FINANCE INQUIRY.

Auckland Star, Volume LXIX, Issue 229, 28 September 1938, Page 7

FINANCE INQUIRY.

SUCCESS THREATENED

DISSENSION IN CANADA.

PROVINCIAL DIFFERENCES. OTTAWA. Differences between Canada's Federal Government and the governments of three of the nine provinces threaten success of the special Royal Commission on Dominion-Provincial relations. While the five-man commission struggled with the complex problem of improving the financial balance in the federal structure, inter-governmental understanding appeare3 on the wane. The Governments of Ontario, Quebec and Alberta—sensitive over "provincial rights"—have declared their intention of having no further connection with the Commission's deliberations.

From the Commission's appointment ni August, 1937, Social Credit Premier William Aberhart, Alberta, declined to recognise it, objecting to the manner of appointment by the Dominion and to the personnel.

Premier Mitchell Hepburn, of Ontario, also criticised the failure to consult the provinces as to personnel, but his Government made a lengthy and thorough submission to the Commission. Premier Maurice Duplessis, of Quebec, endorsed the Ontario premier's stand in a general way but refused to recognise the Commission's "jurisdiction." On the eve of the Commission's final auti mii sessions, to be attended by all the provinces in round-table conference, the increasingly delicate question of national unity was further jeo|>ardised by Ontario's decision to take part in no more of the Commission's activities. Tax Invasion. Ontario's Premier claimed two Dominion tax changes constituted a "further invasion" of the provincial tax field—though a truce had been made pending the Commission's report—and withdrew. Quebec's Premier reiterated his conviction that he had taken the proper stand regarding the Commission in the first place-. Alberta's Premier took occasion to declare the Commission had collapsed and dubbed it a "national menace" and a "piece of political futility."

The Federal Government, which replied that the tax changes merely reduced chances of tax evasion and protected provincial as well as federal revenue, thus found the government heads of three provinces with a total population of 7,600.000, out of the national population of 11.100.000, opposed to the non-political, fact-find-ing l>ody it had created to study the question of public finance.

However, the work of the Commission will be completed as planned, regardless of objections, Prime Minister Mackenzie King announced. He emphasised it was purely a fact-finding body with no power to do more than present information and conclusions.

The Commission's report and recommendations will be considered by a Dominion-provincial conference shortly after the report's completion, according to present plans. Whether any changes in the present unsatisfactory distribution of Government revenue can be effected without unanimous agreement of the province® appears a vital question.

Meanwhile, the Commission's 71-year-old chairman, Hon. Newton W. Rowell, is recovering from a collapse caused by the strain of the Commission's nationwide tour. While it is doubted he will take part in the Commission's final sessions, now slated for October, it is expected he will be able to resume his duties as Chief Justice of Ontario within a few months.