July 28, 1964

PRESENCE IN GALLERY OF PRIME MINISTER OF MALAYSIA AND PARTY

LIB

Lester Bowles Pearson (Prime Minister)

Liberal

Right Hon. L. B. Pearson (Prime Minister):

Mr. Speaker, it is my honour and my pleasure to welcome to our House of Commons Tunku Abdul Rahman, the prime minister of Malaysia, together with two members of his government, the ambassador in Washington, minister without portfolio, and the minister of information and broadcasting, and other members of their party. The prime minister was last here in 1960 as the prime minister of Malaya. We now welcome him as the prime minister of Malaysia, the federation of Malaya, Singapore, Sarawak and Sabah. This imaginative concept was largely his. Indeed, I believe he can consider himself as the major founder of the new federation. Under his leadership the peoples of Malaysia have been brought closer together in freedom, democracy and greater human welfare.

Today, Mr. Speaker, as we know, they are resisting political, economic and indeed military pressure from outside; pressure dedicated to their destruction. In the words of the communique of the recent commonwealth prime ministers' conference in London, we give the prime minister and his people the assurance of our sympathy and, perhaps what is more important, our support in their resistance to this kind of aggression. We are happy indeed that Malaysia is in the commonwealth of nations. We are proud to be associated with her in that great association that spans the world. Our two countries have always enjoyed friendly relations, and these relations will be even closer as a result of this visit which, though very short, will I hope be a happy and fruitful one.

Right Hon. J. G. Diefenbaker (Leader of the

Opposition): Mr. Speaker, from time to time there are instances in the house of complete agreement. This is one of those occasions. I join with the Prime Minister in welcoming the prime minister of Malaysia, Tunku Rahman, an outstanding statesman, a wise counsellor and one who, by reason of his

membership in the British bar, has applied the principles of the rule of law and parliamentary government in his country. His enlightened leadership deserves the commendation of all who cherish freedom.

The Prime Minister has said in effect that throughout his life the Tunku has been in the front line of freedom. No one among the leaders of the various countries of the world has been a more dedicated fighter in the cause of freedom against communists. The Prime Minister has said in effect that the Tunku was the architect of unity in his country. He has now become the father of Malaysia, dedicated to the commonwealth. He was present at those prime ministers' conferences of 1960 and 1961 when we laid the foundations of non-discrimination on the basis of colour, race or creed within this commonwealth, consummated as were those concepts at the last meeting of the prime ministers.

The eyes of Asia are upon the Federation of Malaysia. The state of Malaya, as it was, was subject to a ceaseless barrage of propaganda, infiltration and subversion from red China. Against such activities, under his sterling stand for freedom Malaya was triumphant. Today, as the Prime Minister says, the federation faces other challenges; indeed, faces survival from overt aggression.

I was glad when the prime ministers' conference came out not only with words of sympathy but of promised support for Malaysia. Experience has shown that sympathy or moral support is not much of a rampart against aggression. Anything that the government of Canada may do, already having given certain undertakings for the training of forces within our country, the provision of technicians and also, I would say, additional credit for other requirements by Malaysia, will receive the support of the Canadian people as a whole.

I join with the Prime Minister in his words of official welcome. I join too as one who is honoured to number the Tunku among his friends. I visited Malaya; I visited Singapore. In both those places I received that reception that is characteristic of the commonwealth. Today in giving this welcome to a great leader in the commonwealth, a

Distinguished Visitors

world leader, we honour ourselves while purporting to honour him.

Topic:   PRESENCE IN GALLERY OF PRIME MINISTER OF MALAYSIA AND PARTY
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?

Some hon. Members:

Hear, hear.

Topic:   PRESENCE IN GALLERY OF PRIME MINISTER OF MALAYSIA AND PARTY
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NDP

Thomas Clement (Tommy) Douglas

New Democratic Party

Mr. T. C. Douglas (Burnaby-Coquitlam):

The members of this party are happy to join with the Prime Minister and the Leader of the Opposition in extending a hearty welcome to His Royal Highness Tunku Adbul Rahman, prime minister of Malaysia, and the members of his party.

