Wednesday, March 6, 1968 the advantages of having Liberal governments in Charlottetown and in Ottawa. Let us note a few developments that have occurred with this combination during the past few months. During that time we have seen, one, Drastic increases in LCL freight rates. For example the rate from Montreal to Charlottetown on Aluminum or steel roofing for instance that so many farmers and others in this Province use was from $1.48 per cwt. to $3.50 per cwt., an in¬ crease of 136% Mr. Speaker . Some increases I understand were as much as 289% Now this increase in freight on the basis of the one I mentioned — 136% ■— has the effect of directly increasing the cost of the roofing by 6.1%, plus all the additional charges — profit for the retailer, the 12% Federal Building Tax, the Provinces 5% and so on. When it is all added up it comes to much more than the 6.1%. It has a direct influence of 6.1% increase on the price. Along with that, we have seen successive increases in the National Housing interest rates. They have now reached an unprecedented high of 8%% and the likelihood of it going close to 9% by March 31st. These increases have made home owning and home building almost an impossibility for most people. This is what caused Mr. G. Russel Hunt , the President of the Manitoba Young Liberals on October 1, when the rate went from 7% to 8% to write to Mr. Nicholson , the Federal Minis¬ ter of Labour, and this is what he said, "The Liberal Party is either no longer in touch with or no longer cares about the country's average citizen, and unless it admits its mistake I regret to say that it is Party with which I no longer wish to be affiliated." (Applause) This is Mr. G. Russell Hunt , the Manitoba Young Liberal . . . . Hon . Robert E. Campbell : It that Gordon Churchill you are talking about? Lloyd G. MacPhail : Mr. G. Russell Hunt . I have another one here for you. I sup¬ pose his comment, and I don't have them, would probably be unprintable on January 1, when a further increase announcement was made. David MacLean , President of the Alberta Young Liberals , in speaking of the Liberal Party, had this to say, and I quote, and this is on November 13th he said this, "The problam lay in diseases within the party which is tired and without direc¬ tion." We have seen with this combination — Liberal Government here and in Ot¬ tawa — we have seen sweeping increases in Federal taxes, including those on liquor and tobacco; we have seen increased ferry rates; we have seen increased freight rates. Now just the other day day I received a letter from a supplier of building supplies. This is what it has to say, February 16th, "While there hasn't been any general in¬ formation in the newspapers, we have been advised that freight rates in the West coast will increase in early March. Unfortunately, we are not in a position to absorb this freight increase, and it will be necessary to pass this along to our customers." This is what happens on every single increase in freight rates, it is passed along to the customers, the consumers, who eventually pay the shot. Hon . Alexander B. Campbell : Mr. Speaker , I wonder, on a Point of Order, whether he would give the author of that letter, and was that the West coast incidentally? Give the author of the letter, please. Lloyd G. MacPhail : The author of the letter is Mr. D. U. Smith , of A. D. Smith Lim ¬ ited, Amherst, Nova Scotia . Hon . Alex B. Campbell : And this is the West coast? Lloyd G. MacPhail : No, that is on lumber coming from the West coast; they handle West coast lumber as well as Eastern cedar and what not. During this period we have seen increased CNR layoffs, a decreased CNR service. Let me quote from another letter. This is from The Montreal Roofing Com ¬ pany, on September 28, 1967, and it reads in part, "we share your opinion that service given by the CNR is progressively worse as their rates become progressively higher." And it goes on in some detail to list the ways in which the service has deteriorated and the costs have increased. —155—