May 16, 1978 (30th Parliament, 3rd Session)


Herbert Thomas (Bert) Hargrave

Progressive Conservative

Mr. Hargrave:

Surely it is appropriate to suggest that Canada is a nation of small business operations with farmers leading the way. The time is long overdue for considered attention to be given to our small business sector along the lines of the motion we are presently debating with its five-step policy suggestions.
Before concluding these brief remarks it seems appropriate to comment on the Bryce report which I mentioned at the beginning of my speech. The suggestion that the capital gains tax should cease can be taken as the end result of seven years of serious inflation which began with the introduction of this new tax approach on, I believe it was, January 1, 1972. It seems to me that either the capital gains tax has to go or inflation must be positively controlled. The capital gains tax rollover provision in the budget last month affecting incorporated family farms is a direct result of the serious threat to family farms due to a combination of inflation and the capital gains tax.
As to the other suggestion in the report that we can live with big business, 1 say that if Canada is serious about engaging successfully in international trade, big business is not only justified but necessary, if only to take advantage of economies of scale. I can also agree with the recommendation in the report that corporate profits ought not to be taxed provided they are re-invested in the business. After all, that is how all business grows, especially small business. I would add, in conclusion, that farmers have always had to do this, though with them it has been a survival technique.

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