Mr. Speaker, I rise on a point of order with respect to Bill C-304, An Act to ensure secure, adequate, accessible and affordable housing for Canadians, brought forward by the member for Vancouver East.
Without commenting on the merits of Bill C-304, I submit that this bill would create new spending and therefore must be accompanied by a royal recommendation.
Bill C-304 would require the minister responsible for the Canada Mortgage and Housing Corporation to consult with provinces, municipalities and aboriginal communities to establish a national housing strategy.
Subclause 3(1) of Bill C-304 provides that the minister responsible for the Canada Mortgage and Housing Corporation shall, following consultations with provincial ministers and representatives of municipalities and aboriginal communities:
establish a national housing strategy designed to ensure that the cost of housing in Canada does not compromise an individual’s ability to meet other basic needs, including food, clothing and access to education.
Subclause 3(2) states:
The national housing strategy shall provide financial assistance, including financing and credit without discrimination, for those who are otherwise unable to afford rental housing.
I submit that subclause 3(2), relating to providing financing and credit without discrimination, can only be accomplished by making changes to the parameters governing provision by the Government of Canada of a guarantee to mortgage loan insurers operating in Canada.
Providing homeowner mortgage loan insurance to individuals who were previously unable to obtain financing because of their financial circumstances would require changes to the mortgage loan insurance parameters, which would change the guarantee that the government provides to private mortgage loan insurers in Canada as well as to the conditions and criteria used by the Canada Mortgage and Housing Corporation to determine eligibility for mortgage insurance.
Therefore, the effect of the national housing strategy would be to broaden the eligibility of homeowner mortgage loan insurance, which would increase government liabilities by covering individuals who would otherwise not have been eligible for such loans.
In a decision on changes to the parameters for a program, on April 23, 1990, the Speaker ruled in the case of Bill C-69, the Expenditures Restraint Act, that:
...there are instances where the objects, purposes, conditions and qualifications may be affected in such a manner as to involve financial implications. For instance, if a program is extended to cover an additional period of time or if the parameters of a program are broadened to cover more applicants, then a royal recommendation is necessary.
In a decision on increasing government liabilities, on June 12, 1973, the Speaker ruled in the case of Bill S-5, An Act to amend the Farm Improvement Loans Act, that:
It may be said that the proposal in Bill S-5 does not in itself propose a direct expenditure. It does, however, propose substantial additional liabilities on public monies.
The responsibility for housing is shared between federal, provincial and municipal governments. Bill C-304 appears to rely on the constitutional spending power to implement an expanded federal role in housing in the form of a new federal housing strategy.
Subclause 3(2) of Bill C-304 makes clear that a key element of this new national housing strategy would be to increase federal spending on housing.
Therefore, I humbly submit that the bill should be accompanied by a royal recommendation.