MAY 11. 1940 ‘__ ____

5FFICIAL suMMAR Y

(cqntllllltfl from 11886 f) __

s illiisorv autoncmy.

l" - q- the accumula- _ zlii: Lix burden would ', , equitably distributed 1 ;g.i.ut the nation, the com- bgsmu suggested. The same in- gufl, 1n o: part c-f the country fiat tcii:l to bear tlir- same bur- sa, a5 similar iiictme in another vggioll-

Estimated Cost

effjiplllPlil a imeiiwlzi

mat-case jii stir" use". a"" l!" "5

3th til mFS l‘

l 1 ll, “ltTtn the ivai"tiii1e applicability 011B proposals, the Commission ' is plan is even more up. nllfillfe to cnicrgeiicv conditions

iiirzrsis l than to llP-"P- oi-"riciai. SUMMARY

rnllowliig l5 t.lie official inmmary

o; the principal recommendations:

1 The Rnpozf ivliieli the Comm's— pri-"oarctl is the outcome ii-liiilt" ittl study. Iii the couisc d ilie Commission hos u scss lll ilie capital of every oviiict- oi Canada and at Otta- wa. it llllS iiod the benefit of the tgllaboraiion cf many of the pro- vincial gcitiiiiiiiciits, of the evidence oi federal and provincial civil 52r- mts, at l‘t'l)l£\SEHlfli'.Ol'lS made by a lazge number of organizations in

gverp province of Canada. The

Commission has given careful con- sideration to .iiie requests and sug- gestions l)l‘t'5l‘lilf‘f'l to it. and has 415'», \A""l tlic. assistance of a very able l'\ li staff, instituted in- quiries oi its oivn into the finan- cl;_1‘QQOll0l]llC and social problems which cauie within the scope of its terms cf rcfci" ice.

The cciirii is which the Com- mission has ‘aclicd are, therefore, not siiclrtn iispirations but the i"e- suli oi c iul delibezuiion. The

COIllIIlLSSLOIlCFS consider it both re- markable and significant that, on questions on which the most diver- geiu views are widely and tenac- louslv llvltl both by public men ‘ ‘l‘ 1c citizens. they should

at complete agree-

meiii. l _ result oi COlIllWTDlDlSC or of give and take but reflects a sincere unanim-

ity of judgment on the great lssucs I

which c0 i-ont the nation. Its sig- niiraiice is enhanced by the fact that llll‘ (our Commissioners are invn from diffcrcni. regions of Ca- nada. iiieii Wllfl differ widely in background and in training. as well is in general outlook; and it is also ilgnificant that the conclusions which they have reached are far 'l'0m bciiic the vlcws which any one )l tlicm livid at the outset of the nqtiirv. Wlictlicr 0r not the Re- )0i'l ivlll be successful in presenting iiearly and forcefully to others the mrisirlerations which have carried relght with the Commission. and n €0ll\'lllt‘lll! others of trio validity )f the conclusions which the Com- ribsloiicrs have formed. the future ilone can show. But in draivinr; iltentlmi to the changes which have lkeri place in their own views. in he llglit of the studies which have itch made. the Commissioners hope hat tlicv may predispose others to ierusc both the Report and tlic ric- earch SltItlIPS which accompany it iefcre iirriv a to the mci-lis of the recommen- lrlaatéons which the Commission has e.

:2 =1 =- r9 I‘ 3. '1 L‘. 3 9. o '9. E’. o =3

Purpose of Summary

iii tlii- p. cscnt summary the aim to out iiio principal recom-

lvarl of the problem its of Canadian cltirens.

. lll\)f‘ satlsfisd onlv lf all iiriil gorcriiinciiis in Ca- .i at‘ in n position to supply

on the coii-

of the provinces could

~-tl

unllv og‘s‘s throughout Ceca-la

M“ ""0"""."i"il ~nverr~m=ntn ex- lil""'¢1_‘f'\ tlic (‘nriml-vlon that '31’) piv their way. and per- l‘“ functions to their own

‘ fncfioii l' tlic Da- WN _ f1 assume th‘s or that . Ff We. o" wore to with- . "l" this or thct field o! fax- "" “fr” to increase their H P s- lliii. on ng~m;-nntpin_ u M: m" ‘ml ll sofuilnn on those- .‘ PAW"! m‘ ll‘ licn"r:r‘i".ed mid n" “ll l" l’ mlclil meet t‘"e needs "u": m wwl‘ of iii.- nrrrilrvccs. it l (la so at the cost of Impair- fll""lall's ll"‘lllC.'."~. or of "file-i of cthcr s. W!‘ PcM-“lwcnerw v-crc ”r“""< “m-“ll-vl h; Ric-wales a-w

w m. y. ‘Pllqll-twv. ‘h’ viii-w.

