Madam Speaker, I would like to respond to the motion concerning co-operative housing and Canada Mortgage and Housing Corporation.
This government understands the importance of good quality housing to Canadians. We understand the importance of helping Canadians meet their housing needs. We know that good quality housing creates sound communities and a strong country.
This government is committed to playing a strong leadership role in housing. On behalf of the Canadian government our national housing agency, CMHC, is working in partnership with the provinces and territories, municipal housing authorities and non-profit housing co-operative groups to help low income Canadians obtain adequate, suitable and affordable housing. We are currently supporting more than 656,000 units of social housing across the country at a cost of $1.9 billion annually.
We want to ensure that these resources are used efficiently and are targeted to Canadians with the greatest need. That is why we have offered to the provinces and territories the opportunity to manage existing social housing, with the exception of the housing programs for aboriginal people living on reserves. The decision to offer the transfer of administration of social housing resources to provincial and territorial governments was made in order to clarify responsibilities in the area where both Canadian and provincial governments are active.
The central goal of this initiative is to eliminate duplication, increase efficiency and promote one-stop shopping for social housing clients. It simply makes sense to have only one level of government involved in administering the social housing resources in this country. This approach will maximize the impact of tax dollars by streamlining the existing arrangements and facilitating one-stop shopping.
So far, agreements have been signed with Saskatchewan, New Brunswick, Newfoundland, the Northwest Territories and Nova Scotia. Negotiations will continue with the remaining jurisdictions.
Co-operatives, like other social housing groups, are included in this transfer of responsibility to the provinces and territories. I would like to make very clear that there are sections of the new social housing agreements that require provinces and territories to carry out all of CMHC's responsibilities to non-profit and co-operative organizations and that oblige the provinces and territories to respect the rights of non-profit and co-operative organizations.
I also wish to highlight that existing project operating agreements with third parties, including co-operatives, will continue to be legally binding and can only be changed by mutual agreement of the parties concerned. CMHC's rights and obligations under these agreements are indeed covered.
The Government of Canada recognizes the close involvement of co-operative and non-profit housing groups in the management of significant portions of our federally assisted social housing portfolio. These groups also provide an important link between the government and the communities they serve.
I would like to assure my colleagues that CMHC is committed to finding solutions that will restore any social housing project, including co-operatives, to financial health where such solutions are feasible. In all cases CMHC works closely with sponsor groups and whenever possible provides the necessary assistance to these projects.
As well, over the past year CMHC has been working with the Co-operative Housing Federation to develop more streamlined and flexible guidelines to facilitate major repairs or renovations such as the replacement of roofs. Let me give the assurance that the Government of Canada is not withdrawing from its responsibilities to provide financial support for low income Canadians with housing needs. On the contrary, we will continue to meet our substantial financial obligations to social housing, $1.9 billion annually as I mentioned earlier.
These new arrangements are expected to bring significant benefits to a great many people. People living in housing projects will benefit far more from a streamlined management. Sponsors of social housing projects will benefit because they are now dealing with only one level of government, a level of government that will be able to better tailor programs to reflect local and regional social housing needs.
In essence, the people of Canada are going to benefit from the best of federal and provincial co-operation working together. This new approach to administration of social housing resources is about building on a solid partnership and working co-operatively with provincial and territorial governments for the benefit of all Canadians. It is about bringing government closer to communities and people across this country. It is about ensuring that taxpayer dollars are used in a most efficient manner, and that is good news for all Canadians.
Through Canada Mortgage and Housing Corporation our government is responsible for a number of programs that help ensure Canadians are one of the best housed people in the world. In addition to our significant contribution to social housing this government provides support for several short term initiatives designed to help certain groups make much needed repairs to their homes. Programs such as residential rehabilitation assistance program, the emergency repair program, and the home adaptation for seniors' independence reflect the government's commitment to involve as many quality housing projects as possible.
On January 30, 1998 the Canadian government announced a five year extension of these three programs at a cost of $250 million. These programs will benefit as many as 40,000 households and create thousands of new jobs across Canada.
Of course, the families and individuals who have benefited from these programs appreciate the government's role, as do the partners in the housing industry. However, I am glad to mention the interest and support shown by the provincial and territorial governments. As well, they have worked with the municipalities.
The government's decision to spend $250 million over the next five years emphasizes its commitment to stronger, safer communities, to provide flexible federalism through federal-provincial agreements and to create jobs.
One of the primary goals of this new allocation of funds is to improve the quality of housing in low income neighbourhoods. This initiative combines good social policy and good economic policy. It also is an illustration of how well flexible federalism can work. At the moment a number of provincial and territorial governments cost share a large portion of these programs. They are invited to continue under this extension and positive responses have already been received from several provinces.
I realize that in addition to the $250 million there is considerable more that has to be done over time. A reflection of the importance of government ascribes to housing is very clear. It is also a symbol of the success in controlling the deficit. We have always said fiscal restraint was not an end in itself but rather a means to a greater end. Our goal has always been to restore order to public finances to be able to focus more action and interest for Canadians.
I stress the government remains committed to ensuring Canadians maintain the best housing for people in the world. For Canadians housing is more than just a roof over our heads. It is the centre of our lives. It is an important form of our self-expression. It is a crucial determinant of the quality of life. Good housing is a key to better building communities as well as the cornerstone for a strong economy in this country.
It is very clear to say housing is one issue that unites us. From Victoria to St. John's, Newfoundland Canadians are coming together to make sure we provide desirable housing for all.
Let us be very clear at this point. The government will show leadership in housing and make certain that we have an enhanced way of life through good housing programs for all Canadians.