Mr. JACKMAN:

It is virtually impossible under the exchange regulations in the old country to send money with these children for their support. It is hardly likely that the interests of Great Britain at present will admit of any large aggregate sum being sent out in support of the children. While in a few cases some provision may be made by English parents who have assets in this country, such cases will be proportionately so few in number as to be hardly worthy of consideration. Most of these children, probably ninety-five to ninety-nine per cent of them, will have to be supported by the people with whom they

Income War Tax Act

live in this country. University professors in Toronto have been organizing to bring out children of corresponding professors in the old country who -have no possible means of sending money out with them; it is entirely voluntary. Canada being a partner of the motherland in this war I think we should certainly do what we can, and the government should not prejudice the people who are good enough to pay out a substantial sum each year for the maintenance of these children until the war is over.

Will the minister clarify what he means by his reference to the exemption of $5,000 for a married couple? I do not understand that.

Mr. JACKMAN:

May I ask the minister what he means by "a cooperative plan"? If you take a guest child because you know the parents in the old country, does that not qualify you also for the exemption? Or does that limit the working of this exemption?

Mr. JACKMAN:

Would the minister clarify what is meant by the taking away of the right to income tax exemption from' holders of contractual rights which were in existence on June 24? If I understand him correctly, all people who had taken out dominion government annuities, and perhaps other annuities, on the understanding that they would not have to pay income tax when they became operative, have had that right taken away. Many thousands of our citizens are paying in so much a year, perhaps $300 or $400, on annuities so that when they reach a certain age, say fifty or sixty, they will have a $1,200 income. The understanding was that this income would be tax free as it is stated in the contract, "Income derived from this contract is exempt from dominion government income tax." Is it the intention of the government to repudiate its contract in connection with all these annuities?

Mr. JACKMAN:

The resolution reads, "to holders of options or contractual rights." A great many people purchasing annuities do not receive any income from them at the present time; they have only what one might term options or contractual rights.

1. What is the amount spent by the various government departments on advertising or publicity during the fiscal year ending March 31, 1940?

2. How is the amount divided among departments ?

3. How much of these various amounts can be properly attributed to ordinary peace time departmental business, and how much to war effort?

4. With what advertising firms or agencies has this advertising been placed, and what amounts have been placed with each?