March 9, 1956

SPEECH FROM THE THRONE

ACKNOWLEDGMENT OF ADDRESS IN REPLY

LIB

Louis-René Beaudoin (Speaker of the House of Commons)

Liberal

Mr. Speaker:

I have the honour to inform the house that I have received a communication from His Excellency the Governor General, signed by his own hand, reading as follows:

Government House Ottawa

7th March, 1956.

Members of the House of Commons:

I have received with great pleasure the address that you have voted in reply to my speech at the opening of parliament. I thank you sincerely for this address.

Vincent Massey

Topic:   SPEECH FROM THE THRONE
Subtopic:   ACKNOWLEDGMENT OF ADDRESS IN REPLY
Permalink

NATIONAL HOUSING ACT

ANNOUNCEMENT OF INCREASE IN INTEREST RATES ON INSURED LOANS

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 of the decision to increase the maximum interest rate on insured loans under part I of the National Housing Act from 51 per cent to 5J per cent. Corresponding increases will take place with respect to rates applicable to the other types of loans under the act. These rates are ceiling rates. Lenders are, of course, free to make loans at lesser rates if circumstances so warrant.

The statute authorizes the governor in council to fix the maximum rate of interest that may be charged for various types of loans. In respect of insured mortgage loans, the interest rate cannot exceed the yield on long-term government securities, plus 21 per cent as of the time the rate is fixed.

It is the expressed policy of the government to adjust the mortgage interest rate from time to time within the provisions of the statutory formula so that the lowest rate will be established which will attract on the market adequate mortgage funds. In accordance with this policy the rate was reduced from 5J per cent to 51 per cent in February, 1955. It is now felt that rates under the act should revert to their former levels.

Actually, the interest rate on long-term government bonds would have justified an 67509-124

increase from 51 per cent to 5J per cent last August, but the flow of funds to housing then, and until quite recently, has been good, with the result that no such action has been taken. Bearing in mind the continued high level of interest rates in general and the anticipated demand on investible funds in 1956, an increase is necessary now so that builders and home owners will have continued access to mortgage funds under the National Housing Act in the year ahead.

The change in the interest rate will have effect Monday morning, the 12th of March.

Topic:   NATIONAL HOUSING ACT
Subtopic:   ANNOUNCEMENT OF INCREASE IN INTEREST RATES ON INSURED LOANS
Permalink
PC

Gordon Knapman Fraser

Progressive Conservative

Mr. G. K. Fraser (Peterborough):

Mr. Speaker, may I ask a question? Will applications that are in before that date come under the 5-j per cent?

Topic:   NATIONAL HOUSING ACT
Subtopic:   ANNOUNCEMENT OF INCREASE IN INTEREST RATES ON INSURED LOANS
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LIB

Robert Henry Winters (Minister of Public Works)

Liberal

Mr. Winters:

The rate becomes effective Monday morning, March 12. It will depend on the stage of the application being processed.

Topic:   NATIONAL HOUSING ACT
Subtopic:   ANNOUNCEMENT OF INCREASE IN INTEREST RATES ON INSURED LOANS
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PC

Gordon Knapman Fraser

Progressive Conservative

Mr. Fraser (Peterborough):

If they were processed before that date, Monday morning, they would then come under the 51 per cent; is that right?

Topic:   NATIONAL HOUSING ACT
Subtopic:   ANNOUNCEMENT OF INCREASE IN INTEREST RATES ON INSURED LOANS
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LIB

Robert Henry Winters (Minister of Public Works)

Liberal

Mr. Winters:

It depends on what date the application was approved. I do not wish to express myself particularly on that point because there are several stages in the processing of an application. Where Central Mortgage and Housing Corporation has given an undertaking to insure before next Monday the 51 per cent rate will apply.

Topic:   NATIONAL HOUSING ACT
Subtopic:   ANNOUNCEMENT OF INCREASE IN INTEREST RATES ON INSURED LOANS
Permalink
CCF

Stanley Howard Knowles (Whip of the Co-operative Commonwealth Federation)

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

Mr. Stanley Knowles (Winnipeg Norih Centre):

Mr. Speaker, would the minister permit a supplementary question? Will the government be introducing any liberalizing amendments to offset this restrictive change?

Topic:   NATIONAL HOUSING ACT
Subtopic:   ANNOUNCEMENT OF INCREASE IN INTEREST RATES ON INSURED LOANS
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LIB

Robert Henry Winters (Minister of Public Works)

Liberal

Mr. Winters:

I think hon. members are aware that there is already a notice of motion on the order paper to amend the National Housing Act. [DOT]

Topic:   NATIONAL HOUSING ACT
Subtopic:   ANNOUNCEMENT OF INCREASE IN INTEREST RATES ON INSURED LOANS
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CRIMINAL CODE

AMENDMENT RESPECTING PAYMENT OF FINES UNDER SUMMARY CONVICTION PROVISIONS

PC

John George Diefenbaker

Progressive Conservative

Mr. J. G. Diefenbaker (Prince Albert) moved

for leave to introduce Bill No. 167, to amend the Criminal Code (payment of fines).

Topic:   CRIMINAL CODE
Subtopic:   AMENDMENT RESPECTING PAYMENT OF FINES UNDER SUMMARY CONVICTION PROVISIONS
Permalink
?

Some hon. Members:

Explain.

Inquiries of the Ministry

Topic:   CRIMINAL CODE
Subtopic:   AMENDMENT RESPECTING PAYMENT OF FINES UNDER SUMMARY CONVICTION PROVISIONS
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PC

John George Diefenbaker

Progressive Conservative

Mr. Diefenbaker:

The object of the bill is to provide that when a fine is imposed under the summary conviction provisions of the Criminal Code there shall be mandatory action taken by the court to assure, subject to certain necessary reservations, that a warrant of commitment shall not issue for imprisonment forthwith of the person on whom the fine has been imposed in the face of the financial inability of that person to make immediate payment.

Motion agreed to and bill read the first time.

Topic:   CRIMINAL CODE
Subtopic:   AMENDMENT RESPECTING PAYMENT OF FINES UNDER SUMMARY CONVICTION PROVISIONS
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EXTERNAL AFFAIRS

MIDDLE EAST


On the orders of the day:


March 9, 1956