ipfllatura on Monday

..~:.P._I£1es_*:z..s=_._.....=__......_==,_“ , i re Maclllillan In

Hon. Dr.

Debatejn The Budget

Ivory phase of public cxpeudi. euro was touched upon in the

and oval-tin: by Hon. Dr. W. J. P.

lhdfillln. leader of the Opposlw

lion, in the course of his spccrh 1a the Budget Debate.

3y claiming a $663,916 surplus 1n- the prelenl; year the PTOVAU- dll Treasurer had only succeeded 1n making the situation of 13,1; Province ridiculous, Dr. MacMil- lan aald. He had taken only cur- rent account figures. thereby mis-

representing the true position. The most important lhillg in any Iudlet should be an accurate

fitment o! the financial stand-

hi.

Dr. MaoMlllan quoted from Ca- mdlan Press reports of My Hughes’ speech; in which the cur- rant account surplus was featur. ed while there were no figures to eltow the actual debt or liability at the Province. "'I‘he assumption 1| that this Island la prosperous that we are going to have a big surplus this year." ha said. ‘l-low doe; that coincide with the ll- sreued taxes we have been asked be impose at this session?"

Mlaplawd Item

He noted that in order to build up the lurplus on current account m item o! $96,000 for vocational education had been placed under oopdtal expenditure. How could

thl! be justified? If. was always, thought that any capital account‘

would at least outlive the of the borrowing.

The total revenue estimated fur Mart year, Dr. MacMillan noted, ‘r: $4,819,000 and the total expendi- ture $5,907,000. This loft a of over a million dollars.

term

cramantu financing toi- the Oncflng Mlrch 31, 1948. In order to make a better ahmvlng the Pio- vfnclal Treasurer hnd left out oamtal expenditure of $l,wi.’,3'l0. “So we are going; to have a sur- plus of $633,915 on the one hand and we are going to go into debt to the tune of a million and a quarter dollars orn the other? My lmn. friend ought to have a little better estimate of the intelli- gence of the people of this Pro- wince. than to think that they will accept such a statement; Unfor- tunately he ha: broadcast lt all over Canada, placing u: ln a false poaltton.

"Even his figures for last year were not correct. llc had B, total expenditure o-f $127,200 and a. total revenue of $4,148,453. ‘ibis left a deficit of $578,000 before deducting linking funds of $330,000. nr a total net debt last year of $248,786.

“All my hon. friend 11CBCl5 to do la look at the comparative state- ltant of liabilities over the past few ware. In 1942 the total l'a- bllitlaa were $9,302,000. In 193-4 they were 9.123.000. In 1944-5 the llabllltles were $9.676 and in 1945- i6 the Public Arcs-tints show that they were $l0,421.000. Today, ac- cording to the Liberal press. the net provincial debt ls $11,100,000.

In other words, tn the five years llnce 1942 there has been a debt increase of one and threv-qttmter million dollars

Huge Annual Increase

“This ls a yearly increase in debt 0f $360,000. so that our financial condition is very far from being satisfactory, as the PrtrvlilClll. fieaaurer sought to show by hfs fictitious surplus‘ on ordinary ac- count. estimated for the present year. '

“This brings us hack tn lllc- hm‘- galn at Ottawa. in which Pirate Edward Island did hut. lqi-l viwuull to carry on its IlOYIlPSIl/f hulls’- lceeplng properly. The Premier ad- mitted that his mhlilaitltil demand was for $3,056,000, and the final answer he got from the Minister n! Finance at Oitntvn “was. “You are not going tn got. any 111m"- than what we have offered; have been treated gcncmitsly.

‘me hon. member from Bcrlcuuu (Hon. Mr. Wright) had stulcrl flat on a percapita, basis we are rt-vziv- lng much loss, compzirulivvly. than We wore before. Dr. Muclulllau agreed with this statement. Under the new agreement. according to Mr. Wright, wo received $6 morc than thmgvcrage pcrvapifa subsidy of $18; but we previously receiv- ed three times the pert-opltn sub- sidy a! t-be other Provinces h0- cause of can lack of natural re- sources and for other special rea- nm. That meant that on the bas- ll o.‘ $18 per caplta average we should be receiving $54 per can“! subsidy

Mr. Francis: "Thosc figures are based c-n supposllions."

