March 25, 1947

PRIVILEGE

MR. COLDWELL-REFERENCE TO REMARKS IN DEBATE ON MARCH 24

CCF

Major James William Coldwell

Co-operative Commonwealth Federation (C.C.F.)

Mr. M. J. COLDWELL (Rosetown-Biggar):

Mr. Speaker, I wish to rise to a question of privilege. Last evening the hon. member for Souris (Mr. Ross) said, as reported at page 1696 of Hansard:

In the House of Commons on June 5, 1940, as reported at page 545 of Hansard, during the discussion on the unemployment relief and agricultural distress measure at that time, the hon. member-

Meaning myself.

said:

"The secret of the recent success of the Germans is the fact that they have consciously planned their economic structure."

My colleague, the hon. member for Mackenzie (Mr. Nicholson), interjected:

Read it all.

The hon. member for Souris replied:

I have not time to read the whole speech.

Rental Housing Project

Mr. Speaker, had the hon. gentleman read the sentence which followed, the purpose of his quotation would have been destroyed. The next sentence read:

True, they have planned with diabolical intent, but they have planned with an end in view.

And the next sentence:

We have failed to make any plans or to give any direction to our economic system for the worthy purposes for which we ought to have been planning in the past.

My point of privilege is. therefore, Mr. Speaker, that what I had said was misrepresented by quoting a sentence out of its context.

Topic:   PRIVILEGE
Subtopic:   MR. COLDWELL-REFERENCE TO REMARKS IN DEBATE ON MARCH 24
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ELDORADO GOLD MINES

TABLING OF CORRESPONDENCE

LIB

Clarence Decatur Howe (Minister of Reconstruction and Supply)

Liberal

Right Hon. C. D. HOWE (Minister of Reconstruction and Supply):

I was asked by the hon. member for Lake Centre (Mr. Diefen-baker) to table correspondence bearing on the case of the King v. Carl French, Marcel Pochon and Boris Pregel. I now table copy of a letter dated March 5 from John Robinette to the deputy minister of justice, copy of a letter dated March 7, from the deputy minister of justice to John Robinette, and also copy of a letter dated March 11 from John Robinette to the Hon. Leslie Blackwell, K.C., attorney-general for Ontario.

Topic:   ELDORADO GOLD MINES
Subtopic:   TABLING OF CORRESPONDENCE
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INDIAN AFFAIRS

CHANGE IN PERSONNEL OF SPECIAL COMMITTEE


Right Hon. IAN A. MACKENZIE (Minister of Veterans Affairs) moved: That the name of Mr. Stirling be substituted for that of Mr. Church on the special committee to revise the Indian Act. Motion agreed to.


EMERGENCY POWERS

CONTINUATION UNTIL MAT 15, 1947-ORDER IN COUNCIL TABLED

LIB

William Lyon Mackenzie King (Prime Minister; President of the Privy Council)

Liberal

Right Hon. W. L. MACKENZIE KING (Prime Minister):

Mr. Speaker, the address to His Excellency the Governor General which this house recently passed with respect to the extension of the time of application of the National Emergency Transitional Powers Act was presented to His Excellency this morning by the Hon. the Speaker of this house. A similar address was presented to His Excellency by the Speaker of the Senate. The act provides, as hon. members will recall, that after addresses have been presented the governor in council should order that the act shall continue in force for a further period. I have in

fMr. Co!dive!I.]

my hand a copy of the order in council which was passed subsequently to the presentation of the addresses this morning and which orders that the National Emergency Transitional Powers Act, 1945, shall continue until the fifteenth day of May, 1947. I would ask leave of the house to table the order.

Topic:   EMERGENCY POWERS
Subtopic:   CONTINUATION UNTIL MAT 15, 1947-ORDER IN COUNCIL TABLED
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HOUSING

RENTAL HOUSING PROJECT-NEW PROVISIONS RESPECTING DEPRECIATION, AMORTIZATION, ETC.

LIB

Clarence Decatur Howe (Minister of Reconstruction and Supply)

Liberal

Right Hon. C. D. HOWE (Minister of Reconstruction and Supply):

Mr. Speaker, during my remarks in this house on February 7 I stated that the government would shortly take steps to increase the supply of privately-ow'ned rental housing. At that time, I outlined three proposed incentives: (1) allowance of double depreciation for new rental housing units; (2) a longer period of amortization under the National Housing Act for loans on approved types of rental housing; and (3) extension of priorities for materials to assist in the construction of approved rental housing.

As I mentioned in February, our supply of new rental housing is proportionately too low and there is a great need in the country today for this type of dwelling. Perhaps the principal reason for the reluctance of private owners to enter this field is their belief that present capitalized costs may be high in relation to stabilized rents.

To stimulate an additional supply of rental housing, I now table order in council P.C. 1095 which provides for depreciation at double the rates normally allowed in respect to rental housing projects and equipment installed therein, built or acquired in a fixed period.

As hon. members know, the owner of a rental property, on filing income tax returns, is allowed as a deduction from the property value depreciation for buildings at standard rates which vary from two or five per cent, depending on the type of structure. In the case of equipment, these standard rates vary from five to ten per cent. The order in council I have just tabled has the effect of doubling these rates for a period of ten years when applied to projects consisting of four or more family dwelling units which meet the requirements set out in the order. This incentive will apply only to the types of rental housing approved by Central Mortgage and Housing Corporation. Basic qualifications include rentals under $70 a month, based on a standard four-room unit; veterans' preference for occupancy of completed units; and an average of at least 1-75 bedrooms per unit.

