by Greg Malone
(3) The laws of Newfoundland existing at the date of Union shall continue to apply in respect of applications for the grant of letters patent for inventions under the laws of Newfoundland pending at the date of Union, and any letters patent for inventions issued upon such applications shall, for the purposes of this Term, be deemed to have been issued under the laws of Newfoundland prior to the date of Union; and letters patent for inventions issued under the laws of Canada upon applications pending at the date of Union shall, for the purposes of this Term, be deemed to have been issued under the laws of Canada prior to the date of Union.
(4) Nothing in this Term shall be construed to prevent the Parliament of Canada from providing that no claims for infringement of a patent issued in Canada prior to the date of Union shall be entertained by any court against any person for anything done in Newfoundland prior to the date of Union in respect of the invention protected by such patent, and that no claims for infringement of a patent issued in Newfoundland prior to the date of Union shall be entertained by any court against any person for anything done in Canada prior to the date of Union in respect of the invention protected by such patent.
TRADE MARKS
21. (1) Canada will provide that the registration of a trade mark under the laws of Newfoundland prior to the date of Union shall have the same force and effect in the Province of Newfoundland and Labrador as if the Union had not been made, and all rights and privileges acquired under or by virtue thereof may continue to be exercised or enjoyed in the Province of Newfoundland and Labrador as if the Union had not been made
(2) The laws of Newfoundland existing at the date of Union shall continue to apply in respect of applications for the registration of trade marks under the laws of Newfoundland pending at the date of Union and any trade marks registered upon such applications shall, for the purposes of this Term, be deemed to have been registered under the laws of Newfoundland prior to the date of Union
FISHERIES
22. (1) In this Term, the expression “Fisheries Laws” means the Act No. 11 of 1936, entitled “An Act for the Creation of the Newfoundland Fisheries Board”, the Act No. 14 of 1936, entitled “An Act to Prevent the Export of Fish Without Licence”, the Act No. 32 of 1936, entitled “An Act to Amend the Newfoundland Fisheries Board Act (No. 11 of 1936)”, the Act No. 37 of 1938, entitled “An Act Further to Amend the Newfoundland Fisheries Board Act, 1936”, the Act No. 10 of 1942, entitled “An Act Respecting Permits for the Exportation of Salt Fish”, the Act No. 39 of 1943, entitled “An Act Further to Amend the Newfoundland Fisheries Board Act, 1936”, the Act No. 16 of 1944, entitled “An Act Further to Amend the Newfoundland Fisheries Board Acts, 193638”, and the Act No. 42 of 1944, entitled “An Act Further to Amend the Newfoundland Fisheries Board Act, 1936”, in so far as they relate to the export marketing of salted fish from Newfoundland to other countries or to any provinces of Canada.
(2) Subject to this Term, all Fisheries Laws and all orders, rules, and regulations made thereunder shall continue in force in the Province of Newfoundland and Labrador as if the Union had not been made, for a period of five years from the date of Union and thereafter until the Parliament of Canada otherwise provides, and shall continue to be administered by the Newfoundland Fisheries Board; and the costs involved in the maintenance of the Board and the administration of the Fisheries Laws shall be borne by the Government of Canada.
(3) The powers, authorities, and functions vested in or imposed on the Governor in Commission or the Commissioner for Natural Resources under any of the Fisheries Laws shall after the date of Union respectively be vested in or imposed on the Governor General in Council and the Minister of Fisheries of Canada or such other Minister as the Governor General in Council may designate.
(4) Any of the Fisheries Laws may be repealed or altered at any time within the period of five years from the date of Union by the Parliament of Canada with the consent of the LieutenantGovernor in Council of the Province of Newfoundland and Labrador and all orders, rules, and regulations made under the authority of any Fisheries Laws may be revoked or altered by the body or person that made them or, in relation to matters to which paragraph three of this Term applies, by the body or person that under the said paragraph three has power to make such orders, rules, or regulations under the Fisheries Laws after the date of Union.
(5) The Chairman of the Newfoundland Fisheries Board or such other member of the Newfoundland Fisheries Board as the Governor General in Council may designate shall perform in the Province of Newfoundland and Labrador the duties of Chief Supervisor and Chief Inspector of the Department of Fisheries of the Government of Canada, and employees of the Newfoundland Fisheries Board shall become employees in that Department in positions comparable to those of the employees in that Department in other parts of Canada.
(6) Terms eleven, twelve, thirteen and eighteen are subject to this Term.
Financial Terms.
DEBT
23. Canada will assume and provide for the servicing and retirement of the stock issued or to be issued on the security of Newfoundland pursuant to The Loan Act, 1933, of Newfoundland and will take over the Sinking Fund established under that Act.
FINANCIAL SURPLUS
24. (1) In this Term the expression “financial surplus” means the balances standing to the credit of the Newfoundland Exchequer at the date of Union (less such sums as may be required to discharge accounts payable at the date of Union in respect of appropriations for the public services) and any public moneys or public revenue (including loans and advances referred to in Term twenty five) in respect of any matter, thing, or period prior to the date of Union recovered by the Government of the Province of Newfoundland and Labrador subsequent to the date of Union.
