HC Deb 07 April 1936 vol 310 cc2574-5
14. Mr. LIDDALL

asked the Secretary of State for Dominion Affairs whether he will ascertain the intentions of the Canadian Government regarding the default on the obligations of the province of Alberta and the decision of the city of Montreal to ask for powers to enforce the conversion of the rate of interest on its obligations, in view of the effect upon United Kingdom holders of the loans of Canadian public authorities?

15. Rear - Admiral Sir MURRAY SUETER

asked the Secretary of State for Dominion Affairs whether he will inquire of the Canadian Government authorities whether the proposals to en- force, against the rights of the holders, a reduction of the contractual interest upon City of Montreal sterling loans, subscribed for in London, will be permitted by the Dominion authorities?

Mr. M. MacDONALD

I understand that papers were tabled in the Canadian House of Commons on 1st April, and that a statement was made by the Dominion Minister of Finance on that date regarding the Canadian Government's attitude towards the situation which has arisen in Alberta. I have not yet received the full text, but I will send my hon. Friend a copy as soon as it is available. My hon. Friend will, however, be aware that the Dominion Government, after negotiations with the Provinces of Canada, has proposed an amendment to the British North America Act with a view to obtaining enabling powers to give a Dominion guarantee to provincial obligations and to provide for the pledging of specific provincial revenues for this purpose. As regards Montreal loans, I understand that the Montreal City Council is preparing for submission to the Quebec Legislature a general municipal Bill. According to my information, however, this Bill has not yet been completed, and it would therefore be premature to make any such inquiries as the hon. Members suggest.

Mr. MAXTON

Will the right hon. Gentleman recollect in dealing with Alberta that in connection with a similar situation in Newfoundland His Majesty's Government assumed financial responsibility?

Mr. MacDONALD

His Majesty's Government do not deal with the Government of Alberta in this matter.

Captain PETER MACDONALD

Is it the case that the situation in Alberta is similar to the case of Newfoundland?