Mr. FULTON:

May I ask the minister when the order in council which he has just tabled will become effective, and whether its provisions are retroactive in effect?

Mr. MACKENZIE:

The provisions are effective forthwith, but they will not be retroactive.

_ FUEL OIL

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

Mr. Speaker, I feel that I should make a statement on fuel oil. Last summer I convened a meeting of the various oil producing and distributing companies for the purpose of reviewing the domestic fuel oil situation. Hon. members will recall that at that time there was very serious concern about Our coal supply, arising partly because of the coal strike in the United States and partly because of the shipping strike on the great lakes.

The oil companies agreed that if they were given assistance in the creation of storage facilities, they could meet the increasing demand for domestic fuel oil. Assistance was rendered by the steel controller to the oil companies and to the burner manufacturers. As a result, a considerable number of heating units were installed in domestic establishments throughout Canada,

I am now advised that the fuel oil supply for the next heating season is definitely limited, and that the producers and distributors will not be able to cope with the greatly increased demand. In fact it has been stated by some of the companies that there may be difficulty in providing oil to existing customer.

The demand for fuel oil has become so acute that even were it possible to provide substantially increased storage facilities, it is most unlikely that adequate supplies of oil could be imported or produced.

The government has no control at present over the production and. distribution of fuel oil. Responsibility for supply rests wholly on the oil companies and. their agents. I am bringing the matter to the attention of the house in order that the Canadian public may be warned of the situation that obtains. In our view, any householder who is proposing to instal an oil burner or oil burning space heater in his home should first make sure that he has a firm contract for the supply of fuel oil directly with the manufacturer or importer of fuel oil, or a contract that otherwise clearly ensures a supply of fuel oil from these suppliers.

Cement

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

Mr. Speaker,

I should like to answer a question asked by the hon. member for Peterborough West (Mr. Fraser): "Can the minister tell the house what is being done by the department to see that veterans are able to secure cement in order to construct their houses?" As my hon. friend knows, veterans have full priority in obtaining materials for house building. Examination of our records indicates that we have no applications from veterans for cement priorities in the Peterborough area. On a national basis cement is not in as short supply as formerly, and if the veterans in Peterborough will apply to the controller of priorities for assistance it will be forthcoming.

Mr. FRASER:

May I ask the minister a question on that? The veteran is allowed priority if he has his house 50 per cent completed. What about the cement for the first 50 per cent?

Mr. HOWE:

I may tell my hon. friend that today the veteran has full priority in house building. The 50 per cent requirement has been eliminated.

Mr. FRASER:

Further in reference to the statement made by the Minister of Reconstruction and Supply that full preference was given to the veteran building his own house, will the minister tell the house when the regulation was changed from 50 per cent to full priority?

Mr. HOWE:

I cannot say the exact date, but I shall be glad to look it up. The notice does not seem to have received wide attention; therefore I shall make a statement in the house.

Mr. STEPHENSON:

May I address a question to the Minister of Reconstruction and Supply? In the course of his statement he made reference to full priority being given to veterans. It is possible that veterans may have to get their nails from the local hardware stores. Will something be done to see that equitable distribution of nails is made to the hardware stores so that the veterans can get nails?

Mr. HOWE:

Under the system of full priority the veteran will get priority on nails. Arrangements will be made to see that nails are available to him.