Ottawa, ON, June 9, 1999 - The Chairman of the National Council of Veteran Associations expressed disappointment at the report on Merchant Navy compensation to be released today by the Standing Committee on National Defence and Veterans Affairs.

Cliff Chadderton, who had appeared before the Committee on two occasions, stated that his understanding was that the terms of reference permitted the Committee to study the possibility of a lump sum grant to members of the Merchant Navy who had been denied rehabilitation benefits as their services were required for a Canadian merchant fleet after World War II.

According to media reports, the Committee's report will not recommend compensation but instead a display and spot on the National War Museum's board, as well as a $1-million scholarship fund for students studying the Merchant Navy.

"We are disappointed that the government has refused to recognize the right of the Merchant Seamen to compensation in lieu of the rehabilitation benefits that were denied to them," Chadderton said.

He added that the NCVA would continue to press the government, probably through the Senate Subcommittee on Veterans Affairs.

Chadderton also commented on some of the recommendations of today's Committee report. "We have no sense of achievement in regard to the War Museum display because that had already been planned and the budget had been approved for it," he said.

"We agree that a study should be undertaken, but only to determine the right to compensation and that a cost of $1 million dollars for this is far too excessive," he added.

Chadderton also referred to what he stated was misinformation on the Veterans Affairs Web site, which his organization had challenged through our Web site. "The fact that the Liberal-dominated Committee did not wish to hear from representatives of Veterans Affairs Canada leads to the suggestion that the information upon which the Minister had apparently based his previous negative decision regarding Merchant Seamen would have become the subject of extensive debate," he said.

At the end of World War II, the government established a comprehensive program for regular Armed Forces members. Transport Minister Lionel Chevrier, who was responsible for Merchant Seamen, denied them access to these benefits, reasoning that they would be needed for a proposed Merchant Fleet after the war. This proposal failed due to the inability to compete with foreign vessels and, in 1949, Prime Minister Louis St. Laurent declared all government subsidies for the Mercantile Marine would cease.

"The Standing Committee has missed the opportunity to help remove the 'Black Mark' from an otherwise unblemished record which has given Canada title to the best veterans rehabilitation program in the world," Chadderton said.