TRADE AND DEFENCE

Wanganui Chronicle, Volume 80, Issue 136, 10 June 1937, Page 11

TRADE AND DEFENCE

CANADIAN CONSIDERATIONS SPEEDY COMMONS SESSION OTTAWA. May 3. Notable for its goodwill and speed, the second session of Canada's 18th Parliament ended on the same note with which it opened—co-operation so that Canada's delegation might get away to the Coronation. The 62-day session—shortest since 1921—ended so early farmer members were home in time for seeding for the first lime in years. Opening on January 14, Parliament's first act was to send a message of loyalty to George VI who had ascended the throne a month before. All parties in the House of Commons and both Liberals and Conservatives in the Senate expressed readiness to co-operate, so the session might be concluded early lenough to avoid interference with attendance at the Coronation in London. Prorogation was April 12.

The session was distinguished for the lack of bitterness on the floor and by the speed with which the major debates were completed. The new trade agreement between Canada and the United Kingdom which formed part of the Budget was perhaps the most important legislation of the session, although the measure which set up a company to undertake a transCanada air service vied with it in public interest.

Canada during last year and this year has taken some steps to increase her defence forces; hardly big enough steps to suit the Conservatives, yet too great to please the members of the Co-operative Commonwealth Federation, most of the Social Credit group and many of the Government’s own Liberal supporters, particularly those from Quebec province. A constitutional debate was provoked by decision of the judical committee of the Privy Council holding ultra vires of the Dominion Parliament social legislation based on the labour part of the Treaty of Versailles. The legislation was passed by the former Conservative Government of Rt. Hon. R. B. Bennett in 1934-35.

Commons speeded up from the start with the debate on the Address-in-Reply to the speech from the throne being concluded in one day, the first business day of the session, and the main estimates providing for expenditures during the coming year of 410,465,397 dollars were brought down by Finance Minister Dunning the same night. Senator A. D. Mcßae, of Vancouver, in the Senate referred to the lack of party strife in the Commons as “apparent coalition.” Subsequent estimates brought the total to nearly 520,000,000 dollars. Two members were read out of their parties while the session was in progress. The doors of the Social Credit caucus were closed against P. J. Rowe (Athabaska) for his criticisms of the policy of Premier William Aberhart, of Alberta. J. S. Taylor (Nanaimo) was turned out of the Co-operative Commonwealth Federation because of his support of a faction in British Columbia which had broken with the party over its provincial programme. Both members continued to hold their seats in the House of Commons. Provincial Finances. During the past year the Government became majority shareholder in the Bank of Canada by increasing the capital stock of the bank, so that 51 per cent, of the shares would belong to the nation and 49 per cent, to the private shareholders who had owned all the stocks as organised by the previous Government. The Bank of Canada, the central bank for the Dominion, undertook a function new to government in this country when it reported in March on the financial positions of the provinces of Manitoba, Saskatchewan and Alberta. The reports were made at the request of the provinces themselves, supported by the Federal Minister of Finance.

In view of the condition of finances in Manitoba and Saskatchewan the bank recommended the Dominion Government appoint a Royal Commission to study the entire taxation set up—federal, provincial and municipal. The Government announced such a commission would be named. It also extended temporary financial assistance to the two provinces to meet their obligations and continue their public services. The bank found Alberta djd not need temporary assistance because of the savings in cutting interest rates on Provincial Government bonds and other securities.

An increase of some 11,000,000 dollare in the estimates for Canada's military, naval and air forces was the cause of one of the chief debates of the session. This did not include the purchase of two destroyers for 2,200,000 dollars. Disturbed world conditions necessitated stronger defence forces, the Government declared, and at all stages it was emphasised the increases were for the defence of Canadian shores and Canadian territory and not for participation in any European or other foreign war. Members of the Co-operative Commonwealth Federation brought the issue to a head with a motion which declared, “this House views with grave concern the startling increases of expenditure proposed by the Government for purposes of national armament in contrast with the inadequate provision for the social security of all sections of the Canadian people.” Objected To Increase. As this amounted to want of confidence motion all Liberals voted against it, but several expressed objection to the increased defence appropriation. They were opposed to more armaments but disiikeu the dou-ble-barrelled character of the motion. On a formal division it was defeated bq 191 to 17. All Conservative and Liberal members voted against it. All lhe C.C.F. members voted for it, while the Social Credit group divided. Liberal critics found their chance to fight the increases when Defence Minister Mackenzie sought approval of his estimates in committee of supply. As each item was called a motion was made to reduce it to the amount allotted the previous year. The largest number of Liberals to vote against the Government proposals was 13. All except one were from the province of Quebec. The dissident Liberals were: J. A. Crete, St. Maurice-Lafleche; H. E. Brunelle, Champlain; L. Dubois. Nirolet-Yemaska: P. Gauthier Port-

neuf; W. Garicpy, Three Rivers; L. Lacombe, Laval-Two ountalns; W. Lacroix, Quebec-Montmorency; C. E. Parent, Quebec West and South; J. F. Pouliot, Temiscouata; Maxime Raymond, Beauharnois-Laprairie; A. Sylvestre, Lake St. John-Roberval; J. T. Thorson, Selkirk, Man.; J. A. Verville, Lotbiniere. Throughout the debates on the C.C.F. motion and on the estimates themselves the Conservatives remained silent but voted steadily with the Government.

Later on an estimate to provide for payments on the two new destroyers bought in the last fiscal year, Conservative Leader R. B. Bennett approached the subject from a new angle when he urged the Government to pursue a policy of naval co-opera-tion with the United Kingdom and other dominions. He cited with approval the naval policy laid down before the Great War by Sir Wilfrid Laurier and said, despite side issues, it had been the policy of both Conservative and Liberal Governments ever since. Prime Minister Mackenzie King agreed and indicated the Government’s policy of providing primarily for the defence of Canada did not exclude naval co-operation with the rest of the Empire. He commended Mr. Bennett for his frank acceptance of the traditional Liberal policy first promulgated by Sir Wilfrid Laurier.