October 19, 1979

PC

Charles Joseph Clark (Prime Minister)

Progressive Conservative

Mr. Clark:

Mr. Speaker, we take this enemy No. 1 seriously whenever we indicate determination to move on programs which will reduce the burden of the cost of government on the Canadian economy which will re-establish some sense of confidence that there is now in Canada a government prepared to face hard decisions today, rather than roll with easy decisions.

1 know the hon. member does not particularly agree with that approach, because his colleagues and members of the official opposition condemn practically every measure we take designed to bring government costs into line and have that effect upon controlling inflation.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   REQUEST GOVERNMENT REVERSE POLICY OF INTEREST RATE INCREASES
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LIB

Herb Breau

Liberal

Mr. Breau:

That is not true.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   REQUEST GOVERNMENT REVERSE POLICY OF INTEREST RATE INCREASES
Permalink
NDP

Stanley Howard Knowles (N.D.P. House Leader)

New Democratic Party

Mr. Knowles:

Mr. Speaker, my final supplementary relates to the fact that not only are workers and their families having trouble keeping up with the cost of living, but so are our pensioners.

My question is this: In view of the fact the present system of indexing old age security and other pension benefits is on a system which is always five months to eight months behind

Oral Questions

and does not relate, in terms of the index, to the things that pensioners actually have to buy, will the government review the formula for indexing, and will it consider establishing a special cost of living index for pensioners, so that they will not continually go behind as they are now?

[DOT] (U25)

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   REQUEST GOVERNMENT REVERSE POLICY OF INTEREST RATE INCREASES
Permalink
PC

Charles Joseph Clark (Prime Minister)

Progressive Conservative

Mr. Clark:

Mr. Speaker, we have already indicated our intention, in the Speech from the Throne with references to the review of retirement income provisions in the country, to undertake precisely the kind of review to which the hon. member is referring, and a broader review.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   REQUEST GOVERNMENT REVERSE POLICY OF INTEREST RATE INCREASES
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INCREASE IN INTEREST RATE OF CANADA SAVINGS BONDS-COST TO TAXPAYERS

LIB

Herbert Eser (Herb) Gray

Liberal

Hon. Herb Gray (Windsor West):

Mr. Speaker, I direct my question, again, to the Prime Minister, in the absence of the Minister of Finance. Yesterday, the Minister of Finance announced that the government is increasing the interest rate on Canada Savings Bonds to encourage their sales in the face of generally increasing interest rates, increases which are apparently supported by this government.

Can he tell us how much money this increase in Canada Savings Bonds rates will cost the Canadian taxpayer who has to pay the additional cost to the government of money it borrows because of this interest rate policy?

Topic:   ORAL QUESTION PERIOD
Subtopic:   INCREASE IN INTEREST RATE OF CANADA SAVINGS BONDS-COST TO TAXPAYERS
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PC

Sinclair McKnight Stevens (President of the Treasury Board)

Progressive Conservative

Hon. Sinclair Stevens (President of the Treasury Board):

Mr. Speaker, if 1 may reply to the hon. member's question, I can give him a specific figure on Monday detailing the anticipated cost of the interest rate increase as it applies to CSBs. 1 would point out to the hon. member that recipients of that interest are, of course, Canadians.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INCREASE IN INTEREST RATE OF CANADA SAVINGS BONDS-COST TO TAXPAYERS
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LIB

Herbert Eser (Herb) Gray

Liberal

Mr. Gray:

Mr. Speaker, I have a supplementary question. Could he also tell us, when he gives us his answer on Monday, how much the increase in the interest rates since this government took office will be adding to the deficit of the government and to government spending generally, both of which the government has said it will be reducing?

In view of the fact that these interest rate increases will obviously increase the deficit and government spending, can he tell us how this is consistent with what the Prime Minister said yesterday and today, that he was making inflation enemy No. 1 and would fight inflation by reducing government expenditures, an obvious discrepancy and contradiction?

Topic:   ORAL QUESTION PERIOD
Subtopic:   INCREASE IN INTEREST RATE OF CANADA SAVINGS BONDS-COST TO TAXPAYERS
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PC

Sinclair McKnight Stevens (President of the Treasury Board)

Progressive Conservative

Mr. Stevens:

Mr. Speaker, if 1 may again reply to the hon. member's question, 1 am sure that he is at last realizing the dreadful legacy the former government left this nation-

Topic:   ORAL QUESTION PERIOD
Subtopic:   INCREASE IN INTEREST RATE OF CANADA SAVINGS BONDS-COST TO TAXPAYERS
Permalink
?

Some hon. Members:

Oh, oh!

Topic:   ORAL QUESTION PERIOD
Subtopic:   INCREASE IN INTEREST RATE OF CANADA SAVINGS BONDS-COST TO TAXPAYERS
Permalink
PC

Sinclair McKnight Stevens (President of the Treasury Board)

Progressive Conservative

Mr. Stevens:

-and which is now having to be transformed into the form of an ongoing debt, with the consequential effect on interest rates to which the hon. member referred.

