§ 1. Sir WALDRON SMITHERSasked the Secretary of State for Dominion Affairs whether his attention has been directed to the proposals recently put forward by Mr. M. F. Hepburn, the Premier of Ontario, designed to make void and unenforceable the contracts for the supply of electric power entered into by the Ontario Hydro-Electric Power Commission with certain Quebec hydro-electric distributing companies; and will he call the attention of the Canadian Government to the grave nature of these proposals and to the necessity of maintaining the sanctity of contracts, and say what steps he proposes to take to protect the interests of British investors?
The SECRETARY of STATE for DOMINION AFFAIRS (Mr. J. H. Thomas)I understand that, a Bill has been introduced by the Premier of Ontario in the Ontario Legislature declaring certain specified long-term contracts between the Hydro-Electric Power Commission and a number of generating companies in Quebec for the supply of large quantities of electrical power to the Commission "to be and always to have been illegal, void and unenforceable" chiefly on the ground that they were negotiated without the consent of the Ontario Municipalities concerned. My hon. Friend will appreciate that the matter is entirely one for the Canadian Government, and I under- 678 stand that this matter is already receiving their careful attention. I will convey to them the anxiety which has been expressed by the hon. Member.
§ Sir W. SMITHERSIn view of the fact that recently the value of these bonds has fallen by 51,000,000 dollars, and that the action of Mr. Hepburn deals a serious blow at the credit of Canada as a whole, will my right hon. Friend ask the Canadian Government if, in their own interest they can take steps to disallow this proposed legislation?
Mr. THOMASI have already said that it is not for me to advise the Canadian Government. I cannot do better than quote from a statement made on behalf of the Canadian Government by Mr. Meighen. The relevant passage is as follows:
Obviously, it is too soon to make a statement, even if this were the proper body in which to make it. On the one hand, the Government (that is the Canadian Government) would have to consider the interests of the whole Dominion and the threat and challenge to its integrity. On the other hand, it would have to consider the all but universal wisdom of allowing every Government to take the consequences of its own acts.
§ Sir W. SMITHERSIs my right hon. Friend aware that the Prime Minister of Canada, Mr. Bennett, is reported to have said that this is a bare face robbery?
Mr. THOMASIf that is so, I am not aware of it. I should have thought that that would be the best statement and much more important than any I can make.