"lk-‘filutlon as inarimumx_

find one onerous emment which ca ern condition

iiiccs, on the other ficlcnty

assured a relative- cinie in keeping with phiii: them a ‘-real“

s on surplus l jurisdiction. the wealth or-

their dc

will arise tions are

n estimated rough- ..o plan would cost 1t cxtra 340.000.0110

the experience of t‘\ . that ivould var-y -(*'~t of relief and the re- ivw income taxation there was no

that

.. fa ly be tpundcd i: lllCOlVgl". i; s lgdtge ii mcdiu rac- i-‘l. I y

W" an ‘on duties. These highly developed in gtiiwla a: many other coun- rm 5p t. t-iucq, in contrast, have 5.,“ flf‘\'f‘l"llf‘i‘l for further in Can- as QPDPTHHV and the com- Mivis-s their gradual el-

vcars of (rare-

. HTTCOlIlCIll. is not the;

embodied in the Rcport .. ic briefly thcreusona for

wliL tlicr material or

tlic citizen tlicm. The

dutnaiirs of t“c.i" clll- l

which tlic._v en-

i their financial ca- t )l'.ill'l\l ilirir recognized ' " st-ikln"; fact, iii the L‘ art's study" cf Canadian Jill! is that. niiiiv provinces. ll". ' ‘iai position is no‘. the ‘ ~ rgriicy conditions. are lite to ii rl the moiiev to cnnifc f". iucrt the ncctls of their _ 'l“u~ hast-r pi"p'il:iii before i"lll‘lll\"lf)ll licr. lira-clove. in

‘ lu which ihc flnan- p

5W0

iiiirl assured. wi hcut financial OCHSCQKICDKY-fli F‘ (Frill Government on Whflfi‘; - fimcllonirl’! all provinces ‘!l'l'u-‘. NlllOlllll unity and mnmtil auloiicmv must. not be Wml of its competitors for the g, ll-‘l "_'ll"‘l'lllf‘.“ for, in Canada f?“ ‘Wcv or.» but two faccts of l’ Fuji" l‘llf1'Z~~l'f sane fcccral sys- 1lll- ‘Dllllfdllll uiiltv must be board r3‘? icrlil nutcncnit‘. and pro- m- iuitciiom_v' cannot be assured ‘"“"‘ l‘ l-lfmlz feeling of nation-

Oneratlng Cost Advances

Another function cfosely analog-

ous to that of relief for employ- ables is that of assistance to a pri- mary industry (cg. agriculture) in the form of operating cost advan- ecs. When relief is on a small scale the responslbiity can be borne with. out difficulty by the province. But. lll the (‘Vent of wide-spread disas- ter wits which a province is unable to cope without

There is. however, an important

financial burden of which provin- cial governments can be relieved without any sacrifice of autonomy. This is the dciidivelght cost of their debt service. “Flie burden taken up by the Dominion. if it were to as- suinc this deadvvciglit cost, would be less than the burden of which the provinces were relieved because. as maturities cccurred. the debts could be refunded more advnnfsviei ously ‘oy tlic Dominion than by the provinces. To this extent a saving wourl accrue to Caitadériii taxirav- crs. The Commission has, thee- fore. recommended that the Do- minion should assume all provin- cial debts (both direct debts and debts guaranteed by lhfl YlYOl/lllclfi‘ and that cacli province should pay over to the Dominion an annual sum equal to the interest which ll - now receives from its investments. The reason for this proviso is that it would not. be expedient that the Dominion should take over liabil- ity for a debt which represented a self-liquidation investment retained bv fl, province. Conditions govern- ing future provincial borrowing are outlined in detail in the Report.

In the case of one province this

recommendation as to debt requires an important modification. The pro- vincial debt of the Province of_Qlle' bec ls low in comparison vvitn the per capiia debt of other provinces, and is an unusually low fraction of the combined municipal and provincial debt of the Province. To meet this situation. which has arisen through the policy of this Province in imlW-‘lflil, 0n mlmlcl‘ palities onerous functions which are pe formed elsewhere oy provincial governments. the Commlssif-tn hi5 recommended that the Dominion shouut rake over 40 per cent of the comblncd provincial and municipal net debt service in Quebec-

Prince Eduard Island Cited

If the provinces are relieved. in

accordance with this recommenda- tion, of the deadvlelihl bllldfm °l their debt. it is not unreasonable that they shoird surrender to‘ the Dominion the subsidies. whznever their character. which they now re- ceive, Prince Edward Island alone would give up subsidies more than equivalent to the deadweight cost of its debt. and. as will be seen. ;ilils apparent loss will be more than made up in other ways. The aboli- tion of ilic provincial subsidies will be in itself no iiiconsfdcmble re- form. for their history (which fuly examined iii the Commission's ~ Iresearch studies) is long and tor- tuous The subsidies have been based on no clear principles and it has brcn imprvsible to say whether 01' not diffe ent provinces have receiv- ed equal treatment. specious rena- oiis have often been advanced. and not infrequently accept-Pd. in stip- crt of rcndiustments in order to id tho full implications of gen- uine reasons. and lleiilvlllllloni be‘ tween the Dominion and the pro- vlncrs have lacked the candour which is desirable in a democracy.

