Hon. Robert L. Stanfield (Halifax):

Mr. Speaker, I would like to direct a question to the very nimble Minister of Finance and the Acting Prime Minister. It concerns the extraordinarily complacement remarks made yesterday that the rate of inflation is a little high. With, now, five years since the last election and with the rate of inflation running at about 9 per cent annually, I ask the minister what has happened to the fiery desire of his leader to wrestle inflation to the ground?

What has happened to the assurances given by the government some four years ago that by now we would have a rate of inflation of 4 per cent? Why is the Minister of Finance now almost accepting the current rate of inflation and saying that it is a little high?

Mr. Stanfield:

Mr. Speaker, we have had a succession of assurances and predictions from successive ministers of finance, yet what we have is a state of affairs where the rate of inflation is around 9 per cent and Canadians are now borrowing money to maintain their standard of living.

Does the Minister of Finance and his colleagues say nothing more than "Zap; you are frozen at a rate of inflation of 8 to 9 per cent"?

Mr. Stanfield:

Do I undertand, Mr. Speaker, that the hon. member is opposing or, at least, expressing reservations about the east being served more adequately by the enlargement of the pipeline to Montreal and the east?

Mr. Stanfield:

Mr. Speaker, I must compliment the Deputy Prime Minister in one respect at least. I think he is being honest: he is not predicting any reduction in the rate of inflation, although he sees some hopeful signs. I do not want to misinterpret him, but in view of the policy of the government which is, as far as one can see, the establishment of a Mickey Mouse surveillance operation, and in view of the position of

March 16, 1979

the Deputy Prime Minister today that while he sees some hopeful signs, he is not able to give the Canadian people any assurance, is it not fair to assume that we have to expect, under this government, the continuation of a rate of inflation around 8.5, 9, 10 or 11 per cent?

Can the Deputy Prime Minister give us any reason to believe that with the policies of this government, or the policies he has described this morning, we can look forward to the return of a sensible degree of stability?

Hon. Robert L. Stanfield (Halifax):

Mr. Speaker, my question is for the Deputy Prime Minister who said he was interested in facts relating to inflation. One fact is, of course, that two or three years ago the government predicted that the rate of inflation by last October would be down some 4 per cent. Unfortunately, it is not.

Can the Deputy Prime Minister indicate what the rate of inflation will be in the coming months? Is it still his position that the rate of inflation is going to settle down, that it is going to reduce, and what does he think will bring this about? Can he give us something firm to go on, in view of the unfortunate predictions and assurances that have been given in the past?