June 30, 1948


After which the Deputy of His Excellency the Governor General was pleased to close the fourth session of the twentieth parliament of the Dominion of Canada with the following speech: Honourable Members of the Senate: Members of the House of Commons: World conditions continue to occasion anxiety. Instead of the closer co-operation which had been hoped for between all nations, the cleavage betwreen certain nations of eastern Europe and nations of the western world has become increasingly marked. The sense of danger has led, on the part of free nations, to the establishment and promotion of regional associations to ensure their joint security and well-being. Canada has continued, as opportunity has afforded, to further effective organization for international peace and security. My ministers have made clear our country's intention to assist in maintaining a preponderance of strength on the side of the preservation of freedom. The delay in restoring production in Europe and Asia has resulted in an unprecedented demand for commodities from the western hemisphere. This demand has had an inflationary effect on world prices. Higher world prices have been reflected in rising domestic prices. The effect of this on the cost of living has been of increasing concern to consumers. While shortages of food and other supplies to meet the demand abroad and at home have resulted in increased prices, production in Canada, to meet this demand, has led to .a degree of employment and prosperity not hitherto experienced. My ministers are of the opinion that widespread controls of prices, so necessary at a time of war, would prove prejudicial if maintained indefinitely in time of peace. The controls made necessary by war have accordingly been progressively removed. As a means of resisting inflationary pressures, certain controls have been continued in this transitional period. The whole question of prices and the cost of living has been debated at length in both houses of parliament. It has been the subject of detailed investigation by a select committee of the House of Commons. The investigation has had a restraining effect upon unjustifiable increases in prices. The report of the committee deserves wide public attention. The government will give most careful consideration to its representations. Governor General's Speech The inability of Canada's European customers to pay for their imports resulted, dnring 1947, in a serious depletion of our reserves of United States dollars. To meet the critical situation occasioned by the shortage of United States dollars to pay for our vastly increased imports from that country, it became necessary to impose drastic and unpopular temporary restrictions on our trade. You will recall that the consideration of measures for this purpose necessitated beginning the session early in December. Debate on these measures occupied a large part of its earlier months. It is gratifying to note that the measures taken have helped not only to stop the depletion, but to replenish Canada's reserves of United States dollars. The implementation by the United States of the European Recovery Program will contribute materially to the same end. As our reserves increase, and our trade is brought into better balance, restrictions will be progressively removed. A permanent solution of our exchange problem depends, however, upon the revival of world trade. While much of your .time has been devoted to a consideration of economic and financial problems arising almost exclusively out of abnormal world conditions, you have been careful to give the necessary attention to those matters with which, in ordinary times, parliament would be concerned. Among measures related to agriculture, an international wheat agreement has been approved. Minimum prices for wheat and other agricultural products have been increased. The period during which agricultural prices may be supported has been extended. Provision has been made for the reclamation of marsh lands in the maritime provinces. In the field of immigration, the movement of desirable immigrants from the United Kingdom and western Europe as well as from the displaced persons camps has been accelerated. A large number of close relatives of persons residing in Canada have been admitted, and provision has been made to hasten the admission of others. In the field of industrial relations, legislation lias been enacted respecting the investigation, conciliation and, settlement of disputes in industries over Which parliament has jurisdiction. It is hoped that this legislation will provide a model throughout Canada for legislation respecting industrial disputes. Provision has been made for the payment of larger benefits under the Unemployment Insurance Act. The scope of the Vocational Training Co-ordination Act has been widened. With respect to the affairs of veterans and their dependents, a thorough study of existing legislation and related matters has been made by a select committee of the House of Commons. The veterans charter has been agnended in the light of the experience of the past three years. Pensions of disabled veterans and of pensioned dependents have been increased. Larger allowances have been provided for married veterans in training. Other veterans' benefits have been broadened. The welfare of Indians has been the subject of careful study by a select joint committee of the Senate and the House of Commons. The committee continued and completed the examination of the Indian Act begun in 1946. In relation to the housing problem, it is to be noted that more houses were built in 1947 than in any previous year. The National Housing Act has been amended to assist in meeting the need for rental housing. Provision, on a substantial scale, of quarters for servicemen and their families is contributing materially to the total available housing accommodation. A most significant advance in the government's policy for the establishment of a national minimum of social security and human welfare has been the development, in the present session, of a national health program. Provision has been made on a generous scale for annual grants to the provinces, over a period of years, to assist in the development of health plans and in the improvement of existing health services in both urban and rural areas. The health grants will be of immediate benefit in making possible much needed increased hospital facilities throughout Canada, as well as in the prevention and treatment of disease. The grants also constitute an essential prerequisite to the establishment of a nation-wide system of health insurance. Other important measures enacted during the session were bills respecting the Canada Shipping Act, the Board of Transport Commissioners, the Dominion Elections Act, the revision and simplification of the Income Tax Act, the Criminal Code and Prison Reform, an improved pension plan for the Royal Canadian Mounted Police, and the creation of a Hydro Electric Power Commission in the Northwest Territories. Members of the House of Commons: I thank you for the provision you have made for all essential services. You will be gratified that an unprecedented surplus of revenues over expenditures has made possible considerable reductions both in the national debt and in taxation. The sales tax on virtually all types of food has been removed. A further exemption in personal income taxes has been granted for persons over sixty-five years of age. Estates up to a value of $50,000 have been freed of dominion succession duties. Honourable Members of the Senate: Members of the House of Commons: On July 1, the Post Office Department will inaugurate, at ordinary first-class rates, an airmail service which, as respects the delivery of letters, will, under normal conditions, reduce the distance from one end of Canada to the other to less than twenty-four hours. As you are aware, floods in the Fraser valley of British Columbia recently reached the proportions of a national disaster. In coping with the appalling situation thereby created, there has been the closest co-operation between the federal government and the provincial and local authorities. I should like to express my appreciation of the prompt and effective measures taken by the armed services, the civil authorities, and the citizens of the province in meeting the emergency. I should like also to thank you for the financial provision you have made to assist in relief and rehabilitation, and in the constructive work of repairing the dykes. The approval given by both houses of parliament to a planned development of the national capital, and the provision you have made for necessary improvements, will help to ensure continuity in the capital's development in a