Dr. MaeMlllan: “There ls no supposition about those figures; and it Lherc ls they come from your own Government."

Continuing. Dr. MncMilhm scor- ed Government. members mid lupvporters for not supporting the Conservative amendment In tllc Tex Agreement Bill rcgardliu! subsidy claims under thc Duncan nnd Whlto Commissions. whldl were statutory payments and should never have bot-n lumped into a tax agreement. Thu nmend- manta were turned down on a straight party irate.

He cited from the llztlllax Lib- eral press in this connection quoting the contention of Prem- _______________________

u, 4. iv. gm UPTOMETBIHT “M!!! and flFaplylnn Glance

Montague l‘ l. L Omen llolrl l0 to l’! A M 2 to a P M.

Home» em. be aopalntmar‘ ("HM (Yonneotad With Drag More

afternoon l ‘V5105. 611d

tlchtf WlllClli was the true picture of thc Gov- ycarl

ntchcwan got $44,000,000

lcr Angus Mucdoltuld for the full purulent of these subsidy re- tlle offer at‘ Prime Minister Mackenzie King to pay 30 per cent as a setoff to certain concessions given the Western Provinces. He also cited from one Pvlwrt of the Rowell-Slrois Com- 1fll551911. emphasizing the vital principle of fiscal need 1n (he relationship between the Prov- inces and the Dominion.

Burdousome Taxes

I-lc had‘ previously DhMac-Mtllan said. that over the Period o! the wartime tax agree- ment the Dominion received six and a half million dollars taxes from this Province. estimate was really too low. had not. taken into account amusement taxes. the electrical ax. nor the 8 per cent sales tax. The latter tax alone, according to a financial authority formerly in the employ of the Provincial Government, means 0.000.000 a year to the Federal Government. ‘Ille same authority. estimates thc other taxes at anolhor w.- 500000. He estimates the Federal Baseline tax at 0125.000 last year. the luxury tax at $300000. Even U19 Postage tax is a blg Item and according to the Winnipeg Free Press, leading Liberal newspaper in the West, should be reduced in view of the $13,000,000 Somme shown lash year by tile Postal De- partmant. The estimate of the Government employee to when-t he referred was that on all Fed- eral taxes this Province pays 3m per capilu and on freight $40 11H‘ capltu.

Dr. MacMlllan quoted from the Nova Scotia Premier's budget SDeech dealing with Federal taxes on domestic electricity. nmhsemrnfs and parl-mutuels which Nova Scolla claimed should be left to the Provinces.

Lost In Tho Shuffle

Reviewing the tax aleement Fill? this Province Dr. MagMillan ranted that the $40,000 formerly paid to Prince Edv/ard Island by the Czmadiatf National Railways has (hsrippeai-cd from the Public Accounts. It; had bee; “lost ln the shuffle.” He went on to con- trast. this treatment with the handouts received by the Frairle Provinces ln the way of annual subsidies in respect to natural re- sources. ‘Ihen when the resources were handed over to bhese Prov- inces, they were allowed to keep their subsidies ton. Prime Min- lster Mackenzie King. however, was Prepared to cut '10 per cent off our White Commission award, to which we were entitled by statute. Al. 5 per cent the White Commission award represented $5.- 500.000 to our credit at. Ottawa. but: Mr. King proposed to out of! 8,000,000 from this Province. oon- trary to statute.

