February 28, 1966

FINANCE

TABLING OF VOLUME 2 OF TARIFF BOARD REPORT ON WIRE PRODUCTS

LIB

Mitchell William Sharp (Minister of Finance and Receiver General)

Liberal

Hon. Mitchell Sharp (Minister of Finance):

On January 26 I tabled volume 1 of the Tariff Board report on reference 132 relating to wire and wire products. Volume 1 dealt with rod, wire and wire products of iron or steel. I am having tabled today copies in English and in French of volume 2 of this report.

Volume 2 relates to wire and wire cloth of non-ferrous metals. The Tariff Board's recommendations contained therein will receive most careful consideration by the government. I would also like to take this opportunity to invite interested parties to let me have any comments they may wish to make on this report.

Topic:   FINANCE
Subtopic:   TABLING OF VOLUME 2 OF TARIFF BOARD REPORT ON WIRE PRODUCTS
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NORTHERN AFFAIRS

NORTHERN LOAN PROGRAM TO DEVELOP MINERAL RESOURCES

LIB

Arthur Laing (Minister of Northern Affairs and National Resources)

Liberal

Hon. Arthur Laing (Minister of Northern Affairs and National Resources):

I wish to announce the government's decision to recommend to the house the adoption of a new northern loan program as an incentive to develop the mineral resources in the Yukon and Northwest Territories.

Exploration expenditures in the north have been running at an annual rate of approximately twenty millions of dollars per year which, while gratifying in terms of the past, is still unsatisfactory as compared with the oil and gas exploration expenditures in southern Canada in the magnitude of $150 million per annum.

The government therefore believes it is desirable to encourage greater northern exploration for the purpose of realizing the mineral possibilities which exist in these territories. The federal government has a net expenditure in the north every year of over $50 million. Companies and individuals engaged in the oil and mineral business presently appear to have adequate incentives under the Income Tax Act for exploration expenditure. The government proposes, 23033-1171

through a northern mineral development loan fund, to bring many of these same advantages to the ordinary Canadian investor and thereby considerably expand the funds available for such exploration.

[DOT] (2:40 p.m.)

The loan fund is for Canadians and Canadian-controlled companies only. While we welcome foreign capital in the north, we believe that Canadians should have a special incentive to invest in Canada's large northern potential of resources. Development in depth is one of our great challenges.

The loan fund will provide amounts of up to 40 per cent of approved exploratory expenditures to companies and individuals not eligible for the Income Tax Act charge-off incentive, and repayment will be required only if minerals are found in commercial quantities. The government will thereby assist with the high risks normally associated with northern resource exploration. The loan fund will be limited initially to $3 million per year, with possible increases in succeeding years after review of the program's success. An appropriate item will be included in estimates for the approval of the house.

In conclusion, I hope this loan fund will be instrumental in attracting major new exploration funds to the northern territories, and increasing the proportion of Canadian ownership in the non-renewable resources of the north.

Topic:   NORTHERN AFFAIRS
Subtopic:   NORTHERN LOAN PROGRAM TO DEVELOP MINERAL RESOURCES
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PC

Francis Alvin George Hamilton

Progressive Conservative

Hon. Alvin Hamilton (Qu'Appelle):

Mr. Speaker, 1 would like to take this opportunity to thank the Minister of Northern Affairs and National Resources, for the second time in two sitting days, for paying the opposition the courtesy of sending his announcement on motions across to us ahead of time, because this gives us an opportunity to prepare some form of constructive response to such announcements.

The first point I wish to make is that the announcement today recognizes something that has been a fact for a long time, namely that United States tax laws and Canadian tax laws work in a similar direction to encourage United States investment in Canada and to penalize Canadian investment in the Canadian mining and oil industries. This fact was pointed out very clearly by the Gordon

February 28, 1966

1842 COMMONS

Northern Mineral Resources Program royal commission and the Borden royal commission, and the proposal announced today is a method to try and equalize the scales.

The proposal suggests a 40 per cent loan, not repayable if there is no success in the exploration. The only thing I would like to suggest here is that since the government intends to collect back the 40 per cent loan in a case where there is success in locating new oil or minerals, why not go one step further and take a 40 per cent interest in equity ownership? This would be the next logical step.

The proposal announced today carries on the over-all idea of dynamic action by the federal government in the development of the resources of this country that we brought into effect in a major way in 1957-58.

