Right Hon. C. D. Howe (Minister of Trade and Commerce):

Mr. Speaker, I wish to make a statement with regard to cobalt ore.

In order to stimulate further production of cobalt to meet future defence and essential requirements for the metal, the Canadian government will purchase northern Ontario concentrates for a period of three years on the following basis:

For ores and concentrates containing 10-11-99 per cent cobalt-$1.35 per lb. of cobalt contained; containing 12-13-99 per cent cobalt-$1.40 per lb. of cobalt contained; containing 14 per cent or over cobalt-$1.45 per lb. of cobalt contained.

This incentive price schedule will be posted immediately by the Deloro Smelting and Refining Company, acting as buying agents for the government, and that company's smelter facilities will be used to convert such ores and concentrates into metal to establish a Canadian emergency stockpile.

The new price schedule represents an increase of approximately fifty cents per pound of metal. The ores and concentrates shall be purchased by the Deloro company on the basis of assay determinations by the Temiskaming testing laboratory at Cobalt, Ontario, and in minimum shipments of 5-ton lots. The silver content of such shipments will be paid for on the basis of Deloro company's customary tariff.

Cobalt metal is in short supply today. In a defence program cobalt plays a vital role for such essentials as jet blades, tool steels, alnico magnets and tungsten carbide.

Mr. G. F. Higgins (St. John's East):

I should like to direct a question to the Minister of Mines and Technical Surveys, notice of which I have given. The question arises out of a report in this morning's Montreal Gazette of comments made by the Minister of Trade and Commerce with respect to the production

of Steep Rock and Labrador ore. The minister is reported as stating: "We are taking steps to accelerate production in both areas". Will the Minister of Mines and Technical Surveys or the Minister of Trade and Commerce tell me a little more in connection with both, particularly with respect to Labrador?

Hon. George Prudham (Minisier of Mines and Technical Surveys):

I wish to thank my hon. friend for giving me about an hour's notice of his question. The government does not contemplate giving any special assistance to the Labrador iron ore development.

Mr. Knowles:

May I ask a supplementary question? Will the Minister of Trade and Commerce say whether the statement reported in this morning's Gazette, attributed to him, is correct? Will he tell the house at an early day what the government's plans are for acceleration of the production of iron ore?

Right Hon. C. D. Howe (Minister of Trade and Commerce):

I do not think I need notice to answer that question. We were notified by the company that they wished to accelerate their program from four years to three years, and we were asked if we would help in expediting materials for the development. We offered to give that help to the accelerated program.

Mr. Knowles:

Which company is the minister referring to?

Mr. Howe:

I am referring to the Labrador company.

Mr. Knowles:

Will the minister comment

on Steep Rock?

Mr. Howe:

Steep Rock advised me that

they wish to accelerate their program, and asked me for the same sort of help. We are endeavouring to give them that help.

I should like to direct a question to the Minister of Finance, notice of which I have given. What is the amount of Newfoundland's financial surplus now on deposit with the government?

Hon. Douglas Abbott (Minister of Finance):

I thank my hon. friend for giving me notice

Inquiries of the Ministry of the question. As he is aware, the arrangement for the deposit of Newfoundland's surplus was made with the government of Newfoundland. I shall communicate with them, and if they have no objection to my giving the information, I shall be happy to do so.