Debates of Oct. 5th, 2023

Affordable Housing and Groceries Act

[Chad Collins, Liberal, Hamilton East—Stoney Creek, ON]

Madam Speaker, I do not agree with my friend and colleague's comments in terms of demonizing the private sector. The private sector is going to be an important partner to get us out of this housing crisis. However, I also do not agree with the Leader of the Opposition when it comes to demonizing municipalities.

My friend and colleague talked about working with municipalities to build the non-market housing supply. Unlike the Leader of the Opposition, who has demonized small-town mayors and municipal councils, we have worked with municipalities; our housing accelerator fund is one example of that.

Why is it important to work with municipalities rather than making them out to be the demons, as part of our housing crisis that we have today?

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, let us face it: the Liberals' and Conservatives' free-market developer-style model has not worked. I sat in local government and if they actually put money on the table for non-market housing, that would get gobbled up in a heartbeat. Municipalities want to be partners, but they do not have the resources. They have been downloaded on and downloaded on since 1992 by Conservatives and Liberals consecutively. They need resources for non-market housing. They will deliver it. The municipalities will work with the private sector. There is an opportunity to work together, but it does not mean giving up public lands. It means that we can work together in leasing out projects and working with the development community in that way.

The current method of Liberal and Conservative policy when it comes to the developer-driven model is not going to work. It has never worked anywhere around the world that an affordable housing crisis has been solved by the private sector and a free-market approach.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Madam Speaker, I appreciate my hon. colleague's raising grocery costs. Let us put some things on the record here: The day after the photo op with the five retailers, the retailers decreed to their suppliers, starting with the largest one and the second ones following suit, that they would accept no price increases from their suppliers for the next 12 months. The PBO's analysis of the carbon tax is not specific around food inflation. It is a general analysis. Food production is energy intensive.

If this hon. colleague were to convince his government partners to put a profits tax that would take the entire retail profit into the form of a tax into government coffers, that would lower the cost of groceries from a $25 set to $24, which is 4%.

With carbon tax being applied to the farmer, to the trucker and to every step of the process, with retailers saying they will not absorb it and there are no price increases, who should pay that carbon tax? Is it the farmer, the supplier to the farmer, the trucker or the distributor?

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, the Governor of the Bank of Canada said the impact of the carbon tax is 0.15% of inflation. However, we look at oil and gas companies, which are having record profits; these big grocery stores are having record profits; and the big banks are having record profits. We can look at other countries, like Britain, where the Conservatives are in government, by the way; they have an excess profits tax on oil and gas. We cannot even get Liberals in Canada to do that; never mind Conservatives. We do not need lobbyists for oil and gas here on the Hill because the Conservatives are the lobbyists for oil and gas and that is the truth. It is a diversion.

The reality is that we need an excess profits tax on these industries that are runaway, causing inflation and really harming Canadians every day with the costs that are being downloaded on them. We really need to have an honest conversation and not this diversion method of deterrence.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Madam Speaker, I appreciate my colleague's speech and his plea for off-market housing. I think that is the direction we need to take.

I would like to ask him a question that is a bit more specific. We have a structural problem. Quebec alone needs 1.1 million housing units by 2030. If we mobilized all of the resources in Quebec, the maximum number of units that construction workers could build per year is 80,000, and that is if all home builders participate. We would need to build 200,000 units in Quebec alone. I do not have the numbers for Canada, but I am sure they must be similar.

I agree with my NDP friends that we need an acquisition fund so that we can acquire existing housing, but we also need to find other solutions.

Does my colleague have any other solutions to suggest?

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, I really appreciate the comment and we are on the same page: that we need a wartime-like effort. We need to use every tool in the tool box to deal with this. Right now, the government does not have a plan. It has no plan on how it is going to build 3.5 million homes, and this is what we need to do in this chamber. We need to have that conversation and bring forward ideas. Like I said, let us use some public land, but let us keep it in public hands, leasing and working with the private sector to ensure that we can build affordable non-market housing.

This free-market approach will not work. It has not worked anywhere in the world to solve an affordable housing crisis and it is not going to start working now. I want to work with my colleague because we need a plan and right now the current government is a rudderless ship. Removing the GST on rental housing is low-hanging fruit.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, it is an honour to join the debate today virtually to continue the discussion of Bill C-56, which aims to and claims to address the dual affordability crises of the affordability of housing and of food and groceries.

