Hon. Martial Asselin (Charlevoix):

Mr. Speaker, I should like to direct a question to the Minister of Finance.

December 17, 1963

Inquiries of the Ministry

In view of the forthcoming federal-provincial meeting of the Ministers of Finance, would the minister tell the house whether the government intends to hand over certain taxation rights to the provinces so that they can honour their commitments, as the Quebec Minister of Finance mentioned last week-end?

Hon. E. J. Benson (Minister of Finance):

Mr. Speaker, I would simply like to say that we must retain certain taxation powers in order that we can face our responsibilities to the people of Canada.

Mr. Asselin:

Mr. Speaker, a supplementary question.

Is it the intention of the Minister of Finance to submit proposals to the provinces so that they can be prepared to meet their financial obligations?

Mr. Benson:

Mr. Speaker, of course I will be speaking with the ministers of finance of the provinces and with the provincial treasurers on Thursday. We will listen with understanding to their problems, and I also hope they will listen with understanding to ours.

Mr. Asselin:

A supplementary question, Mr. Speaker.

I would like to know whether the Minister of Finance is going to suggest, on behalf of the government, an amendment to the constitution concerning the financial jurisdiction of the federal government and the provinces, so that the provinces may honour their obligations?

Mr. Benson:

Mr. Speaker, I think this is a matter that would have to be discussed at the constitutional conference. If there is to be a reallocation of powers agreed upon under the revised constitution, then of course there must also be a reallocation of means for meeting the revised responsibilities in the hands of the provinces or of the federal government.

Right Hon. J. G. Diefenbaker (Prince Albert):

Mr. Speaker, I should like to ask the

Minister of Finance a question. We are approaching Christmas, and although the Minister of Finance is not usually Santa Claus could he give some hope to the Canadian people that the confiscatory rates, which as he has announced will be imposed under inheritance and estate taxes, if parliament accepts the measure, will be considerably reduced when the legislation is presented?

Hon. E. J. Benson (Minister of Finance):

Mr. Speaker, I cannot give any hope for a reduction in the rates. The rates were designed to free from estate tax the movement of estates from husband to wife, and other rates had to be adjusted. I should like to point out to my hon. friend that on estates of $200,000 to $250,000 passing on to children in some instances the taxes are lower under the new estate tax than they were under the previous legislation.

Mr. Diefenbaker:

Mr. Speaker, a $200,000 estate does not interest me one bit. What I am asking is, what about those tremendous rates that the minister is going to impose? After the husband dies his wife inherits his estate, and after she dies the estate will be almost completely wiped out by heavy taxation. Does the minister not think some relief is due to the Canadian people from such a hold-up?

Hear, hear.

Mr. Benson:

Mr. Speaker, I know $200,000 to $300,000 is far below what my right hon. friend would consider as an estate. However, I should simply like to repeat what I said, that in some instances when a family farm worth $200,000 to $300,000 is passed on to children, the estate taxes under the new law will be smaller than they are at present.

Mr. Ed Schreyer (Selkirk):

Mr. Speaker, my question is directed to the Prime Minister. There have been some news reports indicating that the Prime Minister stated at a meeting last Friday that Canada's present commitment in NATO will be maintained. I should like to ask the Prime Minister whether the government's present foreign policy review as it relates specifically to our NATO commitment has been concluded and a decision taken.

December 17, 1968 COMMONS

Mr. Speaker, the premise is not in accordance -with the facts. I have never said that, nor have I seen it reported anywhere.