(2) Newfoundland will retain its financial surplus subject to the following conditions:
(a) one third of the surplus shall be set aside during the first eight years from the date of Union, on deposit with the Government of Canada, to be withdrawn by the Government of the Province of Newfoundland and Labrador only for expenditures on current account to facilitate the maintenance and improvement of Newfoundland public services, and any portion of this onethird of the surplus remaining unspent at the end of the eightyear period shall become available to the Province of Newfoundland and Labrador without the foregoing restriction;
(b) the remaining two-thirds of the surplus shall be available to the Government of the Province of Newfoundland and Labrador for the development of resources and for the establishment or extension of public services within the Province of Newfoundland and Labrador; and
(c) no part of the surplus shall be used to subsidize the production or sale of products of the Province of Newfoundland and Labrador in unfair competition with similar products of other provinces of Canada, but nothing in this paragraph shall preclude the Province of Newfoundland and Labrador from assisting industry by developmental loans on reasonable conditions or by ordinary provincial administrative services.
(3) The Government of the Province of Newfoundland and Labrador will have the right within one year from the date of Union to deposit with the Government of Canada all or any part of its financial surplus held in dollars and on the thirty-first day of March and the thirtieth day of September in each year to receive with respect thereto interest at the rate of two and five-eights per centum per annum during a maximum period of ten years from the date of Union on the minimum balance outstanding at any time during the six-month period preceding payment of interest
LOANS
25. (1) The Province of Newfoundland and Labrador will retain its interest in, and any securities arising from or attaching to, any loans or advances of public funds made by the Government of Newfoundland prior to the date of Union.
(2) Unless otherwise agreed to by the Government of Canada, paragraph one of this Term shall not apply to any loans or advances relating to any works, property, or services taken over by Canada pursuant to Term thirty-one or Term thirty-three.
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bsp; SUBSIDIES
26. Canada will pay to the Province of Newfoundland and Labrador the following subsidies:
(a) an annual subsidy of $180,000 and an annual subsidy equal to 80 cents per head of the population of the Province of Newfoundland and Labrador (being taken at 325,000 until the first decennial census after the date of Union), subject to be increased to conform to the scale of grants authorized by the Constitution Act, 1907, for the local purposes of the Province and support of its Government and Legislature, but in no year shall sums payable under his paragraph be less than those payable in the first year after the date of Union; and
(b) an additional annual subsidy of $1,100,000 payable for the like purposes as the various fixed annual allowances and subsidies provided by statutes of the Parliament of Canada from time to time for the Provinces of Nova Scotia, New Brunswick, and Prince Edward Island or any of them and in recognition of the special problems of the Province of Newfoundland and Labrador by reason of geography and its sparse and scattered population.
TAX AGREEMENT
27. (1) The Government of Canada will forthwith after the date of Union make an offer to the Government of the Province of Newfoundland and Labrador to enter into a tax agreement for the rental to the Government of Canada of the income, corporation income, and corporation tax fields, and the succession duties tax field.
(2) The offer to be made under this Term will be similar to the offers to enter into tax agreements made to other provinces, necessary changes being made to adapt the offer to circumstances arising out of the Union, except that the offer will provide that the agreement may be entered into either for a number of fiscal years expiring at the end of the fiscal year in 1952, as in the case of other provinces, or for a number of fiscal years expiring at the end of the fiscal year in 1957, at the option of the Government of the Province of Newfoundland and Labrador, but if the Government of the Province of Newfoundland and Labrador accepts the latter option the agreement will provide that the subsequent entry into a lax agreement by the Government of Canada the any other province will not entitle the Government of the Province of Newfoundland and Labrador to any alteration in the terms of its agreement.
(3) The offer of the Government of Canada to be made under this Term may be accepted by the Government of the Province of Newfoundland and Labrador within nine months after the date of the offer but if it is not so accepted will thereupon expire.
(4) The Government of the Province of Newfoundland and Labrador shall not by any agreement entered into pursuant to this Term be required to impose on any person or corporation taxation repugnant to the provisions of any contract entered into with such person or corporation before the date of the agreement and subsisting at the date of the agreement.
(5) If the Province of Newfoundland and Labrador enters into a tax agreement pursuant to this Term the subsidies payable under Term twenty-six will, as in the case of similar subsidies to other provinces, be included in the computation of tax agreement payments.
