Mr. Speaker, I appreciate that notice. I will try to adjust my comments appropriately.
I rise today to speak to Bill C-3 and the concerns the NDP has with one particular section. Repeatedly in the House, there has been discussion about the fact that at the finance committee, the NDP the position was to vote for the bill, but what we voted for was to bring it forward as a report from the committee.
We had expressed our concerns yesterday about a particular portion of the bill and today that led our critic to move amendments to the bill. The reason this has been done is we think it should be withdrawn from Bill C-3 to give it the appropriate study.
The section we are talking about would open the door for private mortgage insurance companies to enter the market. In fairness, there have already been two private companies offering mortgage insurance in Canada, under special arrangements. However, this legislation would now codify their position in the Canadian market.
Canada has had a public insurer, CMHC, operating here with liabilities 100% guaranteed by the federal government. The other private insurers have only 90% of their liabilities guaranteed.
According to the C.D. Howe Institute, and I do not quote it very often, the 10% difference represents an appropriate fee with the risk. However, who decides what the risk factor really is?
During the housing meltdown in the United States, insurance was clearly not covered adequately. Therefore, who decided what the fees were for that risk? The American experience has proven private sector risk assessment does not have a very good record at all.
Clearly, mortgage insurance makes housing more accessible by increasing the availability of capital for housing. Obviously, when the money is protected and guaranteed, it makes perfect sense.
The NDP believes there is no good reason to involve more private insurers, and after what took place in the United States, it proves there is a significant risk to Canadians in doing so. Why would Canadians want their government to put the delivery of such an important social good at risk needlessly?
Again, we need to study this further. We need to consider the amendments that are about to be put to the House and for the government to take the responsible position and withdraw the clauses. We should work together, have hearings and really consider the potential impact of this.
Karen Kinsley, CEO of CMHC, stated that competition with private insurance meant more money spent in promotion and advertising of services of all players, and that would now include CMHC. That money should go toward housing Canadians. To have an Americanization, for lack of a better term, of a service that has been provided to Canadians in a very valuable way, in fact, in a way that has produced revenue in terms of $12 billion to the government, we very clearly should pause and take the time to look at this appropriately. Maybe we will reach the same conclusions. I doubt that, but at least we should look at it in a fair-minded way.
There are very good people who helped create the U.S. housing bubble. Their intention was probably was good in the beginning. However, the global financial crash came about because people were provided the option of money they could not afford. It was not appropriate and the risks were just not assessed properly.