January 31, 1957

PIPE LINES

TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING


On the orders of the day:


PC

Howard Charles Green

Progressive Conservative

Mr. Howard C. Green (Vancouver-Quadra):

Mr. Speaker, yesterday the Minister of Trade and Commerce tabled the order in council concerning Trans-Canada Pipe Lines. Apparently there also were agreements between some department of the government and Trans-Canada Pipe Lines, or between Northern Ontario Pipe Line Crown Corporation and the Trans-Canada Pipe Lines. I wonder whether the minister would also table such agreement or agreements.

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

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

When the documents left my office the agreement affecting Trans-Canada Pipe Lines was tabled with the order in council. I think the hon. member will find that the Clerk has both documents, but if not I will be glad to furnish anything which has been prepared and not tabled.

While I am speaking on this subject I might say that the financing of Trans-Canada Pipe Lines has now been approved by the conservation board of the province of Alberta and by the board of transport commissioners as well as by the government of Canada. So I think we can assume that that subject need not be pursued further.

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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PC

Edmund Davie Fulton

Progressive Conservative

Mr. E. D. Fulton (Kamloops):

On that subject, would the minister say whether last year, when I understand there was a new agreement following the steel strike in the United States, the deadline for construction to Winnipeg was extended, and, if so, to what date; or was it simply lifted without any definite date being set?

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Port Arthur):

There was no new agreement after the steel strike in the United States. The only agreement which had been made affecting the western portion provided for protection against force majeure, and if the cost of the line is not repaid before the due date, which, I think, is April 2, the question as to whether force majeure occurred would be interesting; but as we are quite sure that the advances will be repaid shortly, the matter is purely academic.

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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PC

Edmund Davie Fulton

Progressive Conservative

Mr. Fulton:

Am I not right in understanding that the agreement provided for construction to Winnipeg by December 31, 1956, in the absence of strikes or something which rendered supplies unavailable? Surely a deadline was written into the agreement. Was that deadline extended to another date or was the company relieved of any obligation to meet the deadline with respect to construction?

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Port Arthur):

No, the company was not relieved of obligation to meet the deadline, but the obligation can be discharged under the agreement by the repayment of the government loan, and it will be discharged in that way.

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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PC

Edmund Davie Fulton

Progressive Conservative

Mr. Fulton:

So there is some deadline by which the company is obliged to complete construction to Winnipeg?

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Port Arthur):

Or by paying back their debts to the government.

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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PC

Daniel Roland Michener

Progressive Conservative

Mr. Roland Michener (St. Paul's):

May I

ask a supplementary question with regard to the proposed public financing. Has the minister considered whether the proposed offering of bonds and common shares in a package, or unit, complies with the agreement of the Trans-Canada company to make a public offering in Canada of common shares?

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Port Arthur):

Yes, sir, the common shares are being offered in Canada and considerably more than half the total of the outstanding shares will have been offered in Canada when the financing is complete.

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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PC

Daniel Roland Michener

Progressive Conservative

Mr. Michener:

The reason I asked whether the minister had considered this matter is because I understand the public offering would be an offering of bonds and shares, whereas the agreement called for the offering of common shares. Presumably, common shares cannot be purchased alone.

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Port Arthur):

That is true, but the agreement nevertheless calls for an offer of shares in Canada, and shares are being offered.

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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PC

Edmund Davie Fulton

Progressive Conservative

Mr. Fulton:

On condition you buy bonds.

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Port Arthur):

What difference does that make?

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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PC

Edmund Davie Fulton

Progressive Conservative

Mr. Fulton:

It amounts to a condition of sale.

Inquiries of the Ministry

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Port Arthur):

There was no offer of that kind in any agreement. It was a verbal understanding with the group that represented the ownership of the pipe line, which I conveyed to the house. The understanding was that after the financing had been completed more than one-half of the total outstanding shares would have been offered to purchasers in Canada; and I may say, from reports reaching me, that all those shares will be taken up by purchasers in Canada, and I am satisfied the demand for further shares will still exist.

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
Permalink
PC

Daniel Roland Michener

Progressive Conservative

Mr. Michener:

May I take it that the minister considers what is being offered as in compliance with the agreement?

Topic:   PIPE LINES
Subtopic:   TRANS-CANADA PIPE LINES REQUEST FOR TABLING OF AGREEMENTS ACTION OF GOVERNMENT ON FINANCING
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January 31, 1957