Evidence of meeting #39 for Finance in the 39th Parliament, 2nd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was economy.
A recording is available from Parliament.
Conservative
The Chair Conservative Rob Merrifield
All right, we're back in session.
We have before us four quick motions. We want to start with the budget.
We had entertained a motion to accept the budget for the witnesses coming forward on Bill C-50.
Conservative
The Chair Conservative Rob Merrifield
Mr. Wallace moves the motion. Is there any discussion? I see none.
(Motion agreed to [See Minutes of Proceedings])
Conservative
The Chair Conservative Rob Merrifield
We have another motion.
We have two representatives from the British Parliament--one from the House of Lords, and one a member of Parliament--who would like to talk to members of the committee. They're requesting a small group to sit down and talk to them, so we invited a member from each party, whoever can make it. We just have to move a motion to get that organized. It would be up in the parliamentary restaurant.
Conservative
The Chair Conservative Rob Merrifield
Mr. Crête moves.
(Motion agreed to [See Minutes of Proceedings])
Conservative
The Chair Conservative Rob Merrifield
We'll now move on. I'm just going to make one notification. We're planning to go clause-by-clause on Bill C-305 on Monday. It shouldn't take very long. We'll take a quick look at it, and we have until Wednesday to report it back to the House. I believe it's Mr. Watson's private member's bill, just to let the committee know.
Liberal
Conservative
The Chair Conservative Rob Merrifield
We're just going to go clause-by-clause. I believe the committee has already examined it. Fair enough?
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Yes, but for the record, Mr. Chairman, I think you should follow my advice. When we address these bills that we've looked at in the past, I think we could have disposed of it when there was a time, but--
Conservative
The Chair Conservative Rob Merrifield
Mr. Pacetti, we don't have time for you to blow your own horn.
Conservative
The Chair Conservative Rob Merrifield
We will now move on to Mr. Turner. Did you have a motion you wanted to bring forward?
Liberal
Garth Turner Liberal Halton, ON
Thank you, Chairman.
The motion is as was presented to members of this committee a couple of weeks ago. I'd like to have a look at what has happened in the American real estate market and pose the question of whether we stand in any danger of having that happen here in Canada, particularly because it was this committee that had hearings two years ago into changes that were proposed in budget 2006, which actually passed, which changed the mortgage market in Canada. It allowed the creation of 40-year mortgages, which many people believe have had a pretty substantial impact on the real estate market.
I'd like us to be able to have a look now, two years later, at the impact of that in the marketplace--positive or negative--and also have a look at what happened in the U.S. housing market and see if there's any concern that this may happen here. The Governor of the Bank of Canada expressed concern today. He said they're watching the changes to the amortization, and I think that's a very astute comment of his. I'd like to make sure that we as a committee are having a look here in the interest of our voters, citizens, and homeowners, that we're making sure we are protecting them as well as we possibly can.
That is the intent of my motion.
Conservative
The Chair Conservative Rob Merrifield
Thank you. I think we all have it.
Is there any discussion on this?
Conservative
Mike Wallace Conservative Burlington, ON
In the first sentence, after the words “the finance committee”, it says, “investigate the potential of a U.S.-style real estate decline taking place in Canada, the resultant impact on homeowners and those dependent on the...”. So I'm deleting from “investigate” to “on the” and substituting “study the state of the Canadian” and then, “housing market”. So the first sentence would read: “That the finance committee study the state of the Canadian housing market...” and the rest of it would stay the same.
My reason for the amendment, for me to be able to support the motion, is twofold. One, my interpretation of what the Governor of the Bank of Canada said today is that there is a substantial difference between the U.S. housing market system and the Canadian market system. I think the way it's worded is a little alarmist, and I don't think it's done on purpose. Even last night there was a show on one of the major networks about the U.S. market and housing in Arizona and what's happening there. People are losing their homes and walking away.
I don't think they're the same issues, based on the system we have here as opposed to what they have there. I don't mind Mr. Turner's approach of studying the Canadian housing market system. He did reference that there are some changes, and those changes are in the second part, which I'm not touching. To improve the wording of the motion, I think “studying the state of the Canadian housing market” without the “U.S.-style real estate decline”.... I think those are assumptions that are being made that don't necessarily reflect what may or may not be happening, and that's why I'm moving that amendment.
Conservative
The Chair Conservative Rob Merrifield
Let's get this clear for the committee: you're asking for the first line to be amended to say “the finance committee study the state of the housing market”.
Conservative
Conservative
The Chair Conservative Rob Merrifield
It would be “the Canadian housing market”, and the second line is the same.
Liberal
Garth Turner Liberal Halton, ON
Mr. Chairman, I have no problem with that. I think that maintains the intent of it.
Conservative
