Mr. RHODES:

I have an amendment to

move to this item, which I am advised is purely a question of verbiage, in order to make this item conform to item 1024. The amendment reads:

Rolled round wire rods in the coil, of iron or steel, not over -375 inch in diameter, when imported under the British preferential tariff and used in the manufacture of wire of iron or steel, coated with zinc or spelter, curved or not, in coils, not more than T44 inch and not less than -080 inch in diameter, with tolerance not to exceed -004 inch, when such wire is used by manufacturers of barbed fencing wire or of wire fencing for use exclusively in the manufacture of barbed fencing wire or of wire fencing, in their own factories: drawback, 99 per cent.

Provided' that drawback payable under this item is in lieu of drawback payable under any other item.

Mr. STEWART (Edmonton):

Just what

does that mean?

Mr. RHODES:

It means they may take

the drawback under one item or the other, but not under both.

Mr. YOUNG:

Why are these people given a drawback when other people using fire 'brick are not?

Mr. RHODES:

We are really widening

the item. Hitherto the importation has had to be made by the manufacturer for use in his own plant. There has been no change in the item at all except to permit this fire brick to be warehoused so the manufacturers can use it as they need it, just as we have done in connection with yams in a previous item.

Mr. YOUNG:

That is to say, the fire brick coming in will pay the duty; it can be put into a warehouse and then if it is sold to a manufacturer of iron and steel the duty is paid back while if it is sold to anyone else there is no rebate?

Mr. RHODES:

That is correct.

Mr. YOUNG:

Why the discrimination?

Mr. RHODES:

There must be some good reason, for it has been there a good many years.

Mr. YOUNG:

I suppose it would be the

reason advanced by the makers of iron and steel.

Mr. REID:

May I ask why electric furnaces and converters are not included in this item? I notice that the item now reads:

When used by manufacturers of iron or steel in the construction or repair of a blast furnace, open hearth furnace or rolling mill furnace.

These bricks may be used in converters.

Mr. RHODES:

As I am at present advised, and speaking from memory, I have not received a request to have the item worded to include electric furnaces. We took the item as we found it, and as I have indicated we enlarged upon it. So far as I can recall I can think of no objection to enlarging it to include electric furnaces, as suggested by the hon. member, but as I have indicated I have had no request to that effect.

Mr. REID:

I know that both electric furnaces and converters use the same kind of brick, and that that way of manufacturing steel is growing.

Mr. RHODES:

It. would seem that entry must have been permitted, otherwise I am sure we would have heard from electric furnace producers. They do not fail to become vocal in matters of this kind.

Mr. STEWART (Edmonton):

There is no question about electric furnaces becoming popular.

Mr. RHODES:

Quite so.

Mr. YOUNG:

Where in Canada is fire brick manufactured, and how many men are employed in the industry?

Mr. RHODES:

I cannot give the number of employees, but upon inquiry I might be able to secure that information. I believe there are about nine plants in Canada manufacturing fire brick, and the volume of their production is valued at about a quarter of a million dollars.