Mr. JACKMAN:

Are we making any

cigarette paper in Canada at the present time?

Mr. ILSLEY:

Yes.

Mr. JACKMAN:

Any substantial amount?

Mr. ILSLEY:

Yes; large quantities are

made in Canada.

Mr. COLDWELL:

This enters into the

manufactured cigarettes as well as roll-your-own?

Mr. ILSLEY:

Yes.

Mr. JACKMAN:

Have many representations been made by manufacturers of cigarette papers in Canada against the lowering of the tariff in 197c (ii) ? Were they manufactured in Canada prior to the war? I understood that most of the cigarette paper was imported from France.

Mr. ILSLEY:

This is an equalization;

that is all. As I understand it, that twenty-two and one-half per cent which applies to category (i) is subject to a discount of thirty per cent, which makes it equivalent to the fifteen and three-quarters per cent in category (ii).

Mr. COLDWELL:

What is the object of

this? Is it to effect some reconciliation?

Mr. ILSLEY:

Item 232 formerly read:

Glue, liquid, powdered or sheet, and gelatine, n.o.p.

The words "liquid, powdered or sheet" are being deleted to facilitate administration. Sometimes glue is imported in the form of slabs one and one-half feet square and from two to three inches in thickness. Such slabs could hardly be classified as sheet glue. Glue is also imported in barrels. Although the glue may have been in the form of liquid when it was placed1 in the barrels it is a solid mass when it reaches this country. In the condition as imported it could hardly be classified as "liquid" glue. So that the words "liquid, powdered1 or sheet" are taken out.

Mr. COLDWELL:

Is there not a shortage

of glue and gelatine in this country at the present time? If so, why keep this tariff on, particularly since gelatine is used in the manufacture of certain food products and in other everyday items used in the home? If we have a shortage I see no reason for keeping the tariff on at the present time.

Mr. ILSLEY:

P.C. 5015, passed on June

15, 1942, exempted imports of animal glue, powdered or sheet from the customs duty of 174 per cent and two cents per pound under the British preferential tariff, and twenty-five per cent and five cents per pound under the intermediate tariff, during the period May 1, 1942, to December 31, 1942. The provisions of this order in council were extended until June 30, 1943, by P.C. 11791 passed on December 31, 1942. The duty comes on again July 1, 1943, unless the order is further extended.

Mr. COLDWELL:

If it was found advisable to suspend this customs duty last year and to continue the suspension to June 30 of this year, why not take the item out of the tariff schedules altogether, because gelatine enters into so many different articles, particularly food products? It seems to me that item 232 simply continues in the tariff an item which in effect has ceased to exist because it has been wiped out by order in council; and having wiped it out by order in council, why not wipe it out permanently by legislation now that parliament is sitting, and have done with it? Gelatine enters into so many articles of use in the home, including food products, and since the item was set aside by order in council last year I suggest that it be left out altogether, particularly because the government pledged itself years ago to remove customs duties on articles of food

Custojns Tariff

and the necessaries of life and of industry. Here is an opportunity to get rid of a very small item; still, it is an item.

Mr. ILSLEY:

It would be using the war

period as an opportunity to make a somewhat important change in the tariff. There are three factories in Canada now working day and night manufacturing this item, and if the financial critic of the opposition were here I would let him answer my hon. friend.

Mr. COLDWELL:

He is not responsible

for the item.

Mr. ILSLEY:

He would not be in favour

of legislative elimination of the item, and for very good reasons. I do not say it would be wrong at all, but to wipe out the item would be making an important tariff change which would affect Canadian interests. I have not been doing very much during the war in the way of making permanent tariff changes.

Mr. MacNICOL:

Glue is not, I understand, an article of food.

Mr. COLDWELL:

I said gelatine was.

Mr. MacNICOL:

Glue is made in this

country. May I ask the minister if the particular kind of glue referred to in this item is made in Canada?