Right Hon. W. L. MACKENZIE KING (Prime Minister):

Since the statement I made a week ago on the military operations in Sicily, the offensive of the united nations has been intensified on a number of fronts. Our main interest at the moment naturally centres in Sicily, where Canadian forces are engaged. Before touching upon the progress that has since been made in Sicily, a word about the other theatres, in which there had been significant developments, may not be out of place.

In Russia, after sharp fighting and heavy German losses, the nazi summer offensive was quickly halted. In its stead, the Soviet army and air force have developed1 a powerful offensive against Orel. This strategic centre has been under German control for nearly two years. It is one of the most strongly fortified positions of the central front. The battle for Orel is a dramatic reminder of Russia's share in the total military effort of the united nations.

At the other side of the world, in the southwest Pacific, the present month has seen a sustained attack by Australian and United States forces against Japanese strongholds in New Guinea. In the Solomon islands, the United States forces have advanced northward, and are in fact besieging the main Japanese air base in that area. As more stepping stones are wrested from the Japanese, the offensive will be intensified against all the outlying areas north of Australia now under Japanese control.

In the northern Pacific, the Aleutian area has also seen heavier bombings of Japanese targets by United States and Canadian squadrons. Kiska, the last remaining

Japanese outpost, an immediate menace to both Canada and the United States, is being attacked whenever weather conditions are favourable. Until the Japanese are driven out of Kiska, we may expect continued fighting in this area.

In the battle of the Atlantic, the arrangement for increased escorts by sea, and continuous cover by air, which have been in effect for some three months, have more than justified expectations.

Coming to the Mediterranean area, two weeks have now passed since the allied forces landed in Sicily. The second week of the invasion witnessed a continuation of the steady advance of the previous week. Town after town surrendered1. Within the week, the number of axis prisoners taken increased to well over 50,000. The allied invasion forces extended their occupation from one-third to more than two-thirds of the island. Throughout, Canada's troops took a foremost part in the fighting. Their skill and determination have called forth the commendation of both General Montgomery and General Alexander.

At the beginning of the week, after joining forces at Enna, which is the hub of communications in central Sicily, Canadian and American formations continued to press north. Yesterday an American armoured division captured Palermo, the historic capital and largest city in Sicily. By the capture of Palermo, and the advances of American and Canadian units, large numbers of axis forces have been trapped in the western half of the island. Northeast of Enna, Canadian units encountered strong German resistance. Other of our forces have been taking part in the eighth army's tightening encirclement of Catania. The fall of Catania, which may be expected at any time, will compel the retreat of the axis forces towards Messina and the mainland of Italy. That retreat will lead inevitably to the occupation of the whole of Sicily.

The allied land advances on the island were supported throughout the week by intense allied air activity over the island and the Italian mainland. In these aerial operations, the Royal Canadian Air Force continued to play an important part. A Royal Canadian Air Force fighter squadron-a self-contained Canadian unit of the middle east forces-is now based on Sicily, and for some days has been operating in support of the forward elements of the allied armies. The hon. member for Vancouver North (Mr. Sinclair) is adjutant of this squadron. There are, as well, in Sicily, many R.CAJF. personnel not included in this squadron, but attached to RA.F. units. During the week our bomber units, operating with General Doolittle's force in North Africa, participated in raids on Sicily and on the Italian mainland.

A week ago I referred to the officers and men of the Royal Canadian navy who took part in the landing operations in Sicily. Quite a number of these men are veterans of Dieppe and North Africa. They are still continuing to assist in landing supplies and reinforcements at different ports.

Old Age Pensions

General McNaughton, who has just returned to England from the Mediterranean area, has described the assault upon Sicily as the most perfect example of combined operations in history. This statement is, in part, a merited tribute to the rigorous training and patient waiting of the Canadian forces which have served the longest under General McNaugh-ton's command.

A significant development of the past week in Sicily was the establishment of an allied military government of the occupied territory. General Sir Harold Alexander was appointed military governor. In his first proclamation, General Alexander declared that the purpose of the allies was to deliver the people from the fascist regime, and restore Italy as a land of free people. He ordered the dissolution of all fascist organizations. In this proclamation will be found the basis upon which the allied nations aim to effect the liberation of Europe from Axis aggression, and from fascist domination.

