Hon. Lionel Chevrier (Minisier of Transport):

Mr. Speaker, I should like to make an announcement concerning telecommunications between Newfoundland and the mainland.

An agreement has been reached by the six companies providing long distance telephone services between these points reducing the rates effective Monday, December 1, between Newfoundland and the mainland.

The companies involved are the two crown companies, the Canadian Overseas Telecommunication Corporation, which operate the over-water link for the network, and the Canadian National Telegraphs, which provide land line services in Newfoundland, and the radio communication between Port aux Basques and North Sydney. The four private companies are the Avalon Telephone Company of St. John's, Newfoundland, the Maritime Telegraph and Telephone Company, the Bell Telephone Company of Canada, and the New Brunswick Telephone Company. The toll reductions will be borne proportionally by each of the companies concerned, according to the amount of service rendered.

The new rates for three-minute calls between Newfoundland and the maritime provinces are based on mileage instead of the present flat charge of $7.20. For example, the new rate between St. John's and Halifax will be $3.20, a reduction of $4; between Corner Brook and Moncton, $2.65 or a reduction of $4.55. The rate for calls between anywhere in Quebec and Newfoundland will be reduced to $4.50 from $7.20; from Ontario the new rate will be $6 instead of $7.50; from Manitoba, $6 instead of $9; comparable reductions will go into effect for calls to and from Alberta, Saskatchewan and British Columbia.

In June of this year, I indicated to the house that there was a contemplated reduction in long distance telephone charges between Newfoundland and the mainland, and I am gratified at the results of the discussions which have taken place between the various companies involved.

I think that the results achieved are very satisfactory, and I am sure that hon. members, representing Newfoundland in this house, will join with me in extending our appreciation to the officers of the companies involved and, more particularly, to those of the Canadian Overseas Telecommunication Corporation for the manner in which the problem of the long distance telephone rates has been solved.

Mr. W. J. Browne (St. John's West):

Mr. Speaker, I am sure that the people of Newfoundland will be pleased to learn that these reductions are coming into effect on December 1. There is one question I should like to ask the minister and it is this. Are there to be any other reductions in rates for calls after hours-that is after six p.m.-and on Sundays as are in effect in the rest of Canada?

Mr. Chevrier:

The agreement that I have referred to in this instance covers over-all long distance calls. I know of no other coverage by this agreement. It may be that another matter is being considered by the Canadian National Telegraphs for posts and other communities outside of their land lines. I shall be glad to inquire.

Mr. Gordon Graydon (Peel):

Mr. Speaker, I should like to direct an inquiry to the Minister of Transport and to ask him whether he is aware of the news dispatch which appeared in the press this morning stating that there was a likelihood of something like an 18-months delay in the construction of the St. Lawrence power and seaway channel arising out of a possible reference from the federal power commission of the United States to the federal court and then to the supreme court of that country. I wish to ask the minister first of all whether that speculation or comment has good grounds; second, whether or not there are likely to be any other obstacles of a legal or technical nature raised against the construction of the St. Lawrence seaway at an early date.

Hon. Lionel Chevrier (Minister of Transport):

The questions that the hon. member for Peel asks are of a broad character. I saw the report in the morning press.

Inquiries of the Ministry All I should like to say at the present time is, first of all, that this is a matter that has to do with an application that is before a body in another country, and I would hesitate to make any comment on a matter of that kind. But I think I should at least say this: As I understand the matter, it is not a legal or a constitutional point that is involved. What is involved is an application of the New York State power authority before the federal power commission for a licence to join with Ontario hydro in the development of power in the international section. The matter has not yet been heard. There is no legal matter before any court at this time.

In so far as the legal point is concerned, it has always been a contentious matter in the United States. By "it" I mean the power and navigational project, and it is not surprising that there may be some litigation. But I should like to say that the co-operation we have received from our United States friends is such that I have confidence it will continue in the present application. Given that kind of co-operation, I am not at all disturbed by the statement that has been made. I am still confident that we shall proceed with this development in the not too distant future.

Mr. R. E. Anderson (Norfolk):

I should like to address a question to the Minister of National Revenue. Has the attention of the minister been called to recent press reports stating that cigarettes of United States manufacture are being sold in chain stores in Canada, at prices which are lower than those charged for cigarettes of domestic manufacture, and, if so, what action does the minister propose to take?

A further question: Will the minister also indicate what are the rates of duty and taxes on cigarettes imported from the United States, and whether any dumping duty applies?

Mr. Speaker:

Order. The second question is one which I am sure should appear on the order paper. Perhaps the minister would like to answer the first question. It could also of course appear on the order paper, but if the minister would like to answer it now and the house has no objection to make, he may do so.

Hon. J. J. McCann (Minister of National Revenue):

The hon. member was good enough to give me advance notice of his question, and in reply I would like to say that I am aware of the press reports stating that cigarettes of

[Mr. Chevrier.l

United States manufacture are being sold in some Canadian chain stores at prices lower than domestic cigarettes. The department is now looking into this matter and is carrying on investigations to establish whether the proper duties and taxes have been paid.

The customs duty on cigarettes imported from the United States is $2 per pound and 15 per cent ad valorem plus $2 per thousand cigarettes.

The sales tax of 10 per cent is payable on the duty paid value. There is also an excise tax of two cents per unit of 5 or any fraction thereof. Dumping duty would not apply in the case of these imports for the reason that under the provisions of subsection 2 (i) of section 6 of the Customs Tariff goods which, like cigarettes, are of a class subject to excise duties under the Excise Act, are exempt from special or dumping duty.

Mr. J. L. MacDougall (Vancouver-Burrard):

I should like to direct a question to the Minister of Justice. I regret to state I have not given him previous notice of the question that I am going to ask but I am quite sure that with the alacrity of his brain he can answer it.

Mr. Speaker:

Order.