I should also like to point out, with respect to the expenditure of federal moneys in development of the north that we have to keep the economics in mind. That is, we cannot spread such a program generally all over the north. It has to be concentrated in those areas where there is the best chance relating to marketing the product. Therefore it is sound to go into the north from the sea, as I know the minister is interested in doing, via Baffin Island, and also through the land mass of the four western provinces.

I would also suggest that while this loan program which will encourage money to be spent in the high risk enterprise of exploration, giving companies a write-off where a write-off is not available to them now because they have not got refineries or smelters, the minister can help even more by restoring the roads to resources program. The hopes for a smelter at Great Slave lake will help, but by building a road connection around Great Slave lake in a circle the rich area around Great Slave lake could be made available for development through this loan fund program.

I should like to conclude with one little statement to the house. In 1958 and 1959 we invested $2J million in building three bridges in the Yukon over the Stewart, Pelly and Yukon rivers. Every two years since those three bridges were completed the federal government has received back $2J million in direct taxes as a result of that investment. This type of thing announced by the minister will have a similar result.

Topic:   NORTHERN AFFAIRS
Subtopic:   NORTHERN LOAN PROGRAM TO DEVELOP MINERAL RESOURCES
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NDP

Thomas Clement (Tommy) Douglas

New Democratic Party

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

Mr. Speaker, I too desire to thank the minister for giving us notice of his intention to make this statement on motions. I am sure all hon. members will agree with the need for

development in the north and the need for additional exploration and development of minerals. I am sure they will also agree that this is a high risk area.

I think the minister is to be commended for setting up this northern mineral development fund. However, I am somewhat perturbed at the proposal that a borrower may be able to borrow up to 40 per cent of the amount invested and need not repay this loan unless he discovers minerals in commercial quantities. It seems to me this is coming fairly close to a "heads you win, tails I lose" proposition.

I think the minister could accomplish what he has in mind by entering into an arrangement with these companies whereby, an additional royalty in addition to the normal royalty, or 40 per cent of the profits made would be payable to the government by the company; and of course if the company made no profits they would not have to make any repayment. But if they do make profits in developing these resources, which after all belong to the people of Canada, I see no reason why the people of Canada should not have a share of the profits which result therefrom.

I hope the minister will give this some consideration. Also I hope that after the passage of time the amount of $3 million will be greatly expanded, because larger amounts of capital will be needed if we are to develop the northern parts of this country.

Topic:   NORTHERN AFFAIRS
Subtopic:   NORTHERN LOAN PROGRAM TO DEVELOP MINERAL RESOURCES
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SC

Robert Norman Thompson

Social Credit

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

Mr. Speaker, I too appreciate the privilege of having been given prior notice ot this statement today as it relates to the assistance program for the development of our northern resources. I believe we share with all members of the house satisfaction in knowing that something is being done to assist in the exploration and survey development of the resources in the Northwest Territories and the Yukon Territory.

As I listened to the announcement I found myself wondering whether this program could not have been developed through the Industrial Development Bank, or whether this is perhaps part of the legitimate area into which the Canadian Development Corporation could well reach when it is established. Certainly we are concerned at the multiplicity of funds in this regard. I would hope the government is making every effort to bring forward the Canadian Development Corporation legislation as quickly as possible.

February 28. 1966

I believe, Mr. Speaker, the amount mentioned is only the beginning. I believe also to follow up this policy there must be some policy in relation to the leasing of mineral rights and the sharing in the royalties so far as the Canadian people are concerned. I do not think this has to be done through governmental equity. I think the pattern already is established, that this can be done through leases, rentals, and also through royalties so that the real benefit of these resources which are developed as a result of the exploration can return to the people of Canada in their own time.

Again we express our satisfaction at this beginning in this very important area of resources development.

Topic:   NORTHERN AFFAIRS
Subtopic:   NORTHERN LOAN PROGRAM TO DEVELOP MINERAL RESOURCES
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BUSINESS OF THE HOUSE

VACATION PROVISIONS, POLYMER CORPORATION-AMPLIFICATION OF ANSWER TO WRITTEN QUESTION

LIB

Charles Mills (Bud) Drury (Minister of Industry; Minister of Defence Production)

Liberal

Hon. C. M. Drury (Minister of Industry):

Mr. Speaker, on February 23, 1966, as shown at page 1658 of Hansard, I answered question No. 315 asked by the hon. member for Bur-naby-Coquitlam concerning annual vacations for the employees of Polymer Corporation. The corporation has since furnished me with additional pertinent information.

[DOT] (2:50 p.m.)