Supply-Finance-Legislation manner which will have regard to its position in the present, and to its probable needs in years to come. Today there is no country in a more fortunate position than our own; nor has Canada, at any time, enjoyed a higher place in the regard of the nations of the world. May Divine Providence continue to bless our country, and to guide the Parliament of Canada in all its deliberations. This concluded the fourth session of the twentieth parliament. [The following items were passed in committee of supply]: Auditor General's Office-48. Salaries and expenses of office, $533,293.


DEPARTMENT OP FINANCE


Demobilization and reconversion- Wartime prices and trade hoard



87. Administration, $3,990,040. 88. Commodity prices stabilization corporation, $18,000,000. Employees plan- 89. For purchase of Canada savings bonds administration, $159,525. 90. To provide, subject to the approval of the treasury board, for replacement of bonds lost in mails and for reimbursement of accounts incorrectly ehai'ged with repayments, $5,000-. 91. To provide for expenses of the cabinet committee on dominion-provincial relations, $30,000. 92. To provide for the payment of premiums on Dominion of Canada sterling securities, $20,000. 93. To provide, subject to the approval of the treasury board, for miscellaneous losses arising from the sale or distribution of war savings stamps, war savings certificates, victory' bonds or Canada savings bonds, $3,000. 94. To provide, subject to the approval of the treasury board, for miscellaneous and unforeseen expenses and for the temporary provision of recoverable advances for working capital purposes and for the readvaneing of any such advances repaid, $1,000,090. Insurance



114. Departmental administration, $229,058. 115. Expenses of work in the interests of fire prevention, $20,869. General



706. To provide for the expenses of the comptroller of the treasury's office-further amount required, $264,000. 707. To provide, subject to the approval of the treasury board, for salaries, reclassifications and increases-further amount required, $5,009,-OOO. Demobilization and reconversion- 708. To provide for special works in the national battlefields park, $13,000. Insurance- 716. Departmental administration - further amount required, $29,100. 717. Expenses of work in the interests of fire prevention further amount required, $5,404. General- 934. To provide for the expenses of a commission to be appointed under part I of the Inquiries Act, to inquire into prices and related subjects, as recommended by the special committee on prices, $50,000.