There is no question on any side of this House that we are seeing very difficult conditions for most Canadians, and particularly for anyone who is not in the billionaire class. We are seeing very difficult conditions in affordability, particularly for those who are not in the housing market yet and need to find ways to meet increasingly challenging costs of rent, and, for those who are in the housing market, the increasingly high costs of maintaining their mortgages as interest rates rise.

It is with some irony I remember that during the early days of the COVID crisis, and I would say probably it was in 2020, we had at the Standing Committee on Finance the then Governor of the Bank of Canada, Stephen Poloz, appear. Some of the members said to him that we were spending this money and asked him what would happen afterward. They asked if we would suffer inflation. I remember the former Governor of the Bank of Canada said, on inflation, “That's a problem I'd love to have.” They were so certain at that point inflation was not the threat and deflation was the threat.

What happened? It was not that his analysis was wrong; it is that conditions changed dramatically. Why are we seeing rising food prices? Let us look at food for a minute and then look at housing. Bill C-56, while well intentioned, would not make a big difference for Canadians in the cost of housing or food. That is not because the Liberal government is malevolent, but it is because it has taken the wrong approach, as have the Conservatives. We really need to look at this and ask if we can really fight what we are seeing in rising costs or if we should make sure we top up government revenues, sources, such that we can provide the sources of income and revenue to Canadians so they can survive what is coming at them economically.

Let us step back and look at this. Certainly, the fact we went from a fear of deflation to inflation was an unexpected event. Putin's attack on Ukraine had the effect of driving up oil prices all around the world. The attack on Ukraine also had an impact on food prices, because, as we all know, Ukraine is part of the breadbasket of the world and provides grain in massive exports, which have been significantly challenged by blockading Russian ports.

Occasionally we have grain deals that let grain go through, but there is no question the biggest impacts on driving up prices in Canada in our grocery carts have been Putin's attack on Ukraine, the rising costs of fossil fuels as a result, and the supply chain disruptions in growing food and shipping out grains. This is combined with climate crisis events, which have created droughts, which affect access to food, and which have created extreme weather events. As an example, there are the extreme weather events that affect the island of Mauritius where most of the vanilla is grown. There are massive typhoons that keep hitting because of climate change, which drives up, by the time it goes through the supply chains, the cost of ice cream in Canada because vanilla costs more.

We are looking at a complex web of pressures that have driven up prices. If we look for guidance on what we are now experiencing, there was a 2005 book called The Long Emergency: Surviving the End of Oil, Climate Change, and Other Converging Catastrophes of the Twenty-First Century by James Howard Kunstler. He accurately predicted what we are experiencing: war, climate crisis and instability in fossil fuel production as we hit peak oil. That is what he was looking at in 2005 when the book came out.

We need to look at this and ask if we are able, with Bill C-56, to confidently say to Canadians that this will bring prices in their grocery carts down. I do not think we can, and I do not think anyone wants to say that or hold out this false hope to Canadians. We actually need to look at what we are facing. The climate crisis will drive up the price of certain foods. As long as the war in Ukraine persists, we are looking at cost impacts throughout our economy. In fossil fuel production, where Russia has hit Ukraine, it has also had an impact on fossil fuel production and on excess profits to the fossil fuel sector.

Let us step back and examine it. The approach of this bill is to create more supply for rental housing, which is good as far as it goes. I do not think any of us on any side of the House object to the idea that we should take the GST off the construction costs of building more affordable rental housing. Will that solve our housing crisis? Not when we allow short-term vacation rentals, such as the Airbnb sector, to continue to suck up what we have as available homes, making them inaccessible to people who want to live there. We must provide a very different model for how we use buildings that should be homes because they have become investment properties. The more we can take speculation and investment interests out of housing, the better off we will be, which is why the Greens have been calling for ages to get rid of real estate investment trusts, which operate to make money off housing in a way that was never intended.

I completely agree with the hon. member for Courtenay—Alberni, who mentioned in his speech the importance of co-op housing. We need to return to that.