The Maritime Provinces as partners m Confederation had a claim on the natural resources which have gone to the Western Provinces, and from

‘Ilhll He

E minority report of the lute (Itlcf Justice Mlflhlesplt n5 n member of the White Oom- mlsslon. in which he predicted that failure to observe the prin- qible 0f fiscal need was. leading to a condition of "grave unrest not frcejrom the danger of Can- eelen dtsunity." n was u coln-

cidence that at that time of Chief Justice Mamie-son's death. this condition of dlsunlfy has become apparent between the Dominion Government and the tifssentlng Provinces. This w“ clue chiefly to the Dominion’: rc-

fusal to relinquish wartime tax- utlon. Its course if uncheqkgd will eventually result ln the Prov- inces becoming mere wards u! the Dominion. Dr. MsoMillan do. clarcd.

‘Hon. Mr. Wright asked if. in vlcivof the fact that three of the Provinces rcfuscfl to sign hllc new ugvrrtilcnl. the Opposition lcndcr llloufllil. 11w Fvrlcrnl (lovctncncnt shoitld not lunkc agreements with the other provlnccs lndlvldttully.

Dr. MacMillan: "Docidedly not on thc terms that have been put. through."

Mr. Wrlglll: "You think that

hiiqugrt-elllcht should br- mnde at a I.

Dr. Macitllllalf: "They took ad- vnntagewf the poverty of the smaller Provinces, just as a horsc- tradcr takes so much boot with .1 bargain. You had to take this cffvi" in order tn exist."

Hon. Mr. Hughes: “Did Brit- ish Columbia make a bad bargain

loo?‘ MacMillan: “They got

Dr. more than you did."

Mr. Hughes.‘ "Premier Hart ot $211 pcr caplta and we got .4,

Dr. MacMilfan: “And he got 68,000,000 of debt wiped ouLfSask- O roars and lnllllons of dollars of interest. What clld Manitoba want? $8,000,000 too. Vfihat did you got."

Mr. Hughes: "$24 per caplta."

or: o,

Dr. MncMillon: "You couldn't c-v-cn get t-bat iniquitous $9.000 charge on the Iflllsboro Bridge wiped out."

Mr. Hughes: "You didn't eith-

Dr. lVlacMllltln: "I was not: mak- hig this bargain." He went nn l.» quote from Nova Scotla and Onlarln pant-rs ln criticism of the Dominion Government's attitude toward lilo Provinces.

In lilo case of one of the edit- wra quoted. Mr. Francis asked if ‘his gentleman had any personal experience as a legislator. or ivas he lust talking of wharha knew nothlmt about?

Dr. MacMlllan: “You don't bc- ‘icve in the power of the press. You are something llkc your lead- er. Ho sllghts even his own press. I have always understood that the press ls u zreat orlan u! flllllllc opinion ln this country, Bctausc n man has nnl sat ln the Lt-g'slaturc docs not menu tllul h!» is not Ill to br- n llElvYSpRlVPf rdllnr. or nblc f0 wrltc Intelli- grntlv on the su-blrct. A mun who pits m! l" files" day's l" criticize-Ur» press is not. in line with plllilir opinion."

N o Assurance

A

Dr. MacMlll-an read from Illa Bpcecil from the Throne the clauses dealing with stciol accur- ily plans ln lllc event. of agree- menta being leached between. the

mommon level ‘where ls there any assurance that

estimated, IVII. Bracken and

in‘

the I

we capital

ar- '

Dominion and the Provincel. "What nope." he uked. "has the Premier of seeing that day come? These social security and invest- ment proposals are of intense in- terest to all the le. more ea- ecially 1n the lmal er Provinces, ecausa we are away below the of Canada. But

any agreement will be reaohed on those subjects?" , _ ,

He went on to uote from a re- cent magazine ar e G. Power. former Minis fense for Air 1n the King Gov- crnmeni, on the manner tn which the Liberal party has recanted its principles of oldtfme Liberalism. Certainly. he added. the party had uot shown much Liberal principle ln dealing with the mailer Pro- vinces.

Mr. Francis: "Does the leader of the Opposition claim that had the Conservat- ivcs been in power when this a- greement was made, you would have got more?"

Dr. Maclvllllan: “Decidedly. Had Mr. Bracken been in power we would have got Justice."

