JOBS AND PAYCHECKS  Liberals want to do everything that a Federal government can to make sure there are enough good jobs for the Canadian people. Because of our growing population, there must be more jobs and they must be productive jobs that can pay good wages.  That's why the liberal government gives top priority to policies for economic expansion. The results: in two years, more than half a million new jobs; unemployment down to the lowest rate in nine years.  That's why the Liberal government provides development grants to industries which will start or expand in the parts of the country that.most need more jobs.  That's why the Liberal government is now sturting to help unemployed people who have to move to get jobs. The program will pay both the moving expenses and as much as $1,000 for the cost of a family settling in a new home.  That's why the Liberal government is developing a comprehensive program so that people trapped in poverty will have all the help they need Whelp themselves.  MEDICARE  Timetable  The Liberal program in the 1963 election In= cluded a commitment to medicare. It was a definite and realistic commitment, even as to timing.  Mr. Pearson and his colleagues recognized that two measures as fundamental as the Canada Pension Plan and Medicare would both be major tasks. Both would take some dine to work out with the provinces and get set up. It would be unrealistic to undertake both at once.  The Liberal election platform in 1963 therefore specified that work on the pension plan would begin at once. Then the plan for medicare would be worked out during the second half of a normal government term of four years or so.  This timetable has proved sound. Work on the pension plan began the day the government took office, in April 1963. Almost two years later, in March 1965, the legislation was finally passed. A few days later, last April, the Government announced in the Throne Speech that it would this year be making medicare proposals to the provinces. The confers for this purpose was held last July. This was followed by. a meeting of Ministers of Health in September.  There were times when many people doubted whether the government could ever get its pension plan completed against the strong resistance from some quarters. But it did. What is different about the second great Liberal reform is that, after the success of the first, few people doubt that the same persistence and planning will work again. Medicare is on the road. If the Liberal government gets the mandate it is asking from the Canadian people on November 8, it is as certain as anything of the kind can be that all Canadians will have medicare by the realistic target date which the government has set-July 1, 1967.  The goal and the problem  Liberals believe. that everyone should be able to have the medical attention he or she needs, when it is needed. People should not be .kept away from the doctor because they can't afford to pay. Or, in the case of a serious illness or accident, they should not come out of it burdened by debts for medical services. We all know of people, eves with quite good incomes, for whom such debts have been a.cause of worry sad even deprivation for many years.  The Liberal goal is medical care for everyone, according to need. But that is not a goal which a federal government alone can achieve. In our constitution, health falls under provincial jurisdiction. Only the provincial governments can actually make. medicane a matter of law.  Nevertheless, almost .everyone admits -that federal leadership is essential for all Canadians having medicare. Incomes and tax revenues vary too much for. all the provinces to put is a full medicare plan by themselves. Canadians can have a national standard of service only if the federal government makes it financially possible.  In the past 'this has been achieved by shared cost programs. : The most important example is hospital insurance. The federal Parliament laid down what hospital insurance . must provide and gave the federal government power to make agreements with the provinces. These are detailed agreements governing the provincial hospital insurance plan and providing for a detailed audit of what the province spends in accordance with the federal conditions. On those conditions, the federal government reimburses the provinces for an exact proportion of what they have spent.  The Royal Commission on Health Services recommended that this model be followed for medicare. There was little possibility, however, that it would work. Many provinces have come increasingly to resent the detailed federal control over their programs and expenditures that is involved in the established kind of shared-cost program.  The Liberal government was aware of the problems. It was a liberal government that put forward a comprehensive health plan as long ago as 1945 but was turned down by the provinces.  The Prime Minister therefore recognized that, in order to achieve this great goal-in order to assure medicare to the Canadian people without further unnecessary delay-a new and better method of bringing it about would have to be found.  The solution  This was done in the federal proposal last July. Even the opponents of medicare have recognized that, if it has to come, the method proposed is a good one. Even the government's most bitter political opponents have not attacked it. Others have recognized it as a brilliant solution to the problem.  Like most successful ideas it is, once it is understood, so simple that one almost wonders what the fuss was about.  