Mr. Benidickson:

-to explain to us about these affairs, but I think that was in a large measure due to the fact that the minister has learned that he gets into a fair amount of trouble when he is too dogmatic and, perhaps, because we can certainly think of some of the more prominent things he has said in recent times of that nature of which, no doubt, he would not like to be reminded at this moment. For example, there was his reference to inflation, when he said just about a month before last Christmas down in Florida to United States investors: "I confidently tell you that inflation has been checked." Again, in his last budget speech from the opposition side in a very terse and dogmatic statement, he stated very positively "we wish to see a balanced budget because we believe in balanced budgets." Well, that is funny in relation to this budget tonight.

I have tried to find things which would make it possible for me to extend some words of congratulations to the hon. gentleman, but the nature of his budget does not make that very easy. Perhaps I can say, however, that he has at least introduced some harmony tonight with the blue box in front of him, and the blue carnation and the blue haberdashery. And we certainly have a blue budget. I think we have more than a blue budget; we have a sick budget, and I am afraid that most people among the public after hearing about it will agree that the minister himself offered very little anti-recession medicine with his sick budget.

The minister could, I suppose, be congratulated for having established some records. The size of the deficit is, of course, an all-time record in peace time, and the amount of his spending is an all-time record. But there is one thing with regard to which he has not established a record as a Conservative finance minister, because since 1913 a Conservative government has never introduced a budget with a surplus.

Now it will take a little while to examine the very complicated figures which the minister gave to us tonight in order to make sure whether even his deficit of $640 million will

prove to be the deficit we would normally have under our accounting system. I do know that probably the most responsible outside organization which looks at these things very carefully, the Canada tax foundation, estimated that the budget figures would probably establish a deficit of $1 billion. But the writer of this editorial did say that the Minister of Finance-and I quote the words used-"may be able to hide some of this amount by certain accounting adjustments." I expect that when we do examine the minister's speech in Hansard more carefully tomorrow we will be able to find, looking at some of these so-called suspect items, some figuring in past style different from the figuring he has produced I am sure the deficit will be larger.

I myself, in the estimates committee the other day, asked whether or not there was going to be a raid on the defence equipment fund, and it will be very interesting tomorrow to find out whether the figures with regard to loans and investments will prove my suspicion to be well founded.

In addition to this, the house did not get the story with regard to spending. We did not hear a word tonight about dominion-provincial relations; there was not a suggestion that if certain wishes of Premier Frost are going to be fulfilled in the near future another $78 million will be required, and if additional payments are to be made in this direction we would anticipate that probably another $150 million beyond what we have heard, would be involved in equalization payments.

We have heard nothing about the estimate of the cost of the federal share of national hospitalization, arrangements for which would be implemented within a couple of weeks-

Mr. Fleming (Eglinton):

Of course you did.

Were you not listening to the speech?

Mr. Benidickson:

Reference was made to the old age pension deficit but, of course, this house was not informed that it is estimated that the old age pension deficit for the year to which the minister was referring will not be $102 million as mentioned in the speech tonight but will, doubtless, be about double that.

He said that.

Mr. Benidickson:

But my chief criticism of the budget, as I said at the beginning, Mr. Speaker, is that there is little anti-recession medicine in it. It is a deficit budget, of course, but it is prominently a deficient budget. I suggest that it lacks quick economic stimulants and the disappointment is that not only does it lack push, it will push a lot

of business thinking in the wrong direction. In other words, just like Topsy, this was not a planned or an economic, designed budget- it just "growed". We have a deficit not by design but a deficit by default and one might say that the promises of yesterday have become the deficits of today.

There is nothing new in the terms of this budget for jobs and there is less for business. It has been a piecemeal economic attitude that has been developed by the Minister of Finance and we can say now with great confidence and satisfaction that we certainly were right last session when we told the Minister of Finance that he should bring down a budget, that we should have a white paper so that the economics of the situation in the light of new events could have been most carefully examined not only by the minister but on a formal basis, as always takes place at budget time, in the presence of the officials whom he very promptly complimented tonight.