LEGISLATION


The Senate-The Speaker of the Senate- 150. Allow-ance in lieu of residence, $3,000. 151. General administration, $283,433. House of Commons-The Speaker of the House of Commons- 152. Allowance in lieu of residence, $3,000. Deputy Speaker of the House of Commons-* 153. Allowance in lieu of apartments, $1,500 154. General administration-estimates of the clerk, $686,340. 155. Estimates of the Sergeant-at-Arms, $430,300. 1'56. Subscriptions to publications of the Empire Parliamentary Association to be distributed to members of the House of Commons, $2,800. 157. To provide hereby, notwithstanding anything contained in the Consolidated Revenue and Audit Act or the provisions of the Senate and House of Commons Act respecting the independence of parliament, for payment out of the consolidated revenue fund to each member of the House of Commons appointed by the governor in council to be a parliamentary assistant (which appointment shall not render such member ineligible or disqualify him as a member of the House of Commons) to assist a minister of the crown in such manner and to such extent as the minister may determine and to represent his department in the House of Commons in the absence of the minister therefrom, a salary of four thousand dollars per annum and pro rata for any period less than a year, $56,090. General- 158. Printing of parliament, including salaries of staff of the joint distribution office, $200,000. Library of parliament- 159. General administration, $104,033. Pensions and other benefits- 160. Pension to the unmarried sister of the late Colonel Harry Baker, M.P., $709. The Senate



734. To provide for the payment of the full sessional indemnity for the session of 1947-48 to members of the Senate for days lost through absence caused by public business, by illness, or on account of death. Payments to be made as the treasury board may direct, $21,000. 735. To provide, notwithstanding anything contained in the Senate and House of Commons Act, for the payment to each member of the Senate who attended the second part of the present session which resumed on January 26, 1948, following the Christmas adjournment of parliament on December 19, 1947, and ended Supply-Transport on March 24, 1948, of an amount representing the actual transportation and living expenses of such member while on the journey between Ottawa and his place of residence after the Easter adjournment of parliament on March 24, 1948, and on the return journey from his place of residence to Ottawa at the end of the recess which commenced on that date, or at any other one time during the present session, $5,000. House of Commons- 736. General administration-estimates of the Clerk-further amount required, $108,000. 737. Estimates of the Sergeant-at-Arms-further amount required, $20,600. 738. To provide for the full sessional indemnity to members of the House of Commons- days lost through absence caused by illness, official public business, or order of the house, or on account of death during the present session-notwithstanding anything to the contrary in chapter 147 of the revised statutes, 1927. an act respecting the Senate and House of Commons, or any amendment thereto. Payments to be made as the treasury board may direct, $15,090. 739. To provide, notwithstanding anything contained in the Senate and the House of Commons Act, for the payment to each member of the House of Commons who attended the second part of the present session which resumed on January 26. 1948. following the Christmas adjournment of parliament on December 19, 1947, and ended on March 24, 1948, of an amount representing the actual transportation and living expenses of such member while on the journey between Ottawa and his place of residence after the Easter adjournment of parliament on March 24, 1948, and on the return journey from his place of residence to Ottawa at the end of the recess which commenced on that date, or at any other one time during the present session, $14,000. 740. To provide for the Canadian share of expenses of the empire parliamentary association, $7,200. 741. To provide for an annual allowance to the deputy chairman of committees, $2,000. General



742. Printing of parliament, including salaries of staff of the joint distribution office-further amount required, $60,000. Library of parliament- 743. General administration-further amount required, $12,700. DEPARTMENT OF TRANSPORT Canal service



890. Canals-operation and maintenancefurther amount required, $55,000. 801. Canals-construction and improvements- further amount required, $1,418,815. Marine service- 892. Marine service steamers, including icebreakers-maintenance, operation and repairs- further amount required, $281,459. 893. Construction, maintenance and supervision of aids to navigation, including salaries and allowances to lightkeepers-further amount required, $111,950. 894. Administration of pilotage, including authority for temporary recoverable advances; contributions, and the operation and maintenance, as required, of necessary pilot vessels in certain pilotage districts-further amount required, $15,000. 895. Life saving service, including rewards for saving life-further amount required, $6,000. 896. Miscellaneous services relating to navigation and shipping-further amount required, $26,200. 897. To provide towards the construction of a lighthouse supply and buoy vessel for the east coast [DOT]- capital further amount required, $800,000. 898. To provide towards the construction of a lightship for the port of Saint John, N.B.- capital-further amount required, $450,000. 899. To provide towards the construction of a lighthouse supply and buoy vessel for the west coast-capital further amount required, $100,000. Canadian Maritime Commission-Mail Subsidies and Steamship Subventions-Eastern Local Services- 900. Ile-aux-Coudres and Les Eboulements, service, between-further amount required $12,500. Railway service



