DOMINION OF CANADA


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mi-
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3 GEORGE VI, 1939

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House of Commons Debates
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Thursday, January 12, 1939

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The parliament which had been prorogued from time to time to the twelfth day of January, 1939, met this day at Ottawa, for the dispatch of business.

Mr. Speaker read a communication from the Governor General's secretary, announcing that His Excellency the Governor General would proceed to the Senate chamber at three p.m. on this day, for the purpose of formally opening the session of the dominion parliament.
A message was delivered by Major A. R. Thompson, Gentleman Usher of the Black Rod, as follows:
Mr. Speaker, His Excellency the Governor General desires the immediate attendance of this honourable house in the chamber of the honourable the Senate.
Accordingly the house went up to the Senate chamber.
And the house being returned to the Commons chamber:

Mr. SPEAKER:: I have the honour to
inform the house that during the recess I received communications from several members, notifying me that the following vacancies had occurred in the representation, viz:
Of Frederick Cronyn Betts, Esquire, member for the electoral district of London, by decease;
Of Alexander McKay Edwards, Esquire, member for the electoral district of Waterloo South, by decease;
Of Samuel William Jacobs, Esquire, member for the electoral district of Cartier, by decease;
Of David Wilson Beaubier, Esquire, member for the electoral district of Brandon, by decease.
I accordingly issued my several warrants to the chief electoral officer to make out new writs of election for the said electoral districts,
respectively.
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NEW MEMBERS

Walter Edward Foster: I have the honour to
inform the house that the clerk of the house has received from the chief electoral officer certificates of the election and return of the following members, viz:
Of Peter Bercoviteh, Esquire, for the electoral district of Cartier;
Of Karl K. Homuth, Esquire, for the electoral district of Waterloo South;
Of the Hon. Robert James Manion, for the electoral district of London;
Of James Ewen Matthews, Esquire, for the electoral district of Brandon.



NEW MEMBERS INTRODUCED

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Hon. Robert James Manion, member for the electoral district of London, introduced by Mr. Robert Smeaton White and Hon. Earl Lawson.
Peter Bercoviteh, Esquire, member for the electoral district of Cartier, introduced by Right Hon. W. L. Mackenzie King and Hon. Fernand Rinfret.
James Ewen Matthews, Esquire, member for the electoral district of Brandon, introduced by Right Hon. W. L. Mackenzie King and Hon. T. A. Crerar.
Karl K. Homuth, Esquire, member for the electoral district of Waterloo South, introduced by Hon. R. J. Manion and Hon. H. A. Stewart.

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Right Hon. W.' L. MACKENZIE KING (Prime Minister): Mr. Speaker, with your permission and the permission of hon. members of the house, I should like to extend to my hon. friend immediately opposite (Mr. Manion), not only personally but on behalf of all hon. members, very warm congratulations upon assuming, as he does to-day, the office of leader of His Majesty's Loyal Opposition in
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Hon. R. J. Manion
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this House of Commons. I should like to renew as well the congratulations I previously extended to him on his having been chosen on July the seventh of last year as the leader of the National Conservative Party of Canada, and upon the confidence thereby expressed in him on the part of members of his party.
My hon. friend will not expect me to say anything at the present time with respect to his leadership either of the opposition or of the Conservative party. No doubt I shall have occasion to refer to both from time to time as we go along. I should like, however, to say to him at once how pleased I am, and I am sure I can say the same on behalf of all hon. members who were associated with my hon. friend in previous parliaments, to see him again in the House of Commons.
My hon. friend brings to the two positions which he now holds personal attainments and professional achievements of a high order, a wide and quite exceptional parliamentary experience, and, also, in other ways, a long and intimate association with the public life of our country. I am sure I may say to him that in the discharge of his responsible duties as leader of the opposition he will have the understanding and the goodwill of members of all parties in this house. Personally may I extend to him in the position he now holds my very best wishes.
Hon. R. J. MANION (Leader of the Opposition):: Mr. Speaker, I should like to sxpress to my right hon. friend (Mr. Mackenzie King) my very sincere and deep appreciation of the kindly and courteous manner in which le has welcomed me to the house. May I extend as well to the whole house my deep appreciation of the generous reception which they have given me on my reentrance, after an absence of three or four years.
I realize, of course, that the acclaim which I am given is not personal, but is a recognition of the position which I have the honour to hold of leader of one of the great parties of Canada. It is a recognition also of the constituency of London, which at the moment I have the honour to represent, some of my friends in which constituency were good enough to send this gorgeous bouquet of roses which stands here to-day before me.
In expressing my appreciation of the remarks of the right hon. gentleman I desire at the same time to commend his invariable courtesy in all the amenities of parliamentary life. I have been associated with him-perhaps I should say associated against him-for very many years. He and I have crossed swords probably more often than any other two members in this house; but in spite of all