The Prime Minister told the federal-provincial conference in July that the federal government believed the time had come to make medicare a part of Canada's basic social standards. Therefore the federal government would take the responsibility of co-operating with the provinces to make medicare financially possible. for :all Canadians. But. in . doing. so, it would ; not require detailed agreements . governing the- provincial programs. It would merely require a general understanding of what medicare is: the basic principles on which plans must be based, but with details left to the province to arrange as it wishes.  Provided the provincial plans conformed to the basic principles, the costs of them all would be added up and divided by the number of people in the country. The federal government would then make to each province a contribution equal to half of the national cost per person, multiplied by the province's population.  Once this plan has been in operation for a while, and the trend of costs can be accurately foreseen, this contribution will be determined in advance and the federal government will work out with the provinces the most satisfactory way in which it can be made.  Since what the federal government pays to each province is half the national cost, it does not need a detailed audit of the province's expenditures; if one province were to let costs get out of line, this would not have much effect on the national cost and therefore it would be the province, not the federal government, that had to find most of the extra money.  Also, since it is in the poorer provinces that costs are below the national average, the formula has the further advantage that the share left for the province to finance will be less than half of the actual costs in just those provinces which have most difficulty in raising the money. That is how it should be.  The principles  The Prime Minister laid down four principles to determine what medicare means:  1. Benefits must move with people if they change provinces.  2. The plan must provide comprehensive physicians, services.  3. The plan must be universal; that is, everyone must be covered on the same terms and conditions.  4. The provincial government must take responsibility for public administration of thg plan.  The Prime Minister put forward these principles at the July conference, and the provincial Premiers agreed that the Ministers of Health should confer in September on their detailed interpretation.  Transferability  This fast principle presents no difficulties except purely technical ones. In September the prouncial Ministers of Health agreed to work these out at a further meeting among themselves very shortly.  Scope of Benefits  While a complete health service would include services besides those of physicians, and many people hope that in time additions will be made, there is general agreement that the only practicable basis for a nation-wide service is to start with physicians' services. There is nothing to prevent an individual province including other services, from the start if it wishes. In time the whole plan may be broadened. But comprehensive physicians' services are the initial minimum on which there is broad agreement.  The provincial Ministers of Health readily agreed on this point. There are some technical problems. For example, how exactly do we draw the line between the new plan and certain services already provided under other federal or provincial legislation? What is the dividing line between cosmetic surgery which is medically necessary and what is not? In what circumstances, if any, wilt the plan pay the fees of a specialist to whom the patient goes directly, not on referral from a general practitioner?  The Ministers of Health anticipate no great difficulty, however, in working out details of this kind. The general point is that the plan will cover all normal services by physicians, general practitioners and specialists, for both physical and mental health problems, with only minor exclusions arising mainly from the fact that certain specialized services are already provided by separate legislation.  Universality  This is the principle on which there are different views. No one rejects the goal that everyone should be able to get medical care. But some people oppose medicare as a plan that covers everyone on the same terms and conditions. The opponents argue that universal coverage is wasteful. It is enough, they say, that everyone should be able to buy prepaid medical care insurance. Admittedly, not everyone can afford it; but-methcare opponents say-the government can take care of that by paying, in whole or in part, the premiums of people who can't afford to pay for themselves.  In the government's view, there are two things wrong with such a philosophy. First, it divide's people into sheep and goats: some people. are paying for themselves, others not. This sharp distinction is bound to produce differences in attention. The Liberal government believes, that -everyone ought to be able to walls into the doctor's office on the same basis, whatever his income.  Secondly, merely to make coverage available to everyone is not enough, any more than it would be enough to say that the public schools are available to everyone who wants to send his children there and will pay (if he can afford it) a certain charge. The child needs education whether the parent is prepared to pay for it or not. The family needs the right to go to the doctor, irrespective of whether the head of the family chooses to pay for it. People who need care cannot and should not be refused service. Therefore, whatever the basis of contributions to the plan, everyone ought to be required to belong and therefore have the right to service on the same terms as everyone else.  