Mr. Speaker, the Bank of Canada says housing prices are overvalued by up to 30%. The bank cites elevated risks of a housing correction in Alberta, Toronto, and Vancouver and warns that if that happened in these markets simultaneously, “the spillover effects to the rest of the economy could be significant”. These are serious risks facing our economy and housing markets. That is why the government was advised to increase the contingency reserve.
Why did the Conservatives actually ignore that advice and raid the reserve? Was it just to cobble up an illusory surplus on the eve of an election?