that, if he will permit me to say so, we have ever remained good friends. I did say before the Canadian Club on one occasion that this fact probably speaks more to his credit than it does to mine, because I am rather a more rough and tumble fighter and he has therefore more to forgive.
I assure you, Mr. Speaker, that I am also deeply conscious of the responsibilities and the heavy duties of the position which I am attempting to fill, and I do hope that in the discharge of those duties in this house I shall always live up to the traditions of fair play which are accepted and adhered to by those who, opposing each other in public affairs, believe in the better elements of public life.
One 6f the things of which I feel rather proud is the fact that after so many years in this house, nearly twenty, and many bitter fights, I believe-in fact, at the moment I am sure-that I can count more friends on the other side of the house than I do on this side. Of course, it will not be the same after the next election.
I hope that in serving in this house as leader of His Majesty's Loyal Opposition I may fill the office in such a manner as never to cause hard feelings. It is also my hope that while serving Canada through my party in this house I may always assist in the facilitation of public business. And-if I may express one last hope-I trust that I shall fill my position so well that the right hon. gentleman will shortly be willing to change places with me.



OATHS OF OFFICE

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Right Hon. W. L. MACKENZIE KING
(Prime Minister) moved for leave to introduce Bill No. 1, respecting the administration of oaths of office.
Motion agreed to and bill read the first time.

Walter Edward Foster: I have the honour to
inform the house that when the house did attend His Excellency the Governor General this day in the Senate chamber, His Excellency was pleased to make a speech to both houses of parliament. To prevent mistakes, I have obtained a copy, which is as follows: Honourable Members of the Senate:
Members of the House of Commons:
The announcement that Their Majesties King George VI and Queen Elizabeth have graciously decided to visit Canada in the months of May and June has been received with rejoicing throughout the dominion. The honour of welcoming their king and queen, in person, on their own soil, is a privilege which will be shared *with enthusiasm and pride by all His Majesty's Canadian subjects. The visit will be