A year ago, when parliament adjourned, the united nations had experienced nearly eight months of reverses and setbacks. This continent was immediately threatened from the west. On the east, enemy U-boats ranged destructively along our coast, and into the gulf and river St. Lawrence. As we leave today for our homes, we will carry with us very different impressions. The tide has definitely turned. Everywhere the forces of freedom have the initiative.

While our fears about its outcome have lessened, the war, in a more immediate way, has been brought closer than ever to us. All arms of our fighting services are now in the thick of the conflict. Our fighting men are certain to continue in action on many fronts, until the enemy has surrendered. No one can say for how long that may be. Our men face a terrible ordeal of battle. Until victory is achieved, above all else, they must command a singleness of purpose in our hearts and minds, and the utmost that our country can give in their support.

Hon. J. L. ILSLEY (Minister of Finance):

I wish to make a brief announcement on pensions for the aged and blind.

Early in the war we had a number of representations made, not only in this house but elsewhere, that the $20 maximum monthly pension payable under the Old Age Pension Act was too low under present conditions and

should be increased either by adding to it the cost of living bonus or by some flat increase, say, to $25 per month. On

November 14, 1941, I made a statement in this house announcing the government's policy in respect to these representations. In particular, I pointed out that there were substantial variations in cost of living and economic conditions as between the various provinces and in public opinion or social outlook amongst the people of the various provinces as to what is a reasonable amount of non-contributory pension to be paid to aged and blind persons; that several provinces were still paying considerably less than the maximum pension allowable under the act, and there was therefore in such provinces considerable leeway for increasing the average pension paid if the province felt it justifiable; and that in view of the colossal burden of war expenditure which the dominion was having to carry whereas the position of the provincial governments had greatly improved as a result of these war expenditures, it seemed only fair and reasonable that those provinces which felt that a higher pension should be paid should themselves pay it out of their own resources. I, therefore, indicated that if any of the provinces desired to supplement the old age pension paid in that province under our act, we would undertake to amend the regulations in such a way as to assure that such supplementary payments made by a province would not entail a reduction in the pension payable under our act.

Following this suggestion, I went on to say:

Indeed the government is prepared to consider going further than this. It believes, for the reasons already outlined, it would be impossible to justify an increase in the maximum rate of pension payable if the whole cost were to be assumed by the dominion, and that such cases as appear to present immediate diificulties can be met by the provinces on the basis of established individual need. If, nevertheless, all or substantially all the provinces should make representations to the dominion government in favour of some increase in the maximum amount of pension payable, the additional cost to be shared between the dominion and the provinces on the same basis as the present cost, I can assure the committee that the government will be prepared to give consideration to such representations.

This was the substance of the policy I announced on November 14, 1941. Since that announcement was made, six provinces have provided for the payment of supplementary pensions: British Columbia and Alberta pay supplementary pensions of $5 a month; Saskatchewan (beginning July 1) and Manitoba of $1.25 a month; Ontario (beginning July 1) a percentage of the amount of pension

Old Age Pensions

paid; and Nova Scotia (beginning June 1) an amount up to $10 a month, based on the merits of the individual case, with limitation of total income, including allowance, to $365 per year.

These provisional supplementary pensions have gone a long way to help the situation in the provinces in which they are being paid. However, in pursuance of the paragraph of my statement which I have just quoted in full, we have received representations from an increasing number of provinces that the maximum pension payable should be raised, the maximum suggested in most cases being $25. On July 12, I received a letter from a province which brought the total number of provinces making such representations up to eight. Since that time the ninth province has made similar representations.

In view of the unanimity of attitude on the part of the provincial governments which has now been established, the dominion has decided that it should make legal provision for increasing the maximum pension payable under the scheme provided for in the act from $20 to $25 per month. There is not time to submit an amendment to the act in the closing hours of the session. Even if there were, as the whole subject of old age pensions and related matters is being studied by the special committee of the House of Commons on social security, it would probably be desirable to wait until a later stage before a legislative amendment making any permanent changes in the act were proposed. We therefore propose to make the provision which I have mentioned by means of an order in council under the War Measures Act.

