November 1, 1976 (30th Parliament, 2nd Session)

Mr. Grafftey:

They cannot afford it. That is quite true. At any rate that is another reason why we on this side want to hear a lot more about the basic philosophy and the practical application of the unwarranted rate as it affects consumer borrowers in general and low income people in particular.
I intend to read from the Consumers Association of Canada report. I am not just going to quote it. I will make quite sure as I put these thoughts on record that I am speaking for myself and, I hope, this side of the House. I quote:
The CAC's most severe reservation concerns the government's proposal to eliminate the limits on interest rates for small loans. Until now these have been regulated under the Small Loans Act.
The minister mentioned that in his opening remarks this afternoon.
-government officials may believe that the free market is the best mechanism for ensuring that interest rates are reasonable.
I speak for myself in this regard and, I think, for many members in this House who have met with low income credit consumers who were in an awful bind. I believe that the free

November 1, 1976
Protection of Borrowers and Depositors market is not necessarily the best mechanism for ensuring that interest rates are reasonable.