It is a complex question on two key issues. Looking at this, we can approach rising prices by saying that we are going to do what we see in Bill C-56, and I am certainly going to vote for Bill C-56, which is trying to get a Competition Act extension to look at the lack of competition in the grocery food sector. This is good as far as it goes, as the big five control too much, but that does not go to our immediate problem, neither does getting rid of the GST on building rental housing. We need to make some rather large structural changes, like not having our GDP growth depend so much on rising home prices. Breaking our cultural addiction to rising residential home prices would make a big difference.

What do we do in the short term? We need to turn to excess profits taxes on the oil and gas sector and grocery chains. We did this with the Canada Revenue dividend during the COVID crisis. We should return to it and extend it so it applies to excess profits in the oil and gas sector and grocery chains. The Parliamentary Budget Officer estimates that if we extend the Canada dividend to just oil and gas excess profits, we would have $4.4 billion more.

We need to make sure Canadians have the money in their pockets to be able to keep a roof over their head and have nutritious food for families. That really means bringing in a guaranteed livable income. How do we afford a guaranteed livable income? We essentially did it with COVID benefits, which rolled out quite quickly and did not require needs testing. A guaranteed livable income would protect the most vulnerable in our society from increased energy prices, housing prices and grocery prices. How can we afford it? We bring in an excess profits tax on the oil and gas sector and grocery chains, as well as continuing it on banks and insurance companies. The key to this is in Motion No. 92, introduced recently by the hon. member for Kitchener Centre. We need other MPs to support an excess profits tax, so I would ask members to sign on as seconders to the motion.

We have to stand back and say that we cannot guarantee people that the climate crisis is not going to affect food prices, because it is. Until we have an end to Putin's attack on Ukraine, what we are really seeing in the oil and gas sector is war profiteering. We must not allow these multi-billion dollar multinational corporations to rake in billions in profits, which is really impacting people who can barely afford to make it to the end of the month.

With my remaining 40 seconds I will say this. Let us step back and use a different lens. Let us tax where we need to tax excess profits and get that money into the hands of Canadians who need it.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I want to make reference to the member's statement with respect to Airbnbs. It amplifies the need for the government to recognize the roles we all play. One way to meet the needs of Canadians for housing is for all levels of government to work together, federal, provincial and municipal. Airbnb is more of a local municipality issue, so it is best for the municipalities to deal with that. From a national perspective, it is important that we demonstrate leadership on a number of fronts, which I believe we have demonstrated.

Could I get the member's thoughts on how important it is that all levels of government work together to meet this situation?

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, I could not agree more with my hon. friend, the parliamentary secretary. We should get Canada to work together, to think like a country, and get all of our orders of government to work together just as well as the European Union does, with 27 separate sovereign nation states and 30 official languages. Canada operates like a group of separate fiefdoms, each going in their own direction and not wanting to co-operate with each other. I do not understand why, but that is the nub of many issues, from the climate crisis to the affordability crisis.

Just to make a quick point about Airbnb, yes, it is municipal. The City of New York has been brave and put in a rule that short-term vacation rentals cannot be for less than 30 days, because they were seeing too much available housing being sucked up into the market for Airbnbs.

We do need to act. Municipalities need to act, but they are going to need supports, provincially and federally, to take on what is essentially a multinational giant.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Madam Speaker, a recent study by C.D. Howe Institute determined that in Vancouver, the gap between the construction costs and market price of a new home is almost $1.3 million. The hon. member is from the province and from the Vancouver area. Can she tell us why this is happening and what the solution is for such a thing?

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, as a resident of Vancouver Island who cannot afford a home here, we rent and our rent has gone up. I am not going to say for one minute that I am one of the Canadians having a hard time of it. We all know what we make as MPs. However, what happened to the Vancouver housing market started with converting homes into investment properties.

I am not trying to blame everything on the previous Conservative government, so forgive me, but this did start under the Harper government with a $1-million investment fast track for getting residency in Canada. What we have is a lot of offshore money coming in to buy up million-dollar properties and leave them vacant. That began distorting our housing market in a big way, and we have seen rising home values, as we know.

People will say that is all right, because if they own their own home, that is what they cash in for their savings and retirement. A lot of people in my community who own their own home want to downsize and move somewhere else, but if they sell their home, they cannot find a place to live that is affordable in their retirement once they have divested their property. It is a complicated mess that all started when we stopped treating homes as homes and started treating them as investment properties.

