March 25, 2009- Social Housing
40th PARLIAMENT, 2nd SESSION
EDITED HANSARD • NUMBER 033
CONTENTS
Wednesday, March 25, 2009
Social Housing
Mrs. Alexandra Mendes
(Brossard—La Prairie, Lib.):
Madam Speaker, I appreciate the opportunity to clarify my question
about the housing crisis in our country.
The Canada Mortgage and Housing Corporation announced a significant
decrease in housing starts in January 2009, compared to January
2008. This trend is continuing, especially in urban areas. The
slowdown has led to major job losses in the construction industry.
In responding to my question, the minister hid behind his government's
recent economic action plan and said that the money would flow.
The government actually had the means and the money to take
action earlier, but did nothing to prevent the collapse of the
housing market. The current government makes repeated announcements
about funding for infrastructure projects. However, in reality,
it has not lived up to its commitments and has not provided
the funding for tangible assistance to the housing sector.
This is confirmed by the federal government's public accounts
records, which indicate that there is more than $2 billion in
unused infrastructure money. This unused amount will undoubtedly
increase during the 2008-09 fiscal year. Only a fraction of
the $926 million earmarked for infrastructure programs under
the building Canada fund for the current year has been allocated.
An additional $1,141 billion in funding for infrastructure programs
from previous Liberal budgets will expire.
In 2007 the Conservative government launched its $8.8 billion
building Canada fund. In its first year however, the building
Canada fund flowed zero funding to infrastructure projects.
The Federation of Canadian Municipalities estimates that the
BCF has flowed less than $300 million of the $1.5 billion announced
in its first two years of budgeted spending.
The money is in the bank and the housing industry is in crisis,
yet the government will not let the money be spent. Why?
Since coming to power in 2006, and up to March 31, 2008, the
Conservatives' chronic inability to keep their word when it
comes to helping our economy resulted in the disappearance of
$3 billion in economic stimulus that was wholly financed and
has prevented the creation of jobs.
Job losses continue to mount in the construction sector. In
early November 2008, when the Conservatives finally realized
that there was an economic slowdown and that our stock market
was in a free fall, they began to speed up funding for infrastructure,
particularly the housing sector. Their promises have not resulted
in spending or assistance for the housing industry.
Furthermore, the government has done nothing to address its
own ongoing mismanagement of previously allocated funds. Conservatives
have committed to throwing more money at this problem in budget
2009, but will the money ever get spent or will we simply see
more mismanagement on behalf of the government?
Why is this government not spending the money? We know that
there was money for housing in the last budget. Why is this
money, already approved by this Parliament, not being immediately
turned over to a housing industry in serious trouble?
Mr. Ed Komarnicki (Parliamentary Secretary to the Minister of
Human Resources and Skills Development and to the Minister of
Labour, CPC):
Madam Speaker, I certainly welcome the member's remarks, although
at the same time, her party has been long on rhetoric and short
on action. She says that nothing has been done. That is not
quite correct. The facts show that a lot has been done and a
number of initiatives have been taken not only through the budget
but through funding.
Having a safe and affordable place to call home is important
to all Canadians. It is fundamental to Canadians' well-being
and it is important to communities. Our government has taken
a multi-pronged approach with the specific purpose of providing
housing for all Canadians from all walks of life in all parts
of our country while at the same time stimulating our economy
and ensuring that jobs are created. In Canada the housing needs
of 80% of Canadians are met through the marketplace. Canadians
use their own resources either by obtaining a mortgage and buying
a home or by renting.
For those Canadians who need some help to find housing they
can afford, our government provides $1.7 billion each and every
year in support of some 630,000 existing social housing households.
In September 2008, our government committed more than $1.9 billion
over five years to improve and build new affordable housing
and to help the homeless. Building on this, Canada's economic
action plan will provide a significant investment of $2 billion
over two years to build new social housing and to repair and
energy retrofit existing social housing.
These investments will improve the quality of life for low-income
families, aboriginal Canadians, seniors, persons with disabilities
and people living in the north. These are real actions and real
help for those who most need it. This new funding will also
help the economy. Building and renovating homes is a good way
to get people working quickly. Most of the materials and supplies
for these activities are made right here in Canada. In order
to ensure quick implementation of our action plan respecting
these measures, we will use existing programs and agreements.
In this way, funding for social housing projects will flow quickly
to those who need the help most.
I am especially pleased that Bill C-10, the Budget Implementation
Act, was passed and received royal assent recently. It was not
without some opposition in the other house and members of the
opposition stalling its passage. However, its passage means
that these funds will begin to flow very soon and that will
provide help to Canadians who need it the most and who live
in social housing.
We know that housing builds strong communities. These communities
need strong infrastructure to thrive. In addition, Canada's
economic action plan will provide up to $2 billion in direct
low-cost loans to municipalities over two years through CMHC
for housing related infrastructure projects in towns and cities
across the country. There will be a focus on funding projects
that are shovel ready. As this is a targeted, short-term, temporary
measure intended to create jobs quickly, it will happen as the
funds begin to flow. The types of eligible projects include
sewers, water lines and neighbourhood regeneration projects.
Our economic action plan also includes measures that support
home ownership in the housing sector. Through the insured mortgage
purchase program, CMHC will take further steps to ensure there
is stable long-term funding to lenders, allowing them to continue
lending to Canadian consumers and businesses.
In addition, both the housing sector and homeowners will benefit
from several important measures our government is taking. These
measures include the home renovation tax credit that will provide
up to $1,350 in tax relief, the first-time home buyers' tax
credit, funds to enhance the energy efficiency of our homes,
and increases to the withdrawal limits under the home buyers'
plan. These are very positive, concrete steps that our government
is taking.
Mrs. Alexandra Mendes:
Madam Speaker, the problem is that the money has not been flowing.
That is the whole point. We are asking the minister why the
funds budgeted in previous budgets have not been allocated and
actually spent. That is the question. The three previous budgets
already allocated this money. Why has it not been used? More
specifically, the building Canada fund has not in any way been
spent the way it was meant to be spent.
Mr. Ed Komarnicki:
Madam Speaker, it is rather interesting that the member has
said that the money has not been flowing. When we asked that
$3 billion actually flow between now and the beginning of June,
members of her party were opposed to that happening. They were
blowing hot and cold at the same.
We have not only allocated funds but they are in significant
numbers. When one looks at the economic action plan, there is
$7.8 billion in total to build quality housing for Canadians.
In addition, about $400 million of that is specifically targeted
to seniors and $75 million to those with disabilities. In two
years—
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