Governor General98 Speech
the first paid by the reigning sovereign to any of his self-governing dominions. It will be the first time a British king and queen have been in North America. It is deeply gratifying that their majesties' tour will embrace all the provinces of Canada.
The official visit paid Canada in August last by the President of the United States was the occasion of unusually warm demonstrations of friendship and understanding upon both sides of our common border. It is particularly pleasing to the citizens of our country that the king and queen have found it possible to accept the invitation of the president to visit the United States before the conclusion of their Canadian tour.
My ministers have found it necessary to give anxious and continuous consideration to developments in the international situation and their effects upon Canada. Our own relations with other countries continue friendly, but the aggressive policies actively pursued in other continents have inevitably had a disturbing effect upon every part of the world.
The government shared in the general sense of relief that the appalling disaster of war, which threatened Europe during the month of September last, was averted, and in the recognition which that crisis manifested of the widespread will of the peoples for peace. They are hopeful that the efforts now being made to find a solution for the specific differences which are causing friction will meet with success. They recognize, nevertheless, that time is required for these forces to work, and that the possibility of further tension in the meantime must be faced. In this situation, the government have considered that the uncertainties of the future, and the conditions of modern warfare, make it imperative that Canada's defences be materially strengthened.
Two years ago, the appropriations for defence were substantially increased, and a beginning made on a program of modernization to safeguard the country from the dangers of attack. The government intend to pursue this policy vigorously, and to propose to parliament that . the program of defence should be further augmented, and that particular emphasis should be laid upon air defence.
Legislation will be introduced to establish a defence purchasing board with power to purchase equipment for the defence services and to ensure that, where private manufacture is necessary, profits in connection with such are fair and reasonable, and that the public interest is protected.
While taking the measures necessary to assure the maintenance of our national integrity against the possibility of external aggression, the government have sought in positive ways to strengthen the mutual interests which unite Canada in friendly relations with other countries.
You will be asked to approve the trade agreement with the United States of America, signed at Washington on November 17, 1938. This agreement fulfils the hope expressed in the speech from the throne, last year, for an agreement with the United States, which would confirm and enlarge the advantages of the agreement concluded in 1935.
Simultaneously with the conclusion of the new agreement between Canada and the United States, a far-reaching agreement was effected between the United States and the United Kingdom. Taken together, the agreements constitute a constructive contribution toward a 71492-1*
betterment of world conditions. It is deeply gratifying to the government that in their efforts to increase, and to ensure over a longer period of time, the advantages to Canadian producers and consumers secured in earlier agreements, they were able, at the same time, to further the ends of international goodwill.
The Canada-United States agreements have involved, in addition to the wider markets secured for Canadian products, a thoroughgoing revision of the Canadian tariff structure, and a reduction of taxes on trade much greater than that made by any previous parliament, or by any other country in recent years.
Notice has been given, effective December 31, 1939, terminating the Canada-West Indies agreement concluded in 1925.	ministers hope
that negotiations will shortly be entered upon leading to a new agreement which will be mutually beneficial to the West Indian colonies and to Canada. In connection therewith the tariff board has been directed to make a careful examination of the sugar preferences and duties.
Unemployment in Canada continues to receive the unremitting attention of local, provincial and federal authorities. Having regard to the existing division of powers and obligations under the British North America Act, responsibility for unemployment and the solution of its problems is necessarily divided. There has been an increasing assumption of obligations on the part of the federal government.
Employment in war industry and the regimentation of masses of men for purposes of war have, to appearances, afforded in some countries a solution of their problem of unemployment. In Canada other methods of dealing with the problem have been followed.
The dominion government have taken active measures to stimulate private employment through the home improvement plan, the National Housing Act, and the Municipal Improvements Assistance Act. . Under these measures certain local taxes have been assumed, and loans made to individuals, organizations and municipalities. The sales tax has been eliminated on important building materials, opecial aid has been given to the mining industry by subventions, tax exemptions and improved transportation facilities. At the same time, direct employment has been increased through a substantial expansion of federal public works, and through assistance given to the provinces in the construction of highways, for land settlement, for special projects for farm employment and for forest conservation.
Provision has been also made by the dominion government for grants-in-aid to the provinces to assist in the care of those suffering from unemployment and agricultural distress.
The various measures adopted to stimulate employment and afford relief to those in need have operated most successfully in those provinces which have supported them with lull cooperation.
In Canada, the problem of unemployment has been aggravated in recent years by recurrent crop failures in the western provinces, and by the serious business recession experienced in the last year in other parts of the world. The intensification of the problem has set forth in bold relief the obstacles which the existing division of constitutional authority places in the way of a solution.
The report of the commission on dominion-provincial relations will be presented to parliament in the course of the present session. In accordance with the purpose for which the
Governor General's Speech