Sources of Revenue

Up to this point the Commlsslonk proposals. cnormoualv beneficial as they would ho to the prnvlncfis. woud be verv onerous to the D0- minion. The Commission had. there- fo e. to consider how to provide the Dominion with sources of revenue which would enable it to carry is new burdens. ‘This inqury ms will be seen) was combined with the consideration of efficiency and equity in taxation specifically en- trusfcd to the Commission. There could be no question of incrsiisina the lciznl taxin: powcrs of the Do- minion since these are already tin- llmlted. Bu: the provinces. in re- turn for t-h-s benefits which flier would receive, And for further pay- ments which the commission finds it iicccssa y to recommend. should be l!l‘F"f\l‘f’fl to renounce some of the taxes which they employ tor are entitled to rmplov) at prcivut 1"»- flomiuicn. for lta part. should ‘o- abl- and ""ll""w to rafrtvn fr~m competing with tbc prowneca l“ re- owfif" o‘ ivuwv-r n.’ revenue left to them an“ Ihoivlrl leave the p ovlnc-‘s v commission did, howevarnfm to collect thou revenues in

function of gov. whaiever way lppcnrg to them m“;

efficient even if the lndlfetrt taxation should be involved the assumption of pro- ebl»! by the Dominion will lead to savings in which taxpayers will benefit. eral taxes from which, they are under unified control. M Brest a revenue can be obtain- “l M It Dresent with less iisrasiiio to the taxpayer. whet is more im- portant. a reorganization of these "X98. of a character which is ps5. ‘We °ll~y ll’ they are under uni- fied control. can remove man hind- rance: which in the recon have been detrimental to the ex- Dansion of the national income Ii .\.., to the sum total of the Incomes of all citizens of Canada). As this in- °°m¢ BXWnds. as the result of what mly be fairly tern-fad greater er. ficiency in taxation, the same rev. enue as at present can be obtained by taxes imposed at, lower rates than those of today,

nnot, under m0d- f. be equitably or pf. performed on a. regional 91‘ Dlvvlllvlal basis. This funotioi is the maintenance of those uneml 91W" Wlw m emiiloyabie and of Dcndents. In reaching this conclusion lWhlCll is amply

Doll"! by the Evidence and th search studies) the Commlggton merely confirmed conclusions which had been reached by earlier Com_ missions. so fitml is the Commis- sion convinced o?

this conclusion that come". to consider the fltugflon if lls main recommenda- iiot implemented. it pm. oecds on the assumption that the ricollcf of the unemployed who are a .e and wll.ing to work will become a federal function.

sup- e re-

the validity of . even when it

The first of the taxes which the Commission recommends that the provinces should renounce is the tax on personal incomes. provinces impose this tax. which get moat revenue from it are often taxing incomes which other

assistance from rovinces think that they

the Dominion or in the event that the Dominion by such means as an exclusive marketing organization has already established effective control of the industry concerned the Commission recommends that the Dominion should assume direct administrative and financial re- sponsibility rather than render in- direct assistance by wnv of advan- ces to the provinces affected.

The Commission's treatment of these expensive functions of gov- ernment may be contrasted with its treatment of another expensive function. namely the payment of non-contributory old age pensions. As the Federal Government is al- ready priylni: as high a proportion of their cost as lt can reasonably uay without assuming control of the administration of the pensions. and as the Commission was con- vinced that it is more satisfactory that the p ovinccs should comtinue to administer non-contributory o'd age pensions. it could not recom- mend any further financial help to the provinces in this connection. But the CommLsslon is of the opin- ion that if non-contributory old age pensions were to be superseded or stipplrmcntrd bv a contributory system tho latter should. for various reasons be under the control of the Dominion.

they are in part at least earned in them although they are received in those provinces in which investors live. or in which large corporations

this all. The general equity of the tax system-and the Commission has been instructed to concern itself with equity as well as with efficiency in taxation-re- quires that the tax on personal in- comes. which is one of the very few taxes capable of any desired graduation, should be used to sup- plement their taxes and should be uniform throughout Canada.

