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America Act. declared Hon. Mr. McQuesten. had to frame the distri- bution of powers between the Prov- inces and the Dominion in full recognition of the distinctive racial differences between the French and the British peoples. "These differ- ences." he said. "created diverse in- terests which forbade any interfer-' ence with local and private matters' within the Provinces by the Federal ( Government. I suggest that this diversity has not been lessened one whit since Confederation. I suggest I further. that the growth of the Provinces since Confederation. an- other absolutely peculiar feature has arisen. which has attached itself only to the Provinces of Ontario and Quebec. That peculiar feature is the growth of industrialism which inheres in the main to Ontario and Quebec alone. So that we have ar- rived at this result today in consid- ering the differences between Prov- inces: racially we have Quebec on the one hand and the other Prov- inces on the other. Economically, we have Quebec and Ontario, re- spectively. as industrial and com- mercial Provinces. with British Col. umbia coming into that category. and the other Provinces of Canada on the other hand. In other words, there are today more distinctive /iiiGeiiii', between the Provinces (than there were at Confederation. In my View there is. therefore. more reason for maintaining the exact distribution of powers which the British North America Act original- tr provided. _ A we were Just out of the depression. yet in my own riding in South York the unemployed rolls have increased from 9,000 to 14,000 in about three months and when I was in Ottawa recently. I was told that since the first of January. 1,000 men went off "gist every twent.v-four hours." ten of the British North "If it strengthens the hand of the Premier to get fair distribution of taxes. let the resolution pass unani- mously. But let me say this," said the speaker. "Ontario on afford to tt fair with the test ot the Prov- ca. "I believe." continued Mr. Macau- lay. "Canada and the world are tae. '3'} critical situation. We thought As to the Premier's assertion the Province would be prepared to as- sume its own relief burden. granted Income taxation. Mr. Macaulay em- phasized that while such a program might be all right for Ontario. other Provinces would not get anything on such a hasls. He cited the Prairie Provinces and declared that the Western problem was national itrrpppe. He said it was possible that On- tario had the first right on income taxation. "But let me point out." added Mr. Macaulay. "we are not going to have any improvement In government until we have a direct connection between the cost of serv- lces and the taxation that pays for services." "I do not wish to take up the time of the House unnecessarily. but I submit this as my opinion. with which you may or may not agree. that those social services which in. elude old-age pensions. relief tor un- employment. and unemployment in. surance. together with certain as- pects of public health. are purely the result of industrialism. and as such are peculiarly the charge of those Provinces which are indus- trially developed. and, of course, they have been held to be so by the Privy Council. In fact. I will go further. and say that Provincial con- trol of these services is essential to preserve industry in this Province. of taxpayers. They are the ordinary citizens of Canada. the farmers and the miners and other primary pro- ducers. It makes no difference whether they pay more to Ontario or less to the Dominion as long " they are paying more in the long run." Calla for Tax-Services Link. "We don't want Ontario to he the mlich cow of the Dominion. but we have a definite responsibility to the rest of the Dominion." said Mr. iHenry. l "Ontario is too big to grasp all it ,can obtain without regard to the iother Provinces' rights. It the .Canadian confederation is to con- ,tinue. we must stand together. and when the Province, are unable to bear local problems, the Dominion and the other Provinces must stand beside them." He deplored the suggestion that Cntarlo should "gang up with Que. bee" on the Rowell Commission. Responsibility in Provincial leaders ship rested on Premier Hepburn and Premier Duplessis more than on any others, because of the two central Provinces' wealth. ed, the Premier', responsibility to direct the Province away from narrow provinciaiism. to lessen Pro- vincial responsibilities in some ad- ministrative fields that would be maintained better by the Dominion with its more buoyant revenues. I "Now I come to the resolution. The sum of money represented by ithe income tax paid by this Prov- :ince, and Improperly taken away from it by failure of the Dominion to agree to the plain purpose of the B.N.A. Act, comes largely, in the final analysis. trom the profits of industry and commerce in this Province. It should he devoted to improving the conditions of labor within the industries which make possible its payment. This Province is prevented from taking from the profits of the employers of labor the money which should go toward alleviating and Improving the con-1 dition of the laborers who made such profits possible. That is really the effect of the Dominion'tt im. proper intrusion into this field ot taxation. It is a plain transgres- sion of the spirit of the act." Favors Dominion Tax. Hon. George S. Henry (Cont. East York). in his first major House speech sinee he relinquished leader- ship of the Opposition. told of his pleasure in the freedom that a private member had in voicing an opinion, and said he wished to pre- face his vote for the resolution with general observations. Mr. Henry said he was frankly surprised at Mr. McQuesten's state- ments. "I never thought," he said. "that he was such a little provincial man in the same respect as the term 'llttle Englander' was once used. Wants United Stand. "I do not believe in a Provincial income tax," he stated. "In my years of association with this House I was always seeking to do away with municipal income tax. I think we would have gotten somewhere it timgs_h_a_d been_more propitious. "I believe wholeheartedly In in- come tax " a means of revenue, but It should all go to the Dominion treasury." Having more wealth, Ontario should contribute more to the common treasury. It was. he claim- Ma I have pointed out, industry can have a direct control of Provin- cial action. Whether it has an abso- lute control depends upon the wis- dom of it: voice. On the other hand, it has no effective control whatso- ever of Dominion action. I am speaking of the Province of Ontario. Industry in this Province. and in the Province of Quebec. it it is to be regulated in these intimate matters of social services. will be regulated by a body a large portion of whose membership supporting the Gov- ernment of the day is from Prov. inces with no special interest or knowledge ot industrial conditions. Soc-Act Tun-traced. Mamba.