May 14, 1965

PC

Robert Simpson

Progressive Conservative

Mr. Simpson:

Mr. Speaker, I have a question which is supplementary to my original question. In view of the fact that the Government has stated that no consideration will be given to granting sums of money to the C.B.C. for the extension of television services until this report is received, and in view of the fact that tens of thousands of Canadian taxpayers are waiting for the services to which they are entitled, cannot the Secretary of State inform the House as to the reason for the apparent undue delay in receiving the report of this Committee, particularly when it is reported that a member of his own staff who is the Secretary has either resigned or has been dismissed from this Committee? I think we are entitled to know whether this is holding up the report for which we are waiting.

Topic:   DELAY IN REPORT OF ADVISORY COMMITTEE
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LIB

Maurice Lamontagne (Secretary of State of Canada)

Liberal

Mr. Lamoniagne:

Mr. Speaker, the inquiry and investigation carried on by the Fowler committee is probably the most serious attempt that has ever been made in this country to look at broadcasting policy in general. This committee was appointed in May of last year, and I do not think a little more than a year is too long a time to make a fundamental reappraisal of such an important problem.

Topic:   DELAY IN REPORT OF ADVISORY COMMITTEE
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?

Some hon. Members:

Hear, hear.

Topic:   DELAY IN REPORT OF ADVISORY COMMITTEE
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PC

Robert Simpson

Progressive Conservative

Mr. Simpson:

A further supplementary question, Mr. Speaker. Can the Secretary of State advise the House why the Secretary of this committee either resigned or has been dismissed?

Topic:   DELAY IN REPORT OF ADVISORY COMMITTEE
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LIB

Maurice Lamontagne (Secretary of State of Canada)

Liberal

Mr. Lamoniagne:

Mr. Speaker, this is a matter which is the exclusive responsibility of the committee itself.

May 14, 1965

Topic:   DELAY IN REPORT OF ADVISORY COMMITTEE
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TORONTO-TRANSFER OF OWNERSHIP OF RADIO STATION


On the orders of the day:


LIB

Maurice Lamontagne (Secretary of State of Canada)

Liberal

Hon. Maurice Lamonlagne (Secretary of Stale):

Mr. Speaker, I would like at this stage to refer to the question asked by the hon. Member for Port Arthur on April 29 concerning radio station CHFI in Toronto. I have received the following information from the Board of Broadcast Governors.

The application before the Board on March 24 dealt with the transfer of shares in 1540 Limited, Toronto. The approval of the Board in such matters is required by section 118 of the radio regulations. In these cases the Board cannot choose between contending applicants; it can only deal with such applicants as have already entered into a conditional contract of purchase and sale of company shares with the original owner of those shares.

In this instance the Board was satisfied with the financial resources of the applicants and with the programming policy the applicants were willing to follow. Although representations were received by the Board objecting to the transfer, there was no evidence in these representations to change the Board's views. On April 8, 1965 the Board recommended accordingly.

Topic:   TORONTO-TRANSFER OF OWNERSHIP OF RADIO STATION
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RECOMMENDATION RESPECTING RADIO STATION CJOR, VANCOUVER


On the orders of the day:


LIB

Maurice Lamontagne (Secretary of State of Canada)

Liberal

Hon. Maurice Lamonlagne (Secretary of Stale):

If I am allowed to do so, Mr. Speaker, I wish to refer to some questions that were asked of me in the House on May 7 concerning the licence for radio station CJOR in Vancouver. I am advised by the Chairman of the Board of Broadcast Governors that it would not be the intention of the Board to hear representations in this connection on the west coast. By coincidence the March hearing of the Board, which dealt with the renewal of the licence for CJOR, was held in Vancouver, and representations from local organizations were received at that time. The next meeting of the Board is scheduled for September and is to be held in Ottawa. I am further advised by the Chairman of the Board that its recommendation with regard to the licence renewal would not preclude an application being made to the Board by a reorganized company that would include the present shareholders in CJOR Limited.

With respect to the further question asked by the Member for Vancouver East, the in-

Inquiries of the Ministry formation available to the Board is that Mrs. Chandler, who following the death of her husband became the major shareholder in CJOR Limited, and which transfer was approved by the Board, holds dual citizenship in the United States and in Canada. The requirement of Canadian citizenship in this respect is governed by section 14 of the Broadcasting Act, and under this provision the fact that Mrs. Chandler is an American citizen as well as a Canadian citizen was no impediment to her holding a licence.

