explorations Limited, Consolidated Denison Mines Limited, Faraday Uranium Mines Limited and Lorado Uranium Mines Limited. t Now, Mr. Chairman, I have mentioned these matters to point out that the questions I have been asking this week are based on facts that the Prime Minister in due course has had to admit are correct. If he does not like the implications that flow from my bringing these facts out in the House of Commons he does not get anywhere by referring to these clear implications as insinuations which any particular member is trying to make.

I now move on to the question I asked this morning and to all that is involved in the situation with which we are now confronted. According to a story which first appeared in yesterday morning's Toronto Telegram, as I indicated on the orders of the day yesterday, and also according to this morning's Globe and Mail, it does appear that there is to be a rather gigantic deal involving the purchase of control of Al-goma Steel by a group of three companies. These three companies are A. V. Roe Canada Limited, Mclntyre-Porcupine Mines Limited and Mannesmann Tube Company of Sault Ste. Marie in which Algoma is associated with Mannesmann A. G. of Dussel-dorf, Germany in the manufacture of seamless steel pipe.

I have no information about the last of these companies, but I do wish to set clearly on the record certain facts in relation to Algoma Steel on the one hand and A. V. Roe and Mclntyre-Porcupine Mines Limited on the other, and I am going right ahead even if the Prime Minister wants to say that in so doing I am casting insinuations.

Interim Supply

Topic:   INTERIM SUPPLY
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LIB

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

Liberal

Mr. Howe (Pori Arthur):

Mr. Chairman, does it matter to my hon. friend whether or not the press reports on which he is basing his argument are correct?

Topic:   INTERIM SUPPLY
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CCF

Stanley Howard Knowles (Whip of the Co-operative Commonwealth Federation)

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

Mr. Knowles:

Does my hon. friend deny the press reports?

Topic:   INTERIM SUPPLY
Permalink
LIB

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

Liberal

Mr. Howe (Pori Arthur):

I just ask whether the hon. member knows whether or not they are correct.

Topic:   INTERIM SUPPLY
Permalink
CCF

Stanley Howard Knowles (Whip of the Co-operative Commonwealth Federation)

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

Mr. Knowles:

Does the Minister of Trade and Commerce deny there were negotiations between Algoma Steel on the one hand and these three companies on the other?

Topic:   INTERIM SUPPLY
Permalink
LIB

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

Liberal

Mr. Howe (Pori Arthur):

I deny the substance of the press report because I happen to know it is not correct, but the information came from a confidential source and I cannot repeat it in the house. My hon. friend is doing exactly the same as was the hon. member for Mackenzie. There are a great many brokers who would like to know whether these rumours are true. My hon. friend parades them in the house in the hope that someone will either confirm or deny them. That may be a proper way of using the position of a member of this House of Commons.

Topic:   INTERIM SUPPLY
Permalink
CCF

Stanley Howard Knowles (Whip of the Co-operative Commonwealth Federation)

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

Mr. Knowles:

All right, Mr. Chairman; I believe I have the floor. The minister can speak afterwards, and I hope he will do so and I also hope that the Prime Minister will speak on this matter. I come back to certain facts that have been clearly established. I refer in particular to the fact-

Topic:   INTERIM SUPPLY
Permalink
LIB

William Alfred Robinson (Deputy Speaker and Chair of Committees of the Whole of the House of Commons)

Liberal

The Chairman:

Order. I wonder if the hon. member will help me in this respect. I believe he was relevant and in order when he was discussing a matter which related to Atomic Energy Limited, because I would presume that there would be an item in the estimates dealing with atomic energy. However, I am a little at sea at the present time to know how the hon. member justifies a speech on interim supply which, as far as I can see at present, involves a transaction between two companies which are not crown companies. It appears to me that he is now wandering somewhat from relevancy in a debate of this kind.

Topic:   INTERIM SUPPLY
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CCF

Stanley Howard Knowles (Whip of the Co-operative Commonwealth Federation)

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

Mr. Knowles:

Mr. Chairman, you recognize of course that we are discussing a resolution that involves bringing down a portion of every item of the estimates that are before us either in the blue book or in the supple-mentaries, and those estimates include the estimates of the Department of Defence Production, which has contracts with A. V. Hoe.

Topic:   INTERIM SUPPLY
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LIB

William Alfred Robinson (Deputy Speaker and Chair of Committees of the Whole of the House of Commons)

Liberal

The Chairman:

That is the point I was trying to make. I have not examined the entire estimates, but I presume there are items in the estimates with regard to the atomic energy program. I do not know whether there is anything in the estimates to which the hon. member could draw my attention which would enable him to discuss what would appear at the present moment to be a transaction between two private companies. However, as I have said, I have not been able to examine every item in the estimates.

Topic:   INTERIM SUPPLY
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April 12, 1957