Hon. Alphonse Fournier (Minister of Public Works) moved:

That the name of Mr. Isnor be substituted for that of Mr. Winters on the standing committee on railways, canals and telegraph lines.

Right Hon. L. S. St. Laurent (Prime Minister):

I desire to lay on the table copies of two orders in council passed under the Transfer of Duties Act. The first is P.C. 1166, dated March 15, 1949, transferring the industrial defence board from the Department of National Defence to the Department of Trade and Commerce; the other is P.C. 1303, dated March 18, 1949, transferring to the Solicitor General the powers and duties pertaining to the exercise of the royal prerogative of mercy.

1. What is the normal rate of depreciation which was allowed industry during each of the years 1937 to 1949?

2. What is the maximum rate of special or accelerated depreciation which was allowed to any corporation for taxation purposes during each of these years?

3. What is the minimum rate of special or accelerated depreciation which was allowed to any corporation for taxation purposes during each of these years?

4. What is the policy of the government on the granting of special and accelerated depreciation?

5. Has the government policy on special and accelerated depreciation changed since 1937?

6. If so, what changes have been made?

1. There is a variety of normal rates allowed industry, ranging from 2 per cent on reinforced concrete buildings to 50 per cent

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on replacements of linen, china, glassware, cutlery, etc. Broadly speaking, however, the following might be considered as the normal rates of depreciation applicable to the general type of asset allowed industry: Buildings: concrete, 2 per cent; stone or brick, 2| per cent; wooden, 5 per cent; Machinery and equipment: 10 per cent. These rates applied in all years from 1937 to 1948. The regulations governing allowances in respect of capital costs for 1949 as provided in section 11 (a) of the Income Tax Act have not yet been published.

2. Under amendments to the legislation passed in 1940, the war contracts depreciation board authorized special or accelerated depreciation in respect of plant and equipment created for war purposes. Such allowances provided for the write-off of the whole cost in one or more years up to the estimated post-war value.

Also, in the year 1940, the War Exchange Conservation Act was enacted which provided for special depreciation allowances to companies who expanded production facilities primarily for increasing exports to the United States, or would increase the output of domestic resources the product of which would otherwise have been imported from the United States.

In 1944 the Income War Tax Act was amended by adding subparagraph (ii) to section 6 (n) which provided that depreciation at not more than double the rates normally allowed may be allowed.

Regulations under this clause are set out in orders in council P.C. 8640, dated the 10th of November, 1944, P.C. 2487, dated the 24th of June, 1947, and P.C. 3882, dated the 9th of September, 1948.

3. See No. 2 above.

4. See No. 2 above.

5. Yes.

6. The provisions governing special and accelerated depreciation were introduced in 1940 and in 1944, as stated in No. 2 above. See also the booklet "Encouragement to Industrial Expansion in Canada" issued by the Department of Reconstruction and Supply.

1. Is there such a veteran of world war I as veteran M. J. Cummings, Reg. No. 142082?

2. If so, where is said veteran?

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Questions

1. Yqs.

2. Recent information on file indicates that the address of the veteran would be "in care of the Public Trustee, province of Ontario."

Mr. Coldwell:

How much special or accelerated depreciation has been granted in each of the years 1939 to date to each of the following companies: (a) Steel Company of Canada Limited; (b) Algoma Steel Corporation; (c) Dominion Steel and Coal Corporation Limited or any of its subsidiaries carrying on steel production?

Mr. McCann:

The following amounts of special depreciation were allowed on the recommendation of the war contracts depreciation board, in accordance with the general practice of the board in respect of taxpayers eligible for special depreciation:

(a)

Steel Company of Canada Ltd.

1939 Nil

1940 254,210.23

1941 2,644,582.35

1942 2,469,489.19

1943 2,120,034.14

1944 265,566.41

1945 12,545.45

1946 Nil

1947 Nil

1948 Nil

. (b)

Algoma Steel Corporation Ltd.

1939 Nil

1940 Nil

1941 Nil

1942 852,967.04

1943 1,097,696.23

1944 1,219,809.73

1945 Nil

1946 Nil

1947 Nil

1948 Nil

(c)

Dominion Steel and Coal Corporation Ltd.

1939 3,091.71

1940 142,629.72

1941 224,341.99

1942 926,079.10

1943 815,821.11

1944 916,639.08

1945 149,277.06

1946 13,666.86

1947 Nil

1948 Nil

[Mr. Blackmore.l

1. What ships are to be in commission this summer between Toronto and Port Dalhousie of the Niagara, St. Catharines and Toronto Railway, a subsidiary of the Canadian National Railways?

2. Have they been pronounced as seaworthy?

3. What is being done to give a better service with new ships since the service provided in 1948?

4. Are any improvements being made in the road bed and bridges of the Niagara, St. Catharines and Toronto railway?

5; If so, what betterments?