Mr. P. C. BLACK (Cumberland):

I wish to direct a question to the Minister of National Revenue. May I ask whether the time can be extended beyond June 30 for the filing of income tax returns for 1942, more particularly under T-l general? It is pointed out to me by chartered accountants and business firms that in many cases it will be impossible for them to file their returns by that date and they contend that they should not be subjected to penalties or excessive interest charges. There have been changes in tax legislation and delays in the printing of the legislation and forms, which have been only recently distributed. Moreover, the staffs of chartered accountants and the offices of business concerns have been depleted by enlistments and by the transference of men to government work, and these have been replaced by inexperienced help. In addition to that, the work has greatly increased and many of these firms of chartered accountants find it impossible to make up their returns as of June 30.

Hon. C. W. G. GIBSON (Minister of National Revenue):

The hon. member was good enough to give me notice of his question. Income tax returns which are due on June 30 are the individual returns, and the returns of corporations whose years ended on December 31. While amendments to the act delayed the production of the 1942 income tax forms,

taxpayers have had six months in which to determine their 1942 incomes, and the forms have been available since early this month. There still remain over two weeks in which to file these returns.

I realize that some congestion exists in the offices of chartered accountants, who have numerous returns to prepare, but in view of the large number of taxpayers who will be filing returns, and the millions of dollars payable this month, it is not considered advisable to postpone the collection of this large sum by a general extension of time.

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

I wish to correct certain information given this morning in the two Ottawa morning papers referring to return No. 257, subject, armchairs, chesterfield suites, sofas, et cetera, tabled yesterday in the House of Commons. Both articles implied that the chesterfields and other equipment purchased by the department were for its own use, whereas the returns specifically stated that the department merely acted as purchasing agent for the three armed services in buying the equipment referred to. The Department of Public Works purchases all such equipment used by the Department of Munitions and Supply, and since the inception of the department has supplied the Department of Munitions and Supply with: 991 armchairs of every kind; no chesterfields; six sofas and lounges.

Hon. H. A. BRUCE (Parkdale):

I direct the government's attention to a news item appearing in to-day's papers. It describes a Mr. Arthur Williams as organizer for the Canadian congress of labour and he is reported to have suggested Ontario-wide trade union action to suppress striking employees in war plants at Galt. What action does the government propose to take in the circumstances under the defence of Canada regulations?

Mr. SPEAKER:

That is a question that should be put on the order paper.

War Appropriation-Supplies

Mr. LIONEL CHEVRIER (Parliamentary Assistant to the Minister of Munitions and Supply):

Mr. Chairman, I should like to discuss briefly this afternoon a subject which I believe is of some importance in the consideration of the war appropriation resolution so far as it concerns the Department of Munitions and Supply; that is, the purchasing policy of the department. For a moment I want to consider the method adopted in the department to reduce costs and to control profit margins. I should like to discuss briefly the contracting policy of the department, the manner in which contracts are awarded, the various kinds of contracts, the controls exercised over them, some of the conservation methods that have been adopted by the direc-tors-general and the consequent reduction in prices of many of the commodities and instruments of war purchased by the department. These are all matters which have been discussed in the house from time to time, and I should like to show that the job of the department is to get the maximum possible value for the taxpayer's dollar, which involves not only seeing that profits are fair and reasonable bu't that costs are driven down in every possible way.

The chief job of the Department of Munitions and Supply is that of procurement for the army, the navy and the air force of Canada, the United Kingdom and the united nations. Its first job is to procure as quickly as possible those things which may be required from time to time. In the first years of the war the department was criticized because it was not producing fast enough. Now that production is here the main criticism seems to be that we are producing too fast and that the programme is costing far too much. I should like to examine that charge in the light of methods adopted by the department and the procedure followed to reduce costs and curtail profit margins. Before going into that subject, however, there are three points which I believe deserve the attention of the committee. The first point is that Canada, has never

TMr. Speaker.]

been a manufacturer of military, naval or aircraft stores. We had not made a single gun in this country prior to the war. Certainly we had never made a tank, and for somt twenty-five years prior to the war I do not believe we had produced a merchant shipping vessel. It is true that we had made son*' commercial planes but we had never made a combat plane, and I am sure hon. members will agree that there is all the difference in the world between a commercial and a combat plane.