September 11, 1950 (21st Parliament, 3rd Session)


William Joseph Browne

Progressive Conservative

Mr. Browne (St. John's West):

There are
one or two observations I should like to make. One has reference to the operation of the Farm Improvement Loans Act in Newfoundland. The provincial government has recently passed three acts. One deals with loans to farmers for the purpose of making improvements; the second is to assist fishermen, and the third is an industrial loan. A large amount of money has been provided in each case. They have set up these banks, as they call them, and appointed new managers. The intention is to lend money to farmers and fishermen to purchase equipment.
For example, if a fisherman wants to get a fairly good sized boat, with an engine that may cost $1,000, he can go to the loan board and obtain a loan. I think that is covered under this particular bill, and I should like to draw the attention of the minister to the three new loan boards established in the province of Newfoundland. They have just started to operate. We are not over-flush with money in Newfoundland, and it is desirable that fishermen and farmers should be given some encouragement. As a matter of fact, traditionally fishery has been carried on by means

of credit. The merchant goes to the bank and borrows perhaps $10,000, $20,000 or $30,000 to buy supplies. Then he gives out those supplies on credit to the fishermen without any security at all. The fishermen start fishing in June and turn in their fish toward the end of August, or in September or October. The fisherman pays for the supplies he gets at the end of the season. I should like the minister to keep the conditions in Newfoundland in mind because we. need credit there to carry on our business.

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