March 10, 1944 (19th Parliament, 5th Session)

SC

Victor Quelch

Social Credit

Mr. VICTOR QUELCH (Acadia):

Mr. Speaker, I have read this measure with a great deal of interest, but the more I study it, the harder I find it to understand just exactly its purpose. I have listened to the statements of various members of this house. Some hon.- members have suggested that the purpose of the measure is to salvage investments of the chartered banks which have gone sour. Others have suggested that it is to take on business wffiich is too risky for the chartered banks to handle. The minister himself has suggested that its purpose is to fill in the gap that cannot be filled by the chartered banks.
We have no idea of what will be the rate of interest charged by this bank, neither do we know whether it will secure its funds from the Bank of Canada or by the sale of bonds to the public. We do not know what rate of interest those bonds will bear. In other words, it is a kind of pig in a poke; it is quite a bit like a blind .date. You do not know what you are going tc get, you do not know w-hether you will like it when you get it, and you do not know whether you will be able to discard it after you have it.

Industrial Development Bank
When we consider the expansion that has taken place during the war, an expansion which has increased the national income from around $4 billion to $8J or $9 billion, I doubt very much if this measure will be able to play a very important part. I doubt still more whether there will be any need for such a measure after the war. This measure provides a fund of only SlOO million, and, according to the parliamentary assistant to the Minister of Finance, the money will be lent out chiefly for long term purposes.

Topic:   INDUSTRIAL DEVELOPMENT BANK
Subtopic:   PROVISION OF ADDITIONAL CREDIT FACILITIES FOR FIXED AND WORKING CAPITAL
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