least to some extent, particularly in the consumer sector, thus reducing the effectiveness of the budget tax cuts. The last problem to which this note is addressed is whether the budget's proposed tax cuts are the most efficient way to foster the desired economic growth and promote price stability. There are alternative measures that could have been undertaken by the government especially with their enormous surplus of funds after the all-too-successful Canada Savings Bond campaign. One programme that might have been undertaken would have been a major incursion into the housing field to produce a significant number of new housing units in the year 1975. Such a programme would be planned to alleviate the pressures that are building up in the housing sector as the number of completions declines substantially in a market that is virtually devoid of vacant units, for rent or sale. The housing sector has peculiarities that are ideal for stabilization policies because almost all of the component materials are domestically produced and not imported and the employment effects are high and range through unskilled and skilled labour. Expanding housing supplies this year would also have the effect of restraining upward price pressures in the housing sector. This would have been a more appropriate place for introducing a stabilization measure than would the tax cut, which might only have a marginal effect on consumer spending and, because of a substantial import content, only a slight impact on employment. It is possible that, even now, substantial measures are being planned by the federal government to encourage housing in 1975 and this would be treated as a second line of defence for Canada against the effects of the deepening recession in the United States. More appropriate would have been measures to stimulate housing in the November budget. As for timing, it would have been more appropriate if the additional 3 per cent personal tax cut had been held in abeyance until after the large 1974 tax refunds had been received by taxpayers in the spring.