Thank you, witnesses, for being here.
Mr. Bourque, in your comments you mentioned three words, which I wrote down—about the affordability of real estate, the first-time homebuyer tax credit and looking to adapt to the realities of the marketplace in terms of the value of houses, and regulations that are having a large impact on the price of housing. I want to ask you some questions and get your response to them.
Recently, the Canadian Home Builders' Association did studies about the cost of a new home. A new build, of course, has a ripple effect into the resale market, because the resale market adjusts according to the new home prices. These studies have shown that, when the keys are handed from the builder or the developer to the consumer, fully 35% of the price of a new home in some markets, and as high as 45% in other markets across this country, is imposed government costs for regulations, development charges, and taxation by all three levels of government: federal, provincial and municipal. If you broke it down in a pie chart, those things would represent 35% to 45% of the price of that house.
When you hear about that kind of percentage, which is the government's take before we talk about the purchase of the land, the land cost, putting the pipe into the ground, putting the pavement on the roads, the materials for the house, the labour for the house, and the profit margin of everybody who supplies services in that supply chain, how do you react to that?