FE Magazine 2009 No. 5 Sep-Oct - FRPO

The Speaker (Hon. Steve Peters): Thank you.
Supplementary
Mr. Eric Hoskins: These changes will no doubt benefit
renters in my riding, but the reality is the majority of
tenants and landlords never have to go to the landlord and
tenant board. Most tenants pay their rent and most landlords
take care of their properties.
My concern is that rent continues to go up. I’ve been
talking with young families and students who live on tight
budgets. They rely on predictable expenses from year to
year so that they can maintain their standard of living.
With the price of gas and home heating fuels on the rise,
my constituents are paying more attention than ever to
their bottom line. The NDP wants to cap rent for two years
to ensure that rent remains affordable.
I want to know what the Residential Tenancies Act does to
ensure rent does not skyrocket. Is a rent cap the best way to
ensure affordable rents
Hon. Jim Watson: Clearly a rent cap would have a negative
impact on the supply of rental properties. Individuals
who want to build rental properties would be discouraged
to do so.
We’ve brought a much more balanced approach which so far
has kept rent increases low and vacancy rates healthy. The
annual rent increase is now tied to the consumer price index.
It’s fair, it’s transparent and the 2010 guideline of 2.1% protects
tenants from rent increases above the rate of inflation
while allowing landlords to recover increasing costs.
Let’s take a look at the record and go back in history. Under
the NDP, when they were in office, 27% increase in rents;
under the Conservatives, 23.9%, under the McGuinty
Liberal government, 14.4%.
We will continue to take a balanced, practical approach to
landlord and tenant relations. I know we have a great new
defender of tenants in the honourable member from St.
Paul’s and we welcome him to this House. F
Fair Exchange • September / October 2009
30