Topic:   RECOMMENDATION RESPECTING RADIO STATION CJOR, VANCOUVER
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NDP

Thomas Clement (Tommy) Douglas

New Democratic Party

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

A supplementary question, Mr. Speaker, regarding the report the Minister has received from the Board of Broadcast Governors concerning radio station CJOR in the Vancouver area. I understood the Minister to say that the Board, at its September hearings, would not preclude an application from the present CJOR management, provided it were reorganized. Could I ask the Minister if he would inquire of the Board of Broadcast Governors whether they would clarify for the public what is meant by a reorganized company; because a great many people on the Pacific coast are anxious to see the present policies of CJOR continue, and I think they would want to know just what the Board of Broadcast Governors would consider constituted a properly reorganized company.

Topic:   RECOMMENDATION RESPECTING RADIO STATION CJOR, VANCOUVER
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LIB

Maurice Lamontagne (Secretary of State of Canada)

Liberal

Mr. Lamonlagne:

Mr. Speaker, I will be glad to ask the Chairman of the Board if he is ready and willing to determine what would be the reorganization that he would expect.

Topic:   RECOMMENDATION RESPECTING RADIO STATION CJOR, VANCOUVER
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FINANCE

FEDERAL INVOLVEMENT IN BANKRUPTCY OF ADVERTISING COMPANY


On the orders of the day:


PC

Gordon Harvey Aiken

Progressive Conservative

Mr. G. H. Aiken (Parry Sound-Muskoka):

Mr. Speaker, I have a question for the Minister of Justice. Is the Minister yet prepared to answer the question I asked of the Prime Minister some two weeks ago concerning the involvement of the Federal Government in the bankruptcy of the Walsh Advertising Company?

Topic:   FINANCE
Subtopic:   FEDERAL INVOLVEMENT IN BANKRUPTCY OF ADVERTISING COMPANY
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LIB

Guy Favreau (Minister of Justice and Attorney General of Canada)

Liberal

Hon. Guy Favreau (Minister of Justice):

Mr. Speaker, I can, of course, in relation to my own duties, answer only that part of the question which related to the investigation by the Superintendent of Bankruptcy in connection with this bankruptcy.

The answer is as follows. Walsh Advertising Company Limited, Toronto, made an

Mar 14, 1965

Inquiries of the Ministry assignment in bankruptcy on April 2, 1965, and the first meeting of the creditors had been called for April 20, 1965. Under the Bankruptcy Act the Superintendent of Bankruptcy supervises the administration of the estates in bankruptcy by trustees, and it is not within his competence to investigate the circumstances surrounding the bankruptcy of an individual bankrupt. For that reason I have to advise that it is not proposed to investigate the circumstances surrounding the bankruptcy of Walsh Advertising Company Limited, at least by or through the Superintendent of Bankruptcy, because this would be beyond the scope of his jurisdiction.

A second question had been put by the hon. Member for Grey-Bruce asking whether consideration was being given to providing some compensation to the 581 creditors of that company, mainly in the fields of radio and newspaper, whose claims now total in excess of half a million dollars. The answer is that it has not been the practice for the Government to pay compensation to unsatisfied creditors of a bankrupt debtor, and the claims of these creditors will undoubtedly be dealt with by the trustee of the bankrupt estate in accordance with the provisions of the Bankruptcy Act, taking into account the funds that are available. Any other inquiry which might relate to any interest the Government may or may not have in this particular bankruptcy would, of course, be the responsibility of any Department of Government that might have been affected.

Topic:   FINANCE
Subtopic:   FEDERAL INVOLVEMENT IN BANKRUPTCY OF ADVERTISING COMPANY
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PC

Gordon Harvey Aiken

Progressive Conservative

Mr. Aiken:

Mr. Speaker, a supplementary question. In replying to my question the Minister has not answered the fundamental point I originally made, which concerned the implications of involvement of this government in appointing the V/alsh Advertising Company Limited to take over a public relations advertising job for the Canadian Army. There are implications much more serious than those the Minister has touched upon; he has merely touched upon the mechanical aspect. What I should like to ask is whether the Government is going to give us a reply as to the political implications of this appointment. The fact that this company was dismissed for cause by the former Government and was reappointed by this Government immediately it took office is the question in which I am interested.

Topic:   FINANCE
Subtopic:   FEDERAL INVOLVEMENT IN BANKRUPTCY OF ADVERTISING COMPANY
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LIB

Guy Favreau (Minister of Justice and Attorney General of Canada)

Liberal

Mr. Favreau:

Mr. Speaker, I am not willing to accept any of the implications contained in the statement which has just been made by the hon. gentleman, but I know he will

FMr. Favreau.7

appreciate that their very nature is such that it is not within the scope of my duties as Minister of Justice to deal with them. Therefore I shall see to it that the question is referred to the appropriate Minister.

Topic:   FINANCE
Subtopic:   FEDERAL INVOLVEMENT IN BANKRUPTCY OF ADVERTISING COMPANY
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May 14, 1965