Mir. Francis: “Why did he put an article in the paper that we were getting too much?"

Dr. NLacMlllan: "He made no statement of the kind. He said Prince Edward Island got more on a per caplta basis but no one minded that because little Prince Edward Island was entitled to special consideration." (Applause).

Dr. MaoMillan also quotetlfrom paragraph 11 in the Speech from the Throne. the promise 0o “re- duce taxes." How. he asked. bad this promise been implemented? It. was a serious thing tn put a misstatement in His Honours Speech. .

Mr. Eugene Cullen asked if it was in order, durlng the Budget debate. to refer back to the Speech from the Tfnrone.

Dr. MacMlllan maintained A he “sis entitled to this latitude in the Budget debate.

Premier Jones: “I don't think it ls ln order to take a paragraph from the Speech from the fltrone and discuss l as if it were a mo-

tion. It ls n vcr done." l Dr. MacMlllan- "Is that soil. Tlmt. ls something new. You wnhtl

to cut of!‘ discusslon now. paragraph

f epudlate it.

this pledge to reduce taxes. lop of that we vinclal Treasurer

throughout this coun

have at least an million dollars in debt.

Hon. Mr. Hughes: “mat state- ment ls not correct."

Dr. MacMlllan: ‘Then your os- tlmatea are not: correct. You bud-

geted for a debt of over a mil-l “I am budgeting 000..

lion dollars." Mr. Hughes: for a surplus of $000. . Dr. MacMulan: “Ovn ordinary uccourm-nhfoh does not mean a thing." Mr. Hughes: “It h the only 111mg that means anything." .

Mr. Hughes’ Contention

Dr. MaoMillan maintained that account must be taken into the picture. Kc cited the case of a man with a small bal- ance in one bank, and a bl: 0V8!‘- draft in another. This Govern- nzcnt came lnto newer with a debt. of $9,302,000. They 110W 531W

a debt. of $11,100,000. and they are‘

etln for another million dol- fii-‘ilsgof dgefbt. “Ihat fa what alarms e one who has any concern fgrgythe future of this Province. Why don't you toll the people the real facts?" _

Nltnllughes: "I have told them.

Dr. MacMillan: "It 1s not. cor- rect.”

Mr, Hughes; "when a member makes a statement fn this HD1150 he is entitled to have the state- ment taken at is face. I demand that the leader of the Opposition take mv statement at its face.

Dr. Macmillan: “I was asking my hon. friend why he didn't tel the people about the real lln n- cial position of the Province. e

never sold a word about. the act-

unl debt. of the Province."

lVLr. Hughes: “The leader of ll"! Omaosifinti made the statement that what I said was inaccurate and incorrect and untrue. there- dnrc I deqnand that it be retract- c ..

Dr. MllCMlllIlllI "u. l5 untrue so

for as its dealing with the flnan-l

res is concerned. 1 am dealing with your figures. It you can show me that your Budget speech was a true and accurate. picture of this Provinces financial standing, lhcn you have a retraction com- lnil" ‘

Mr. Hughes: ‘There are none so blind as those who don't want to see."

Dr. MaoMlllan: “I Guess that applies to my hon. friend when he begins to doubt the records oi ills own Government. and trans- fers things out of ordinary ec- count into capital account to Show a flctltlous surplus."

Mr. Hughes: "Did you ever have a surplus on when you were in POW". 1W!- Bell?"

m. MacMlllan- "Wouldn't zef

$500,000 of liquor revenue u-hen ‘tvc were in power. we collected 0100.000. and neovlq fold us we were rum-sellers than.’

Mr. Iiughes: “How much did you spend on health?"

Dr. MucMlllan: “We didn't do what you did, violate a statute of this Province imposing a health tax. which you misappropriated to ordinary revenue."

Premier Jones: "We have list- cncd of it.