Only one provincial government-Alberta-has expressed definite dissent from this federal view. And Alberta has by no means said that it will sustain its objection, in face of the views of the other provinces as well as the federal government.  The federal government recognizes that universality cannot always mean complete, 100% coverage. It is prepared to accept any plan which has universal coverage as its definite objective. A practical test would be to say that a satisfactory plan must be one which can be sure of achieving at least 95% coverage within a few years of the start of the plan:  The principle of universality has other aspects, which are very important to the doctors.  Everyone agrees that doctors should have the right to join the plan or not, as they please. But some doctors argue that the right is theoretical, not real, unless patients who go to a doctor outside the plan are nevertheless entitled to reimbursement; that is, they can get from the plan what their treatment would have cost if the service had been carried out within the plan.  This question about patient reimbursement is fundamentally similar to the question whether there can be extra billing within the plan. and also to the question whether access to the plan should be controlled by deterrent charges-the patient has to pay the first dollar, or the first 10%, or whatever it may be, of the cost of the service.  The federal government does not take a dogmatic view on these points. The problem about them is purely one of degree. If extra billing became common, the principle that all patients must be able to go to a doctor without charge would be destroyed.  Similarly, deterrent charges do not destroy the principle of 'universality if they are small. But substantial deterrent charges would -destroy the principle of assuring access to medical services for everyone, whatever his income.  Again, patient reimbursement is unimportant if only a small minority of doctors stay outside the plan; but if a large number were to do so, and to charge more than the accepted level of fees, the result would be that a substantial minority of people would not have what medicare is designed to achieve; they lose the effective right to go to a doctor without having to pay.  The Liberal government thinks it right to leave these issues to the provinces to decide. The one requirement is that, if a provincial plan does provide (say) patient reimbursement, that province must be able to guarantee to the federal government that the plan will in fact be universal, in the sense that everyone really will be able to find a doctor to whom he can go without having to pay him more than is looked after through the PIM  As long as this is assured, the rest is up to the province. Such a position was accepted as reasonable at the conference of Ministers of Health in September.  Public responsibility  The Liberal government believes that it can make a contribution from federal taxation only to a medicare plan for which the provincial government takes full responsibility. Then must be a Minister answerable through the Legislature to the public for the administration of the plan. The department or agency operating the plan therefore must be subject to public audit.  This principle leaves a great deal of flexibility as to the details of provincial organization. The plan might be run directly by a government department. Or it might be entrusted to a government appointed board. Or a government might take responsibility for negotiating fees and other basic policies of the plan through a department or commission, but then-subject to such conditions as provincial audit-date day-today operations to a nonprofit organization such as one sponsored by doctors.  Health Resources Fund  In his proposals to the provinces, the Prime Minister emphasized that the modCane plan must help to create a professional climate that attracts increasing numbers of able people to the study and practice of medicine and related professions, and thereby progressively improves the quality of the care that can be provided to Canadians.  This objective requires large investments in research and in the training of health personnel. The liberal government therefore announced in September its intention to provide $500 millions for a Health Resources Fund. The fund will start from next January and over the following fifteen years will be available to provide federal capital grants for the construction, renovation and basic equipment of research establishments, teaching hospitals, medical schools and training facilities for other health personnel.  All provincial Ministers of Health agreed at the September conference to join with the federal government in establishing a technical committee to estimate the needs for the various types of facilities; to advise on the general regional distribution of the grants; and to advise on the methods by which the $500 million fund should be allocated, through provincial governments, to particular projects.  'Ihe Fund will play a major part in helping to improve the quality of the medical care available to Canadians.  