Mr. Speaker, for approximately 20 years, increasing household debt has been one of the major economic problems of the western world.
In Canada, in the early 1980s, household debt represented, on average, two-thirds of a household's disposable income. In 2013, that ratio surpassed 160% and today it is closer to 168%. It just keeps climbing, and we have taken on more debt than ever. For each dollar of disposable income, households now owe an average of $1.65.
What is the explanation for this? It is simple: household spending is increasing faster than income. Basically, middle-class salaries have been stagnating for many years. That is why the NDP believes it is time to take action for families and the middle-class. After 13 years of Liberal government and a decade of Conservative government, it is clear that nothing is being done.
The NDP is not the only one criticizing the inaction of previous governments. The Governor of the Bank of Canada, Stephen Poloz, described household debt as a major threat to the Canadian economy.
The NDP is proposing clear, concrete solutions that the government can implement immediately. It just takes a little leadership to put them in place. It is not enough to think only of their little friends, their relatives and the banks. They have to take the consumers' side. That is what the NDP is doing.
That is why, today, I would like to lay out some small measures on which the government can act. The first of those measures would be to put limits on ATM fees. We in the NDP feel that it is time to limit the fee for a withdrawal at an ATM to 50¢. Bank fees are increasingly abusive. With the hidden fees, the situation is becoming a nightmare. Consumers are finding themselves faced with exorbitant fees whenever they want to take their own money out of an ATM. It really makes no sense, and that is why we must act.
Why is the NDP proposing a 50¢ limit per ATM transaction? Because we have an American study showing that operating costs are about 36¢. Allowing a profit margin of 14¢ per transaction, a 50¢ fee would be quite reasonable. Everyone could handle that, banks as well as consumers.
We also think that prohibitive credit card interest rates should be stopped. We will ensure that people have reasonable access to credit cards at prime plus 5%. That is something that we said during the last campaign, and we will say it again in the next campaign in 2015, because it is essential.
Finally, it is time to stop paying to pay. We succeeded in having the Prime Minister commit to legislation that would prevent additional fees for paper bills. Now we have to make sure that he keeps his promise and that he will move really firmly to abolish those $2 fees we see on our bills just because the bill from our telephone company or our bank comes in the mail.
Those are the three measures I am presenting today. I invite the Conservative government to show strong support for these NDP measures.