Statute Ignored

Dr. MacMlllan quoted from the provisions of the Health Tax on liquor and tobacco. passed ln 194-1, svhich provides that the tax zevenue be spent‘. “for the put"-

pose of dcfraylng additional cx-l

pendlturc incurred ln tho provin- clal hculth services and particu- larly tn providing facilities for combating tuberculosis" and that the motley ituill be paid into the account of thr- Health Minister. not to the Provincial ‘lrcasurcr as ls ordinarily the case.

‘Premier Jones: “What. do you say.-that we didn't mend it?"

Dr. MacMlllan: "I say you didn't fulfill the provisions of this statute."

Prowler Jones: “You say we didn't spend ft?" -Dr. MacMlllun: "You would spend evervthlng you get your

frauds on. Of ccursc you spent it. --but you spent. lt as ordinary revenue." _

This is a promissory note on behalf of the Government of this Province. and the first action of my hon. friends has been to They started in to increase taxation notwlthstandgg

Kl have the Pro- broadcasting try that we are going to have a surplus of $606,000 when he knows that lf his plans carry through we will increase of a

ordinary account '

In four Years‘

to that so often we are tlredl

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Premier Jones: “We will show you the figures this time. They satisfy us."

D1‘. MacMlllan: “Your record on extra mural treatment of tu- berculosis ls a record of which you ought to be ashamed. $18,000 was spent last year. You are bud- getln for $25,000 this year. and fr. 1115s Reconstruction Committee ‘report they were asking for 086,- 00."

Hon. Mr. Barbour: “Did you ever ask for 1Jay1nent to be made to any particular person for ex- lrn mural treatment ln the last your that. was not paid?"

Dr. MarMlllauz "I don't ask for any pafvmcnts for any special per- son. but I know of cases that you didn't pay enough to."

Mr. Barbour: “Did you notify us?"

Dr. MacMilluh: “At every ses- stlon of this House I have brought 1 up." -

General Govt. Increases

Continuing, Dr. MacMllIan said he noted there were increases ln. every department of Government expenditure. When the Govern-t

ment took ofllcc the debt was $9.- 312,000. Today it ls over $11,000.-

was under the trustees. He understood the trust- ees had no more out there now.

Dr

Mr. would like to rind out."

concerned vsponslble. There has been no leg- islation to the contrary." He went on to manta, ey that could be saved at Falcon- wood Farm by proper manage- men I

old system of responsibility

MaoMlillung "Do I under-

stand my hon. friend correctly, that the Falconwood no responsibility in regard to the Farm?"

trustees have

Campbell: “That la what I

Dr. Mach/Lilian: “So would I.

But you take the report of Fal-

conwood and you will find the trustees listed there." Mr. Campbell: "I know they

are llsted there but. they have no responsibility so far as make out."

I can

Dr. Maclwlllan: “Bo far as I am they are still re-

uote Premier Jones’ com- ack 1n 1938, on the mon-

Premfer Jones: "'I‘hat criticism

W85 Just among ourselves. ‘There were no Tories present."

Dr. MacMlllan. cltfng from last!

year's reports, showed that thous- ands of dollars had been spent. on]

000 and “still going strong." In-Ifood purchases, on a BOO-acre creases ln liabilities were $178.- farm that should be self support- ln 19-13-44; $552,000 in 1944- lng. 45; $745,000 in 1945-46; and $678,-- He went on to commend the 00o ln 1946-47. lspeech of Hon. Mr. Stewart h. In general government. when the Draft Address debate. in

the Conservatives were in power

ln 1932, the expenditure was $98,-

looo. in less it was $05000: n 1% .000: ln i036 5108.000.‘ in 1987. $116,000.’ ln 1W8. 3118.000; m 1939, $106,000; ln 1940, $117.- 000; lu 1941. $118,000; in 194E, 5115.000. ’I'hcn, when bite present Government gotilnto ower, it

increased ln 1043-44 to 1412.000. a jump of $21,000 ln one year in this from. In 1944-46 1t was $140.- 000,’ in 1945-46, $177,000, lnother jump or $30,000. "ln other words. in their three years the expenses of llcneral government increased by $82000."