commission was instituted, its report will provide the basis for, and the material essential to the deliberations of a national conference, at which, among the important subjects to be dealt with, will be the problem of unemployment and social services generally. The government have not altered their view that a national unemployment insurance scheme is essential to a permanent policy of meeting the problem of unemployment.
My ministers recognize that the plight of those who are still unemployed cannot aivait necessary constitutional amendments, nor the summoning of any conference. They are prepared therefore, notwithstanding constitutional impediments to effective action, to join with the provinces in a further determined effort to meet the immediate situation.
To this end it is proposed further to expand the government's long range program of public undertakings. In pursuance of the policy of the active encouragement of employment, it is also proposed to undertake, with provincial cooperation, to provide assistance to municipalities which, as an alternative to the provision of direct relief, desire to expand their normal programs of civic improvements.
As a means of providing an opportunity for useful work and national service to single unemployed men, the assistance given to forest conservation will be extended to include other work of national importance.
The beneficial results of the youth training program, have demonstrated the wisdom of this experiment, and a measure will be introduced to increase its efficiency and expand its usefulness.
Notwithstanding the embarrassments and handicaps encountered in coping with the problem of unemployment, it is gratifying to be able to record that, during the past year, there has been a material reduction in the number " of those receiving agricultural aid, and a reduction also in the total number of those receiving public assistance due to unemployment and agricultural distress. At the beginning of the present winter the number of those receiving such public assistance was almost forty per cent less than two years ago. Over the same period the number of persons actually in employment has largely increased.
Continuous improvement in the position of the fishing industry as a whole has been reflected in annual increases for the past few years in the aggregate amounts received by the fishermen from their work. The Department of Fisheries have given, and will continue to give, increased attention to the problem of marketing. The government have also assisted fishermen substantially through direct aid.
In order to avert economic disaster to a large part of our population, my ministers, under the terms of the Wheat Board Act, approved, for the current crop year, an initial payment for wheat as recommended by the board.
The prairie farm rehabilitation plan will be continued, the experience of the past year having demonstrated its efficacy in improving the agricultural areas of the west.
Bills wall be introduced to regulate grain exchanges along the lines laid down in the report of the royal commission on grain marketing, to revise the Canada Grain Act, and to assist further in the marketing of farm products.
The Trans-Canada Airways will shortly provide a passenger service, in addition to the ai*- mail and air express services already in
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operation. Preparations for the inauguration of the transatlantic air service are being actively continued in collaboration with the governments of the United Kingdom and of Ireland.
In order to implement the recommendations of the royal commission to investigate the penal system of Canada, a bill to appoint a commission to administer the penitentiaries will be again introduced.
Other legislative proposals will be laid before you and proceeded with as time and opportunity offer.
Members of the House of Commons:
The estimates for the public service, together with the public accounts, wrill be laid before you.
Honourable Members of the Senate:
Members of the House of Commons:
In this critical time of the world's affairs. I pray that Divine Providence may guide and bless your deliberations.


Right Hon. W. L. MACKENZIE KING (Prime Minister) moved:: That the speech of His Excellency the Governor General to both houses of parliament be taken into consideration on Monday next, and that this order have precedence over all other business, except the introduction of bills, until disposed of.


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Motion agreed to.

William Lyon Mackenzie King: That a special committee consisting of Messrs. Casselman, Gray, Mackenzie (Vancouver), Power and Woodsworth, be appointed to prepare and report with all convenient speed, lists of members to compose the standing committees of this house, under standing order 63.


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Motion agreed to.

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Right Hon. W. L. MACKENZIE KING (Prime Minister) presented the following message from His Excellency the Governor General:
The Governor General transmits to the House of Commons a certified copy of an approved minute of council appointing the Honourable T. A. Crerar. Minister of Mines and Resources, the Right Honourable Ernest Lapointe, Minister of Justice, the Honourable Charles A. Dunning, Minister of Finance, and the Honourable W. D. Euler. Minister of Trade and Commerce, to act with the Speaker of the House of Commons as commissioners for the purposes and under the provisions of chapter 145 of the revised statutes of Canada, 1927, intituled An Act Respecting the House of Commons.


William Lyon Mackenzie King: Mr. Speaker, I desire to
lay on the table of the house copies in French

Tributes to Deceased Members
and English of a trade agreement between Canada and the United States of America, signed at Washington, November 17, 1938, together with the following related documents:
Exchange of notes between the Secretary of State of the United States of America and His Majesty's Minister for Canada at Washington relative to the interpretation of article I of the trade agreement of November 17, 1938;
Lumber declaration issued at Washington, November 17, 1938, on behalf of the governments of Canada and the United States of of America;
Exchange of letters betwen the High Commissioner for the United Kingdom and the Secretary of State for External Affairs regarding the agreed modifications of the Canada-United Kingdom trade agreement of 1937-Ottawa, November 16, 1938;
Exchange of letters between the Secretary of State for External Affairs and the accredited representative of the Union of South Africa regarding the agreed modifications of the Canada-South Africa trade agreement of 1932- Ottawa, November 16, 1938;
Exchange of letters between the High Commissioner for the United Kingdom and the Secretary of State for External Affairs regarding the margins of preference on wrought iron and on logs of certain dimensions-Ottawa, November 16, 1938.
By permission of the house I should like to take this opportunity to say that copies of the documents I have just tabled are now available for distribution.
On motion of Mr. Mackenzie King the house adjourned at 4.45 p.m.
Friday, January 13, 1939