It is a source of pride to all of us that in recent years so many parts of the commonwealth have attained national independence and established democratic self government. Now, in this period, they require more than ever time in which to develop viable economies, in which to grapple with their social problems, and, above all, to preserve their territorial integrity and firmly establish parliamentary institutions.

We are glad the prime minister has visited Canada and is meeting with members of our government. I hope that as a result of this visit Canada will be able to play a useful part in helping Malaysia to maintain its independence and develop the way of democratic self government upon which it has set its feet. This party is very glad to welcome the prime minister and our other visitors from Malaysia.

Topic:   PRESENCE IN GALLERY OF PRIME MINISTER OF MALAYSIA AND PARTY
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SC

Robert Norman Thompson

Social Credit

Mr. R. N. Thompson (Red Deer):

On behalf of our party permit me to say, Mr. Speaker, that it is a distinct honour and privilege to extend our warmest greetings to His Royal Highness Tunku Abdul Rahman, the distinguished prime minister of Malaysia and the members of his party.

We in this country have watched the Tun-ku's statesmanship with deep admiration and respect. All Canadians have felt an anxious concern for the immediate troubles of his country in its struggle for survival against the forces of aggression and neo-imperialism. It is this concern that is so characteristic of a family in which the problems and needs of one can be shared by all. Truly it is this sentiment which is the fibre of this great commonwealth of nations. It is this intangible bond which links men of all races, creeds and colours together, in times of distress as well as in times of peace. I am confident when I say that this link is stronger than ever between the sister countries of Malaysia and Canada.

I join with the Prime Minister and the leaders of other parties in this house in welcoming the prime minister of Malaysia. We know that Malaysia is many thousands of

miles away from us, but all Canadians greet him warmly on his visit to this home away from home. We can only pray that his brief stay in or country will be all he had hoped and, indeed even more.

Topic:   PRESENCE IN GALLERY OF PRIME MINISTER OF MALAYSIA AND PARTY
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RA

Gilles Grégoire

Ralliement Créditiste

Mr. Gilles Gregoire (Lapointe):

Mr. Speaker, we are glad to join with our Prime Minister (Mr. Pearson) in welcoming to Canada the prime minister of Malaysia.

Malaysia and Canada may be far apart if one considers the distance in miles between them, but we are brought closer to one another by the common tie which unites us in the commonwealth of nations.

We are following closely, with sympathy and interest, the struggle put up by the prime minister of Malaysia and his people against international communism.

We pay tribute to the people of Malaysia and their leader, who are in the first line of battle against communism, and we hope our country will be in a position to co-operate with all the nations of the world, and especially the people of Malaysia, in this valiant fight that country is putting up. We are confident that victory will smile on those who fight, and it is the wish that we express to the prime minister and the people of Malaysia.

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PUBLIC ACCOUNTS


Fourth report of standing committee on public accounts-Mr. Baldwin.


THE CANADIAN ECONOMY

TABLING OF REPORT "PRIVATE AND PUBLIC


1964-MID-YEAR REVIEW" Hon. Mitchell Sharp (Minister of Trade and Commerce): I beg leave to table a report, "Private and Public Investment in Canada- Outlook '64, mid-year review," which summarizes the results of a recent survey undertaken to check on the capital expenditure intentions for the current year.


?

Maurice Bourget (Speaker of the Senate)

Mr. Speaker:

Does the house give consent?

Topic:   THE CANADIAN ECONOMY
Subtopic:   TABLING OF REPORT "PRIVATE AND PUBLIC
Sub-subtopic:   OUTLOOK
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?

Some hon. Members:

Agreed.