October 19, 1979

Oral Questions

Topic:   ORAL QUESTION PERIOD
Subtopic:   INCREASE IN INTEREST RATE OF CANADA SAVINGS BONDS-COST TO TAXPAYERS
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CANADA MORTGAGE AND HOUSING CORPORATION

LIB

Lloyd Axworthy

Liberal

Mr. Lloyd Axworthy (Winnipeg-Fort Garry):

Mr. Speaker, I have a question for the Prime Minister. With mortage interest rates in this country now at the level of 14 per cent and, as the first minister is aware, with the housing market in this country now in a serious crisis, with starts down 13 per cent, new purchases in a decline, and 30,000 unemployed in the construction industry-with these kinds of figures, is the first minister prepared to develop immediate plans to come to the aid of the housing market in Canada and, in particular, is he prepared to shelve any plans to privatize the Canada Mortgage and Housing Corporation so that the corporation can get down to the business of solving the housing crisis, rather than worrying about its existence in the next three or four weeks?

Topic:   ORAL QUESTION PERIOD
Subtopic:   CANADA MORTGAGE AND HOUSING CORPORATION
Sub-subtopic:   PROPOSED PRIVATIZATION-REQUEST PLANS BE SHELVED
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PC

Charles Joseph Clark (Prime Minister)

Progressive Conservative

Right Hon. Joe Clark (Prime Minister):

Mr. Speaker, may 1 say to the hon. member that it is precisely for that reason that we intend to move as quickly as we can with our tax credit proposal.

I would hope the hon. member will use what influence he has in his party to encourage some of the traditional members of the party who might be inclined to obstruct debate on some of the budget bills we have to get through and, consequently, delay the ability of Parliament to deal with the tax credit proposal, not to engage in obstruction but, instead, to help us clean up as quickly as possible the bills overhanging from the former session so we can get on with this aid to the housing industry.

Topic:   ORAL QUESTION PERIOD
Subtopic:   CANADA MORTGAGE AND HOUSING CORPORATION
Sub-subtopic:   PROPOSED PRIVATIZATION-REQUEST PLANS BE SHELVED
Permalink
?

Some hon. Members:

Hear, hear!

Topic:   ORAL QUESTION PERIOD
Subtopic:   CANADA MORTGAGE AND HOUSING CORPORATION
Sub-subtopic:   PROPOSED PRIVATIZATION-REQUEST PLANS BE SHELVED
Permalink
LIB

Lloyd Axworthy

Liberal

Mr. Axworthy:

Mr. Speaker, I would like to ask the first minister if he will be prepared to use his influence to influence some of the more traditional members of his party to desist from putting forward outdated ideas about privatizing national corporations that serve the public interest.

In addition, would he also examine his own mortgage credit program and recognize that it will do nothing to stimulate the housing market, that it will only serve 30 per cent of Canadians and, in fact, will not provide any form of assistance to bring new people into the market?

Will the Prime Minister give assurances that this government will shelve plans to privatize CMHC, and will he also undertake immediate plans to reduce mortgage interest rates and help people who really need to buy houses?

Topic:   ORAL QUESTION PERIOD
Subtopic:   CANADA MORTGAGE AND HOUSING CORPORATION
Sub-subtopic:   PROPOSED PRIVATIZATION-REQUEST PLANS BE SHELVED
Permalink
?

Some hon. Members:

Hear, hear!

Topic:   ORAL QUESTION PERIOD
Subtopic:   CANADA MORTGAGE AND HOUSING CORPORATION
Sub-subtopic:   PROPOSED PRIVATIZATION-REQUEST PLANS BE SHELVED
Permalink
PC

Charles Joseph Clark (Prime Minister)

Progressive Conservative

Mr. Clark:

Mr. Speaker, I really should not enter into this matter which is internal to the Liberal party, but I cannot miss the opportunity to wish the hon. member as much luck in influencing the members of his party as 1 have had in influencing the members of mine.

Topic:   ORAL QUESTION PERIOD
Subtopic:   CANADA MORTGAGE AND HOUSING CORPORATION
Sub-subtopic:   PROPOSED PRIVATIZATION-REQUEST PLANS BE SHELVED
Permalink

BANK OF CANADA

LIB

Donald James Johnston

Liberal

Mr. Donald J. Johnston (Saint-Henri-Westmount):

Mr. Speaker, my question is to the Prime Minister. In keeping with his opinions on open government, would the Prime Minister advise the House whether or not it is true that the former member for Don Valley, who is now a prime ministerial adviser, is being considered as a candidate for the post of governor of the Bank of Canada?

Topic:   ORAL QUESTION PERIOD
Subtopic:   BANK OF CANADA
Sub-subtopic:   POSSIBLE CANDIDATE FOR POST OF GOVERNOR
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October 19, 1979