March 16, 1979 (30th Parliament, 4th Session)


James McPhail Gillies

Progressive Conservative

Mr. Gillies:

Mr. Speaker, given the fact that beef today is selling at $70 per hundredweight in Omaha and $84 per hundredweight in Toronto, the difference is exactly the difference in the exchange rate. Surely the minister must understand that the depreciation of the dollar is one of the major reasons for the increase in the price of beef in Canada today. It is exactly the differential.
I ask the Deputy Prime Minister, and I ask him in terms of his previous reincarnation as an economist, is it the position of the government that we can get inflation under control in this country as long as we have a stance on monetary and fiscal policy-I notice the increase in the money supply is 10 per cent, year over year, with real growth at 3 per cent-that leaves us with an exchange rate at 85 cents? I am not talking about pegging the dollar; I am talking about a change in the structure of monetary and fiscal policy to get the dollar up in order to control inflation. Is it the government's position that they need do nothing about that?

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