Topic:   THE CANADIAN ECONOMY
Subtopic:   TABLING OF REPORT "PRIVATE AND PUBLIC
Sub-subtopic:   OUTLOOK
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LIB

Mitchell William Sharp (Minister of Trade and Commerce)

Liberal

Mr. Sharp:

In view of the significance of this report I should like to make a few brief comments. The report indicates that there has been a remarkable build-up in 1964 capital spending programs since the previous survey was undertaken at the beginning of the year. On the basis of this new informa-

tion on investment plans, total capital outlays anticipated for 1964 amount to $10.8 billion, about $700 million or 7 per cent higher than previously indicated and 16 per cent above actual outlays last year.

This is the greatest year to year increase in capital spending since 1956. Most of the upward adjustment has occurred in the business sector of the economy, where anticipated outlays are now 10 per cent higher than previously estimated and 18 per cent above last year's expenditure. It is particularly noteworthy that capital outlays in manufacturing industries are now expected to approximate $1J billion in 1964, an increase of more than $400 million or 31 per cent from last year's level.

In the case of housing, renewal of the winter incentive program and a stronger trend in starts this spring than was expected earlier has warranted an upward adjustment from 11 per cent to 18 per cent in the estimated increase in work put in place this year compared with last. In the area of institutional and public investment there has been a moderate upward revision in estimated outlays, which are now expected to rise by 9 per cent from a year ago.

The recent acceleration in the pace of capital spending in Canada has far reaching significance for the Canadian economy. For the current year it has given strong impetus to the economy generally and has been an important factor in the relatively sharp-4 per cent-increase in total employment this year compared with last. The 16 per cent increase anticipated in total capital outlays involves a 17 per cent increase in outlays for new machinery and equipment and a 15 per cent increase in expenditure on new construction. The sharp rise in outlays for new machinery and equipment has meant increased activity in equipment producing industries and also helps to account for the sharp growth in imports this year.

Outlays for construction, on the other hand, have a predominantly domestic impact and the substantial increase in this type of expenditure is being reflected in the domestic construction trades and related material producing industries. Some material suppliers, in fact, are encountering difficulty in meeting the added demands. It is possible, therefore, that lengthened delivery dates for items such as structural steel may cause delays on some projects.

Mr. Speaker, I feel that I should also add an assurance that the upward revision in the total program is not likely to add significantly

Report on Canadian Economic Outlook to the existing demands on resources. Estimates of actual outlays for the early months of 1964 show that capital spending was already running close to the annual rate indicated by the recent survey. Accordingly, realization of this program would involve little further increase beyond the level of activity already under way in the year to date.

The new surge in capital expansion now under way has important implications for future years as well as for the present year. The appearance of so many major new expansion projects throughout Canadian industry can only mean that businessmen look forward with confidence to expanding markets in the years to come. If this judgment is sound it means that conditions of economic slack are giving way to dynamic growth. This new environment brings renewed hope to the growing number of young people coming on to the labour market, and gives promise of a continuing pace of economic advance commensurate with our growing productive capabilities.

Topic:   THE CANADIAN ECONOMY
Subtopic:   TABLING OF REPORT "PRIVATE AND PUBLIC
Sub-subtopic:   OUTLOOK
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PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

Right Hon. J. G. Diefenbaker (Leader of the Opposition):

Mr. Speaker, it is naturally quite impossible to follow in detail the statement that has just been made. Suffice it to say that what is taking place in Canada represents a course similar to that in the United States. There has been in that country a vast increase in economic growth during the last year and a half. The beginning of this economic growth-and I call as my witness the Minister of Trade and Commerce in his extraterritorial addresses in London, Florida and elsewhere-[DOT] occurred about 2j years ago; something that was not admitted until after effective use had been made by those now sitting in the treasury benches of the very opposite contention.

I am not going to refer to the question of employment. That is being dealt with and will be dealt with at further length during the discussions on interim supply. F,ut when the minister says that what is taking place will be particularly attractive to young men and women, let me point out that according to the latest statistics one of the areas in which employment is not being provided and where the greatest percentage increase in unemployment has taken place relative to the general picture has been in the group 16 to 19 years of age.

