Mr. Speaker, yesterday in the House we debated Bill C-28, on which we have actually just voted. We discussed the ideas of Liberals on tax reform. They propose to tinker here and tinker there, but in the end we get a more complicated tax system with even higher taxes.
Bill C-223, which was moved by my colleague, the hon. member for Portage—Lisgar, proposes a substantial tax break that will not only benefit first time homeowners but the Canadian economy as well.
The purchase of a first home is one of the biggest undertakings in a person's life. It is a stressful time for a young couple. I remember a few short years ago when my wife Wendy and I bought our first home in 1989. I remember how hard it was to save up enough money for a downpayment and after that point going to visit dad to borrow a little extra. We all know what happens when we borrow money from dad. Dad never forgets.
Mortgage rates at that time were quite high at 11.75%. We were a single income family. I was working as a teacher. We were working on a tight budget. It was very difficult. We lived on a tight budget for many years just to be able to afford the house.
Some would say that as a teacher I was making a very good wage. I would not disagree that teachers make a fair wage. But how many more young people are working for less wages? They have a harder time buying a house for the first time, to save enough money for a downpayment to purchase a home.
Young people also have second mortgages before they even begin, that being their share of the $600 billion federal debt which on average is about $77,000.
Large amounts of debt have been racked up. Young people are having to face that as well as all other obligations they are encountering. This means the future of the next several generations will be mortgaged. A percentage of every cent that young people earn will be spent to pay for the irresponsible spending habits of past governments.
I hope we will not squabble about a once in a lifetime tax break for people who are just starting out. They are forming the foundation for the next generation in this great country of Canada.
The homebuyers plan is an option for first time homebuyers. However they have to be able to invest in RRSPs. For many people that is a luxury which is unattainable after they have paid for rent, food, car insurance, heat, hydro and clothing, not to mention that half of their salaries goes to taxes.
The CMHC program helps first time homeowners to pay for their downpayments. That is a big help. However the service costs several thousand dollars. The tax break called for in the bill would help to offset that cost.
In reading some of the opposition to the bill it was quite interesting to note that some people have questioned the motives of the Reform Party for bringing the bill forward. The government indicated the cost of the bill and the loss of tax revenue.
We could argue that the benefits of putting this money back into the pockets of individuals would be an enormous benefit to all Canadians. Young Canadians would have a break when starting out. They would have a tax deduction which would give them more disposable income to put back into their local economy. It is a common sense idea. It makes sense.
Young families that are just starting out would have more money for big ticket items they might not be able to afford now, such as appliances, furniture, electronics, or a new or used car. Tax revenues from these purchases would offset the tax breaks, not to mention the positive impact on the economy.
Many people commented on the bill when my hon. colleague introduced it in the House. The Canadian Manufactured Housing Institute has given it full support as it would generate greater investment in the housing area. It would create spinoffs in industry. It would help to stimulate the economy. It has received favourable response from many others.
I would hope we could lay aside any partisanship to take a look at this idea as being a common sense way to give young Canadians who will form the future generations of the country an opportunity to establish a home, a place, an environment where they can raise their families. As we know, this provides the social fabric of society.
We should look at the idea contained in the bill as an opportunity to have government policy reflect the values that Canadians hold. Let our actions speak louder than our words.
I conclude by urging all members to give the bill serious consideration. It is an opportunity to build Canada and to give the young people across the nation an opportunity to get a good start and to create a good foundation for future generations of our great country.