TRANSITIONAL GRANTS
28. (1) In order to facilitate the adjustment of Newfoundland to the status of a province of Canada and the development by the Province of Newfoundland and Labrador of revenue producing services, Canada will pay to the Province of Newfoundland and Labrador each year during the first twelve years after the date of Union a transitional grant as follows, payment in each year to be made in equal quarterly installments commencing on the first day of April, namely,
First year $6,500,000
Second year 6,500,000
Third year 6,500,000
Fourth year 5,650,000
Fifth year 4,800,000
Sixth year 3,950,000
Seventh year 3,100,000
Eighth year 2,250,000
Ninth year 1,400,000
Tenth year 1,050,000
Eleventh year 700,000
Twelfth year 350,000
(2) The Government of the Province of Newfoundland and Labrador will have the right to leave on deposit with the Government of Canada any portion of the transitional grant for the first eight years with the right to withdraw all or any portion thereof in any subsequent year and on the thirty-first day of March and the thirtieth day of September in each year to receive in respect of any amounts so left on deposit interest at the rate of two and five eights per centum per annum up to a maximum period of ten years from the date of Union on the minimum balance outstanding at any time during the six-month period preceding payment of interest.
REVIEW OF FINANCIAL POSITION
29. In view of the difficulty of predicting with sufficient accuracy the financial consequences to Newfoundland of becoming a province of Canada, the Government of Canada will appoint a Royal Commission within eight years from the date of Union to review the financial position of the Province of Newfoundland and Labrador and to recommend the form and scale of additional financial assistance, if any, that may be required by the Government of the Province of Newfoundland and Labrador to enable it to continue public services at the levels and standards reached subsequent to the date of Union, without resorting to taxation more burdensome, having regard to capacity to pay, than that obtaining generally in the region comprising the Maritime Provinces of Nova Scotia, New Brunswick, and Prince Edward Island.
Miscellaneous Provisions.
SALARIES OF LIEUTENANT GOVERNOR AND JUDGES
30. The salary of the Lieutenant Governor and the salaries, allowances, and pensions of the judges of such superior, district, and county courts as are now or may hereafter be constituted in the Province of Newfoundland and Labrador shall be fixed and provided by the Parliament of Canada.
PUBLIC SERVICES, WORKS AND PROPERTY
31. At the date of Union, or as soon thereafter as practicable, Canada will take over the following services and will as from the date of Union relieve the Province of Newfoundland and Labrador of the public costs incurred in respect of each service taken over, namely,
(a) the Newfoundland Railway, including steamship and other marine services;
(b) The Newfoundland Hotel, if requested by the Government of the Province of Newfoundland and Labrador within six months from the date of Union:
(c) postal and publicly-owned telecommunication services;
(d) civil aviation, including Gander Airport;
(e) customs and excise;
(f) defence;
(g) protection and encouragement of fisheries and operation of bait services;
(h) geological, topographical, geodetic, and hydrographic surveys;
(i) lighthouses, fog alarms, buoys, beacons, and other public works and services in aid of navigation and shipping;
(j) marine hospitals, quarantine, and the care of shipwrecked crews;
(k) the public radio broadcasting system; and
(i) other public services similar in kind to those provided at the date of Union for the people of Canada generally.
32. (1) Canada will maintain in accordance with the traffic offering a freight and passenger steamship service between North Sydney and Port aux Basques, which, on completion of a motor highway between Corner Brook and Port aux Basques, will include suitable provision for the carriage of motor vehicles:
(2) For the purpose of railway rate regulation the Island of Newfoundland will be included in the Maritime region of Canada, and through-traffic moving between North Sydney and Port aux Basques will be treated as all-rail traffic.
(3) All legislation of the Parliament of Canada providing for special rates on traffic moving within, into, or out of, the Maritime region will as far as appropriate, be made applicable to the Island of Newfoundland.
33. The following public works and property of Newfoundland shall become the property of Canada when the service concerned is taken over by Canada, subject to any trusts existing in respect thereof, and to any interest other than that of Newfoundland in the same, namely,
(a) the Newfoundland Railway, including rights of way, wharves, drydocks, and other real property, rolling stock,
equipment, ships, and other personal property;
(b) the Newfoundland Airport at Gander, including buildings and equipment, together with any other property used for the operation of the Airport;
(c) the Newfoundland Hotel and equipment;
(d) public harbours, wharves, breakwaters, and aids to navigation;
(e) bait depots and the motor vessel Malakoff;
(f) military and naval property, stores, and equipment;
(g) public dredges and vessels except those used for services that remain the responsibility of the Province of Newfoundland and Labrador and except the nine motor vessels known as the Clarenville boats;
(h) the public telecommunication system, including rights of way, land lines, cables, telephones, radio stations, and other real and personal property;
(i) real and personal property of the Broadcasting Corporation of Newfoundland; and
(j) subject to the provisions of Term thirty-four, customs houses and post-offices and generally all public works and property, real and personal, used primarily for services taken over by Canada.
34. Where at the date of Union any public buildings of Newfoundland included in paragraph (i) of Term thirty-three are used partly for services taken over by Canada and partly for services of the Province of Newfoundland and Labrador the following provisions shall apply:
(a) where more than half the floor space of a building is used for services taken over by Canada the building shall become the property of Canada and where more than half the floor space of a building is used for services of the Province of Newfoundland and Labrador the building shall remain the property of the Province of Newfoundland and Labrador;