which the Commission recommends that the provinces should forgo in- cludes those taxes imposed on cor-

partnerships, carrying on the same business as the corporation would not be required to pay. and on those businesses which only cot"- porations engage in. Tlir-y include. therefore, the tax on the net income of corporations and a multitude of taxes devised to raise revenue from particular classes of which a province cannot convenient- lv sitbject to a tax on net income. They do not include boiia fide li-

which woud remain with the pro- vince. ‘Iliesc provincial corporation taxes are prculialy those who pay them and particularly detrimental to the expansion of the national income. The cost of

ivhich has no net income. The tax is very likely to be a. tax 0n costs rather than on profits. These taxes are also a frequent s:urce of in- terprovincliil jealousy‘. GrTat bene- fits mtiy be exrtcctczl if tfirey swept away and the equivalent rcv- l eiiue raisrd by federal taxrs chiefly on coporate net income.

To ask the provinces to give up the entire l'f‘\".‘llll(‘ which ilicv l"l"-\V

would. YIOWGVEl‘. intensify a griev- ance of which the Commission rc- celved complaint in more than one province; for the Dominion woud receive a tax on income which was in part derived fi"oni the depletion 0f irreplaccitblc natural iveallh. It is clearly desirable that revenue of this character should be used for work which will compensate for the damage which has been done to the resources of a province. The Commission has. therefore, recommended that Dominion should pay over province concerned l0 per cent of the corpoiate income derived from exploitation of the wealth of the province. When what is required is the conservation of natural resources by maintaining

compensation for depletion by new investment. the provinces are in a position to use their

The third tax wlich the msson recommends that the pro- vinces should forgo consists of var- ious forms of succession duty. These differ from the income taxes in that they have not. hitherto been used by the Dominion: but taxes to which the Dominion might at any time be compelled to resort. The use made of them by the DYOV- lnces has given rise to bitter com- plaint because the provinces have not made equitable arrangements with one another so as to tax each item in an estate in one province only. The differences in rates be- tween provinces. and the dauaera of double taxation. seriously distort investment in Canada. 'I‘lie poten- tlal competition between ces desirous of attracting wealthy residents has made it impossible to- use these delicate instruments c‘. taxation as a means for giving ef- fect to social policies. Many pro- vinces feel aggrieved because estates which have been built. up by invest- ment throughout the whole of Ca- nada are taxed. not‘ for purposes. but for the oenefit of stra- tegically situated province!-

is

Further Recommendations

If the Commission's recommen- dations stopped at thin P011"- "l" wou'd. instead of beinu enormously bsnemial to the provinces. a parlous financial the provinces had. hand. been relieved of

. . l "incnt iiorshugar JSQhYQI-‘igiit burden of and had. on the other their right to im- personal income taxes. corpor- ation taxes and suc

to expenditures than d wuh less variable yerflfflrt’. possible

.. l revenues. It is tr the Sm of me

to form an idea o probable surplus or In! this calculation for. it a orovlflw were ‘eft with a or deficit. it would not vide for the reasons

hip. to increase the

it derived from the sources remtiinin! ill or to reduce its exDPl‘ still providln" scrvlfl to these provided

C-l. M p,“ n91»; more must be n re '|'a'|\$’~\‘ 1n u“ calculations. Who

la significant for the plllfm" °

1 tthe Commission is the slzs of the

‘surplus or deficit which would exist in a province if it were to provide the normal Canadian standard of services and impose taxation of

normal severity. It is not the ser.

vices which each rovince is at present providing, ut the average

Canadian standard of services, that a province must be put in a posi-

tion to finance. It is not. the rev. eiiue which its taxes yield at their present level which matters. but

the revenue which it would derive from them if its people were as heavily taxed as Canadians in gen- eral. ust as in the case oi’ debt it is necessary to take account of the fact that some provinces are more accustomed than others to provide services for their people through municipalities or other agencies in- stead of directly. The Commission has, therefore, attempted to com- pute. province by province. what the cost would be if the province and its municipalities taken to- izether were to provide services on the Canadian standard. Adjustments have been made for the cost of the developmental services appropriate to the province. and for the weight of taxa ion in the province. The re- sult bas been that the Commission has been able to make a iecommem elation as to the amount, if any, which each individual province should receive from the Dominion annually to enable it to provide normal Canadian services with no more than normal Canadian tax- ation. The calculations involved were. not easy and presented pecu- liar difficulties in Quebec because of the extent to which education- al and social services in that Pro- vince are provided, not out of tax- ation. but by the Church. But the calculations have been made and the Commission recommends that each province found to be in need of such a payment should receive it by way of an annual National Adjustment Grant from the Do- minion. This grant as originally fixed would be rreducible. The Commission. recommends. however. that NBLlDllEl‘Adjll§lmfilll Grants should be re-appi-aiscd every five years. For special emergencies. which might RflSf‘ in respect of any province (and which exist in one province toclrivi, speciql nmvtsim, should be made, as it would he tiri- desirahle either to fix an annual grant ln perpetuity on the basis of conditions that are transitory. or t-o fall to provide for serious emer- gencies. The Commission believes i"at the" provlsicn= will permit of the ncc.. ry elas‘icitv in the fin- ancial r=latlon= DFHVC?!) the prov- inces and the Dominlcxi \vh't‘.h has ltrcn lacking in the old subsdy sys- em

