Mr. Speaker, it is a pleasure to speak to Bill C-223 put forth by the member for Portage—Lisgar. I think he deserves an enormous amount of credit for putting forth his private member's bill, which goes to the heart of a very serious issue affecting members of the lower socio-economic groups as well as middle income groups, to enable individuals to obtain their first home, to move from the large pool of renters to the pool of home ownership, thereby ensuring their ability to have a roof over their heads.
Bill C-223 does just that. Its purpose is to provide for the deduction of interest paid by taxpayers on the the first $100,000 on a mortgage loan secured on the first qualifying home acquired by taxpayers.
My colleague from Portage—Lisgar spoke about this matter in the first hour of debate and made a very eloquent argument in favour of the bill. I would like to support what he said.
The bill addresses a number of concerns and illustrates a number of benefits. For example, it would lower the tax burdens of individuals and would ensure people would have more money in their pockets. This is particularly important in view of the fact that over the last several years individuals have been living with fixed incomes. Their disposable income has been eroded over time through bracket creep and the introduction of some 34 tax increases over the last four years. Therefore they have less money in their pockets to provide for basics such as home ownership. Bill C-223 would increase the amount of home ownership and housing affordability.
In my riding of Esquimalt—Juan de Fuca the issue of affordable homes is extremely important. There is a large pool of individuals who would like to own homes but cannot.
Contrary to what the Parliamentary Secretary to the Minister of Finance said in his speech, that a taxpayer's choice of accommodation, owning versus renting, is a personal choice, for many people it is not a personal choice. For those people who are in the lower socio-economic groups owning or renting is not an option. They do not make enough money to own a house.
How do we ensure that these people have enough money to eventually have the security of home ownership? Bill C-223 does just that. It would enable people to deduct the interest on the first $100,000 of mortgage from their taxes. This will not benefit the rich. It will not benefit the speculator. The bill specifically states that it only deals with the first $100,000. The bill specifically deals with those individuals in the lower socio-economic groups and those individuals who are first time homeowners.
The bill also provides an economic stimulus to the economy. It will increase the number of housing starts, put people back to work and generate more money through the economy.
The bill put forth by my friend from Portage—Lisgar is a win, win bill. It should not have any opposition. If one looks at the arguments put forward by members of the government, one sees that their concerns were addressed by my colleague. They are understandable questions from the government, but they are questions that have been answered and meet the objective not only of our party but of the government to ensure that people, particularly those with the middle and lower incomes, are able to finally own homes.
Renting is not something that people in lower socio-economic groups want. They want the security of home ownership. They do not like to rent. Renting takes away from the disposal income that they could use for other necessities such as food, clothing for their children and education needs. All these things would benefit those people who need it. Bill C-233 does just that.
The bill would also provide equity between homeowners with mortgages and those who do not have mortgages. Arguments against the bill have been that it would likely increase the price of houses. The price of houses is a function of supply and demand. We have an enormous demand but we do not have the supply. Bill C-223 would provide an influx of money that would provide a stimulus to the job market.
There are other issues to deal with. The bill can be seen as a backdrop against the declining disposal income of all people, the decrease in affordable housing and the declining economic situation of people from coast to coast.
I live in a city where housing is very expensive. There are a number of cities like that. This issue affects people who would like to own homes from Newfoundland to British Columbia. All provinces are affected.
The issue of affordable housing is serious. There has been declining funding for affordable housing because of the declining amount of resources governments have to spend. We understand that. We have to live within our means. If the government is to withdraw the amount of funding for affordable housing then it should at least give people the ability and the tools to provide for their own housing. Bill C-223 would do just that.
The government should consider other options like expanding the RRSP to allow for a registered home ownership plan of $5,000 beyond the current maximum for first time home owners, for those people who are purchasing homes for under $200,000. If they were able to do that perhaps they could put money away. Perhaps they would have the economic tools to finally own a home and provide security for themselves and their families.
The existing measures for RRSPs are not adequate. The Minister of Finance is considering carving away our RRSP maximum. That will take away the ability of people to provide for themselves.
It is good that RRSPs can be used toward the down payment of a first home. The government should be complimented on that. The government should also adopt Bill C-223, put forth by my colleague from Portage—Lisgar. It would be a fine complement to that measure.
Perhaps the government should also consider being innovative in providing tax shelters for individual Canadians who are prepared to invest in a home. Perhaps it should consider incentives for builders to provide affordable housing. This would remove the onus from the government and place it on the individual.
If governments are fiscally restrained, why not allow the individual to provide those funds? There is a large pool of funds in the private sector which could be used for investment. Those moneys could be targeted toward affordable housing. Why not provide a tax break for investors who are prepared to put up the money and fill the gap?
This is also a social situation. A home, a shelter, a roof over our heads is a basic necessity.
I support Bill C-223, which was put forward by my colleague from Portage—Lisgar. I would ask the government to support it for all individuals. The bill is primarily designed to address the huge need that exists for affordable housing, particularly for first time homeowners and those in the lower and middle income brackets.