Mr. Speaker, first I want to thank the hon. member for putting forward a motion which discusses some very substantive issues relating to social housing.
I do not wish to be too congratulatory to my colleague opposite, however the subject matter before us this afternoon can be debated in a very civilized way and perhaps suggestions from all quarters can be put on the record. We can then present them to the Minister of Finance, who as we all know, is in the process of preparing his budget.
Although I thank the hon. member for putting the subject matter before the House I cannot concur with the way in which the motion has been written and placed before the House.
I want to assure all hon. members that as the minister responsible for Canada Mortgage and Housing, I take my mandate very seriously, as does the government. We fully understand the challenges ahead and we are committed to carrying out the government's agenda in the area of housing.
Make no mistake about it, the government is committed to maintaining a strong role in social housing across the country. Our commitment reflects our desire to help the least advantaged in our society and we will continue to do just that.
In the speech from the throne the government clearly signalled its resolve to address the fiscal situation while at the same time acknowledging the continuing importance of social priorities. The government is respecting its promises within its current financial capabilities. I want to underline that because I have been asked questions numerous times on the floor of the House. I have gone out of my way to make it abundantly clear that the fiscal capacity of the Government of Canada is somewhat limited as the previous administration basically left the cupboard bare. The deficit of the Government of Canada is $12 billion over and above what we had anticipated and what we had been told during the election campaign. I am sure hon. members opposite have concluded that it does limit the fiscal capacity of the government to move in all the social areas in which we might wish to move.
Having said that to the substance of the motion before us, I cannot concur with the way in which it has been written, although I am happy about the subject being debated just days before the budget.
It should be clearly stated that the government is providing close to $2 billion for the direct financing of some 652,000 households across the country. That is a very substantial amount of money which is lent under the auspices of the direct lending program, administered by Canada Mortgage and Housing Corporation.
To suggest otherwise is being totally irresponsible in my view. I direct those comments not necessarily to members opposite but to those who are outside the Chamber and those who may come into the Chamber and speak to the issues, that the government is making an important contribution to social housing. The hon. member made reference to the fact that this administration is the same as the old administration. That is not true.
The throne speech which was tabled in the other House and which has been referred to by the Prime Minister and by myself on several occasions, talked about social housing. We have put down $100 million over a two-year period for the residential rehabilitation assistance program.
With a limited fiscal capacity, we are providing $100 million to individuals in order to improve the quality of the stock of homes. This is a significant contribution in terms of the health
and safety which will be across the country, not in one particular area but all Canadians in all provinces will have an opportunity to benefit.
We have embarked on a very ambitious program. I will get to it in a little more detail when I talk about the meeting I had with provincial ministers of housing. We intend to save through cost cutting measures over the next four years a total of $120 million. All will be directed for social housing. Those initiatives will be in concert with shared objectives and providing those who are in need with capacity to move on and to improve their quality of life. This is another significant aspect of the social housing budget.
It should be noted that Canada Mortgage and Housing Corporation has forecast for 1994 a modest recovery in new housing starts, which is approximately 162,000. If I can use this term-hon. members opposite may find it rather amusing-it is a conservative figure of 162,000 units.
Other forecasting organizations, such as banks and trust companies, indicate that those figures are very low and housing starts in Canada will be much more significant than that. However being the modest type of government that we are, we intend to go with the low figure and that is the figure we are sharing with our colleagues across the way.
Social housing also has implications for other areas and other aspects of the housing industry. For instance in the city of Toronto the issue is contaminated lands. In my discussions with ministers of housing across the country we have put this issue on the table for action by ministers and deputy ministers. In fact we discussed this when federal, provincial and territorial leaders met in Toronto. We agreed that our deputy ministers would pursue this vigorously, that we would have several meetings and hopefully make decisions on those kinds of issues, which have an impact on what the private sector does vis-à-vis social housing as well as other types of housing.
It should be noted that the theme we use for this issue is one of common sense.
I want to underline that there are numerous individuals who think that one cannot build a home anywhere in the country in 1994 because of environmental concerns. There are others in this country who say to hell with environmental concerns, they will build the homes regardless.
There are two competing views of a problem. I suggest, and ministers of the crown both federally and provincially have said, that we must have some semblance of common sense to the approach that the housing industry must take in the weeks, months and years ahead. That is an important aspect to which we must give due consideration.
Canada Mortgage and Housing Corporation is embarking upon a comprehensive-I want to underline the words-examination of the rental market research. My colleague who spoke earlier in the House with regard to the motion made reference to the province of Quebec and it having more units for the purpose of rental housing. That is very true.
However, there are other areas in the country whether in Calgary, Edmonton, British Columbia, parts of Atlantic Canada, where the rental component is an essential element. We hope that in the next couple of months to put together the terms of reference for a comprehensive review of rental markets.
I would be interested in hearing the views of hon. members on that subject as I will be hearing the views of the private sector and other stakeholders across the country.
Encouraging innovation is another aspect of our policy as it relates to housing. It relates directly to social housing in terms of the things we might be able to do. I make reference to the good work that my colleague, the Minister of Natural Resources, has been able to do. I am sure you, Mr. Speaker, have followed that quite closely over the years.
I refer of course to R-2000 which in my view has provided an upgrading of the quality of housing in the country which many private stakeholders as well as non-profit stakeholders have taken advantage of over the years. Therefore, encouraging innovation will be another aspect of our housing policies as we approach this fiscal year, 1994-95.
I want to talk for a few minutes if I may in the time that I have remaining, which I believe is about 15 or 20 minutes-