Grants and Subsidies

In order to assure all provlnccslgq

l matter cf grants. and in odcr tog

of fair and equal trcatnicnt in ‘llie

a=surc the general taxpayer that any new or increased grant is jus- tified on the basis of the compara- tive nerd of the province concern-

cd, it will b? csvntial that all re- |

quests from the pfrviiccs with re- spect to V"Fll'< shout: o P"fll'l§ll2fl as scW-ntiflctilly‘ cs-d cblccllvclv as llllfslble. The Commission. therefore. recomrrcnfis the esfabhshment cf

a small permanent commission.

lad the Finance :1). rd b" an a"c- .. i"‘icnl s!" l’. to iiclvis" upon all rcc-Wsfs fo" ntw rr Porous-i grants. aiicl tn rc-aporwso th~ sys- tem of grants cvcrv flve "arr. The recommendations which have been ds-"crlbcd would. iif ini- FIllPTllFTCl the autovoniv ounce bv €ll=l‘l‘ll‘iZ to it tlic revenue nrcc-"sww" to mot-V" services 1n acco m? with the Canadian standard. Every prcvizi- cial government (iroudmg thcse whrse position will be so good as to make adjustment grants unneces- 58H‘) would be placed in a better financial poitlcn than iit is in to- day. And the financial psst-ion of‘ every province would be immeisur- ably more secure than it is today. The Commission looks on this as primary achievement. It is convinced that this fund-amental problem must be faced and it has not been able to discover aniv alter- native way in which it could be solved. The recommendations which the Commission has made must be judged as is whole. They cannot wlit-h fairness either to iltie

(which may b: c

rovitioea or to the D0min‘ori be.

D

considered in isolavon for any one c-f them taken alone might produce grotesque results.

Provision for Readjustment

At vvIha-t cos-t. it may be asked. will the provinces have secured these aclvantazes? There will be a certain cosit to the Domiiron and therefore. to the Dominions tax- payers. The taxes forgone by the provinces, if replaced by Dcmirvon taxes of equal yield. would not provide all the money which Ill." Dominion will probably b:- called on to pay under the ‘Pia-n. It is ntxsessary to say “probably” because the Domfriloii, unlike the provinces. will be left wit/h highly vawable expenditure: (cg, those on unem- ployment relief and variable revenues. The long-run effects of the proposed arrangements should as, has been explained. be to iii- crease employment. and to Increase the national income and. therefore. the national revenue. Butt. the ex- pectation of the Commission is that the Dominion. in the first will have to increase taxes rome-

what. Elven withcuit increasing tax]

rates it will obviously increase the taxes payable by cit-inns of those provinces which have no personal income tax today. It is ha-rdlv necessary to add that. in view of the end to be attained. the price serms low. There will. justments. At every stone of the Commission's inqivry it has en- deavored to frame i-ccmnmeridn- tions which. if lm-plcmsnt-ed. wll avoid the minor hardships or in- equities that might result if the measures vimioh have. perforce. been scmcwhai. urrdely described ‘in this amnmary, were crudely ao- plied. One or two examples will be IlVPn here. Others Mil be found in the Report. itcclf. But the whole

mph-it of the Report would aug-

irsst that. analogous adjustments

ahculd be made. even if the Com- mlrslon has not thouaiht of them

mo. therefore. has not menttcned them.

If the administration of a service or the collection of a tax is trans- ferred from one government to an- lay within its terms of refcrriicc to other it- is drirab‘: f-llflif. those who mlcal wlth the rlcs""rnbllltv. or tiri- have ndmmlstered the service or rlcsirnblhtv. of the Domlrvcri collewfcd the tax in the past sh-ul" luv power to lmrvciucrt its lr""l" mrflrue to do as in the future and cb“"nil'"p< (I\'|l!'"\"l c Pm" under siuu and experlcncllseotlon is: of his British Nort-h

that (h!!!

