Finance Committee on March 21st, 2024

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I wonder if the Conservative Party is now advocating for there to be empty homes all across Canada at a time when we have a housing crisis.

Our government believes homes are for Canadians to live in. We are working hard to have more homes built faster, and we're also working hard to be sure that homes are not a financial asset; they're for Canadians—

[Adam Chambers, Conservative, Simcoe North, ON]

Thank you very much, Minister.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

No, thank you for making clear that the Conservative Party doesn't actually care about whether homes are for Canadians to live in.

Does the Conservative Party not care if there are vacant properties across the country while people need homes?

[Adam Chambers, Conservative, Simcoe North, ON]

Thank you, Minister.

We're actually advocating for some common sense.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I guess you're advocating for not caring for people to be housed.

[Adam Chambers, Conservative, Simcoe North, ON]

It doesn't sound like a very good deal for taxpayers.

Let's move on, shall we?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I can see why you would want to.

[Adam Chambers, Conservative, Simcoe North, ON]

Ms. Andrée-Lise Méthot was appointed to the Canada Infrastructure Bank by you in December 2022. You're well aware of the governance issues at SDTC, on which she was a board member. Late last year, Ms. Méthot admitted that she was on the board and present when money was approved to go to four companies in which she held a financial interest.

Is this the kind of ethical standard you expect from board members you appoint? Have you asked her for clarification, or maybe to resign her position from the Infrastructure Bank?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

What we have seen consistently from the Conservatives is an attack on efforts by our government to drive investments into the Canadian economy, investments made by the Infrastructure Bank—

[Adam Chambers, Conservative, Simcoe North, ON]

Minister, someone admitted to a very serious ethical breach and a conflict of interest.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

—and investments made through our ITCs. It would be great to see the Conservatives get behind these measures, which would create jobs and growth.

[Adam Chambers, Conservative, Simcoe North, ON]

Minister, someone has admitted to a very serious ethical breach and a conflict of interest. The individual is still on the board of the Infrastructure Bank and reports to you. You appointed that person.

Do you still have confidence in her to perform her duties well?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Our government has been very clear about SDTC and about the fact that what we saw happening there was unacceptable. Our government has taken action.

[Adam Chambers, Conservative, Simcoe North, ON]

Do you still have confidence in Ms. Méthot?

[The Chair, Liberal, Peter Fonseca]

Thank you, MP Chambers, and thank you, Minister. We are well over time.

We're now going to MP Baker.

[Yvan Baker, Liberal, Etobicoke Centre, ON]

Minister, thank you very much for being here.

I want to come back to the topic of the global implications and the implications on Canadians of the war in Ukraine. A moment ago, in response to Mr. Weiler, you spoke about the economic consequences of the war. You talked about the impacts on the global economy.

We've had witness after witness, expert after expert and economist after economist come to our committee over the past couple of years. They have talked about how Russia's invasion of Ukraine has been one of the primary drivers of food and energy inflation around the world. It's what Canadians face at the grocery store, and at the pump when they fill up their cars with gas. It's touching Canadians economically every day, as you alluded to a few moments ago.

As you've heard me say in the House, I believe that Ukraine's victory is vital to Canada's security. I believe all members in this House need to support the Ukrainian people with what they need until they win and achieve a decisive victory.

Traditionally, the issue of support for Ukraine has been unanimous in the House. To be frank, traditionally political parties in Canada trip over each other to try to show that they are the strongest supporters of Ukraine. Over the past year and a half, we've seen that unanimity erode.

Can you explain to folks, my constituents in Etobicoke Centre and Canadians listening the importance of supporting Ukraine?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Yes, I can. Thank you very much, Yvan, for your question and your hard work.

I started with a recognition of the historic role that Prime Minister Mulroney played when it came to recognizing Ukrainian independence. His funeral is on Saturday, and I think it's important that that aspect of his work be recognized by Canadians. Ukrainians have recognized it. I don't know if Gabriel is still with us, but in the Bloc's tribute to Prime Minister Mulroney, one thing mentioned was that he was awarded the Order of Yaroslav Mudryi, Yaroslav the Wise, by Ukraine in recognition of his historic role.

