Ottawa, provinces mull more actions

• Finance Minister Bill Morneau said on Monday he had discussed with his provincial counterparts whether more actions are needed to ensure the stability of the country’s housing market. The federal government acted last year to tighten mortgage lending rules to rein in Canada’s housing boom, while British Columbia and Ontario have implemented taxes on foreign buyers in Vancouver and Toronto, respectively.

Morneau told reporters he had shared with provincial finance ministers the Finance Department’s view on “the continuing importance of monitoring the housing market, the need to make sure that we remain vigilant, and consider whether there is additional actions required to best assure the stability of that market.”

Morneau said the government was continuing to watch the situation at nonbank lender Home Capital Group Inc., which looks to be “working its way through its challenges” and called its recent settlement with the On- tario Securities Commission (OSC) “positive.”

Home Capital last week agreed on a settlement with the OSC and accepted responsibility for misleading investors about problems with its mortgage underwriting procedures.

Depositors have withdrawn 95 per cent of funds from Home Capital’s high interest savings accounts since March 27, when the company terminated the employment of former chief executive Martin Reid.

Morneau said top policymakers at the Bank of Canada told the gathered finance ministers that the economy was doing better than had been expected a few months ago.

The federal and provincial governments also discussed the need to keep the tax rate on recreational marijuana low and have a co-ordinated approach across the country, though ministers did not discuss revenue estimates, Morneau said.

“Revenue shouldn’t be our driving goal,” said Morneau.

Canada i s on track to legalize recreational marijuana by next summer, though the federal government has left the details of how the drug will be sold up to the provinces.

The Liberal government has said legalizing marijuana will keep it out of the hands of children and reduce drugrelated crime. It also wants to keep the sale price low enough that users will not turn to the black market.

(THERE) IS A NEED TO MAKE SURE THAT WE REMAIN VIGILANT.