With regard to the great increase in capital expenditures on machinery and the like, I should like to have the figures in this respect prior to March 31 and after March 31. You will recall, Mr. Speaker, that an 11 per cent sales tax by instalment was applied as against

6058 HOUSE OF

Report on Canadian Economic Outlook machinery and building materials, and there was apparently a great rush just before the deadline of March 31, at which time the instalment increased by 4 per cent on building materials and the like, in order to build up an amount on hand for storage so as to obviate the need to finance on the basis of a larger tax bite.

However, none of us as Canadians would do other than welcome anything which will bring about an expanding economy, and we on this side of the house are never going to take the attitude, which was the characteristic propaganda of hon. gentlemen now sitting opposite when they were over here, of downgrading our country

Topic:   THE CANADIAN ECONOMY
Subtopic:   TABLING OF REPORT "PRIVATE AND PUBLIC
Sub-subtopic:   OUTLOOK
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?

Some hon. Members:

Oh, oh.

Topic:   THE CANADIAN ECONOMY
Subtopic:   TABLING OF REPORT "PRIVATE AND PUBLIC
Sub-subtopic:   OUTLOOK
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PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

Mr. Diefenbaker:

-of deliberately misrepresenting the facts, endeavouring to build up in this country cause for gloom among the people. We believe in playing our part as an opposition to encourage expansion in Canada instead of preaching a doctrine of gloom for purely political purposes, as did hon. members opposite.

Topic:   THE CANADIAN ECONOMY
Subtopic:   TABLING OF REPORT "PRIVATE AND PUBLIC
Sub-subtopic:   OUTLOOK
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?

Some hon. Members:

Oh, oh.

Topic:   THE CANADIAN ECONOMY
Subtopic:   TABLING OF REPORT "PRIVATE AND PUBLIC
Sub-subtopic:   OUTLOOK
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PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

Mr. Diefenbaker:

Mr. Speaker, the number of interruptions indicate those who should be in the suppliant bench asking for forgiveness for the kind of thing which they did for so long.

Topic:   THE CANADIAN ECONOMY
Subtopic:   TABLING OF REPORT "PRIVATE AND PUBLIC
Sub-subtopic:   OUTLOOK
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NDP

Thomas Clement (Tommy) Douglas

New Democratic Party

Mr. T. C. Douglas (Burnaby-Coquitlam):

Mr. Speaker, I congratulate the Minister of Trade and Commerce for the modesty with which he announced the increase in investment, and the Leader of the Opposition for the equal modesty with which he tried to take the credit for it. I should like to say that an increase in capital investment in Canada is, of course, a very good augury, one which we welcome.

There are two factors we must keep in mind. Only by examination of the figures the minister has tabled can we know to what extent these two factors are being realized. The first is whether this increase in capital investment is adequate to provide for full employment and reasonable economic growth. As long as this country has unemployment our economy is not growing fast enough to provide jobs and there is insufficient capital investment. Therefore, while we are pleased that there is an increase in capital investment, we must temper our enthusiasm with the reminder that we have not yet established full employment in Canada nor come close to it.

The second factor, which I think is even more important, is into what channels this

investment is to be directed. Investment by itself without having regard to human welfare and human needs can be a very meaningless thing. We can have a society in which we have adequate filling stations to look after our cars and not enough hospitals to look after our sick, or plenty of supermarkets in which to shop and not enough schools to which to send our children.

If I remember the survey which was made of capital investment for 1964, it was estimated that investment in schools this year would be down substantially. I hope this will not prove to be the case in the figures which the minister has tabled, but if it is the case then it demonstrates that in Canada we need to begin to establish some order of priority in investment so that investment is directed into social capital projects to improve our standard of life and not just our standard of living.

Topic:   THE CANADIAN ECONOMY
Subtopic:   TABLING OF REPORT "PRIVATE AND PUBLIC
Sub-subtopic:   OUTLOOK
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July 28, 1964