l capita fomiula u a

THE CHARLOTTETFNVPI GUKRT)‘ '\.\T

ellllliloyrnent of those previously

children. Legislative Powers

lotion to unemployment insurance) are to be conferred on the Do-

lnterests 0f other provinces. tempt to enumerate the reoom-

Comriilssion has felt bcund to mrikc in its Report. What has been s‘ d

the Dominion-provincial fiiaii." al relations which would. iii the op ii- lori of the Cominislrri, character- ize a healthy federal svstcm in Canada. Before pass-iii". on to men- i'oii a few of tlic stilrioiaiy rrccm- mcntlatoirs. ii may be worth uh lc lo point out ilirt the C l‘tl"illS i'ii's financial proposals are. in l"l'l'|'l§ cl ‘the economic life of 19119. ve-ry similar to ivliat the provitloirs of the British Nr-rt-li American Act were in terms cf the CCCZlCCIVC ifs of i867

l:i the f'r.=t D'Il"E the D'i"lllt"f‘ill a=.=umed i"rcv‘tic‘al rlzbts in llltil.

as ‘t ivciiirl do tccay wer? etiect

‘to be give": to the C"mn".i son's

Ireccmm-endcrlorws. Iii the sercrd

place the DOW Won iva- crcrcoed t) xcrcfse in 15157 tire chicf taxirg er of ‘that f c tc'=l'ii"s a ) as. iii".c'ei' C'm-i~; Is. it is c ixctsd to e "r- cise other chief taxing pctvcrs cf t/odav (the per"oiinl iriccrnc tax, corporation tax and SUCCCx-‘lbll duties). In the . "d v‘ cc the Do " t9 pav "r in ti???

a t; 0v c s of perlolm the funrti "~ cnirv=trrl to thEm without liainng to resort to oppres-

sive taxation, Uncle»- ihe Ctminis-

pious p -a s the Domnion would pay Na’ rial Adjust: lfci" ". 1v the stint-g , gis iziic lllol cli fcrriit. inc ‘i119 iiinr-ritt to lzc pmrl to ea li province ivniltl br- adopterl now than that which \v.-s l-lieii cons‘ - 'ered appropratc. But thzs differ- lence is more apparent t-lian rcril, Ifcr it arises fi"oni the iiieqtirifit-es ‘of ivoalth ivliicli have drive‘ betwceii the ‘Cilpllifl stil:sd.-; lsome rough approximation to the ‘fiscal needs fcr 18M. The) would lnot do so today. The Cozriniiss on hopes that the mcthocls ivhich it Iias empolycd fci" calculating the lapprcpz-Iiaie ilfljllfllllClll gr . s will ‘be able to acccntplvh what -.e per i izzlcntled to achieve ln 1867. for. though the

|means have changed. the end re-

mains the same, namely the main- tcnanoe of provincial EOVCTIIIIlEIlY/"i which can provzde the necessary services for their people.

Municipal Financing

It will be noted that. in the recommendations vvihicih have been summarized. nothing has been sa‘d ‘of one of the maior problems of lCanadian governmental finance — the problems c-f municipal finarce and of the burdens which have been placed on real estate Ori t-hii au-bieot. the Commission received numerou; representations and was imade ftilly iivmre of the serious- ness of the situation. But. the Com- mission was in ii peculiar pcrii-‘on. ‘in so far as the mun ciipal-itcs were Iooncemai. for they 1W0 the

creatures of the provinces in which they are sllllflllfld and their financ- lial powers and dutlrs are suoh as

tho province chooses to c"nfcr tml

them. The financial plan witch has born dcrrlbed has taken ac- ! count of municipal exneiidrtures and taxation as part of the prawn- lcial picture mid It will. if it is im- plvmented. have verv lmpoidwnt 1:".- idlrect. effects on municipal finance. {It will relieve the municipalities of tiholr share in Dl'"V'fl1l?'~1 fr"?! T01‘ ‘em-plrvvables and their dependents. ‘it will put every provincial gfivflrti- mcnt in a bot-fcr pcsitlon than it is in today for extending Fuch aid as

tics, vifhethcr hv relieviiit: them of the cost of services which tncv

services. In the case of the Picy- ince of Quebec. as has been rx- olainrd. the Damn-ion would as- rume a. portion of the niunicwal

the hands of the DTOVTlCPS.

