April 13, 1945 (19th Parliament, 6th Session)

LIB

Clarence Decatur Howe (Minister of Reconstruction; Minister of Munitions and Supply)

Liberal

Mr. HOWE:

My department simply sits down with the contractor and says: "Look here, an audit of your books shows that you have made this large profit. We do not think you are entitled to that profit; we think a reasonable scale of profit would be this." The amount we have recovered out of those transactions runs into millions of dollars. There has been no great difficulty in arriving [Mr Howe.]
at a fair settlement. It is true that the shops to which my hon. friend refers will not have the refundable portion of their profits which they expect, but they will have the refundable portion to which they are entitled in equity. So far as I am concerned my department had no option; knowing that those profits existed we had to go out and recapture them. That is what we are doing.

Topic:   DEPARTMENT OF MUNITIONS AND SUPPLY
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