[Mike Morrice, Green, Kitchener Centre, ON]

Madam Speaker, the hon. member for Saanich—Gulf Islands spoke about the structural issues that led to the housing crisis we are in, issues that have persisted for decades as investment in housing has dropped off. For example, in 2022, the rapid housing initiative, a one-time fund, was not renewed.

Could the member speak about what she has seen over the last 10 years in her time as a parliamentarian with these one-time investments without ongoing, sustained support to address the housing crisis that we are now in?

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, I offer a big thanks to the member for Kitchener Centre for Motion No. 92. I am hoping we get it through.

The housing crisis is exacerbated, no question, by an increase in the number of Canadians here. I favour more immigration, absolutely, but we need to be planning for that so we have homes for the people who are moving here

We absolutely have to act on real estate investment trusts. We have to break the cycle of expecting rising housing prices to drive our economy and recognize that we need to invest in building sustainable housing with sustainable funding, not flash-in-the-pan, one-time-only housing, as my hon. colleague referenced.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Madam Speaker, today I will be speaking to Bill C-56, an act to amend the Excise Tax Act and the Competition Act. This bill is divided into two parts to amend the Excise Tax Act and the Competition Act. I will be sharing a few points in respect of why the bill is being tabled at this moment and how it relates to small businesses.

I have one point before I begin. On a per-person basis, real GDP growth has declined for four consecutive quarters. Controlling for population growth, per capita GDP declined by 3.5% at an annualized rate, according to RBC.

In many respects, I would sum this bill up as too little, too late. After eight years of the NDP-Liberal government taxing, spending and putting up red tape, the bill before us is just not enough. Inflation, rising interest rates, unaffordable housing and a sense that everything feels broken have left Canadians wondering if their government truly has their best interests at heart.

Indeed, with tanking poll numbers, the Liberal-NDP government veered from its legislative agenda to table this bill before us today after the summer recess. A recent study by Dalhousie University's Agri-Food Analytics Lab found that over half of Canadians are employing more cost-saving measures at the grocery store than they did a year ago, and more than 86% consider themselves more price conscious thanks to rising grocery prices. However, no one has to ask me. All anyone has to do is go to the Superstore, Save-On-Foods or Costco on the weekend and look at the faces of people when they see prices.

Food Banks Canada recently reported that one in seven of their clients is currently employed. Canadians are going to work and earning a paycheque, but it does not go far enough anymore. This summer when I was door knocking, I met a young mom with three kids at home. Her husband works in the construction industry and also part time as a mechanic, but despite having a pretty good income, at the end of the month it does not add up, and they are using St. Joseph's Food Bank in Mission. It is a sad state of affairs right now.

I would be remiss if I did not mention that it is Small Business Month. For every dollar that is spent at a Canadian small business, 60¢ is returned to the local economy. For big corporations, that figure is just 11¢. Small businesses employ two-thirds of Canadians. They are truly the backbone of our economy. Unfortunately, the government has long held a disdain for small businesses and the people behind them.

In 2015, the Prime Minister said, “a large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes”. Just recently, the Prime Minister once again showed his disdain for small business owners with his half-baked promise of a CEBA loan repayment extension. The CBC proudly touted that businesses would have an additional year to pay off their outstanding CEBA loans and still receive partial forgiveness. Small businesses were thrilled to hear that they would be given more time to weather the economic storm and repay their loans.

Unfortunately, that is not the case. The fact is that businesses will only have an additional 18 days to repay their loans or miss out on the forgivable portion. That is shameful. I wonder if the Minister of Small Business will stand in this House, correct the record and clearly state that the actual extension date for small businesses to receive the forgivable portion of their loans is only 18 days and not a year, as communicated.

After the last election, the Prime Minister said in this House on numerous occasions that the Conservatives' plan on housing was “to give tax breaks to wealthy landlords”. He typecast all landlords as wealthy crooks while ignoring key barriers to building new affordable rental units, namely excessive taxes as one contributing factor. When the government was elected in 2015, it did indeed promise to scrap the GST on new purpose-built rental housing. Was its definition of a landlord a little different back then?

Members on that side of the House love to misquote me about getting the federal government out of the housing industry. What I have said is that the federal government needs to get out of industry's way so that it can build. Funnily enough, they are finally taking that step today, and I am supportive of the measure on reducing the GST on purpose-built rentals.