Summary  Provincial governments, many of them representing parties opposed to the Liberals is the federal election, are unlikely to commit themselves on the federal medicare proposal before November 8. That would be interpreted as working against their own parties in the federal campaign. But the truth clearly is that everyone knows that the federal proposal is just what was needed to achieve medicare. Provided the liberal government gets its mandate on November 8, there will be medicare across Canada. The only possible exception is Alberta, and even there the chances are good that the government will in the end decide to come along with the rest.  OLD AGE SEcURItY AND THE CANADA ASSISTANCE PLAN  When this government came into office, the position was:  1) From age 70, people got $65 a month in old-age security (a federal program)..  2) When aged 65 to 69, people could draw up to $65 a month but only on a means test. They could get $65 only if their other income did not exceed $30 a month for a person living alone or a combined $35 a month for a married couple. This was a program provided and administered by the provinces. Ile federal government paid half the cost of this assistance, up to the $65 maximum, and the province the other half.  The Conservative government did not share in providing additional assistance, over the $65, to those aged 65 and over, except to the limited extent to which older people got extra help through the unemployment assistance program.  What this government is doing:  1) It has raised the $65 old-age security to $75 and provided that in future the amount will be increased automatically if the cost-of-living rises.  2) For people. aged 65 to 69, it has legislated to replace old-age assistance (dependent on the means test) by old-age security (available to everyone without a means test). The transfer will take place a year at a time. That is, from this coming January 1, everyone aged 69 will be entitled automatically to the $75 old-age security, without any means test. The following year, this will be extended to age 68. And so on until, from January 1970, old-age security is available to everyone (provided he or she meets the residence qualifications) from age 65.  3) The government has worked out with the provinces, and is committed to legislating early next year, a program to provide assistance to everyone in need. This is the Canada Assistance Plan. It means that anyone who can show that he is in need can get assistance and the federal gov  ernment will share the cost with the province. There is no limit to the amount of the assistance in which the federal government will share. Thus, if a province decides that older people need a total  income of $125 a month, assistance will be paid at the necessary rate ($50 a month on top of the $75 old-age security) with the federal government sharing all of the cost.  4) The government has established the. Canada Pension Plan which will provide, for people retiring in future, far higher pension levels. For example, a single man will be able to get a pension of up to $179 from -the Canada Pension  Plan and old-age security combined, on retirement .at age 65. This benefit level will rise automatically in line with wages and prices.  FARM POLICY  Following are the highlights of -the government's farm program made public on Wednesday October 6.  1) Increased assistance to crop insurance, designed to encourage the provinces to make insurance available to every Canadian farmer within the next 18 months.  2) Government action to purchase uneconomic farms, redevelop them and then sell them back to farmers. This program would be linked with retraining and re-settlement assistance to farmers who want to take up other occupations.  3) Establishment of a Canadian Dairy Commission expected to raise the national average price for manufacturing milk to between $3.75 and $4.00 per hundredweight.  4) Similar marketing legislation for other products.  5) Extension of unemployment insurance to the main groups of full-time farm workers.  6) A commitment to support Prairie farm income if grain marketings fall off.  7) Establishment of a Livestock Feed Board to ensure that feed grains are available in .public storage in eastern Canada and B.C. when, where and in the quantities needed.  8) Creation of a Canadian farm management service to assist farmers in determining market trends, keeping records and planning production.  9) Creation under ARDA of an additional $50 million fund for rural economic development.  10) A new mortgage program to finance farm housing, especially for farm workers.  AID FOR STUDENTS  The Prime Minister had spelled out this program for scholarship-bursaries in a statement on October S. He said that legislation would be introduced to begin the program for the next academic year.  To help pay the way of young men and women who start at university in the fall of 1966, the government will provide $40 millions, at the rate of $10 millions a year for four years of study.  This is a continuing and expanding program for those who start university in the fall of 1967, the aid available will be $40 millions increased by the growth of population of university age. For those who start in 1968, there will be a further increase, and so on.  The purpose of the scholarships is to make sure that every young Canadian who proves his ability at school is encouraged to go on to university, and that no such student is shut off from further education because of poverty.  The government's four-year legislative program, begun. in 1963, included three measures designed for this purpose. One was to pay youth allowances to make it easier for students to stay on at school to age eighteen. The second was to provide for university students a system of guaranteed loans, which are free of interest for the years at university.  