February 1, 1955

HOUSING

CENTRAL MORTGAGE AND HOUSING

LIB

Robert Henry Winters (Minister of Public Works)

Liberal

Hon. Robert H. Winters (Minister of Public Works):

Mr. Speaker, I should like to inform hon. members that the maximum selling price policy Central Mortgage and Housing Corporation has been following in one form or another since 1946 will be discontinued effective today. As- hon. members are aware, when a loan under the 1954 National Housing Act to a merchant builder was approved in respect of a house built for sale, a condition was imposed to the effect that only 90 per cent of the amount of such approved loan was advanced unless the house was sold at or below a price determined by C.M.H.C.

This policy was introduced to protect prospective home owners against unduly high prices which might otherwise have resulted under pressure of economic conditions which were encountered from time to time almost continuously since 1946. Conditions are now such that the continuation of this policy seems no longer warranted. In 1954 housing starts, including conversions, numbered 117,800, and completions 106,400. These are all-time records. As of January 1 there were approximately 71,000 houses under construction. New supplies of housing are such that competition itself can now provide a good measure of price limitation.

Our statistics show that approximately 70 per cent of the houses built by merchant builders under the National Housing Act are being sold at the maximum price as determined by Central Mortgage and Housing Corporation, 25 per cent are being sold below this price, and 4 per cent to 5 per cent above it. There has been a tendency since the new act came into force for the proportion of houses selling below the maximum sale price to increase.

The percentages that I have just mentioned are on a national basis. They vary somewhat from one locality to another. There are indications that in some areas the so-called maximum selling price has ceased to be a maximum and has become in effect a floor price. In other words, the ceiling price 50433-46

set by the corporation is susceptible to representation to purchasers as being the price at which the house must be sold.

I should not like to leave the impression that the discontinuation of the maximum sale price policy will at once reduce prices all across the country. In some areas and for some types of houses there may be a moderate tendency towards higher prices for a short period. However, the removal of control generally will stimulate competition in the house building industry and the home owner will in the long term, I believe, get more value for his housing dollar. That is the purpose of this move.

It is desirable that the maximum sale price restriction should be removed before the commencement of the building season. Therefore, as of today the policy will be discontinued. This will have application not only to houses to be started in the future but in respect of houses that are now subject to the price limitation but which have not yet been sold.

Topic:   HOUSING
Subtopic:   CENTRAL MORTGAGE AND HOUSING
Sub-subtopic:   SELLING PRICE POLICY
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REQUEST FOR REDUCTION IN SALE PRICE OF HOUSES IN PETERBOROUGH


On the orders of the day:


PC

Gordon Knapman Fraser

Progressive Conservative

Mr. G. K. Fraser (Peterborough):

In view of the minister's statement that Central Mortgage and Housing is trying to give the home owner a little more for his money, has any consideration been given to lowering the sale price of Central Mortgage homes that are for sale in the city of Peterborough? I understand that there are some six or seven of them now vacant?

Topic:   REQUEST FOR REDUCTION IN SALE PRICE OF HOUSES IN PETERBOROUGH
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LIB

Robert Henry Winters (Minister of Public Works)

Liberal

Hon. Robert H. Winters (Minister of Public Works):

Central Mortgage has endeavoured to make very reasonable arrangements for the sale of these houses. I am not aware that a revision of the sale price is under consideration at the moment.

Topic:   REQUEST FOR REDUCTION IN SALE PRICE OF HOUSES IN PETERBOROUGH
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PC

Gordon Knapman Fraser

Progressive Conservative

Mr. Fraser (Peterborough):

They are priced too high at the moment.

Topic:   REQUEST FOR REDUCTION IN SALE PRICE OF HOUSES IN PETERBOROUGH
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PRIVATE BILLS

FIRST READINGS-SENATE BILLS


Bill No. 10, for the relief of Daisy Ruth Kirk Stanistreet.-Mr. Hunter. Bill No. 11, for the relief of Irene Christina Edwards Mackay.-Mr. Hunter.



Proposed Legislation Bill Np. 12, for the relief of Barbara Elinor Richardson Jones.-Mr. Hunter. Bill No. 13, for the relief of Wira Pushkar Tereshtshenko.-Mr. Hunter. Bill No. 14, for the relief of Stella (Stepha-nia) Burnatowska Holowaty.-Mr. Hunter. Bill No. 15, for the relief of Harry Evert Finlayson.-Mr. Hunter. Bill No. 16, for the relief of George James Nangreaves.-Mr. Hunter. Bill No. 17, for the relief of Carmela Lanza Morash.-Mr. Hunter. Bill No. 18, for the relief of Meyer Francis Doyle.-Mr. Hunter. Bill No. 19, for the relief of Julia Mary Collen Dwyer Rose.-Mr. Hunter. Bill No. 20, for the relief of Bela Koschitza Brawerman.-Mr. Hunter.


EMERGENCY GOLD MINING ASSISTANCE ACT

EXTENSION OF APPLICATION TO 1955 AND 1956

LIB

George Prudham (Minister of Mines and Technical Surveys)

Liberal

Hon. George Prudham (Minister of Mines and Technical Surveys) moved

that the house go into committee at the next sitting to consider the following resolution:

That it is expedient to introduce a measure to amend the Emergency Gold Mining Assistance Act to extend its application to the years 1955 and 1956, subject to certain modifications.

He said: His Excellency the Governor General, having been made acquainted with the subject matter of this resolution, recommends it to the house.

Topic:   EMERGENCY GOLD MINING ASSISTANCE ACT
Subtopic:   EXTENSION OF APPLICATION TO 1955 AND 1956
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Motion agreed to.


CANADIAN NATIONAL RAILWAYS

CONSOLIDATION OF LEGISLATION-AUTHORIZATION FOR OPERATION OF TELECOMMUNICATION SYSTEM, ETC.

LIB

George Carlyle Marler (Minister of Transport)

Liberal

Hon. George C. Marler (Minisier of Transport) moved

that the house go into committee at the next sitting to consider the following resolution:

That it is expedient to introduce a measure to consolidate the various enactments relating to Canadian National Railways into one statute, also, to provide that the Canadian National Railway Company may operate a telecommunication system, to authorize officers and employees of the Canadian National Railways to act as directors of partially-owned companies, to authorize the company to construct short lines without specific parliamentary authority and to operate motor vehicles and further to make provisions for extinguishing charters of constituent corporations.

He said: His Excellency the Governor

General, having been made acquainted with the subject matter of this resolution, recommends it to the house.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   CONSOLIDATION OF LEGISLATION-AUTHORIZATION FOR OPERATION OF TELECOMMUNICATION SYSTEM, ETC.
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Motion agreed to.


February 1, 1955