I will now turn to another portion of the bill, the Competition Act. The bill would repeal the efficiencies defence in that piece of legislation. Canada, I will note, is the only country in the G7 that allows this type of defence. It permits anti-competitive mergers to go ahead so long as the cost savings outweigh the negative impacts on competition. Cost savings are almost always found through job cuts. Just recently, Canadians watched as the government did nothing to stop the anti-competitive merger of Rogers and Shaw. I am glad this defence will not be able to be used in the future.

Interestingly, this is another idea that was brought forward by a Conservative in recent months. This past June, the member for Bay of Quinte tabled Bill C-339, an act to amend the Competition Act regarding the efficiencies defence. Bill C-339 and Bill C-56 make identical amendments to the Competition Act.

The problem here is that while this is a good idea to promote competitiveness in the broader economy, it would not do anything to stop rising prices at grocery stores or the anxiety Canadians are feeling when trying to feed their families and, in this particular week, planning for a Thanksgiving dinner. The cost of lettuce is up 94% across Canada. Carrots are up 74%. Oranges are up more than 77%.

I will note that part of the reason those prices are up so much is that carbon taxes have been rising. According to the Parliamentary Budget Officer, the carbon tax will cost the average Canadian family between $402 and $847 this year. By 2030, the carbon tax will add an additional 50¢ per litre to the price of gas.

Further exacerbating this is the issue of shrinkflation. I remember a time not too long ago when I could buy two pork roasts from Costco for $18. Now, for the same price, we just get one. When Canadians see the title of this bill, it gives the impression that the government is doing something about grocery prices right now. That is false.

While this is an agreeable change to the Competition Act, it would do nothing to address the immediate needs of Canadians struggling with higher grocery costs and the anxiety that comes with that. As I mentioned at the beginning of my speech, it is too little, too late.

It goes without saying that when we tax the farmer who produces the food and tax the trucker who delivers the food, those costs are going to be passed on to the consumer. If the NDP-Liberal government really wanted to address the affordability crisis right now, it would axe the tax.

While I will be joining my Conservatives colleagues in voting to move this bill forward to committee, it simply does not go far enough to provide Canadians relief from sky-rocketing prices. While it does contain good policies, it would do nothing to fix the real-time and very challenging struggles faced by Canadians in respect of finding an affordable place to live and paying an affordable price for the food they need to feed their families.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I am glad the Conservatives are going to be voting in favour of the legislation.

The member makes reference to groceries and the need for competition. Is he aware that the last major buy-up that reduced competition was under Stephen Harper when Loblaws purchased Shoppers? It had a very profound impact on the size of one company. I think the purchase was over $12 billion.

The legislation the member says he is going to vote in will help deal with issues like that. Does he see that as positive? Does he support that particular aspect of the legislation?

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Madam Speaker, my colleague from Winnipeg North raises an important point about the Competition Act. The efficiencies clause, which was likely used, but I cannot confirm that, in the context of the merger he referenced, was the same one used in the Rogers-Shaw merger. I am not disputing that this is a positive change. In fact, my colleague from Bay of Quinte tabled very similar legislation in this Parliament. However, we need to do more with respect to the Competition Act to allow for competition to flourish. That relates to the number of grocery stores and the number of businesses offering those services to Canada.

The principal point I am trying to make today is that a change to the Competition Act right now would not impact the prices people are paying at grocery stores. Despite the title of this bill, an act to amend the Excise Tax Act and the Competition Act, and the short title, the affordable housing and groceries act, it does nothing to reduce the cost of groceries in the immediate term.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Madam Speaker, I commend my colleague on his speech.

It is always a bit disconcerting to hear the Conservatives talking about the cost of living. I would like to remind the House that, a few weeks ago, in September, the Conservatives held a convention in Quebec, and it cost $1,700 to attend.

Let me take out my common sense calculator. If we exclude taxes—because if anyone is familiar with taxes it is the Conservatives—it would take a person who earns $15.25 an hour, which is the minimum wage in Quebec, five weeks of work to be able to participate in a three-day convention. That is their common sense. That is the Conservative Party.

In 1986, there were 13 grocery chains. Now there are only three. The Conservative Party was in power for 17 years, often with a majority government.

