Mr. CLARENCE GILLIS (Cape Breton South):

Mr. Speaker, I should like to ask a question of the Minister of Munitions and Supply (Mr. Howe) based upon a telegram which I received this morning from a union official with reference to the mills of the Canada Car Company at Amherst, as well as to the aeroplane plant there. As I have sent a copy of this wire to the minister, there is no necessity of reading it. This matter has been brought to the attention of the minister several times in the past, and I should like to ask if he has any definite plans to utilize these plants, so that men may be employed in them to the best advantage in serving the country.

Hon. C. D. HOWE (Minister of Munitions and Supply):

The steel mill at Amherst is quite an old mill with no primary steel capacity. No situation has developed as yet in connection with which this steel mill could be usefully employed in war work. The aeroplane plant has received a large order, and I assume that the owners are developing the plant as rapidly as possible. A number of men have been training in Montreal for Amherst, and the jig and die work has been completed and sent down there. I think that as far as aeroplane work goes, employment will increase steadily, but I have no anticipation of larger employment in the steel mills.

Mr. GILLIS:

Is there any possibility of utilizing these men somewhere else?

Mr. HOWE:

Certainly.

Hon. C. D. HOWE (Minister of Munitions and Supply):

I should like to reply to the question asked yesterday by the hon. member for Waterloo South (Mr. Homuth) with regard to the natural gas situation in western Ontario. I shall table a report on this matter as soon as it can be obtained, but in the meantime I can say that the power controller and the oil controller have been in active negotiation recently in an effort to augment the supply of gas for the coming winter. I have been informed verbally that arrangements have been completed which will, I think, bring about a more satisfactory condition in the supply of natural gas in western Ontario.

Minimum Price of Butter

Mr. J. A. BLANCHETTE (Compton):

I should like to ask a question of the Minister of Agriculture (Mr. Gardiner). In view of the fact that some time ago the governme:nt promised that a minimum price would be placed on butter, and also in view of the fact that there has been a gradual decline in the price of that commodity, is the minister able to inform the house whether this price will be set shortly?

Hon. J. G. GARDINER (Minister of Agriculture) :

The hon. member favoured me with

a copy of his question, and I have the following answer to make. By order in council, P.C. 143, of January 10, 1941, the dairy products board was authorized:

-upon the recommendation of the minister and with the approval of the governor in council, to establish minima prices at which butter may be sold.

Pursuant to the authority contained in the foregoing, order in council, P.C. 3230, of May 10, 1941, authorizes the dairy products board to fix minima prices in accordance with the following schedule. With the permission of the house, I shall have this schedule placed on Hansard in order that all information may be before hon. members. It is as follows:

Schedule No. 1

Minima Prices of Creamery Butter First Grade Creamery Solids Delivered to Purchaser 1941

In province of May June July August September Octobercents cents cents cents cents centsBritish Columbia

Ontario per lb. per lb. per lb. per lb. per lb. per lb.Quebec

New Brunswick

Nova Scotia

Prince Edward Island

Alberta 294 30 30J 31 314 32Manitoba 27 J 28 28J 29 29J 30Saskatchewan 26i 27 27i 28 28* 29First Grade Creamery Prints or Bolls Delivered to Purchaser May June July August September OctoberIn province of cents cents cents cents cents centsBritish Columbia

Ontario per lb. per lb. per lb. per lb. per lb. per lb.Quebec

New Brunswick

Nova Scotia

Prince Edward Island

Alberta 1 30J 31 314 32 32 J 33Manitoba HN CO

It will be noted that the same minima prices are fixed for the provinces of British Columbia, Ontario, Quebec, New Brunswick, Prince Edward Island and Nova Scotia. These provinces, with the exception of Prince Edward Island, are all importers of butter, and Prince Edward Island's surplus is only approximately 500,000 pounds annually. Prices two cents per pound lower are fixed for the provinces of Alberta and Manitoba, and prices three cents

per pound lower for the province of Saskatchewan than for the other six provinces. These three provinces are exporting provinces, and the differentials provided are based upon existing freight rates to the principal markets of the exporting provinces.

Provision is made in the order for a minimum differential between solids and prints of one cent per pound. The average differential in Ontario and Quebec, in which provinces

Excise Act

about two-thirds of our butter is consumed, is approximately one cent per pound. It will be noticed that the minima prices are on a basis "of delivered to the purchaser," and it is felt that this is the only way in which fair competition in selling can be secured. It is felt that increases in the fixed minima prices from time to time, that is of one-half cent per month, throughout the production season will induce trading and support of the market by those who ordinarily store butter.

In accordance with the authority conferred by order in council, P.C. 3230, of May 10, 1941, the dairy products board has issued order No. 21. With the consent of the house I should like to place this on Hansard. It is: Order No. 21

The dairy products board hereby orders that

1. For the purposes of this order

(a) "Solid" or "solids" shall mean creamery butter solidly packed in boxes containing a net weight of approximately fifty-six pounds or more.

(b) "Prints" or "rolls" shall mean packages of creamery butter of net weight of one-quarter pound, one-half pound, one pound or multiples thereof.

(c) A "dairy produce broker" is one who does not warehouse or handle dairy products but acts as an intermediary between buyer and seller, selling on a brokerage basis.

(d) A "dairy product commission agent" is one who warehouses and sells dairy products for the owner on a commission basis.

(e) "Delivered to the purchaser" shall mean f.o.b. destination as mutually agreed between vendor and purchaser.

2. No person shall sell or purchase first grade creamery butter in any province in Canada at prices below those specified in schedule No. 1 annexed hereto, for the month and province in which the same occurs. Sales shall be on a basis of the butter sold being delivered to the purchaser at the expense of the vendor.

3. No vendor shall allow and no purchaser shall accept any discount or other consideration on account of the sale or purchase of first grade creamery butter, which would have the effect of reducing the net returns to the vendors below those specified in schedule No. 1 provided,

(a) that if a dairy produce broker or dairy produce commission agent is actually engaged in any transaction, brokerage or commission fees at recognized rates may be allowed, and

(b) brokerage fees shall be paid direct to the broker by either the vendor or the purchaser as may be agreed.

4. If butter inferior in quality to first grade is sold at prices below those specified in schedule No. 1 such butter shall be correctly marked as to grade in accordance with the provisions of the regulations under the Dairy Industry Act respecting grade standards and sizes of type required for designating grades.

The foregoing order will be in effect from the date of publication thereof in the Canada Gazette.

Mr. SENN:

The minister stated that the prices are on the basis of purchaser's price. Does he mean the retail purchaser or the wholesale purchaser?

Mr. GARDINER:

The wholesale purchaser -the person who purchases from the maker of the butter.

Mr. THOMAS REID (New Westminster):

I should like to ask the Minister of Munitions and Supply if he will make available to the house the recommendations of the committee which was sent to British Columbia to investigate the shipyards of that province with a view to their doing more war work?

Hon. C. D. HOWE (Minister of Munitions and Supply):

I should like to consider that question. This is a confidential report, and while I do not think there is anything in it that could not be made public, I am inclined to believe that no good purpose would be served by making it public. If I may, I will reserve a decision in the matter until later.