June 24, 1935

UFA

George Gibson Coote

United Farmers of Alberta

Mr. OOOTE:

Would the minister explain what sort of lending institutions are contemplated under this bill?

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

Paragraph (e) reads:

"Lending institution" means a loan, insurance or other company authorized to lend money on the security of real or immovable property.

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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UFA

George Gibson Coote

United Farmers of Alberta

Mr. COOTE:

Has the government discussed this matter with the companies in question? Has it reason to believe companies now in existence will enter into this scheme and make loans for the construction of houses contemplated under this measure, or does the government anticipate that some new type of company will be set up to operate under this bill?

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

I have already explained to the hon. member for North Winnipeg that there have been private conversations between representatives of some of the existing loan companies and officials of the Department of Finance in regard to this question. We certainly expect that it will be possible to make suitable arrangements with them under this bill.

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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UFA

Henry Elvins Spencer

United Farmers of Alberta

Mr. SPENCER:

Have the insurance and

loan companies been consulted with regard to the bill, and are they satisfied with its terms?

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

I believe the

companies were not consulted beforehand regarding this bill. The bill was prepared by the government. But there have been private conversations in regard to the carrying out of the terms laid down for these loans, and we anticipate that it will be possible to finance the scheme under this plan.

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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LAB

Humphrey Mitchell

Labour

Mr. MITCHELL:

Did these loan companies make any representations to the government in anticipation of this legislation?

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

As far as I

know they did not approach the government regarding the matter, but Mr. Leonard, a representative of the companies, appeared before the housing committee.

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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LAB

Humphrey Mitchell

Labour

Mr. MITCHELL:

Then the government

is not sure that the loan companies are going to cooperate at all?

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

Well, I have

stated three times-

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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LAB

Humphrey Mitchell

Labour

Mr. MITCHELL:

I may be a little dense. I asked whether they had made any representations to the government; the minister said, no. I imagine this was not drawn out of a clear sky; there must have been some understanding.

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

I understood the hon. member to ask whether they had made any representations in regard to this legislation before it was prepared. I said that as far as I know they did not, but since the bill was prepared there have been conversations between representatives of the insurance and loan companies and officials of the Department of Finance in regard to carrying out this clause of the bill relating to provision of the money, and we have every reason to believe that housing can be financed in this way.

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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LAB

Humphrey Mitchell

Labour

Mr. MITCHELL:

The government must

have taken a big chance in drawing a bill up in anticipation, not knowing whether the people it is intended to benefit are going to cooperate with them. When a bill is being drawn it is generally understood that interested parties make representations to the government, and I imagine the government generally gets some assurance, particularly with a bill of this kind, that the people concerned are going to adopt the policy contemplated; if not, the whole thing falls to the ground.

Pension Act Amendment

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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LAB

Abraham Albert Heaps

Labour

Mr. HEAPS:

Subsection (e) of clause 2

defines a lending institution, and states that it means a loan, insurance or other company authorized to lend money on the security of real or immovable property. Is it the intention to confine it to the lending institutions named in this subsection?

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

Any company

authorized to lend money on the security of real estate. This will be real estate.

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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LAB

Abraham Albert Heaps

Labour

Mr. HEAPS:

Suppose a municipality wishes to build under a housing scheme and does not go to a loan company for its funds but obtains money from some other source at a lower rate, would they come under the terms of this bill?

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

If a municipality wished to go into business of that kind they would probably incorporate a company for the purpose.

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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LAB

Abraham Albert Heaps

Labour

Mr. HEAPS:

I did not quite hear what the minister said. What I am trying to find out is this: suppose a municipality, say the city of Ottawa, wanted to go into a housing scheme, and were able to obtain the necessary sixty per cent from sources which would give better terms than a lending institution-for instance, it might issue its own bonds at four per cent. Is the oity able to go to the government for the twenty per cent or would it be contravening the terms of the bill if they went outside of the loan companies to obtain those funds?

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

There is no power to deal directly with municipalities under this bill. If the hon. gentleman has any suggestion to make I shall be glad to listen to it.

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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LAB

Abraham Albert Heaps

Labour

Mr. HEAPS:

If the city of Ottawa wished to go into a housing scheme and wanted to take advantage of the twenty per cent provided by the government under this bill, would the municipality be compelled to go to a lending institution as defined in this bill for sixty per cent of the money?

Topic:   PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION
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June 24, 1935