I should like to say a few
words in connection with this bill; perhaps they relate a little more to section 4 but since section 2 is the interpretation section it has a certain bearing on all the other sections of the bill. I have several objections to this bill. I may say that I have been interested in the question -of government action in connection with housing in Canada for some years and in 1932, during the debate on the unemployment relief bill, I suggested the formation of a housing commission in order to get under way a project for the construction of houses in Canada.
My first objection to the bill is that sixty per cent of the funds will have to be advanced by one of the lending companies and, as the bill is drafted, it seems that this refers in effect to existing mortgage, insurance and loan companies. So it does seem to me that the effect of the bill is to continue to load all housing in Canada with an interest charge of five and a half or six per cent. I should like hon. members to consider carefully the interest burden that is attached to any house carrying that rate of interest. Even on a house costing $3,000-and it seems to me that is the smallest amount for which a habitable house can be built t'o-day-a rate of five and a half per cent per annum means an interest charge of S13.75 per month before you include other charges for depreciation, upkeep, taxes or anything else. That seems to me too high; it seems definitely to make the type of houses that would be possible under this act available only to people with incomes of perhaps more than $1,200 per year.
Then it is quite evident that under this scheme only those wiho can advance twenty per cent of the purchase price will be able to secure any advantage. I think it is clear from the telegrams that were read by the right hon. gentleman that we cannot expect any lower rate than five and a half per cent, and I want to say again that an interest
change of $13.75 per month for any house makes this thing prohibitive to the class of people who need houses so badly.
Mr. JACOBS': Where do you find the interest rate in the bill?
Subtopic: PROVISION FOR LOANS BY GOVERNMENT AND LENDING INSTITUTIONS UP TO EIGHTY PER CENT OF COST OF CONSTRUCTION