Hon. Alastair Gillespie (Minister of Industry, Trade and Commerce):

Mr. Speaker, we have been in very close touch with the industry. In particular, we are trying to assist the parts industry which suffered the greatest slowdown last year. The hon. member should know that the strength of the Canadian automobile industry depends now, and will in the long run, on the strength of the United States market. Very close to 80 per cent of the production of Canadian auto plants goes to the United States. When that market is weak, it has an effect on the Canadian auto industry.

Mr. Broadbent:

A final supplementary, Mr. Speaker. Since the major reason that 80 per cent of production goes to the United States is that cars produced here are sold $400 or $500 cheaper in the United States than they are in Canada-hence the lower percentage of sales in Canada-I ask the minister if he will consider removing the 12 per cent federal tax on automobiles in Canada on condition that the automotive industry in this country brings down prices to Canadians to at least the American level, which kind of action is about ten years overdue.

Mr. Gillespie:

Mr. Speaker, any reduction with respect to sales tax would have no effect on the major part of our market; that is to say, the 80 per cent of the output which goes to the U.S. market.

Mr. Adrien Lambert (Bellechasse):

Mr. Speaker, I would like to ask the Minister of Transport a question.

Since railways have decided to apply the new freight rates, could the minister tell the House whether the Transport Commission will be or has been called upon to modify the subventions granted for transportation of goods in the area east of Levis towards the Gaspe peninsula, and whether this review will also apply to trucking?

Hon. Jean Marchand (Minister of Transport):

Mr. Speaker, the simple answer to the second part of the question is no. As for the first part, I know this problem is still discussed between railway companies, the Canadian Transport Commission and the courts. So it will be a few weeks before we know exactly what the situation is.

Mr. Art Lee (Vancouver East):

Mr. Speaker, as you know, today is Chinese New Year's for Canadians of Chinese ancestry.

Hear, hear!

Mr. Lee:

Therefore, I feel it is fitting that I wish you and all hon. members "gong hing fat choy". This New Year, by the Chinese lunar calendar, is 4673 and is the year of the hare.

Is the hare going to get you?

Mr. Nielsen:

The hair of the dog that bit you.

Mr. Lee:

In view of the fact that the hare symbolizes a good year for production, I would like to ask the Acting Prime Minister whether he believes that all Canadians, particularly those of Chinese ancestry, will have a productive year.

Hon. Mitchell Sharp (Acting Prime Minister):

Mr. Speaker, I am sure we all very much appreciate the comments made by one of the most distinguished representatives of the Canadian Chinese family.

Mr. Turner (Otta-va-Carleton):

Hear, hear!

Mr. Basford:

Mr. Speaker, I just want to second the remarks of the hon. member for Vancouver East and hope they are true.

Mr. Heward Grafftey (Brome-Missisquoi):

Mr. Speaker, my question which is based on recent statistics which show a rise in violence and crime in Canada, is directed to the Solicitor General. In so far as many experts attribute this rapid rise in violence and crime in Canada in part to a faulty classification system which oft times puts maximum offenders in medium security institutions, what action is the minister contemplating to upgrade and improve the classification system relating to inmates?

Hon. Warren Allmand (Solicitor General):

Mr. Speaker, the classification system is under review. I should point out to the House that it is the other way around in many cases-we have medium security inmates in maximum security institutions when they should be in their own type of institution.

Oral Questions