Mr. Gaston Gourde (Levis):
Madam Speaker, in the latest budget, rules governing the use of Registered Home Ownership Savings Plans were changed. Not long ago, I pointed out that Canadian taxpayers will now be able to make tax-free withdrawals of any amount currently in their RHOSPs, for the purchase of furniture and household appliances. Another change is that Canadians who buy newly constructed homes after the date of the budget and before December 31, 1984, will be able to claim an additional deduction of up to $10,000. This means that if the taxpayer has contributed $3,000 to a RHOSP in previous years, he or she will be able to claim an additional deduction of $7,000 for the purchase of a newly constructed home, within the dates mentioned. The proceeds of the RHOSP must, of course, be used for the purchase of a newly constructed home and associated furnishings. Individuals must complete a written offer to purchase the home before December 31, 1984, with the date of closing of the purchase and occupancy no later than February 28, 1985. Homes for which a purchase agreement was entered into prior to April 20, 1983 will be eligible for the measure if the offer to purchase was signed prior to that date, provided the date of closing was not before that date.
I think that with the recent news about the Canadian Home Ownership Stimulation Plan, this measure provides a very satisfactory alternative to that program, as a substitute for the $3,000 offered to buyers of new homes.
Sub-subtopic: BENEFITS RELATED TO APPLICATION OF REGISTERED HOME OWNERSHIP SAVINGS PLAN