Mr. Speaker, I want to make a comment acknowledging the member opposite for her concern about the housing needs of all Canadians.
I do have some reservations regarding the underlying assumptions regarding CMHC's surplus. I want to note that when asked about this issue, the former Liberal minister of housing and the former member for London North Centre, Joe Fontana, stated, “I not think CMHC's surplus is scandalous”. Why? Because CMHC retains its insurance net income to meet adequacy guidelines set out by the Office of the Superintendent of Financial Institutions for mortgage insurance companies. Following prudent business practices, as of December 2005 Canada Mortgage and Housing Corporation sets aside $3.4 billion against the $274 billion in outstanding mortgages that are insured. This represents 1.2% of its portfolio and is consistent with the OSFI directives.
Would the member opposite please inform the House why she believes that CMHC should not follow these prudent business practices?