Hon. J. L. ILSLEY (Minister of Finance):
The question of the validation of the agreements with the provinces is now receiving
the consideration of the Department of Justice. It was assumed throughout the negotiations that this government had been given the authority to enter into these agreements by the relevant section of the supplementary appropriation act which was passed last spring. Last Friday, Mr. Conant, the attorney general of the province of Ontario, for the first time raised the question that this was not sufficient authority and stated that if the province of Ontario entered into an agreement with the dominion they would like it ratified by the parliament of Canada. I told Mr. Conant directly then and there that he was entitled to ask that we have the necessary authority to enter into an agreement and that I would consult the Department of Justice at once and if an act was required, that act would be introduced.
Subtopic: DOMINION JURISDICTION IN RESPECT OF INCOME AND CORPORATION TAXES