Hon. ERNEST BERTRAND (Minister of Fisheries):
Mr. Speaker, for the information
of the house I would like to say that, with a view to assisting further to increase the productive capacity of the Atlantic fishing industry, the government has decided to extend its plan for subsidizing the construction of fishing vessels so as to make subsidy available to draggers and long-line vessels from fifty-five feet upwards in length when built for groups of four or more Atlantic fishermen. Up to the present the subsidy has been payable only on draggers of seventy-two feet or more.
The subsidy on construction of the smaller vessels will be at the same rate as in the case of the larger craft-$165 per gross ton.
The order in council which has been passed extending the application of -the plan also provides that, in computing taxation on income or excess profits, the owners of the vessels may take a special accelerated depreciation allowance up to the whole cost of the depreciable assets in any one year or any group of years within a five-year period from the date of the vessels' registration. This accelerated depreciation will be in lieu of the annual rates of depreciation ordinarily granted under the relevant statutes.
Under another order in council which has been passed the same accelerated depreciation as I have just mentioned will likewise be permitted in the case of all fishing vessels -of the schooner class on the Atlantic coast, no matter what their particular type or types, built subsequent to January 1, 1943, and used entirely for fishing purposes for not less than five years after registration.
During the five-year period the owner of each schooner wishing to claim accelerated depreciation allowance .'.nder this latter order
wall be required to submit to the Minister of Fisheries, not later than the last day of February in each year, a statement showing, to the satisfaction of the minister, that the conditions of the order have been fulfilled. The minister, in turn, will submit the statement to the taxation division of the Department of National Revenue. Failure to submit such a statement, or to comply with other conditions of the order in council, will render a vessel ineligible for special depreciation allowance.
Subtopic: ANNOUNCEMENT OP EXTENSION OP SUBSIDY AND DEPRECIATION ALLOWANCE IN RESPECT OP CERTAIN VESSELS