Mr. Speaker, I appreciate the opportunity to speak very briefly to this bill. Private member's Bill C-520 brought forward by my colleague from Delta—Richmond East allows first time home buyers to take up to $25,000 from their RRSPs, rather than the $20,000 limit that is in place right now. It is an update of what has been accepted and available in Canada for some time now.
This is an excellent measure. I am confident the bill will be passed by the House. We can tell that from what members have said.
The other thing that our government did in the last budget was to put in place a tax-free savings plan which allows wage earners to put aside up to $5,000 per year and the interest earned on that $5,000 accumulates tax free. This plan will commence in the 2009 tax year.
These plans, along with some other changes to the tax law that have been brought about by this government over the last two and a half years will make it much easier for first time homeowners to accumulate the money required for a down payment on a house.
Other members have mentioned the problems caused by having no down payment or a very small down payment. We have seen the mess that has been created in the United States and which has spread around much of the world. This measure is a very good step toward allowing an amount, in this case up to $25,000, to be taken from registered retirement savings plans accumulated over whatever period of time and put toward the purchase of a new home. Of course that money over a 15 year period would be put back into the registered retirement savings plan. Therefore, the integrity of registered retirement savings plans and the purpose of RRSPs, which is to save for retirement, would be maintained as well.
I want to commend the member for Delta—Richmond East for bringing this bill forward. The bill certainly demonstrates the incredibly beneficial measures that can be brought forward through a private member's bill. I commend him for that as well.