Treaty Obligation;

5111910)“! by tihe provincial gcvern- , men; gonggrned_ Th3 recommend» ‘IChETBsCT-El‘ of mternatloni lcgisa- 5 _ __ mo“ L, particularly important when , the) have committed thnnselve , ’1iic Re . tééiestlons of language are mvoly-

If a. fax now levied by one gov- ernment is to be replaced by a tax lf-‘Vled by another the new tax should be adjusted to the circum- stances of the people on whom it ls l‘) be lmDli-cd. and advantage should be taken of the oppor- Wllllry lo design the new tax as Gqullflbly as possible. ‘Ilhus, if the Dmflinlon collects suocessi-ii dut. ies. it is important that the admin. istration for their collect-ion should be decentralized and that small estates should be rapidly cjcargd without correspondence having w go through Ottawa. And the tax- ation scales sitiould be arranged SO I15 to tax an estate more lightly when it is divided among many

If lelflillal-lve powers (eg. in re-

mlniori in addtition to those which it now enjoys. it is important that they should be strictly defined so as to avoid i-he danger of their be- ing extended by interpretation in unexpected ways which might in- trefere with the civil code In Quebec. or with the corresponding,

This brief riurrunory would lose ll5 wa-y among details were it to at-

mendatims-some of them import- ant l‘€COfl'lll'l9i'ld‘llt-l()ll5 - which the

should indicate the st-ruciuie of

debt. In every province the ivnv be o; cnyuwp. h;- flfl- lworuld be clcarcrt fcr dcaliiiiz (if un-lci-‘vinr; the recommendations ‘the province so dcs‘rc<) with mvni- |conlniiicd in the Report were o"r.~al rlcbt= generally in the sameireached before the outbreak of sort of wnv that 11w Ccrrimlsslcn ,war ‘Hie Commirifon decided. has recommended should bc adppt- yvflrc deliberation. to complete the ed for orpvincwil ochis. Birh atReoort exactly as it would liavc sten would. in turn. facilitate much .\\("I"'l ccinplrtrd Md War not lven 10,. nmmauy_ needed reforms in the FPUCMITP cf-lrlcc‘r-rrrl_ Allll"ll'lll li is true thati municipalities. DHTl-‘CWRYLV ln the the War is certain to product- qrcat vrrnat metropolitan areas. But the firtirrc of the mumciralliw-s llrs in Caziaclwi economy. 5f l5 Pqllfllll’

One or two lllucirations must nufflce to show that other matters ‘have come unccr crmwdcrntion {which are not close-iv related to the ‘main financial q\lt*'~l.ioi\s". The C m-

missvion did not consider (it'll. lt

haw.

s 51mm My, b, to,‘ yo m, “lam winner-ion. Act), if impiemenwuon nor their personal expectation of] continuous employment disappoin- ed. The Commission ha‘. there- , fore. recommended that the Do- ‘a mlnicn, if it takes over a prqvjn- cial function. should oontnue the

particular provinces were Ede-

And if international nonnative

come a part-y to it.

provincial legislation which W111

the wishes of Dominion and prov- inces are identical. Ilhe COmmIsslOn has sougilat to remedy tilri: situa- tion by recommending that the Do- minion and the provinces should

to deal with the marketlrng of a.

which additions may be made from time to time by corrirrion smile.

Power of Delegation

Nor is this the only instance in which it has seemed appropriate

"arm part of Canadian federal re- '.iticns. The Commicsioii has re- commended that thls power should ‘be quite general and that the Do- minion should be able to delegate any of its legislature powers to a province. and that a province should be able to delegate any of ,its lezlsliit-ive power; to the Do- ‘iiiiniriii. Deli-cation should provide ; a convenient means of (learn: with specific. questions a; lll!‘_\‘ may arL=e froni Vmo to time without liiflll- fin; in advance th~ power c-f either the Dcmiiiicn or the p:'ov.".ices. In ,somc instances one or more of the

.I7l‘0Vllif‘E‘S riirizlit "be DLFDBYICI to ‘R

rfclruwic powers to the Dom nicn

juliflc cvhcr prrvinco: vere unwil- , g. and in such cases the advan- liagcs of a power cf duegation over ‘ccnrtituticnal amendment would

lie iii flexibilit '.

| iiie (‘cminr on has come to cori- isrlcr t'.ic ti"aii.<-pr»:"tat'o:i tirchicni cf Cancel: one of the problems

lvai Tll can be .. vcd WII-llfllll ‘clc '2 ccllaboraiim veen the Do- ‘iiiin on and the provinces. It re- alizes, hc-xvcver. that its ou-n tech-

rliglit in this

r1 the lSllCS wh ch "e facrd. ll‘. the hipe of doing something to clarity the problem of Jurisdiction. It points out, however. the great advantage ivhicli might be derived from a T“lll'l.°~])f}l‘i Planning Coinzn..sicii

u‘ b? CDYlCC" d bith ".12 trriistacrirtpii cle- in a hrrad wavy. and tatzng the co-opcration the Dominion and the provinces in traiisrxr-tctcxn mat- ‘icrs which ii n" ...s1:"y' foi" the tax-

)‘aj.'r:‘.

