Mr. Speaker, I am pleased to have the opportunity to comment on the motion put forward by the hon. member for Port Moody—Coquitlam—Port Coquitlam.
The motion proposes that the government introduce legislation to offer goods and services tax relief to victims of premature building envelope failure, or what we commonly refer to as leaky condos, who are eligible for compensation through British Columbia's PST relief grants program.
The federal government is sympathetic to the difficulties and inconvenience being experienced by individuals in British Columbia over premature building envelope failure to their condominiums as a result of moisture damage. I was in Victoria not too long ago and I spoke to many people who were victimized by this unfortunate event.
I can assure the hon. member that the federal government has given careful consideration to requests for assistance from condominium owners in the British Columbia lower mainland and Vancouver Island areas.
As evidence of its concern I remind the House that the federal government through the Canada Mortgage and Housing Corporation announced $27.7 million in assistance for owners of moisture damaged homes in British Columbia in October 2000. That was the $75 million interest free loan program. These funds, which were made available through B.C.'s provincial homeowners reconstruction loan program, would greatly assist those homeowners who are having financial difficulty making necessary repairs.
With respect to the hon. member's motion, the federal government believes that the GST is not the appropriate vehicle for providing relief in regional crises. Hon. members will recall that the GST is intended to be a broadly based tax applied to the same tax base throughout the country. As a result it would be very difficult to justify providing tax assistance to owners of water damaged dwellings in British Columbia while excluding people in other areas of the country who also purchased homes of substandard quality. What do we do for them?
In addition, it would be difficult to justify providing a tax subsidy for unexpected repair costs arising from water damage but not for repair costs arising from other causes. Is there something particularly special about water?
The government is sympathetic and has given careful consideration to requests for assistance of all types, not only in the context of the condominium problems in British Columbia but also for the extensive damage to homes resulting from the floods in the Saguenay in 1996 and Manitoba in 1997, as well as the ice storm in Quebec and Ontario in 1998. As regional GST relief was not provided following these crises, it would be inappropriate in this case to use the GST to provide regional relief that is limited to British Columbia.
The government supports the view that it is more appropriate to provide tax relief for low income Canadians than to exclude specific items from the GST base. This is achieved through the GST credit which helps to offset the sales tax burden of low income families and individuals, thereby ensuring that the sales tax system is sensitive to differences in income and family type.
The member for Port Moody—Coquitlam—Port Coquitlam talked about the energy rebate. It reached 11 million Canadians at a cost of $1.3 billion. It was driven through the GST rebate and went to Canadians directly. It did not go to the oil companies, as was the proposition put forward by the Alliance Party. The rebate went directly to Canadians who needed some relief from the high energy costs this past winter. The credit has proven to be a very effective means of targeting and delivering tax relief, particularly to low income families.
For these reasons the government does not support using the tax system as a means to provide relief. However I assure the hon. member that the federal government would continue to work with the government of British Columbia in assisting owners of moisture damaged homes or leaky condos with their repair costs.
The federal government's October 2000 announcement of $27.7 million in assistance is evidence of this commitment. The Canada Mortgage and Housing Corporation will continue to work in co-operation with others involved in housing research and design to find practical solutions to moisture related problems. For the reasons I have just outlined, I am unable to support the hon. member's motion.