Mr. ROBB:

Last year the minister took the view that he could curb extravagance in this country by imposing luxury taxes, but he found that those taxes practically destroyed business, and on the eve of the Christmas holidays, in an attempt to restore business, he was compelled to wipe out those taxes. All through this resolution there is a tax on the food of the people, an unfair tax. Take the tax on lumber and on material that goes into the construction of a house or barn. I am told by a responsible contractor that on a $5,000 house, which is not an extravagant average price, the materials going into that house represent $3,500. The minister proposes to put a tax of $105 against that house; there is no question about that. The minister puts a tax of $105 against

the building of a house at a time when every one is calling for more houses in this country. The same is true with regard to the building of barns throughout the country. I am told by the same contractor that the average cost of the material going into a piodern barn would be 80 per cent of a $2,000 building. The minister proposes to put a tax on that $1,600 worth of materials of $48. He is hampering production to that extent.

Coming to foodstuffs, which the minister claims are free, the minister is providing here that the ingredients required for the manufacture of oleomargarine are exempt from taxation. Having adopted that principle, why should he hamper the agricultural industry of this country by putting a tax on all the materials required for the production of butter, cheese and meats-the food of the people? There is to be a tax on mill stuffs which are required by the farmers for the production of milk and butter. Here, again, the minister is taxing production of the foodstuffs of the people. If our farmers are to com-, pete with the farmers of the United States -hon. gentlemen opposite are very much alarmed occasionally, in Budget debates, over the competition of the United States -they should be put upon an equal basis. There is no tax whatever on any kind of mill feed that the farmer of the United [DOT] States requires, and to that extent the farmer of the United States will be able to feed his stock more cheaply than the Canadian farmer.

The minister says that flour is free. But he is taxing the container; he is putting a tax on the bags and barrels required by the mills of this country, and to that extent he is discriminating against the Canadian farmer as compared with the farmer of the United States. The minister may say that there is a refund on the export business, but I say that all this puts us on an unfair basis as compared with our neighbours to the south with whom we have such close competition. The minister may also ask: Ho welse are you going to raise the revenue? We upon this side of the House contend that we would start at the other end: We would reduce expenditure. For all the revenue the minister is going to get out of this tax, he may as well wipe it out altogether. That would at least do something to help popularize the Government of which he is an honoured and a very genial supporter.

I shall not detain the committee any longer, but I think the minister might do

well to sleep over these suggestions, and come along at the next sitting of the House and make a clean sheet of it.

Sir HENRY DRAYTON:

It was the understanding, to which I was going to give the fullest effect, that we should adjourn at 11 o'clock. I am quite willing to move that the committee rise.

Mr. FIELDING:

I would first draw

my hon. friend's attention to another item which he can take into consideration in the meantime. It is an item over which I have had considerable trouble with the department more than once. The minister is providing exemption for materials for the repair of ships generally and for ships licensed to engage in the Canadian coasting trade. A question has arisen respecting the smaller class of craft, practically fishing boats and boats of that type. There has been some confusion in the various custom offices in the country as to just what was meant. I think it is intended to mean fishing boats and small boats of that character. Moreover, I think that the manufacturer of that class of boats ought not to be compelled to take out a license. That, I believe, is the view of the department, but there has been some confusion, and I would suggest that when the hon. gentleman is framing this clause again he leaves no room for discussion hereafte'r on this subject.

Mr. PROULX:

I see that butter and

eggs are exempt from the sales tax, but not milk powder, condensed milk, and ice cream. These latter were exempt last year.

Sir HENRY DRAYTON:

So were many other things that are now being taxed.

Mr. PROULX:

I submit that these are

articles of food and should be treated the same as butter and cheese.

Sir HENRY DRAYTON:

I never said

that all foods are exempt. They are not.

Progress reported.

On motion of Sir Henry Drayton the House adjourned at 11.20 p.m.

Saturday, May 21, 1921.