Hon. HUMPHREY MITCHELL (Minister of Labour):

Mr. Speaker, I wish to table copy of order in council P.C. 2432, passed June 20, 1946, further amending the wartime wages control order, P.C. 9384.

In connection with this amendment I wish to make the following statement:

Canada's anti-inflation programme, established in 1941, can, I think, be regarded as being something in the nature of an experiment. It can now be said that many economists did not think it would succeed and would break down because it ran contrary to the economic forces. However, for the most part it did succeed. In large measure that success was due to the unqualified acceptance of the programme by the people of Canada.

While it was a difficult enough task to put into motion the machinery needed to implement the anti-inflation programme, it is squally difficult to gear down that machinery and modify the programme. On previous occasions it has been stated in this house that the government's policy is to move out of the price control-wage stabilization field just as rapidly as it is considered expedient to do so. The current problem is one of timing the steps to be taken in decontrol.

In respect of wage stabilization, steps have already been taken to modify the wages order, ,and a further step is about to be taken. It is concerning this latest modification that I wish to speak in particular.

The important change proposed concerns section 20 of wartime wages control order 1943, P.C. 9384. That is the section which gives war labour boards the power to authorize or direct adjustments in wage rates.

The original clause (a) of subsection 1 of the section limited the board's powers to increase wage rates only to the extent necessary to rectify "a gross injustice or gross inequality". In January of this year that section was changed so as to enable boards to authorize or direct increases in any wage rates which were found to be low in comparison with wage rates generally prevailing in the locality. The amendment further empowered a war labour board to authorize an employer to increase wage rates on such other basis, and to such extent, as in the opinion of the board is reasonable in the circumstances and con-

sistent with the maintenance of existing prices of the goods and services which the employer sells.

While this amendment served its purpose during the period it has been in force, changing conditions during this transitional period have made it appear to us that the wage adjusting formula should be modified to permit war labour boards a wider discretion than they have had.

Under the present amendment, war labour boards may authorize or direct increases in wage rates if and to the extent that such boards find the proposed increases are "just and reasonable". The amendment cuts away from the over-all wage fixing formula some of the previously existing restrictive conditions. It places upon war labour boards a greater discretion-a discretion which, I am satisfied, will be fairly exercised by representatives of management and of the major branches of organized labour in Canada, who as members of those boards have had a vast amount of experience in administering this part of our anti-inflation programme.

Much has been said of Canada's contribution to the war effort. In my opinion this is not the time to review that contribution. This is the time to direct our thoughts to the present and the immediate future. The progress of Canada will depend largely on the process of reconverting the country from a wartime to a peace-time basis.

The next two or three years will be critical ones for the future economic development of Canada. If we fail to pursue sound economic policies during that time, damage will be done which will jeopardize our progress for years to come. I can tell you that the task of maintaining a reasonable degree of stability in our economic affairs at this time is much more complicated and calls for a much greater degree of judgment than was the case when we were fighting for our very existence.

Thanks to our policy of economic stabilization, which ultimately met with the active support of industry and of the great majority of organizations in the labour movement, we came through the war well. That has been true to date in this transition period. It is the responsibility of all Canadians, whether they be in the managerial group or the labour groups, to see to it that we do not have a repetition of the inflation that struck this country in the early twenties. We must not loss of sight of the fact that the forces which brought about the chaotic conditions of boom and slump after the last war are present in our economy now. An abandonment of control now would let loose forces which could

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wreck the economic life of the country at a time when an orderly transition to peace-time conditions is a primary necessity, and the country would be worse off than if stabilization controls had never been imposed.

I have been in the labour movement long enough-

Hear, hear.

Mr. MITCHELL:

Wait a moment. Listen to what I have to say. I repeat that I have been in the labour movement long enough to know that the real target of labour is to raise the real standard of living.

Mr. HOMUTH:

What child did you bring

forth?

Mr. MITCHELL:

It was not my hon. friend, I know.

I know that labour has, during these last six years, made greater gains in this direction than it has in any other like period in the history of the movement. The ideal should be to consolidate those gains. What I am afraid of-and I say this with all sincerity-is that any untoward advance in the present wage structure is going to do one of two things: either it will force prices up, whereupon the increased rates will count for naught, or it could force a buyers' strike to curtail production, and of course that will mean unemployment.

This government is in favour of good and fair wages; let no one think that any member of the government holds a contrary view. Good and fair wages are just that as long as they can maintain a real standard of living.

What all should strive for is production. A normal flow of goods and services will indeed form the real income of the community. It is the responsibility of management and labour, acting as a team, to work for the maximum production of goods and services, and anything which stands in the way of this is contrary to the best interests of all, particularly the wage earner.

What I have said has been for a definite purpose. I do not want anyone to think that, because the wartime wages control order has been amended, the lid is off. The revision of the order imposes upon all a very special duty, that duty being to work together through this transition period to the end that we can come out of it with an economy second to none. That should surely be a duty which all good Canadians should be glad to assume.

Mr. HOMUTH:

May I ask, Mr. Speaker, whether the minister's statement is debatable?

Mr. SPEAKER:

The statement made by the minister is not debatable.

Mr. HOMUTH:

Then I raise a question of privilege on behalf of the ordinary members of the house. I protest against the minister making certain statements which do nothing but eulogize the government, when it is not possible for other members to debate those statements. On a question of privilege I protest against it.

Mr. CHURCH:

(a) What is the number of prosecutions for failure to have a radio licence; (b) the number who have taken out licences; (e) the estimated numbers who have not, in the cities of Toronto, Montreal, Ottawa, Hull, Hamilton, London, Quebec, Winnipeg, Vancouver, Saint John and Halifax, for the last three years of record ?

Mr. CHEVRIER:

(a) Fiscal Year 1943-44 Fiscal Year 1944-45 Fiscal Year 1945-46Toronto 208 392 773Montreal .... 631 . 327 1S9Ottawa 494 203 345Hull - - 30Hamilton .... 341 370 440London 39 80 330Quebec 75 70 175Winnipeg .... 40 49 62Vancouver ... 70 68 39Saint John .. 2 - 12Halifax 66 62 156(b) Fiscal Year 1943-44 Fiscal Year 1944-45 Fiscal Year 1945-46Toronto 166,668 163,598 157,706Montreal ... 207,697 207,887 219,311Ottawa 39,503 38,273 38,637Hull 5,386 5,001 5,521Hamilton ... 32,584 33,787 33,618London 21,215 19,938 19.726Quebec 28,610 28,114 28,529Winnipeg ... 60,791 58,697 61,835Vancouver .. 71,852 72,595 75,587Saint John .. 12,980 13,318 13,192Halifax 14,281 14,S09 14,725

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(c)' No reasonably accurate estimate can be attempted at the present time, due to various factors, such as-

(1) The difficulty of determining the number of receiving sets which are not in operation because they have become obsolete and cannot be replaced or because replacement parts are still difficult to obtain; and

(2) The movement of population to and from wartime industrial centres and changes in domicile of families of service personnel.

Mr. MATTHEWS (Brandon):

In the matter of international broadcasting services, what European countries are included in such services?