These two priority measures were put into operation last year. They have already done much to assure university education to every young man and woman with the ability and desire for it.  An additional measure is, however, needed. Within the four-year program launched in 1963, the government proposed to establish a system of scholarships. This third step in the program will now be taken.  Details of the scholarship program  The government has decided that the scholarships will be most useful if they are more flexible than was first proposed. The intention was to provide scholarships of a uniform value of $1000 a year to 10,000 students each year. With the rapid increase in university enrolment which has been taking place, this plan would create too sharp a distinction between the students who won these large scholarships and those who are dependent on existing scholarships and bursaries, which are generally much smaller.  The government's program will therefore be to establish a sum of money-540 millions for 1966 entrants, and more in subsequent years-available for scholarships to each year's entrants to university, but to leave the details of how it is used to be worked out with the provinces and universities.  The scholarships will have a maximum value of $1000 a year, for each of four years of study. While the scholars will be chosen on merit, the value of the scholarship will be reduced for those whose parents can afford to pay part of the cost of their education or who have other resources. The provinces and universities will be asked to join in working out the scale on which needs will be judged. The new scholarships can thus be coordinated with other provisions for student aid.  It is likely that in this way the $10 millions a year will finance considerably more than 10,000 new scholarships a year. The number might work out to nearly double that figure. Thus, when the program has got into full operation-in its fourth year onward-some 80,000 students will be bene~ fiting from scholarships.  To take account of the rapid growth in the number of young Canadians, the amount of scholarship money made available -to each year's university entrants will be increased at the rate at which the population aged 18 to 24 increases. This is the same formula as is used for student loans. It means at present an increase of about 4% a year. Thus, for students entering university in the fall of 1967, the scholarships will have an annual value of about $10,400,000, for a total over four years of $41,600,000. There will be similar increases in subsequent years.  The money provided for scholarships will be distributed in proportion to the population aged 18 to 24 in each province. This again is the formula used for student loans,  In the award of scholarships, it will be for the provinces and universities to decide how merit is to be judged. Each scholarship will continue for four years if the student so wishes and if the university is satisfied with his work.  People and the national interest  The Prime Minister summed up the purpose of the scholarship program in these words:  "The development of our human resources is a general national interest. It means that all young Canadians of outstanding ability should have the higher education that will enable them to use their talents to their own and the country's advantage."  COMPANY OF YOUNG CANADIANS  The Liberal government believes that the best possible opportunities should be open to all young Canadians. But young people want more than opportunities. The Liberal government believes that many of them want urgently to use their education and skills in special service to their fellowmen.  This desire for service can find important outlets in assisting economic and social development in Canada as well as overseas. For this purpose the government is establishing the Company of Young Canadians.  In announcing this intention last April, the Prime Minister made it clear that the government would not impose any bureaucratic pattern on the services of youth. To get the Company started, Mr. Pearson has appointed an organizing committee in close touch with younger people.  This committee's recommendations on the work that can be undertaken by young people, and on the best way to organize their services, will be known later this fall, in time for legislation to get the Company into action next year.  Voting AGE  One of the important political reforms planned by the liberal government is to lower the federal voting age to 18.  In many aspects of daily life, people are treated as adults at 18. The government believes that this should be matched by possession of the citizen's basic right of voting, a right that most young Canadians today will exercise thoughtfully.  ELECTION EXPENSES  The Government in 1964 announced that it intended "to institute an inquiry to advise on the best practicable way to see enforceable limits to expenditures in election campaigns". The Committee's appointment was announced on October 27, 1964.  The government has asked the Committee to conduct its inquiry as quickly as the complexity of the subject permits. The Throne Speech on April 5, 1965, committed the government to make proposals respecting limitation and payment of election expenses when it has received and considered the committee's findings.  CANADA'S NEw DEFENCE POLICY  In 1964 Canada did what many countries have thought about: we launched the integration of our armed services into one co-ordinated defence organization suited to modern conditions.  Many countries are now looking at our achievement as a model.  