Rental Housing Project

The order provides that:

Any project, wholly constructed between March 31, 1947, and December 31, 1949, will be allowed double depreciation on the full cost of construction.

Any project under construction on March 31, 1947, will be allowed double depreciation on costs incurred after that date.

Any project not completed by December 31, 1949, will be allowed double depreciation only on costs incurred prior to that date.

While I do not wish to discuss the order in detail at this time, I would point out to hon. members that provision is made for an extra principal payment by the owner of a rental property where the project is financed by mortgage. The extra principal payment required amounts to one-third of the allowable extra depreciation.

Hon. members may also be wondering why the effective date has been advanced to March 31. Under the order, the owner of a project at present under way who proposes to apply for double depreciation must obtain from a qualified architect or engineer a certificate of costs of the project at that date. The advanced date will allow him time to do so.

To determine whether or not a rental housing project qualifies for double depreciation under the provisions of this order, a builder will be required to complete and file an application with a regional or branch office of Central Mortgage and Housing Corporation. Full information may also be obtained from these offices, which are located in principal cities throughout the country. If a project is found to qualify, the corporation will issue a certificate of entitlement.

Increased amortization. Tlje second point I mentioned at the beginning of my remarks was an extended period of amortization. We will introduce shortly legislation under the National Housing Act to increase to thirty years the period of amortization for this type of rental housing.

Priorities. As a third stimulation, priorities for building materials will be granted for rental housing projects which meet the same requirements as those set out in the order respecting double depreciation. While I am on the subject, I wish to take this opportunity to reaffirm the government's position with respect to priorities. During the past few weeks, it has come to my attention that certain groups are apparently anticipating a relaxation of the priorities policy. I wish to state emphatically that the government does not now propose to revise the present system,

which is based on a veterans' preference and some control over the end sales price or rent to be charged for housing units.

So that there can be no misunderstanding or confusion, I list again the housing categories entitled to priorities on materials:

1. The house of any individual veteran of world war II where the house is fifty per cent completed, which generally means roofed and closed in.

2. All government and government-sponsored housing carrying the veterans' preference, such as that built under the integrated housing plan, Veterans Land Act, and emergency shelter order and by Wartime Housing Limited and Housing Enterprises of Canada, Limited.

3. Housing in remote areas built by basic industries such as lumbering, logging, mining and fishing companies, for which the rentals or sale prices of the units are approved by Central Mortgage and Housing Corporation and where an undertaking is given by the company that fifty per cent of the units will be occupied by veterans of world war II.

4. Rental housing projects, as I already stated, which meet the same requirements as those set out in the order I have tabled today respecting double depreciation.

Topic:   HOUSING
Subtopic:   RENTAL HOUSING PROJECT-NEW PROVISIONS RESPECTING DEPRECIATION, AMORTIZATION, ETC.
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PC

Donald Methuen Fleming

Progressive Conservative

Mr. FLEMING:

I should like to ask the minister for clarification of the first part of his statement. As I understand it, the consideration which is being extended to those who will after March 31 build rental housing, applies only to those who will erect houses in groups of four units, or units which are themselves four-family units, but will not apply to those who are erecting smaller units for a lesser number of families.

Topic:   HOUSING
Subtopic:   RENTAL HOUSING PROJECT-NEW PROVISIONS RESPECTING DEPRECIATION, AMORTIZATION, ETC.
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LIB

Clarence Decatur Howe (Minister of Reconstruction and Supply)

Liberal

Mr. HOWE:

It applies to single houses,

for rental, when built in groups of four or more. But if the owner is an occupant of the house, it must be a four-family house. In other words, it does not apply to a single duplex where the owner is also the occupant. If the owner is not an occupant it will apply to a double duplex, or any unit of four or more.

Topic:   HOUSING
Subtopic:   RENTAL HOUSING PROJECT-NEW PROVISIONS RESPECTING DEPRECIATION, AMORTIZATION, ETC.
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PC

Donald Methuen Fleming

Progressive Conservative

Mr. FLEMING:

Otherwise if a person is

not building a multiple family unit it does not apply. He would need to build a four-family house to come within the scope of the order.

Topic:   HOUSING
Subtopic:   RENTAL HOUSING PROJECT-NEW PROVISIONS RESPECTING DEPRECIATION, AMORTIZATION, ETC.
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LIB

Clarence Decatur Howe (Minister of Reconstruction and Supply)

Liberal

Mr. HOWE:

Yes.

Topic:   HOUSING
Subtopic:   RENTAL HOUSING PROJECT-NEW PROVISIONS RESPECTING DEPRECIATION, AMORTIZATION, ETC.
Permalink
PC

Donald Methuen Fleming

Progressive Conservative

Mr. FLEMING:

What is the situation

with respect to the construction of single family units?

Inquiries of the Ministry

Topic:   HOUSING
Subtopic:   RENTAL HOUSING PROJECT-NEW PROVISIONS RESPECTING DEPRECIATION, AMORTIZATION, ETC.
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March 25, 1947