CANADIAN POLITICS

Hokitika Guardian, 22 January 1931, Page 2

CANADIAN POLITICS

MR BENNETT’S PROBLEMS OTTAWA, December 10. The Parliament of Canada will becalled to assemble early in the mar year for the first regular session since the change, of government, and Mr H, B. Dennett, homo from the Imperial Conference, is engaged with his Cabinet in the preparation of a formidable legislative programme and the consideration of national problems of first importance.

it is agreed that Mr Bennett, who also is Minister of finance, will be obliged in his first Budget to report a deficit. There has been a heavy decline in customs revenue, excise duties and sales tax; only the.income tax has held up. On the other hand there can be no proportionate reductions in expenditures, with higher expenditures for soldiers’ pension and the emergent provision of 20,000,000 dollars for unemployment relief. Political circles are discussing the probability of increased taxes, and it is suggested that the income and sales taxes may be advanced. For tbe regular session the Prime Minister has promised an extensive and thorough revision of the customs schedules, and this task has been receiving the attention of his assistants during Mr Bennett’s absence in London. Since Mr Bennett’s policy is one of adequate protection for Canadian industry it is assumed that there will be a fairly general advance in tariff rates. In this respect his programme j will be opposed in Parliament by ’ the Liberals, who arc prepared also to attack the Prime Minister’s proposals to the Imperial Conference for the 'development of Empire trade. The agricultural crisis was waiting on Mr Bennett’s door-step when he came home, the Premiers of the Western wheat-producing provinces having made an urgent demand for federal action which would preserve the "economic structure’’ of Western Canada iti a time of grain prices below the cost of production. Tn this connection much interest was taken in a statement of Mr E. W. Beatty, president of the Canadian Pacific Railway, who declared himself against fixed prices for agricultural products but urged that the Federal Government relieve the provincial government of their guarantees given to the hanks to cover heavy advances made to the wheat pools on last year’s unprofitable operations. Mr

Beatty declared the farmers were as greatly in need of assistance as Eastern manufacturers and the unemployed everywhere. It is assumed that the Government will do something to assist them over the present emergency. There are a few of the more urgent matters now before the Cabinet. The forthcoming session promises to be one of the most interesting in many years, and decisions of the most vital concern to the eountrv will have to he mao?.