Hon. J. L. ILSLEY (Minister of Finance):
I desire to announce to the house that a basis of settlement has been agreed upon with the province of Saskatchewan in reference to the seed grain dispute, so-called, which has been going on between that province and the dominion government. Under this settlement the balance owing the dominion by the province of Saskatchewan in respect of the 193S seed grain loan will be paid by the province as follows:
$6,626,664.68 to be paid monthly as collected from municipalities and to be paid in full as an obligation of the province by July 31, 1948.
$7,570,123.72 to be paid by the province over a period of eleven years.
Pursuant to this settlement the province will undertake to collect in the immediate future the amount owing by the farmer debtors under the compromise which the province made with them last year. As such moneys are collected from the farmers they will be paid by the province to the dominion. The balance of the total outstanding indebtedness will be paid by the province to the dominion, as I have said, over a period of eleven years and will be secured by noninterest bearing treasury bills of the province.
I may add that a statement substantially to this effect was given to the press last night, but it was reported as indicating that the dominion had undertaken to forgo the collection of some $2,272,000 of the principal. That is not correct. The $2,272,000 has been collected from the province already by way of deductions from payments to the province-
under the tax agreements, leaving $14,196,788 still due, the settlement of which has been arranged in the manner 1 have indicated.
The matter, I think, has been settled on a basis satisfactory to both the dominion and the province, and my hope is that future relations between the dominion and the province in regard to this matter will be harmonious and cooperative, and that there will be no further dispute or misunderstanding arising out of the seed grain loans.
Subtopic: ANNOUNCEMENT OP SETTLEMENT OF LOAN TO PROVINCE OF SASKATCHEWAN