May 30, 1944

LIB

Douglas Charles Abbott (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. ABBOTT:

The monthly charges have been running between $55,000 and $65,000. The board's estimate of $840,000 was made prior to the discontinuance of meat rationing and therefore may be in excess of need. However, it is felt that there should be some leeway in the event that other commodities may have to be rationed. The rates the banks are using at present were based on a time study of the actual operations involved, and represent only the banks' direct salary cost and out of pocket expenses in connection with stationery, supplies and so on.

Topic:   DEPARTMENT OF FINANCE
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NAT
LIB

Douglas Charles Abbott (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. ABBOTT:

Yes, at cost.

Topic:   DEPARTMENT OF FINANCE
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SC
LIB

Douglas Charles Abbott (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. ABBOTT:

It has been running at $55,000 to $65,000 a month.

Topic:   DEPARTMENT OF FINANCE
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SC
LIB

Douglas Charles Abbott (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. ABBOTT:

The rates are subject to review from time to time both by the board and by the bankers, through the Canadian

War Appropriation-Finance

Bankers' association. They are based on a study of the time of the bank's employees involved in providing these services.

Topic:   DEPARTMENT OF FINANCE
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SC

James Alexander Marshall

Social Credit

Mr. MARSHALL:

How do you arrive at that figure of $55,000 or $65,000.

Topic:   DEPARTMENT OF FINANCE
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LIB

Douglas Charles Abbott (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. ABBOTT:

I am advised that the figure is arrived at on the banks submitting evidence of the actual time spent by their employees in handling these coupons. It is cleared through the Canadian Bankers' association to the board, and figures are submitted as to the time occupied by the employees of the banks and the amount of stationery, and so on, involved.

Topic:   DEPARTMENT OF FINANCE
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SC

James Alexander Marshall

Social Credit

Mr. MARSHALL:

So that really you have to take the word of the banks for the whole

thing?

Mr. ABBOTT^ Subject to check by the officers of the board to ascertain whether the statements of the banks as to the time consumed are correct.

Topic:   DEPARTMENT OF FINANCE
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SC
LIB

Douglas Charles Abbott (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. ABBOTT:

That is right.

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SC

Charles Edward Johnston

Social Credit

Mr. JOHNSTON (Bow River):

Do they not get 25 cents in addition for each account?

Topic:   DEPARTMENT OF FINANCE
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LIB

Douglas Charles Abbott (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. ABBOTT:

It is not on the basis of so much for each coupon, or anything like that. The basis of remuneration to the banks is their actual out-of-pocket expense. That may not be determined to the. last cent, but as closely as it can be arrived at the work is done by the banks on a cost basis.

Topic:   DEPARTMENT OF FINANCE
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SC

Charles Edward Johnston

Social Credit

Mr. JOHNSTON (Bow River):

Just to keep the record straight, not long ago I obtained some information from the department in regard to this very matter, and according to that information the banks were paid 25 cents for every account established in regard to these coupons. I have the letter up in my office.

Topic:   DEPARTMENT OF FINANCE
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LIB

Douglas Charles Abbott (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. ABBOTT:

I will get more detailed information as to the way in which this is operated, but the general statement I have made is correct; payment to the banks is on the basis of the banks' cost. How that cost is arrived at, other than by the time taken, and so on, I am not in a position to say at the moment, but I will get the information.

Topic:   DEPARTMENT OF FINANCE
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SC

Charles Edward Johnston

Social Credit

Mr. JOHNSTON (Bow River):

The minister's information may be correct as far as the figure of $55,000 a month is concerned.

Topic:   DEPARTMENT OF FINANCE
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LIB

Douglas Charles Abbott (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. ABBOTT:

Between $55,000 and $65,000. Let me say at once that this is not business for which the banks asked. They did not invite it at all; the government asked them to undertake it.

Topic:   DEPARTMENT OF FINANCE
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SC

Charles Edward Johnston

Social Credit

Mr. JOHNSTON (Bow River):

That is so. At the same time, if I understand the situation correctly according to the information given to me by the department some time ago, in addition to the actual cost of this operation as far as the time of their employees is concerned-and that is in accordance with information I received-the banks are paid 25 cents for each account they have established.

Topic:   DEPARTMENT OF FINANCE
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LIB

Douglas Charles Abbott (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. ABBOTT:

I shall verify that. I think there is some misunderstanding there and I shall have to check on that and give an answer later.

Topic:   DEPARTMENT OF FINANCE
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May 30, 1944