Mr. SMITH (Calgary West):
That is a security then, in favour of the government.
Mr. ILSLEY:
It is separate from the. railway. The railway is a corporation and the government is a government. I think the situation is clear. Section 2 provides that the governor in council may make provision for refunding; section 3 provides that the railway may issue these substituted securities; and section 7 provides that, in the meantime, the railway may temporarily borrow money from the government. Then, when the railway does issue substituted securities it takes part of the proceeds or all the proceeds and pays off the government. And the government may guarantee the repayment of substituted securities to the lender.
Mr. SMITH (Calgary West):
We have already done that. This latter section is to take care of the loan from the government to the railway.
Mr. ILSLEY:
The temporary loan.
Mr. SMITH (Calgary West):
Yes, the temporary situation. Then the substituted securities may be issued and guaranteed by the provisions of the act. As I understand it, if I am correct, we have already issued substituted securities to take care of the S200 million, or of that part of it we are redeeming. That has already been done under section 3. Then I gather, if I am correct, that we have no money left there, and that we then issue further securities to guarantee the repayment of the loan to the government. Is that the situation? It seems to me that we are doing it otherwise,
Mr. ILSLEY:
No. I speak subject to correction, because I am simply reading the bill and putting my interpretation on the language of it. It appears to be clear to me.
Mr. HARKNESS:
The minister is in the same unfortunate position as we are in. We read it and wonder.
Mr. ILSLEY:
The bill seems clear to me. I do not understand that part of the remarks of the hon. member for Calgary West (Mr. Smith) when he assumed a situation in which substituted securities had already been issued; that is, issued before the government made the advance. That is not contemplated by this legislation. I suggest that when sections 2, 3 and 7 are read together, the normal course, of procedure would be that the government would perhaps make a temporary loan to the railway for the railway's purposes. The railway would then proceed with refunding operations; when they were completed; securities called substituted securities would be issued to the lender by the Canadian National' Railways. Those substituted securities would normally be guaranteed by the government, and out of the proceeds of those substituted securities the government would be paid off by the Canadian National Railways the amount of the government's temporary loan to the Canadian National Railways.
Section agreed to. Bill reported;
Mr. SPEAKER:
When shall the bill be read the third time?
Mr. MACKENZIE:
Now.
Mr. KNOWLES:
At the next sitting of the house.
Mr. ILSLEY:
On third reading?
War Chanties Act
Mr. KNOWLES:
Yes.
Mr. ILSLEY:
There is no amendment.
Mr. MACKENZIE:
I refer the hon. member to standing order 77.
Mr. KNOWLES:
We went through this once before this evening. Standing order 73 provides as follows:
Every bill shall receive three several readings on different days previously to being passed.
Mr. MACKENZIE:
Read standing order 77.
Mr. SPEAKER:
I would call to the attention of the hon. member that this bill was not today read for the second time. It wag considered in committee of the whole today. Therefore, according to the rules, it could be read for the third time.
Mr. KNOWLES:
I object.
Bill read the third time and passed.