At this point may I, too, associate myself with the minister in saying that I have enjoyed not only the friendship but several years of close association with Doctor Eaton who has a long-term record of service to this country in the income tax division of the Department of National Revenue. I join with the minister in wishing Doctor Eaton well in his new employment.

My analysis of what is lacking in this budget is that the government is simply sitting out the situation and sitting it out on its hands. An eminent United States economist, Senator Douglas, made an interesting comment with respect to remedies that should properly be applied in the recession in that country which I should like to draw to the attention of the Minister of Finance: It is better to do too much than to do too little and then do it too late.

Mr. Baskin:

You should know all about

doing too little too late.

Mr. Benidickson:

I cannot resist commenting that even if my hon. friend, the Minister of Finance, had done something tonight it would be too late. Evidence of the fact that the minister and those associated with him have been too late in coming to grips with what has needed to be done is that, according to their speeches, they did not recognize the nature of the problem that had been facing us last winter and last fall. There was no bold new program then and there is not any bold new program now. It is a wait and see, a slow motion budget and I suggest to the minister that because he will have to do things eventually we are asking why he is not doing them now.

The Budget-Mr. Benidickson

Maybe he learned from your experience.

Mr. Benidickson:

It is not much of a budget, my friend. There is little for anybody in this budget.

Mr. Baskin:

There is very little in your reply to it.

Mr. Benidickson:

The budget contains very little for the Canadian people except cheaper rat poison, violins, cut flowers and tree guards not more than 36 inches in height, as I noted some of the points made by the minister tonight.

We have heard something about changes in tariffs. We will have an opportunity of discussing these matters in more detail at a later date but I want to say one thing at this time. Everybody knows that British appetites were whetted by the eloquence of the Prime Minister (Mr. Diefenbaker) with respect to trade just as Canadian appetites were whetted by the talk we heard about tax reductions. Just before the Mont Tremblant conference cold water was thrown on certain tariff items that affect the British and I suggest that quite a chill has been cast tonight on the commonwealth conference that is about to take place. All of this is very inconsistent with some of the philosophies of the Prime Minister. At Brantford, Ontario, on February 17, 1958, the Prime Minister had this to say:

The purpose of the commonwealth conference is to capture markets that have been lost. Let us give the British an opportunity for trade ip Canada and assure them the necessary Canadian dollars to buy our products because trade must be in both directions.

Again I say that appetites that were whetted by the Prime Minister here will certainly be disappointed. I recall that toward the end of the last session, on January 20, 1958, as recorded at page 3523 of Hansard, the Prime Minister in some cross questioning about what tax reductions the Canadian people might expect said:

We have reduced taxes-

The following exchange then took place between the Prime Minister and the then hon. member for Coast-Capilano, Mr. Sinclair:

Mr. Sinclair:

How much?

Mr. Diefenbaker:

They say how much. Mr. Speaker.

Mr. Sinclair:

You promised $500 million.

Mr. Diefenbaker:

When we have the authority we shall do so.

What government had more authority to carry out promises to the people than that which the government has at the present time?

As I have the right to continue this speech on Friday-I believe that is the date, may I adjourn the debate.

On motion of Mr. Benidickson the debate was adjourned.

1280 HOUSE OF

Collapse of Second Narrows Bridge BRIDGES

Right Hon. J. G. Diefenbaker (Prime Minister):

Mr. Speaker, before the house adjourns I think I should make reference to the catastrophe that has taken place in British Columbia when two sections of the second narrows bridge in Vancouver collapsed this evening with a loss of life, and to say that all of us in this house extend our sympathy to their loved ones who survive and our deep regret at what has taken place.

Hon. L. B. Pearson (Leader of the Opposition):

Mr. Speaker, on behalf of those in this party I wish to associate ourselves with the Prime Minister's expression of shock and regret at this very sad news.

Mr. Harold E. Winch (Vancouver East):

Mr. Speaker, I would like to add my words to those already spoken. This touches me very deeply because the bridge is located in my constituency and I together with others have been looking forward to the opening of this bridge in the very near future. It is one of those occasions when one can hardly find words to express one's feelings. All I can

do is to join with the Prime Minister and the Leader of the Opposition in hoping that our thoughts will be understood by those who survive.