Hon. Stuart S. Garson (Minister of Justice) moved

the first reading of Bill No. 196 (from the Senate), to amend the Supreme Court Act.

Motion agreed to and bill read the first time.

Hon. Stuart S. Garson (Minister of Justice) moved

the first reading of Bill No. 197 (from the Senate), to amend the Interpretation Act.

Motion agreed to and bill read the first time.

Mr. E. T. Applewhaite (Skeena):

I desire to direct a question to the Minister of Defence Production. In view of the present situation in the United States, will the Minister of Defence Production make a statement on the gasoline and oil situation in Canada?

Right Hon. C. D. Howe (Minister of Defence Production):

The whole question of Canadian requirements of gasoline and oil is under constant review in the Department of Defence Production. It is not anticipated at the moment that the supply of petroleum products in Canada will be seriously affected by the current strikes of oil refinery workers in the United States, except the supply of aviation gasoline which is already a matter of serious concern.

This situation has resulted in a serious reduction in the production of aviation gasoline in the United States. The petroleum administration for defence, Washington, has issued its order No. 6 which temporarily

restricts the use and forces a reduction in the consumption of aviation gasoline within the United States. The order also prohibits export except under certification by PAD.

Because of the policy of close co-operation between Canada and the United States, and as United States companies and associates supply in excess of ninety per cent of all aviation gasoline consumed in Canada, it is deemed necessary that restrictions similar to those in force in the United States be placed upon the consumption of aviation gasoline in Canada in order that reduction in Canadian consumption may be in line with that in the United States. By order in council P.C. 2754 of today's date all grades of aviation gasoline have been declared an essential material under the provisions of the Defence Production Act.

Canadian oil companies have been requested to limit their deliveries of aviation grade gasoline during the 28-day period commencing May 6, 1952, to sixty-five per cent of the amount delivered during the month of April, 1952. Arrangements have been made whereby the petroleum division of the Department of Defence Production will be prepared to take under consideration cases of unreasonable hardships, such as problems that might arise in remote areas.

The departments of national defence and transport have already curtailed their flying operations. The Department of Transport, the air transport board, and the Air Industries and Transport Association of Canada are requesting aircraft operators to eliminate all non-essential flying.

Mr. Diefenbaker:

Would the minister say whether this will affect T.C.A. schedules in any way?

Mr. Howe:

Yes. T.C.A. schedules have

already been curtailed; I understand that sixteen scheduled services have been eliminated already. T.C.A. is in the same position as the other aviation services, that only sixty-five per cent of the gasoline consumed during the month of April will be allocated during the month of May.

Mr. Adamson:

Can the minister say what aviation gasoline is made in Canada, and whether any steps could be taken to increase that production without incurring a very large expenditure.

Inquiries of the Ministry

Mr. Howe:

High octane gasoline is made at Calgary in limited quantities, but about ninety per cent of our 100-octane gasoline is imported from the United States. To supply Canada a very large expenditure would have to be made; and since the trend is toward jet flying-and of course jets use low grade fuel-it is not felt that the very large investment involved is warranted at this time.

Mr. Green:

Can the minister say how long it will be possible to maintain even these reduced schedules?

Mr. Howe:

I should think we would be able to carry them on indefinitely.