Hon. Marcel Lambert (Edmonton West):

Mr. Speaker, my question is to the Minister of Finance. In light of the fact the Bank of Canada raised the bank rate some two weeks ago with government approval in order to contain lending by banks, would he care to say what the views of the government are on the report that the banks may again increase their prime rates so they can increase their deposit rates in order to cope with the excessive demand under the inflationary pressures today?

Hon. John N. Turner (Minister of Finance):

Mr. Speaker, I have had a very close relationship with the hon. gentleman over the years and I do not think he would really expect me to comment on interest rates or exchange rates.

Mr. Lambert (Edmonton West):

I realize that the minister is on the eve of his budget. On the other hand, two weeks ago there was a great deal of approval by the minister for this move which was meant to curtail inflationary pressures, and we hear now that the move is afoot again. I should like to know whether he feels that the move is successful in containing inflation?

April 30, 1974

Mr. Turner (Ottawa-Carleton):

Mr. Speaker, the only frank answer I could give the hon. gentleman would be speculative, and I would not like to speculate.

Hon. George Hees (Prince Edward-Hastings):

Mr. Speaker, I have a question for the Minister of Energy, Mines and Resources. As the federal sales tax on oil and oil products increased by more than 60 per cent when the federal government raised the price of oil from $4 to $6.50 a barrel, does the minister not agree that he should have urged his own government to reduce the sales tax on oil and oil products instead of suggesting that the government of Ontario-

Order!

Mr. Speaker:

Order, please.

Mr. Hees:

-reduce its sales tax which it has maintained at the same figure as it was before the federal oil price was raised?

Order!

Mr. Speaker:

Order, please. I am sure the hon. member will appreciate that a question asked in those terms is debate. Perhaps the hon. gentleman would like to rephrase the question or ask a supplementary; otherwise I will recognize the hon. member for Dauphin.

Mr. Hees:

Mr. Speaker, I would like to ask the minister if he will take the first opportunity on motions to explain to the House what justification he has for suggesting on Saturday that the government of Ontario should cut its sales tax which has remained stationary since well before the latest oil price increase, whereas the federal government sales tax on oil has increased by more than 60 per cent since the government raised the oil price? Will he make a statement on motions in the near future?

Hon. Donald S. Macdonald (Minister of Energy, Mines and Resources):

Mr. Speaker, I should remind the hon. gentleman that the Ontario tax is 19 cents while that of the federal government is two to three cents. I would also remind him that on Saturday I pointed out that if the Tories are serious about wage and price controls, the provincial government-

Oh, oh!

Mr. Speaker:

Order, please. May we have order, please.

Mr. Hees:

Mr. Speaker, I would simply like to ask the minister whether he did not learn from the last election that you cannot fool many of the people much of the time.

We sure fooled you.

Mr. Macdonald (Rosedale):

That is why you are in the opposition, George.

Oral Questions

Mr. Hees:

You are going to wind up as nothing after the next one.