CANADA’S WAR PROBLEMS

Grey River Argus, 16 January 1941, Page 6

CANADA’S WAR PROBLEMS

FINANCIAL FRICTION Change in Constitution RECOMMENDED BY ROYAL COMMISSION. [Aus. & N.Z. Cable Assn J (Received January 15, 10.20 p.m.) OTTAWA, January 14. Mr. MacKenzie King, Prime Minister of Canada, has opened a' conference of the Dominion and Provincial Governments which has been called to consider a report compiled by a Royal Commission under the chairmanship of Doctor Joseph Sirois. Mr. MacKenzie King said that the adoption of many of the recommendations in the Sirois Report would increase the efficiency of Canada's war effort, and also ease difficulties in her post-war adjustment. He emphasised that war has created a financial problem, which is the crux of the difficulties.

The report of the Royal Commission is designed to give relief from competitive efforts on the part of the Dominion and the Provinces to secure revenues, which efforts are bound to create growing friction, and contitute a real threat to the national unity, and will inevitably hamper the nation's war effort, and also thwart the efforts to distribute the burden of the war equitably. The Royal Commission has re-ex-amined the basis of Canadian confederation, and the relations between the Governments of the Provinces and the Federal Government. The Commission has recommended that •he Federal Government shall assume the provincial debts; that finance unemployment relief shall hold exclusive rights to tax corporation incomes; and to collect succession duties. Provinces which would thereby lose their national subsidies, would receive adjustment grants according to their needs. The report has also favoured the merging of Canadian Provinces. The mergers proposed are: Firstly, of the Alberta, Saskatchewan and Manitoba; and secondly that of Nova Scotia, New Brunswick, and Prince Edward Island. Although Mr. MacKenzie King expressed the Government's willingness to compromise on the report, the Premier of the Province of Ontario. Mr. Hepburn, and the Premier of Alberta. Mr. Abehardt, immediately opposed the Commission's recommendations.