901. Prince Edward Island car ferry and terminals-construction and improvement of terminal facilities-capital-further amount required, $600,000. 902. To provide for the construction of an icebreaker-railway car-highway vehicle-passenger ferry vessel for the Prince Edward island car ferry service-capital, $534,178. 903. Canadian Government Railways-construction and improvements of drainage works at Fairview subway, Halifax. N.S.-capital- further amount required, $25,000. Maritime Freight Rates Act- 904. Additional amount in excess of the sum of $4,280,000 already appropriated to authorize and provide for the payment from time to time during the fiscal year 1948-49 to the Canadian National Railway Company of the difference (estimated by the Canadian National Railway Company and certified by the Auditors of the said Company to the Minister of Transport as and when required by the said Minister) occurring on account of the application of the Maritime Freight Rates Act, between the tariff tolls and the normal tolls (upon the same basis as set out in Section 9 of the said Act with respect to companies therein referred to) on all traffic moved during the calendar year 1948 under the tariffs approved on the Eastern Lines (as referred to in Section 2 of the said Act) of the Canadian National Railways- further amount required, $520,000. 905. Additional amount in excess of the sum of $1,000,000 already appropriated to provide for payment from time to time during the fiscal year 1948-49 of the difference (estimated by the Board of Transport Commissioners for Canada and certified by the said Board to the Minister of Transport, as and when required by the said Minister) occurring on account of the application of the Maritime Freight Rates Act, between the tariff tolls and the normal tolls (referred to in Section 9 of the said Act) on Supply-Agriculture



all traffic moved during the calendar year 1948 under the tariffs approved by the following companies: Canada and Gulf Terminal Railway; Canadian Pacific Railway, including: Fredericton and Grand Lake Coal and Railway Company and New Brunswick Coal and Railway Company; Cumberland Railway and Coal Company; Dominion Atlantic Railway; Maritime Coal Railway and Power Company; Sydney and Louisburg Railway; Temiseouata Railway Company-further amount required, $150,000. Pensions and other benefits- 906. Amount required to pay pensions at the rate of $300 per annum to former pilots: Joseph Asselim-Jurther amount required, $300. 907. To authorize payment from the Consolidated Revenue Fund to Colonel J. A. Cross, former Chief Commissioner, Board of Transport Commissioners, or his legal representatives, of an annuity at the rate of $4,800 payable monthly to commence on July 1, 1948 and to continue for a period of five years from that date, $3,600. Air service- 908. Air service administration-further amount required, $80,800. Civil aviation division- 909. Control of civil aviation, including the administration of the Aeronautics Act and regulations issued thereunder-further amount required, $17,140. Airways and Airports



