Winnipeg Sun
April 20, 2002
Liberals urge NDP to phase out barrier to investment
By Frank Landry
The Doer government should do away with "rigid" rent controls and leave it up to landlords to decide how much tenants should pay, says Liberal Leader Jon Gerrard.
"Virtually every other large city in North America has taken off rent control because they realize it's a huge barrier to investment," Gerrard said.
The comments came yesterday at a news conference Gerrard called to urge the NDP to reign in spending in Monday's provincial budget.
Citing a lack of rental units as a problem in Winnipeg, Gerrard said removing rent controls completely from new buildings would spark apartment block construction in the city.
The Liberal leader said rent control should be phased out on existing units.
The most recent Canada Mortgage and Housing Corporation figures show Winnipeg has a vacancy rate of 1.4%, down from 2% in 2000.
Elizabeth Carlyle, Manitoba organizer of the Canadian Federation of Students, said there is no evidence higher rent would lead to any improvements of existing blocks.
Raised rent increase cap
"A slum landlord will be a slum landlord whether you pay him $300 a month or $350 a month," Carlyle said.
In last year's budget speech, the NDP announced they would be exempting new apartment buildings from rent guidelines for IS years instead of the previous five.' The Doer government has also raised the rent increase cap to 2% from 1%.
Carlyle said the provincial government has already "moved too much" loosening rent controls - a move which creates problems for people on fixed incomes like students.
Consumer and Corporate Affairs Minister Scott Smith said removing rent control "is not a consideration" at this time.
"Rent regulation has worked and continues to work very well in our province," Smith said.
But Lorne Weiss, president of the Winnipeg Real Estate Board, said a new apartment building hasn't been built in Winnipeg in 15 years because of tight rent controls.
Meanwhile, the Manitoba division of the Canadian Centre for Policy Alternatives released its "alternative budget" yesterday.
The left-wing group is urging Finance Minister Greg Selinger to eliminate modest income tax breaks planned for 2002 as a way of generating additional revenue.