This order in council will authorize the dominion to enter into supplementary agreements with the provinces, enabling a special war supplement not exceeding $5 per month to be paid, in addition to the regular pension payable under the act as it stands at present. All the terms and conditions under which the present pensions are payable, including the present sharing of the amount of pensions paid in the ratio of 75 per cent and 25 per cent by the dominion and the provinces respectively, and the provisions regarding maximum total income, will be continued, except for the appropriate adjustment in regard to the provisions of the act covering maximum pension and allowable outside income. In so far as the dominion is concerned, the supplementary war pension need not disturb the supplementary pensions now being paid in several of the provinces; that is entirely a matter for the decision of the provincial governments concerned.

IMr. Ilsley.]

It is intended that the new provision will come into operation at the earliest practicable date. It will, however, take a few weeks to work out the necessary supplementary agreements with the provinces and to enable the provinces to set up the necessary machinery for handling the payments.

At March 31, 1943, there were 183,601 old age pensioners and 6,374 blind pensioners, or a total of 189,975. If a supplementary war pension of $5 were paid to all such pensioners the total annual cost would be $11,398,500. The dominion's share, on this basis, would be 75 per cent of this, or $8,548,875 in a full year. Actually, however, total cost and the share of the dominion will be less than this, because in a considerable number of cases outside income accruing to the pensioner will not permit the raising of the present pension, at least not by the full amount of $5 per month.

The extra cost to the dominion will, of course, be a charge against the war appropriation.

Mr. GORDON GRAYDON (Leader of the Opposition):

Mr. Speaker, may I be permitted to make a remark and perhaps ask the minister a question? He spoke of the percentage increase which the province of Ontario evidently had been granting on its own prior to this time as a supplementary pension. I take it that is what the minister meant.

Mr. ILSLEY:

It was effective July 1, I think.

Mr. GRAYDON:

Yes, I think that was what the minister said. In his statement the minister mentioned that one province had made representations to the government and then another province had made similar representations until finally representations had been received from nine provinces in all.

Mr. ILSLEY:

That is right.

Mr. GRAYDON:

But the minister did not indicate which provinces were the eighth and ninth-in other words, the last provinces to make representations on this score.

Mr. ILSLEY:

I could give the order in which they made their representations, if it has any relevancy. Prince Edward Island was the last province, but it must be borne in mind that that province has never found itself able to afford very much in the way of old age pensions and they have not been paying an amount anywhere near to the maximum.

Butter-Market and Storage

Mr. GRiAYDON: Which was the eighth province?

Mr. ILSLEY:

The province of Quebec.

Mr. G. G. McGEER (Vancouver-Burrard):

I have received some correspondence from the province of British Columbia and the province of Nova Scotia. The premier of British Columbia wrote:

In view of the circumstances the provincial government approves not only of a minimum of $30 a month for aged persons but of the lowering of the age limit to take in persons of sixty-five years and over.

The Premier of Nova Scotia wrote me as follows:

This province has already requested the government at Ottawa to increase the amount of old age pensions. In addition we have passed legislation at the present session, which gives the department under which the old age pensions act functions the authority to pay up to $30 per month. This, of course, is entirely dependent on what the federal government is doing or will do.

So that the two provinces on the east and west coasts were definite in the representations for a pension of $30 a month.

Mr. ILSLEY:

That is not correct. The province of Nova Scotia did not request the dominion government to authorize a maximum pension of $30, nor does that letter say so. The province of Nova Scotia has authorized a supplemental allowance not exceeding $10 a month, depending upon the merits of the case. It is wholly discretionary with the pension authorities of the province. Their request was for an increase in the maximum under the Old Age Pension Act to $25 a month, and the correspondence has been tabled.

Mr. McGEER:

I was only quoting from the letter I received.

Mr. ILSLEY:

What I have said is consistent with the letter.

Mr. McGEER:

I should like to put the complete letters on the record. The premier of Nova Scotia writes from Halifax, April 9, as follows-

Mr. SPEAKER:

At this time such a

matter cannot be entertained.

Mr. GRAYDON:

May I ask the minister a question by way of clarification. What will this mean for the old age pensioner in Ontario? How much will he or she now receive?