May 31, 1976

LIB

Donald Stovel Macdonald (Minister of Finance)

Liberal

Hon. Donald S. Macdonald (Minister of Finance):

Mr. Speaker, the economic review dealt with the updated United States information pointing out that the disadvantageous situation which had appeared to exist as between Canada and the United States was not as severe as we had anticipated.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   ALLEGED USE OF ERRONEOUS UNITED STATES PRODUCTIVITY FIGURES
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ANTI-INFLATION PROGRAM ALLEGATION WRONG DATA USED AS BASIS FOR IMPOSITION OF PROGRAM

NDP

John Edward Broadbent

New Democratic Party

Mr. Edward Broadbent (Oshawa-Whitby):

Mr. Speaker, that is some understatement. We have gone from a claim to being only half as productive to being twice as productive in terms of increases. That's some difference. As the minister, when introducing the wage and price control program last fall, said that cost-push inflation threatened to price our goods out of world markets, will he now admit that his data then was wrong and that it was the major justification for a wage and price control program? If that is so, if he has now changed his mind, as he just acknowledged in his answer and admitted that the data was wrong, does the program have any further justification?

Topic:   ORAL QUESTION PERIOD
Subtopic:   ANTI-INFLATION PROGRAM ALLEGATION WRONG DATA USED AS BASIS FOR IMPOSITION OF PROGRAM
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LIB

Donald Stovel Macdonald (Minister of Finance)

Liberal

Hon. Donald S. Macdonald (Minister of Finance):

Mr. Speaker, I had occasion last fall and many times since, both inside and outside the House, to point out that until the middle of the summer of 1975 we could not justly blame wage settlements in Canada as being the basis for the creation of inflation in Canada. As we pointed out in introducing the anti-inflation program, we were concerned because in the fall of 1975 the level of demands in wage negotiations and, indeed, wage settlements themselves, running up to between 20 per cent and 30 per cent had created, in the words of the hon. gentleman, a threat which would put the Canadian economy, in time, in a disadvanta-

Oral Questions

geous position. We were faced with the threat of a substantial cost addition to the Canadian economy which would affect our competitive position. As I pointed out many times, for that reason we introduced the program not because of figures existing prior to the middle of 1975.

Topic:   ORAL QUESTION PERIOD
Subtopic:   ANTI-INFLATION PROGRAM ALLEGATION WRONG DATA USED AS BASIS FOR IMPOSITION OF PROGRAM
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FINANCE

NDP

John Edward Broadbent

New Democratic Party

Mr. Edward Broadbent (Oshawa-Whitby):

A supplementary question, Mr. Speaker. For the first time in five years Canadian wage increases were running ahead of United States wage increases for a number of months, and the minister says the government had to bring in a program to deal with that. We do not agree. The minister said more recently that 50 per cent of the goods we produce is intended for export. I point out that only 28 per cent of the manufacturing sector in Canada is in the export business, or primarily in the export business. Considering this correction of his own recent figures, will he now reconsider the government's position announced in the budget on the issue of the tax cut and bring forward a tax cut soon for the average and low income people as the principal means of stimulating the Canadian economy?

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   POSSIBILITY OF TAX CUTS FOR AVERAGE AND LOW-INCOME GROUPS
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LIB

Donald Stovel Macdonald (Minister of Finance)

Liberal

Hon. Donald S. Macdonald (Minister of Finance):

Mr. Speaker, on the first assertion made by the hon. member, indeed it had to be of concern to a great many Canadians, if not to the hon. member and his colleagues, that the rate of inflation last October was 10.6 per cent. There was a widespread feeling in Canada that action should be taken, if necessary by direct controls. It was not as the hon. member seeks to represent. Simply the fact that there had been this move in the wage rates in Canada had to be of serious consideration. The fact was that a 10.6 per cent rate of inflation was more than we felt Canadians should bear. The hon. member has never given any indication as to what, if anything, he would have done about the increase.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   POSSIBILITY OF TAX CUTS FOR AVERAGE AND LOW-INCOME GROUPS
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TRANSPORT

SC

David Réal Caouette

Social Credit

Mr. Real Caouette (Temiscamingue):

Mr. Speaker, my question is directed to the Minister of Transport.

Could the minister tell the House whether he has received some complaints lately from Quebec Frenchspeaking railwaymen apparently frustrated since, as a security measure, they are unable to use French in their work? If so, does the minister soon intend to make an inquiry in this connection to avoid similar conditions as those which have prevailed and still do in the airports and which could extend in the near future to the entire communication sector?

May 31, 1976

Oral Questions

Topic:   ORAL QUESTION PERIOD
Subtopic:   TRANSPORT
Sub-subtopic:   REQUEST FOR INQUIRY INTO USE OF FRENCH AS WORKING LANGUAGE BY QUEBEC RAILWAY EMPLOYEES
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LIB

Otto Emil Lang (Minister of Transport; Minister responsible for the Canadian Wheat Board)

Liberal

Hon. Otto E. Lang (Minister of Transport):

Mr. Speaker, I will certainly inquire to see if such a complaint has been registered. I have not seen it personally, but I will check to see if it has been received in my office.

Topic:   ORAL QUESTION PERIOD
Subtopic:   TRANSPORT
Sub-subtopic:   REQUEST FOR INQUIRY INTO USE OF FRENCH AS WORKING LANGUAGE BY QUEBEC RAILWAY EMPLOYEES
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AIR TRANSPORT

SC

David Réal Caouette

Social Credit

Mr. Real Caouette (Temiscamingue):

Mr. Speaker, I should like to put a supplementary question to the President of the Treasury Board. The other evening I saw on television that in Italy, for example, in aviation, English and Italian and elsewhere English or Spanish, English and Chinese and English and Japanese are used. I accept his premise and recognize that English is the international language of aviation. Is the President of the Treasury Board in position to state that there is no cowardice on the part of the government, because it is serious to hear the member for Matane say that the cabinet is cowardly or unreliable when it comes to bilingualism. Is he in a position also to say whether indeed French will be recognized in Canada as in other countries as a second language in aviation?