Integration of the armed forces is not an isolated measure. It is part of the design of a new defence policy which will give, for every dollar spent, the best possible value in helping to preserve peace and keep Canada secure.  One of the early actions of the Minister of National Defence was to set up for the first time a series of Ministerial Study Groups composed of highly qualified senior service officers, scientists and civil servants.  One major Study Group concluded that an allout thermonuclear war was now highly unlikely. It also indicated that a conventional war of World War II dimension was also improbable because in all likelihood it would escalate into a thermonuclear war. The Study concluded that the main danger was that insurrections, brush-fire wars and various scales of limited wars, such as have occurred during the past few years, might continue, perhaps on an increasing scale.  Having decided on the most likely types of conflict in which Canada might become involved in the future, a long range defence plan was prepared. This plan was outlined in the White Paper on Defence, which was tabled in the House of Commons in March 1964.  This White Paper, the first since 1959, covered a complete assessment of our defences, for the present and for the future. It forecast a shift in defence policy and explained our plans and our need to integrate the Armed Forces into a single unified force.  This shift in defence policy means that Canada will have a highly mobile, flexible force capable of going anywhere, engaging in a wide variety of peacekeeping or peace-restoring operations, and having sufficient strategic air and sea lift to get it where required quickly. At the same time, it will have the capability of contributing, in a realistic manner, to our alliance strategy of deterrence to all-out war.  For these purposes a wide range of new equipment is required. Because most of the defence budget under the old system was being used for administrative and operating expenses, there was not enough money available for new equipment.  To obtain the funds necessary to purchase the equipment required, we had either to reduce our operational commitments, or to reduce our "overhead" costs.  We decided on the latter course and the only way this could be done effectively was to integrate the three services into a single unified force. Through integration we will be able to cut out the duplication and triplication which is inherent in a three-service system, and consequently, derive great savings in both manpower and day-to-day expenses.  The Bill authorizing integration of our forces was passed in Parliament in August of last year. This Bill created a single Chief of Defence Staff and established a new defence organization on a functional basis.  Since the Bill was passed, integration has proceeded at a steady rate and, in many respects, it is well ahead of schedule.  For the purpose of planning, the integration process was divided into three stages. Stage one, the integration of the branches at Headquarters, should be largely completed this year. Stage two, integration of the command structure on a functional basis, was announced in June of this year and by this time next year should be operational. Stage three of the integration program--complete unification-will follow naturally from the second stage:  There have already been great savings in both manpower and money. Moreover, by introducing modern business principles into defence management, a more responsive and effective defence force is being produced. The amalgamation of many branches has effected large staff reductions with great savings in attendant costs. Once the entire unification process is complete, savings in dollars are expected to amount to approximately $ 100 million annually.  This money will be available to purchase the new equipment which is required to make our force truly flexible and mobile.  A five-year re-equipment program for the armed forces was approved by the government last December. This plan will allow for an orderly procurement of new equipment for our forces over the next five years. It will also permit Canadian defence industries to plan their own production to contribute Canadian-made equipment to the greatest extent possible.  The program is designed to re-equip the army and improve its mobility; provide an adequate air and sea lift for its immediate deployment; acquire tactical aircraft; and maintain a constant improvement of our maritime anti-submarine capability.  RESOURCE DEVELOPMENT  Canada's basic wealth comes from her resources. We live in an era of expanding trade and there is a growing market for most of our production. A strategy for development, management and conservation of our resources is therefore essential to full growth of our economy. It is, indeed, a great national objective for the benefit of all Canadians, giving strength and balance to our growth.  A Water Policy for Canada  Foremost among the resources which have received careful attention in the past two years is water. Water is our single greatest resource and its wise management will do much to determine the wealth of Canadians in the generations to come. Water is as indispensable commodity and we are abundantly endowed with over one-third of the world's fresh supply.  Canada's water policy recognizes and makes allowance for the nation's regional differences in water endowment and for differing currant and  future water requirements. Its essential concept is that it endeavours to foster a wise management and the fullest use of water throughout all of Canada and on behalf of all its people. If Canadian water resources are shared in any degree with our neighbours, there must be a commensurate reverse flow of benefits for Canada and our future needs will have to be established and provided for.  