In a couple of days, we will go to the polls yet again to elect a federal government. We have had quite an election stretch with the recently completed municipal election, followed by the federal next week and then the provincial coming in October.
There is no shortage of issues to be debated. However, surprisingly enough, housing is seldom one that comes to the forefront. Even though the residential construction industry accounts for about six per cent of our GDP, it has not been receiving a lot of attention.
The Canadian Home Builders' Association outlined its priority issues in a document entitled Housing Affordability and Choice for Canadians: Beyond Recovery into Durable Prosperity. Although the title is quite long, it essentially promoted three suggestions for the federal government to adopt, no matter what the party or majority/minority status.
The most important aspect is to get it right, not squabble about who gets the credit.
In 1991, a new house GST rebate was established that encouraged new home buyers into the market. For 19 years, that rate has remained frozen even though the price of a new home has since increased considerably. It's time to establish a new higher price threshold and to index it on a regular basis.
The recent Home Renovation Tax Credit was a resounding success. Everyone (consumer, manufacturer, retailer, government) won. It was a welcome respite from a GST that actually doubles the original tax on a contracted home renovation.
When the federal tax only applied to materials, it was half of what we pay today. It's time to consider a permanent 2.5 per cent GST Home Renovation Tax Rebate for all homeowners.
Finally, legitimate contractors everywhere are urging the federal government to implement measures to tackle the underground economy. The current system still provides too many loopholes for tax cheats to exploit.
Honest contractors and consumers are paying double their fair share to compensate for people operating out of the back of their truck, undercutting costs by working for cash, not paying any taxes and not taking responsibility for shoddy workmanship.
The Manitoba Home Builders' Association encourages lively debate among candidates, active voting and government action based on the direction of the populace. No matter who you support, let's make sure Manitoba leads the country in voting percentages.
Mike Moore is president of the Manitoba Home Builders' Association.