Topic:   ORAL QUESTION PERIOD
Subtopic:   AIR TRANSPORT
Sub-subtopic:   INQUIRY WHETHER FRENCH RECOGNIZED AS SECOND WORKING LANGUAGE IN AVIATION
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LIB

Joseph Jacques Jean Chrétien (President of the Treasury Board)

Liberal

Hon. Jean Chretien (President of the Treasury Board):

Mr. Speaker, the facts are self-explanatory. There are already five bases in Quebec where French is officially used. The question, as so aptly explained by the Minister of Transport, is that in large airports as in Montreal, the safety problem is a very important factor and we are having an inquiry commission on that matter. I wish to confirm to the hon. member that bilingualism in Canada is non negotiable, it is a Parliament legislation and we will abide by the legislation voted by the House of Commons.

Topic:   ORAL QUESTION PERIOD
Subtopic:   AIR TRANSPORT
Sub-subtopic:   INQUIRY WHETHER FRENCH RECOGNIZED AS SECOND WORKING LANGUAGE IN AVIATION
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NATIONAL DEFENCE

PC

J. Michael Forrestall

Progressive Conservative

Mr. J. M. Forrestall (Dartmouth-Halifax East):

Mr. Speaker, in the absence of the Minister of National Defence, I will direct my question to his parliamentary secretary. He has been given notice of the question. Has the United States been testing or are they going to test their new sleeping torpedo, sometimes called the Captor, at the underwater test station at Nanoose Bay?

Topic:   ORAL QUESTION PERIOD
Subtopic:   NATIONAL DEFENCE
Sub-subtopic:   TESTING OF NEW UNITED STATES TORPEDO AT NANOOSE BAY-FINANCIAL ARRANGEMENTS FOR USE OF TEST STATION
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LIB

Maurice Adrian Dionne (Parliamentary Secretary to the Minister of National Defence)

Liberal

Mr. Maurice A. Dionne (Parliamentary Secretary to Minister of National Defence):

Mr. Speaker, I wish to thank the hon. member for giving me notice of the question. The delivery system of the Captor is indeed being tested at Nanoose range. I might point out that the Captor carries a charge of approximately one pound.

Topic:   ORAL QUESTION PERIOD
Subtopic:   NATIONAL DEFENCE
Sub-subtopic:   TESTING OF NEW UNITED STATES TORPEDO AT NANOOSE BAY-FINANCIAL ARRANGEMENTS FOR USE OF TEST STATION
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PC

J. Michael Forrestall

Progressive Conservative

Mr. Forrestall:

One pound is about all that a nuclear warhead weighs. Can the parliamentary secretary advise

the House as to the financial arrangements between Canada and the United States for the use of the Nanoose installation? We carry out so little in the way of weapon development ourselves that I imagine it is used mainly by the Americans. Can the parliamentary secretary tell us just what are the financial arrangements between the two countries with respect to the use of this station?

Topic:   ORAL QUESTION PERIOD
Subtopic:   NATIONAL DEFENCE
Sub-subtopic:   TESTING OF NEW UNITED STATES TORPEDO AT NANOOSE BAY-FINANCIAL ARRANGEMENTS FOR USE OF TEST STATION
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LIB

Maurice Adrian Dionne (Parliamentary Secretary to the Minister of National Defence)

Liberal

Mr. Dionne (Northumberland-Miramichi):

The

Nanoose range is an acoustic range for testing underwater devices; its facilities are shared between the Americans and ourselves. We supply the range itself and half the personnel, while the Americans supply the test equipment and the other half of the personnel. There is a sharing of information. The range is used for underwater testing because the water there is relatively quiet and deep and because it is one of the few sites available on the West Coast for such a purpose. It is not unusual for Canada to share the range with other nations. As a matter of fact, not too long ago the Russians, with Canadian concurrence, used the range for testing the Pisces.

Topic:   ORAL QUESTION PERIOD
Subtopic:   NATIONAL DEFENCE
Sub-subtopic:   TESTING OF NEW UNITED STATES TORPEDO AT NANOOSE BAY-FINANCIAL ARRANGEMENTS FOR USE OF TEST STATION
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ANTI-INFLATION BOARD REASON BOARD USES PERSONNEL LENT BY PRIVATE SECTOR-POSITION OF PRIVATE SECTOR ON REMUNERATION AND LOSS OF SERVICE OF EMPLOYEES

PC

Elmer MacIntosh MacKay (Progressive Conservative Party Caucus Chair)

Progressive Conservative

Mr. Elmer M. MacKay (Central Nova):

Mr. Speaker, I wish to address a question to the Minister of Finance with respect to hiring practices under the Anti-Inflation Board. Can the minister confirm that major banking and trust institutions have on occasion been approached by government to lend personnel to the Anti-Inflation Board on the basis that the employers will be reimbursed for salaries paid to their personnel in their absence while working for the Board? Is this done in order to give the appearance to the public that the AIB has, in fact, less staff and expenses attributable to its operations than is actually the case?

Topic:   ORAL QUESTION PERIOD
Subtopic:   ANTI-INFLATION BOARD REASON BOARD USES PERSONNEL LENT BY PRIVATE SECTOR-POSITION OF PRIVATE SECTOR ON REMUNERATION AND LOSS OF SERVICE OF EMPLOYEES
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May 31, 1976