PM Stephen Harper Denied Privatization of CMHC

PM Stephen Harper denied a press report on Monday that said the government was considering privatizing the federal housing agency, calling it "a rumor that is utterly false."

The G&M newspaper cited anonymous private sector sources as saying the government was mulling the idea of selling the mortgage insurance and securitization units of Canada Mortgage and Housing Corp (CMHC).

Opposition lawmakers questioned the government extensively on the politically charged issue in Parliament on Monday, but after several denials by his cabinet minister Harper stood up to ridicule the line of questioning on what he called a rumor.

Diane Finley, minister of HRSD, categorically denied that privatization was on the minority Conservative government's agenda.

The G&M story cited financial market players as saying the idea had emerged from the Finance Department but that a decision was not imminent.