June 5, 1958

CCF

Hazen Robert Argue

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

Mr. Argue:

I would like to ask a second question: is the hon. member aware that at this rate the Bank of Commerce has in fact made a profit and that under this amendment to the act they could make an even greater profit?

Topic:   INTEREST ACT
Subtopic:   AMENDMENT TO PLACE CEILING ON INTEREST RATES
Permalink
PC

John Andrew W. Drysdale

Progressive Conservative

Mr. Drysdale:

The matter I would like to raise is one which the hon. member for As-siniboia appears to have neglected, and that is that if a person is doing business with a bank and that bank agrees to lend him money, it is generally in the circumstance as most people discover when they go to borrow money from a bank that if they do not need the money the bank will go ahead and lend it to them. In other words, they are preferred customers, and that is one factor which I think the hon. member for Assiniboia has not taken into consideration.

Now in the very same article to which I have referred, reference is made to the extensive profits which these finance companies make. On August 11, 1956 the Financial Post mentions an independent survey of some 58 of the members of a financial organization with respect to what the effect on them would be of the forthcoming Small Loans Act. This independent body said that ten members were going to operate at a loss, 20 would earn less than 6 per cent on their equity and 12 would earn between 6 and 10 per cent. The hon. member has gone to great lengths in both his earlier speeches to refer to the fabulous and tremendous profits these organizations are making. I have scrutinized the position and I have been unable to find any figures to indicate that this is the fact. We have instead the situation which is quite easy to understand, where the more altruistic aspects of the matter are mentioned, and we

Business of the House

picture some poor individual being shoved out on the street, hounded by the finance companies, but, as a practising lawyer, I have seen some of these individuals and when it comes to a choice between the race track, the bottle and the finance company, you can imagine which runs in third place.

The Canadian consumer loan association, as a matter of fact, has said that 20 per cent of these borrowers need some special attention. In other words, if the borrower in the first place was a good credit risk then he would not have to go-

Topic:   INTEREST ACT
Subtopic:   AMENDMENT TO PLACE CEILING ON INTEREST RATES
Permalink
?

Some hon. Members:

Guillotine.

On motion of Mr. Drysdale the debate was adjourned.

Topic:   INTEREST ACT
Subtopic:   AMENDMENT TO PLACE CEILING ON INTEREST RATES
Permalink

BUSINESS OF THE HOUSE

PC

John Cameron Pallett

Progressive Conservative

Mr. Palleil:

I wonder if I could ask what the business of the house will be tomorrow?

Topic:   BUSINESS OF THE HOUSE
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LIB
PC

Howard Charles Green (Minister of Public Works; Leader of the Government in the House of Commons; Progressive Conservative Party House Leader)

Progressive Conservative

Mr. Green:

Oh, you are too late.

Topic:   BUSINESS OF THE HOUSE
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LIB

Paul Joseph James Martin

Liberal

Mr. Martin (Essex East):

May I say to the

Minister of Public Works (Mr. Green) that we welcome this new recruit to the Liberal party.

Topic:   BUSINESS OF THE HOUSE
Permalink
PC

Howard Charles Green (Minister of Public Works; Leader of the Government in the House of Commons; Progressive Conservative Party House Leader)

Progressive Conservative

Mr. Green:

If you had a few more recruits like that one you might be worth something.

Topic:   BUSINESS OF THE HOUSE
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LIB

Paul Joseph James Martin

Liberal

Mr. Martin (Essex East):

My hon. friend will of course realize that it is not numbers that count, it is quality.

Topic:   BUSINESS OF THE HOUSE
Permalink
PC

Edmund Davie Fulton (Minister of Justice and Attorney General of Canada)

Progressive Conservative

Mr. Fulton:

Yes, we have been painfully aware of that in the last few days.

Topic:   BUSINESS OF THE HOUSE
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PC

Howard Charles Green (Minister of Public Works; Leader of the Government in the House of Commons; Progressive Conservative Party House Leader)

Progressive Conservative

Mr. Green:

Tomorrow we will commence with the estimates of the Department of Public Works and then when they are finished we will take the resolution concerning the Department of Transport Act, the second reading of the Penitentiary Act and then the resolution concerning the Cape Breton Highlands national park.

Topic:   BUSINESS OF THE HOUSE
Permalink

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



Friday, June 6, 1958


June 5, 1958