News & Events

March 4, 2010

VICTORIA, B.C., March 4 -- The Canadian Home Builders’ Association (CHBA) said today that Finance Minister Jim Flaherty’s stay-the-course budget is the right approach to complete Canada’s economic recovery.

CHBA President Gary Friend congratulated the Finance Minister for his determination to return to balanced budgets in five years without increasing taxes. The focus on employment opportunities and investment in growth is the right federal direction, he said.

Mr. Friend expressed regret that the budget missed the opportunity to implement longoverdue changes to the GST New Housing Rebate. “This is the single most important step the federal government can take to protect housing affordability and choice. What Canadians need now are permanent policies that end the erosion of housing affordability.”

When the GST was introduced in 1991, the full GST rebate applied to homes selling for $350,000 or less. Those homes cost $550,000 today but the rebate level has not changed, as the government committed to do in 1991.

The CHBA was also disappointed that the budget did not announce a permanent replacement for the hugely-popular Home Renovation Tax Credit introduced in last year’s budget. “A permanent 2.5% GST Home Renovation Tax Rebate would restore fairness to how home renovation is impacted by the GST, and also go a long way to combating the massive underground “cash” activity in home renovation”, Mr. Friend commented.

Mr. Friend welcomed the federal government’s renewed commitment to municipal infrastructure investments. He said the government’s support for core infrastructure and CMHC’s municipal infrastructure lending program for residential development show federal leadership for a priority that involves all levels of government. “Governments must recognize that infrastructure can no longer be financed through the mortgages of new home buyers”, he commented.

The Canadian Home Builders’ Association (CHBA) is the national voice of the residential construction industry, representing more than 8,000 member firms across the country. Membership comprises new home builders, renovators, developers, trade contractors, building material manufacturers and suppliers, lenders and other professionals in the housing sector.