Prime Minister Mulroney called me up right after the war started, and he reminded me of his role. He told me the whole story. He was with President Bush, and the president wasn't so keen on Canada coming out so strong and so early in recognizing Ukraine, but he did it anyway. I respect him for that.

Then Prime Minister Mulroney said to me that Canada had always supported Ukraine. I'll use slightly unparliamentary language, because I'm going to quote the former prime minister. He said, “You God damn well better do everything you can. Make sure you do.”

I think Mr. Chambers was maybe a staffer in Harper's government. I don't know if that's true.

[Adam Chambers, Conservative, Simcoe North, ON]

Yes, when you voted against [Inaudible—Editor].

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I do remember conversations with Mr. Harper about support for Ukraine. He was also a Canadian prime minister who supported Ukraine.

I really sincerely hope that today's Conservative Party finds its way back to the traditional cross-party support for Ukraine that we have enjoyed in this House. It's a question of democracy versus dictatorship. It's also a question of the pocketbooks of Canadians, because as long as Vladimir Putin is able to wreak havoc, that will cause real problems for the global economy and for Canadians.

[Yvan Baker, Liberal, Etobicoke Centre, ON]

Minister, I'm going to change topics if I may.

We've heard from expert after expert coming to our committee that the main reason housing prices in Canada are so high is a shortage of housing supply. The bottom line is that we've heard person after person come into the committee and say we need to build more housing and we need to build it quickly, and they've given advice on how we should do that.

Could you speak to how the government is working to increase housing supply across the country with the goal of making housing more affordable for Canadians?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I think housing is the central challenge in Canada right now. That's one reason we shouldn't have underused housing in Canada and homes lying empty when Canadians need homes. It would be good if the Conservatives shared that view. What we also really need to do is get more homes built faster, and we're doing a lot to make that happen.

I talked about the housing accelerator fund. We have deals in place for the whole fund as it currently exists. That's going to get 100,000 more homes built. We have topped up the apartment construction loan program with $15 billion. There's a total of $40 billion in that program. That will get 100,000 more homes built. We have lifted the GST on purpose-built rental housing, and in this measure we will lift the GST from new co-op housing developments. That's really important.

The Canada Infrastructure Bank, which was mentioned earlier today, does have a role to play too in getting the infrastructure built that we need in order to get more homes built. I want to offer a factual correction to a misunderstanding—maybe I'll be generous and say that—that seems to underlie some of the Conservative questioning. The Canada Infrastructure Bank, of course, is the responsibility of the Minister of Housing. It's not part of the finance responsibilities.

[Yvan Baker, Liberal, Etobicoke Centre, ON]

Thank you, Minister.

[The Chair, Liberal, Peter Fonseca]

Thank you, MP Baker.

Now we'll turn to MP Ste-Marie, please.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you, Mr. Chair.

I very much appreciated the discussion of the rights of the Ukrainian people and the key battle they are fighting on behalf of us all.

I'm going to continue on the real estate issue, and more specifically ownership. We are living in serious circumstances because interest rates are still high in spite of encouraging medium-term prospects. However, property prices continue to rise. The end result is that an entire generation is no longer able to own property, whether in the form of a condominium, a house or some other form of real estate. The interest-free FHSA, the first home savings account for first-time home buyers, was introduced, but the measure has not reversed the trend.

What have you got to say to this generation, Minister, and what are you going to do?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Ste‑Marie, I sincerely thank you for this question. You've raised the most important question of all. Everything we discussed today is important, but I feel that this, access to housing for young people who want to buy a home, is the most important issue.

It's incredibly important to make sure that Canada and Quebec remain a country and a province in which hard work and a good job allow people to buy a house. That's why we introduced the FHSA.

This account is up and running with over 500,000 people having signed up. We know that young people want to buy their first home. That's why we created it.

But I agree with you that there is work to be done. More housing needs to be built. However, we need to put on our thinking caps and find creative solutions that will really enable young people who want to purchase a first home to do so. I believe that it's essential for our society to be hopeful and confident about the future.

Thank you for your question. Rest assured that we are working towards that goal and well aware of the fact that there is more work to be done.