I think some of the dealers in British Columbia did not understand the situation at that time because many representations have come in since. I do not think it is fair that the tax should be levied at the higher rate in cases where men have cars in transit. They should be given the advantage of the ten per cent tax.
The principle involved is this. The minister has given consideration to the dealers in high priced cars, but the dealer who for geographical reasons was not able to get delivery of his car, even a car in the lower priced brackets, gets no consideration. That is discrimination, absolutely.
When I referred a moment ago to cars in transit I had in mind the item in this morning's paper that it had been represented to the minister yesterday or to someone delegated by him, that consideration should be given to cars in transit. According to the newspapers the dealers stated that they considered cars in transit as being on their showroom floor.
I went very fully into that question, Mr. Chairman, in committee of ways and means, and I am sorry if I did not make it clear. I know it is pretty intricate. But cars which are sold f.o.b. shipping point are in the same position when in transit as if they were on the showroom floor; when sold with documents attached they are deemed to be in the same position as if they were on the factory floor. I cannot make it any clearer.
This follows the principle laid down in section 5. How much sugar is affected, or, what is the value of the sugar affected; and what is the difference between the delivered price by such refinery and the selling price.
-instead of when the sale is made. That is the general principle in the act ,anyway, but there was this section in which the idea appeared of time of sale, rather than the delivery to the purchaser, being the important time. This is being changed to bring it into harmony with the general scheme of the act.
Now he is paying on the sale, and he is adding it to the invoice price to the confectioner or whoever it may be. Heretofore he has had to pay when it came in or when he took it out of bond; is not that right? The tax shall not be payable when the goods are-
-imported or bought in bond in Canada by recognized sugar refiners for further manufacture.
I suppose the refiners are the only people to whom that would refer.