May 9, 1938 (18th Parliament, 3rd Session)


Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)


Had they not? Well, we shall not discuss that phase of the matter. This is not for the moment a partisan discussion. How are you going to deal with that situation? How are you going to secure to the Canadian producer, manufacturer, the home market to the greatest possible extent and not permit him to raise prices? First, we got him to sign that he would not do so. Ah, but you say, you cannot rely oh that. We always become very doubting when we have to deal with that phase of the matter. But if hon. members will turn to chapter 30 of the statutes of 1931, they will see in section 17 how it was dealt with. It is referred to by . Mr. Justice Turgeon in the textile report. Let us read it:
17. (1) In the event of producers of goods taking advantage of any duty imposed under this act to increase the price of such goods to the consumer, or using any such duty to maintain prices at levels deemed by the governor in council to be higher than should prevail, having regard to general economic conditions in the country, the governor in council may reduce or remove such duty.
(2) In the event of any one such producer violating the provisions of this section, the governor in council may impose upon all the

Farm Implements Committee Report
products of such producer, or any of them, an excise duty equivalent to the amount of customs duty which would be paid by such goods if the same were imported into Canada under the provisions of the general tariff, and the same shall be collectible as a tax, and the provisions of the Income War Tax Act as to the collection of taxes shall be applicable hereto.
Provided, that neither subsection of this section shall apply to agricultural products.
There was the condition to which we were directing our attention. There is the remedy suggested. It divides itself into two phases. One relates to the individual who gets out of line, pays no attention to anything, but just raises his prices for his own purposes, having regard to his geographical location or some other such cause. What do we do? We impose an excise tax equal to the customs tax. Then there is the class as a whole, the agricultural implement producers as a whole. We say to them that if they do this, then we remove the duty altogether. What is more-

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