910. Construction and improvements, including radio facilities-capital (revote $317,450- further amount required, $2,086,667. Operation and Maintenance'- 911. Civil aviation services-further amount required, $218,430. 912. Radio aviation services-further amount required, $41,480. 913. Airway and airport traffic control-* further amount required, $70,500. 914. Grants to organizations for the development of civil aviation in the amounts detailed in the estimates-further amount required, $30,000. 915. Contributions, subject to the approval of the governor in council, to assist municipalities to improve existing airports, the sites of which have been provided by such municipalities, $164,000. DEPARTMENT OF AGRICULTURE Administration service- 671. Departmental administration - further amount required, $26,322. Science service- 672. Science service administration-further amount required, $243,116. 673. Animal and poultry pathology-further amount required, $26,266. 674. Botany and plant pathology-further amount required, $80,363. 675. Agricultural chemistry-further amount required, $39,361. 676. Agricultural entomology-further amount required, $104,901. 677. Forest entomology-further amount required, $324,302. 678. Plant protection-further amount required, 28,010. Experimental farms service- 679. Central Experimental Farm-further amount required, $61,400. 680. Branch farms and stations and illustration stations-further amount required, $371,835. Production service- Health of animals- 681. Compensation for animals slaughtered- further amount required, $500,000. 682. To provide for payment of compensation to owners of animals affected with diseases coming under the operation of the Animal Contagious Diseases Act, which have died or have been slaughtered under circumstances unprovided for under the above act and regulations thereunder, in the amounts detailed in the estimates, $694. 683. Live stock and poultry-further amount required, $160,020. _ 684. Plant products-seeds, feeds, fertilizers, insecticides and fungicides control-further amount required, $35,000. 686. Grants to fairs and exhibitions, under such terms and conditions as may be approved by the governor in council and subject to allocation by the treasury board-further amount required, $45,000. Marketing service- 686. Dairy products-further amount required, $7,000. 687. Subsidies for cold storage warehouses under the Cold Storage Act, and grants, in the amounts detailed in the estimates-further amount required, $544,717. 688. Fruit, vegetables and maple products, and honey-further amount required, $1,775.72. Special- 689. To provide for assistance to the province of Nova Scotia in the removal of aged apple trees and of least desirable varieties in Nova Scotia under such terms and conditions as may be approved by the governor in council, $506,600. 690. Amount required to recoup the agricultural prices support account to cover the net operating loss of the agricultural prices support board during the fiscal year 1947-48, $1,061,353.30. Demobilization and reconversion



691. Freight assistance on western feed grains including outstanding claims under the feed grain payment policy1-further amount required, $13,600,000. 692. Production assistance on agricultural lime for soil amendment purposes, $60,000. Dairy products board- 693. Purchase of creamery butter to support the market at minimum prices subject to the approval of the governor in council, $1,000,600. Civil service commission- 694. Salaries and contingencies of the commission-further amount required, $29,180'. Secretary of State-* 878. Trade marks branch-further amount required, $14,925. Supply 879. Patent division-patent examination unit -further amount required, $145,000. 880. Copyright and industrial designs division -further amount required, $8,375.


DEPARTMENT OF EXTERNAL AFFAIRS


695. Departmental administration - further amount required, $60,750. 696. Passport office administration-further amount required, $5,000. 697. Representation abroad-further amount required, $233,615. 698. To authorize the acceptance, with the approval of the governor in council in each case, from governments of European countries, in partial or total settlement of claims of the government of Canada against those governments in respect of supplies furnished by Canada and distributed as relief by the combined military authorities to the civilian population of those countries during the period of military operations, of (a) land and buildings to be used for Canadian government offices or residences in those countries, and furnishings therefor, or of local currencies deposited in special accounts to be expended only in payment for such properties and furnishings or alterations or repairs thereto, the expenditure of currencies so deposited for those purposes being hereby authorized, and (b) of local currencies deposited in special accounts and which may be expended only for limited purposes other than those mentioned in paragraph (a), the expenditure thereof to be made only in accordance with authority from parliament, $1. 699. To provide for relief of distressed Canadian citizens abroad-further amount required, $5,090. The Canadian government's assessment for membership in the following international or commonwealth organizations- 700. Commonwealth communications council,



701. International wheat council, $20,000. 702. World health organization, $200,000. International joint commission- 703. To provide for preliminary studies and surveys of the midwestern watershed, $30,000. Demobilization and reconversion- 704. To provide for the Canadian government's contribution to the international refugee organization, $5,415,000. 705. To provide for payment of employees' claims for loss of or damage to personal effects which they were compelled to leave behind when they had to leave their posts, due to war, $51,900.



718. Remission service-further amount required, $37,360. 719. Supreme Court of Canada-administration further amount required, $2,000. 720. Combines investigation branch-further amount required, $19,000'. Office of the commissioner of penitentiaries- 721. Administration of the office of the commissioner of penitentiaries-further amount required, $18,070. 722. Operation and maintenance of penitentiaries, including administration, construction, purchase of land, supplies, equipment and livestock; maintenance, discharge and transfer of convicts; compensation to discharged convicts permanently disabled while in penitentiaries- further amount required, $426,035. General- 723. To provide for expenses of commission of inquiry into Japanese property claims, $150,000. 724. To provide for the revision, classification and consolidation of the public general statutes of Canada, $50,000. 725. To provide for the revision of the criminal code, $25,000. 726. To provide for expenses in connection with espionage prosecutions, $40,000.


June 30, 1948