Hydro-Electric Power  Allied to water as a resource is hydro-electric power and its transmission. Studies on the Columbia River development and the Nelson River power development in Manitoba have been undertaken with the support of the federal government. Additionally, the Atlantic Development Board has made sizeable contributions to accelerate specific hydro-electric developments in the Atlantic Provinces. The possibility of developing the potential  of the tides at Shepody Bay, Cumberland and Minas Basin is being studied. The federal government, together with the Provinces, has also started intensive engineering studies to determine the cost and benefits of a national power network.  Oil and Gas  Another vital source of energy is natural gas  and oil. The petroleum industry, one of our key resource industries, has developed at a tremendous rate. Existing proven reserves provide a supply beyond our present and foreseeable needs, so that it is economic for us to export.  In 1964 the value of oil and gas exports to the United States totalled 386.5 million up by 12.8 % over the total for 1963. A further improvement is anticipated in 1965.  There are two essential conditions for future development. The first is continued access to the U.S. Market for oil and gas. We are in constant communication with U.S. authorities as part of a continuing effort to ensure this. The second is the continued discovery of reserves in such quantities as to permit of exports. The successes in 1964, when proved remaining reserves of liquid hydrocarbons increased by 1,436 million barrels, is an encouraging indication of this industry's capacity for even greater expansion  Northern Development  Perhaps the most important resources which the government holds in trust for the people in Canada axe found in the Northwest Territories and in the Yukon. The Government's responsibility in northern development is to create an economic climate which well attract enterprising development.  The best example of this approach is the Pine Point project in the Northwest Territories. The government and Pine Point Mines have worked in complementary fashion from the beginning. The Pine Point railway has been completed, the mine will be producing by the end of this year, and the power it requires will come from the Taltson River Hydro project built by the government's Northern Canada Power Commission.  The Government has also provided assistance for transportation links which have greatly facilitated the development of a number of projects. Examples are the re-opening of the operations of Canada Tungsten Mining Corporation Limited in the Northwest Territories and the opening of an asbestos mine at Clinton Greek in the Yukon.  In the Northwest Territories, a major development by the Baffinland Iron Mines is under way with the close co-operation of the Department. This will be one of the largest and richest iron developments in the world.  More important still, the government has launched a 20-year, two phase program of road building in the north to stimulate the development of its resources. This will mean that no potential resource or development area will be more than 200 miles from the nearest permanent road. This is a tremendous undertaking when one considers that fully one-third of Canada lies north of the sixtieth parallel.  ESKIMOS  Last July, the Prime Minister summed up federal policy regarding Eskimos in these words:  “We have certain definite obligations in the Federal Government to those indigenous inhabitants in Canada who have been placed under federal responsibility. We intend to discharge that responsibility. It may well be in the future that many of the administrative matters affecting them can be dealt with within provincial boundaries more. effectively by the provincial administration than by a federal administration. That is under'. consideration. It will be done, if it is done, by stages. It will be done with the interests of the indigenous people very much in mind, and in harmony with their views”.  The Prime Minister's statement was made in connection with negotiations with respect to the Eskimos of Arctic Quebec. It clearly re-affirmed the position of the government of Canada with respect to the gradual extension of provincial services to the Eskimo people, commensurate with their growing involvement in Canadian life' and subject always to full consultation and in accordance with the wishes of the Eskimos concerned. In addition, the long term objective of full Eskimo participation in the Canadian and provincial community was implicit.  .To go more deeply into the background, under a ruling of the Supreme Court of Canada in 1939, the legislative authority of the government of Canada for Indians was held to include Eskimos. Since that time, and in particular during the last decade, -the federal government has been providing an increasing array of services to Eskimos, including important services which for most Canadians are under provincial jurisdiction--such as health, education and welfare.  