In the reply shown in Hansard it was stated that there were 21 employees who did not receive the full annual vacation to which they were entitled in 1965. The vacation periods for these employees were set over into 1966 by mutual agreement because of sickness or their involvement in special assignments or projects.

I am now advised that, in addition, there are 28 new employees whose first year of employment with the company ended after July 1, 1965, and some as late as December, 1965, and who therefore become entitled to an additional week of vacation under the terms of the Canada Labour (Standards) Code. Section 17(A) of the act requires that the vacation begin not later than ten months after completion of the year of employment and the additional week of vacation is being given in conformity with the act. Thus, although these employees will receive the full annual vacation to which they became entitled in 1965, the additional week was not, in fact, taken in the calendar year 1965.

Question of Privilege HOUSE OF COMMONS

Topic:   BUSINESS OF THE HOUSE
Subtopic:   VACATION PROVISIONS, POLYMER CORPORATION-AMPLIFICATION OF ANSWER TO WRITTEN QUESTION
Permalink

ELI LINDSAY. ARBORFIELD, SASK.- 107 YEARS OLD TODAY


Mr. Reynold Rapp (Humboldl-Melforl- Tisdale): Mr. Speaker, I should like to bring to your attention and to the attention of the Prime Minister and hon. members a matter of great national interest. One of my constituents, Grandfather Eli Lindsay, of Arborfield, Saskatchewan, is celebrating his 107th birthday today. This morning I phoned Grandpa Lindsay to wish him good health. He seemed pleased with the call and thanked me for calling him.


?

Some hon. Members:

Hear, hear.

Topic:   ELI LINDSAY. ARBORFIELD, SASK.- 107 YEARS OLD TODAY
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PRIVILEGE

MR. NIELSEN-RIGHT OF MEMBER FOR MONTMAGNY-L'ISLET TO VOTE IN HOUSE

LIB

Lucien Lamoureux (Speaker of the House of Commons)

Liberal

Mr. Speaker:

Order, please. I should like to remind hon. members of a question of privilege raised by the hon. member for Yukon (Mr. Nielsen) I believe some time last week, affecting the hon. member for Montmagny-L'lslet (Mr. Berger). I have given the matter serious consideration since that time and am now prepared to express an opinion or give a judgment on the question of privilege. However, I feel that perhaps it would be more in order to deliver my judgment when the hon. member for Yukon is in the house.

I notice that the hon. member for Mont-magny-L'Islet is in his seat at this time, so perhaps I should bring to the attention of the house a judgment which has been brought to the attention of the Chair and the Clerk of the House. This judgment reads in part as follows:

We, the undersigned. Chief Justice of the Superior Court of the Province of Quebec, sitting for the district of Quebec, on the applicant's petition, after having examined the facts alleged In the petition and the documents produced:

EXCUSE the applicant for failing to file his election expenses return;

AUTHORIZE the applicant to submit the said return within fifteen days from the date of the present ruling;

AUTHORIZE the applicant to act as if his return had been filed within the time limit prescribed by law.

Perhaps I should mention the fact that this does not necessarily close the matter in so far

February 28, 1966

Questions

as the question ol privilege is concerned but, if the house is in agreement, before rendering a judgment on the matter I suggest that we wait until both members are in their seats.

Topic:   PRIVILEGE
Subtopic:   MR. NIELSEN-RIGHT OF MEMBER FOR MONTMAGNY-L'ISLET TO VOTE IN HOUSE
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PC

Thomas Miller Bell

Progressive Conservative

Mr. Bell (Saint John-Albert):

Mr. Speaker, could we have the date of that judgment or

order?

Topic:   PRIVILEGE
Subtopic:   MR. NIELSEN-RIGHT OF MEMBER FOR MONTMAGNY-L'ISLET TO VOTE IN HOUSE
Permalink
LIB

Lucien Lamoureux (Speaker of the House of Commons)

Liberal

Mr. Speaker:

Perhaps the Chair might be given an opportunity to consult with the chief justice to find out when this was delivered, because there is no apparent date of delivery. It does indicate that it was received by the chief electoral officer and the Clerk of the House of Commons on February 28. That is the only date on this judgment now before the Chair and the House.

Before going on to orders of the day, I wish to point out to hon. members that after looking more closely at the judgment delivered by the Chief Justice of the Superior Court of the province of Quebec, I notice that the said judgment was delivered or is dated February 24, 1966.

Topic:   PRIVILEGE
Subtopic:   MR. NIELSEN-RIGHT OF MEMBER FOR MONTMAGNY-L'ISLET TO VOTE IN HOUSE
Permalink

February 28, 1966