Mr. Speaker, I am pleased to rise this evening in support of Bill C-285, an act to amend the Canada Mortgage and Housing Corporation Act. We believe this bill will help alleviate the housing burden placed on people, not only in my riding but right across Canada.
The bill would have CMHC profits that exceed 0.5% distributed to the provinces for social and affordable housing, to encourage the supply of quality housing at affordable prices, to increase housing choices for people, and for the creation and development of housing co-operatives.
In the city of Toronto, where I come from, there are about 65,000 households on a waiting list for assisted housing. It can take up to 12 years for a family on the list to get a three bedroom apartment. Housing is clearly in crisis.
In my own riding of Parkdale—High Park, a mere 12 affordable homes have been completed since 2001, according to a June 2006 report from the City of Toronto's Shelter, Support and Housing Administration, and another 21 are under development. But this is a riding where there are more than 24,000 people living below the poverty line and more than 10,000 very low income households, that is, households with annual incomes below $20,000.
These very low income households can afford a rent of about $500 a month based on the standard calculation that they should spend no more than 30% of their annual income on shelter. The average market rent in my riding of Parkdale—High Park for a typical two bedroom apartment is $1,085. This is double what the poorest households can actually afford.
The real culprits behind this crisis are the federal and provincial governments, which have cut funding and then downloaded housing responsibilities. The federal government cut new affordable housing funding in 1993 and Ontario followed in 1995. The federal government downloaded most federal housing programs to the provinces and territories in 1996, and Ontario followed in 1998 by downloading to the municipalities.
As homelessness and housing insecurity have grown following the housing cuts, governments have tried to respond with a patchwork of funding and programs, but the federal homelessness programs are due to sunset at the end of fiscal year 2006. Literally thousands of services that provide critical relief to tens of thousands of homeless people are at risk.
The federal government recently allocated $1.4 billion of the $1.6 billion in housing funding from Bill C-48, which was a result of the NDP's amendment to the last Liberal budget, passed in 2005, but that is nothing more than a down payment set against years of cuts, downloading and neglect.
There are some people in this country who are now recognizing that we have a housing crisis even in the province of Alberta. Retiring Alberta Premier Ralph Klein announced Tuesday that he would allocate $16 million for new affordable housing in Calgary.
He stated this week that the struggle of the homeless and working poor in places like Calgary and Fort McMurray is unfortunately more of a challenge today than ever. He said it is a great concern to see that half of Calgarians who are homeless right now have a job and are simply not making enough money to afford appropriate accommodation.
I should say that I have introduced a federal bill to increase the minimum wage to $10 an hour, which would also help people who fall under federal jurisdiction.
Mr. Klein at least is doing a little. It is very late, but it is great to see that at least one Conservative is finally starting to get it.
We need now to deal with homelessness and housing insecurity. We need to make sure that the levels of government that have the funds to deal with housing are putting money into housing.
In May 2006 a United Nations committee of experts in Geneva released its latest review of Canada's compliance with international economic, social and cultural rights and called homelessness and affordable housing a crisis in Canada that is a national emergency. I certainly agree with that assessment.
I want to emphasize the importance of this bill, especially in light of the Conservative government's cuts to housing funding and affordable housing in general.
It is my grave concern that the money that could come as a result of this private member's bill may not amount to much because the recent changes to mortgage insurance, which opens up mortgage insurance to the market, will negatively affect the profits of CMHC.
CMHC insurance is important to people who cannot afford a full down payment on a home, but still want to have the opportunity to purchase a home.
Mortgage insurance is a good business for the government to be in. It generates money. In 2005 the net income from mortgage insurance for CMHC was nearly $1 billion. As a crown corporation, CMHC must be concerned about profits, but since the shareholder is the Government of Canada, it has the ability to address the welfare of Canadians instead of just the bottom line.
Assuming the goal is not to have CMHC removed from mortgage insurance altogether, it is very likely that new competitors will take the more profitable and stable contracts, leaving CMHC with only the higher risk and less profitable ones. This would put housing insurance at risk for lower income families as CMHC would have fewer funds to access. Any hopes that profits from CMHC mortgage insurance could be used to create affordable housing in Canada would then be greatly reduced or eliminated.
The real solution here is that we need a national housing strategy that needs all levels of government to make significant investments in affordable, supportive and co-op housing. This bill does not solve all of those problems. We do have a national crisis, a national emergency, in affordable housing in this country, but we believe that this bill is one positive step and that is why we support it.