The federal government has taken the position that it is a desirable objective that Eskimos eventually enter the mainstream of Canadian life, served by the various levels of government as would be any Canadian Federal measures in the transition phase recognize the special problems of adjustment involved. This transition is now proceeding more rapidly than in the past, but the need for special services and federal involvement must be considered in longer . terms than the immediate future. Nor will the end of this requirement for special federal intervention come at any particular point in time; rather, it must be expected that some federal activity will continue for an extensive period, but that particular services may be undertaken by the provinces, at points in time commensurate with developments.  The underlying principles, then, consist of an objective, and a philosophy of gradualism in its attainment. One other principle is most important, namely, that since the efforts of all concerned with this matter relate to the well-being of the Eskimos, the opinions of the Eskimos are of paramount importance. The Eskimo community will progress far more rapidly and maintain its own culture and dignity more completely if it has entire confidence in the governments and other groups with whom they associate.  Therefore, the government of Canada has taken the stand that meaningful consultation is a necessary prerequisite to any change in matters so important as the administration of the basic government services. "Meaningful" has two aspects: the mechanism of the consultation must be such that the feelings of the Eskimos are properly conveyed to the governments in a way that. has the confidence of the Eskimos; and the governments must be prepared to take into account the feelings they discover through such consultation.  The governments of Canada and Quebec have been discussing these matters actively for over two years now. Mutual understanding has grown up between them, taking always as a theme .and reference point the welfare of the Eskimos themselves. As the Eskimos outgrow the need for a particular federal service, or if the province can do. mat particular job as well . or better than the federal government, and if the governments and most importantly the Eskimos so wish, then- transfer of the administration of that particular service, by the province, is appropriate. In its discharge of responsibility toward Eskimos, the federal government cannot move more quickly than indicated by these guidelines. It would at. the same time be a disservice to the Eskimo community to continue special federal services setting them aside from the rest of Canadian life after all concerned agree that the need has passed.  The best interests of the Eskimos require their full participation in the various provincial communities in which they live; otherwise they will find themselves hived off from the rest of the population, and segregated through special federal services in education, welfare and other fields which reach all other citizens through provincial agencies. Implementation of this policy does not :mean any diminution of federal authority and responsibility, and the federal government stands ready to provide such services as may be required, and must satisfy itself that the standards of services being provided by other agencies are appropriate and adequate. This gradual and agreed progression toward an objective of full and equal participation in Canadian life is the essence of the Liberal government's policy.  INDIANS  The aims of the liberal government are to make it possible for Canada's Indians to take-a greater part in the Canadian community; and at the same time to remedy the grievances of Indians.  To hear and determine long-standing, Indian claims, the government is June 1965 introduced legislation to establish as Indian Claims Commission. The legislation includes $ number of amendments suggested by Indian groups.  A major study of the participation by Indians in Canada's social and economic life is being made. It is examining economic development, education, and responsibilities in band councils and governmental bodies. The study is expected to be completed is 1966.  WHY A MAJORITY MATTERS  Canadians are concerned at this failure and at the absence of strong majority direction in their Parliament. We are living in a new era of expansion of opportunity: However, to realize the promise of the future . our government must deal with economic, social, federal sad. xonstitutional problems of unparalleled complexity and.. importance. To meet this challenge government needs a majority, one which includes good; strong representatives of all sections of our country. This is the only basis for stable, long-term policy.  It is only wig a stable majority that the problems of our national administration can be placed beyond the daily threat of partisan defeat; that the future can be ma from a position of strength; that the government can put forward proposals confident in the knowledge that a parliamentary decision will be taken on them.  In a majority Parliament, everyone knows where he stands. The government can take a long term view as it weighs the day to day issues against the big and vital problems that will count towards the country's future. Parliamentarians are able to come to Ottawa and deal with proposals on their merits, secure in the knowledge that the public will have its eventual judgment not on the issues of the moment but on the record of four year performance.  Above all, Canadians as a whole know where they stand when a government is in a majority position in parliament. They know that their government is in a position .to 'carry on for a reasonable period of time, to overlook short-term partisan bickering in favour of steady, long-term action.  It is for these reasons that the Liberal government is seeking a majority.