(‘n-operation

While the C"mmf.=s"‘on believes that new governmental machinery Fllfilllfi he krvt at a rnuvtrum. it .. . Jdcrs that special prriv"s‘oi . mcclc to fa- cililcic co- hctwcn ill-Z‘ Domiiroii and the provinces. in an earlier day. when the functwons of

government were relatively few and '

administrative organization rtla- nia)" have been p"s- . c fcr D.. ion and provncial gcvernnrcnts to cosmic largely in ‘\\'.'llCl‘ll2‘llL compartment-x But with the great expansion of govern- lmciital functions. and the growing [complexity of administration. it is ttio longer pcs=ible to do this rut-h- ,Clll serious loss of efficiency and icconomv in government. Co-cpcra- itlcri brtwecu the auionrnious gov- ernments of the fed-r-ra-l system has ,today become imperative The" Ormmission recommends as the principal means to tints end that ‘Dominion -Pmvlnclal Conferences. gwhfoh have hitherto met- ait infre- quent intervals. should now be rez- ;i:'.:irizcd. and proirisic-n made for llPflflllPill meetings. say everv year. ilt iirccs flirt-flier that the Confer- iencc should be provided qith an {aclcouaie and permanent secrctariat ifor the purpcre of serving the Cen- fcrence dircc v. and of facilllat- inc co-cnerat .. between the D0- nilnion and the provinces in gcn- oral.

The scnolal claims advanced by certain governments have been ircrisulcrcd in detail in the body of the Report. Although tlics" claims ivwill have liillc fnancfal import- livicc if the Commission} main f‘- lrianclal proposals are implemented. lit was dcemcd advisable to ex- amine them cn their merits and to ire-port

ldeYimhllit-y’ of clearing up old; ggthg-yshflw for assistance in Juvrnllc of all the ii-ii-i flit"

g andtwork was won this _\'_[‘E\l' by lmriv iii liinsl Wfin].

|crlevaiiccs in any general lmorit- bot-ween the proviiicr |thc Domln-‘ozi.

Many complaints about the work- ing of the frdcml svstcm rvere also

presented to the Commission byl instance, it may think fit to its munivpill- private organizations. The Com-I

mission viewed such cmiplatnis a=

‘lmporfntit evidence. but ln many

now perform. or by contributing ‘oases their subject matter tell out- flnnnciaillv to the cost of these l

[side its terms of reference. Conclusion

l‘ii ccricluslon of this summary it remiiin< l’) add that the electrons

changes iii the structure of the

‘true that the mature and extent‘ of ‘these changes. dcprnrlert as ihev are m the length and lnlensity of the Sfrlllfll“. oaiin~v be rvolictcd at ,t-hc ore art time. The basic recom- mendation of the Commission co"-

"lTllllf-l "l" YF-"ll‘~‘<“‘l"ll 07 "lPiipful GrandMistress Sister Minnie fun~tlcus of Q"\'ff'2'l1lf‘l‘l and fllélMngjqgyivy 9mm. pa“, Rm“, PARIS. Mar 'l“.'lll(""' v-ckqliors of the Domin- icii and the isrovinccs were fram- ed ivitii the prsirbirti- cf emerg- ri-iiclcs in mind and are. it is lico- r4. sufliceviiii- flcxilfe to be nd-iRivlit Worslilpful Grand sen-stony iv.“ o, q M. l-"rfv! to mu" ivliiatlon wh“h thc'*1\='cv~ .lc>=‘~ L Lcuteir. RHllf my‘. ruin-p

W" rvcv produce.

would require legislataon on topics iwithin the exclusive jurzsdiciiozi of I the provinces. But the Conunission id consider that it could recom- lmend that the Dominion shciild ihave power to uriipleme-rit conven- tions ‘of the International Labor Organization. 'I'hese partake of the

Lion. Many of the parties to them ‘ are ccuntrze", virlth civil cccics not, lmssjmjlar to ma; e1 Qucibfift; 0m- lsmomm “lklnc of the 5607M and iis not l'.‘.f' siiiiii- lll u" ens are oouritnes with English oom- mon law. Some are Catholic: otli- ers Protestant. In these circum- stances it seemed that the rights of

quatcly protected against, any en- croachment of the federal power.

legislation of this character 1-3 de- slra-lsle it is through the Dominion Government that Casiada mint be-

In respect to marketing legisla- tion great difficulty has been ex- i periezioed in framing Dominion and

cover the wfhole field. even when

have coiwurrenit legislative powers named list of natural products to

‘of _advcrsiiv as in years 0f prs- uniflv can ill" lperitv to merry out the imocrtaivt ism; t Junctions entrusted f‘) if. cv are yalso desgned to produce th s re nit