I want my colleague to name one thing that his party did to amend the Competition Act since 1986.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Madam Speaker, in Quebec, voting Bloc means voting to raise taxes. The Bloc Québécois is costing Quebeckers more. Quebeckers will consider voting Conservative because we will lower taxes. We will support families and lower the cost of living.

The Bloc Québécois wants to raise the cost of living for Quebeckers. We will put a stop to that. It is just common sense.

[Randall Garrison, NDP, Esquimalt—Saanich—Sooke, BC]

Madam Speaker, I listened with interest to the member's speech. What I did not hear was any discussion of co-operative housing. I know that the member has co-ops in his riding, and they have made a great contribution to providing affordable housing for families. Does the member support a reinvestment in and reinvigoration of the co-operative housing movement in this country?

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Madam Speaker, I am in no way opposed to further increases in co-operative housing across Canada. It has played an important role in providing a safe and affordable place for many of my constituents to live.

However, in order to reduce the overall cost of housing in Canada, we not only need to be taking the measure in this bill of reducing GST payments on purpose-built rental construction. We also need to have a whole-of-system approach to make sure we can produce all types of housing so Canadians have a safe and affordable place to live. It is not lost on members of the chamber that we had more houses, in real terms, built in 1972 than we did last year. We have to do more. What we are doing right now is not enough.

[Louise Chabot, Bloc, Thérèse-De Blainville, QC]

Madam Speaker, since this my first opportunity to give a speech since Parliament resumed, I would like to take the opportunity to say hello to all the people in my riding of Thérèse-De Blainville and to once again tell them that they can count on me. I reiterate my commitment to be a strong voice for them in Ottawa.

When Parliament resumed, I told my constituents that we still do not know what the Liberal government's agenda is, but, for us, it is clear that the very top priority must be the housing crisis and the financial situation of seniors. In the current socio-economic context, our choices and actions must be guided by social solidarity.

The bill before us basically deals with two things: the excise tax, as it pertains to housing, and the Competition Act. This is the government's response to a crisis that has been going on for months and, in some cases, even years. It is nothing new. I am talking about a public finance crisis, a cost of living that is far too high for our constituents and an ongoing housing crisis that is only getting worse.

I am still a little naive, and glad of it. When the government announced its big cabinet shuffle last summer, I figured it would gain some momentum and change course. A big cabinet shakeup was announced to send a message, but instead the news was full of examples of how expensive and difficult life was getting for people. Nothing came out of it. After three days we heard the word “housing”, but that was it.

I can say right now that the Bloc Québécois supports the principle of Bill C‑56. The bill is a rushed response to show that the government is doing something about housing and the cost of living.

I am a little less naive than before, but not by much. Let me say that this bill does not go far enough and is not ambitious enough. It does not address the situation and falls far short of addressing the current situation.

As far as housing is concerned, the Canada Mortgage and Housing Corporation, or CMHC, reported in its January 2023 rental market report that renter households are dealing with a significant increase in costs. In 2022, the average rent for a two-bedroom apartment increased by 5.6%, or double the average recorded increase from 1999 to 2022. For new renters it is even worse. The increase is nearly 20%.

If we continue to view housing as an asset then we will never get out of this mess. Housing is a right. Food and housing are basic needs. These are rights. Our response to the housing crisis, for our constituents, needs to be bold.

I think there is a sense of urgency because we are facing a housing crisis that cannot be ignored. The current government has acknowledged this crisis, but the proposed measures, especially this bill that abolishes the GST on new rental housing construction, is a drop in an ocean of needs.

It has been estimated that Quebec will need 1.1 million additional units by 2030. That is six years from now. That is tomorrow. It is an alarming situation that calls for bold, ambitious and powerful measures.

According to CMHC, costs will rise faster in Quebec than anywhere else in Canada. There are several reasons for that, including interprovincial migration and immigration. Quebec will be hit much harder by the housing shortage than other regions. CMHC estimates that housing prices in Quebec will double by 2030 compared to 2019. Who is going to tell Quebeckers that their rent will be nearly double in six years? That 102% increase will be the highest in Canada by 2030, even topping Ontario. Granting a reprieve from the GST may seem like a positive measure at first glance but, in reality, it is inadequate. It is high time we adopted far more structural and ambitious solutions.

The government appointed a federal housing advocate in 2022. She wrote a report that I encourage everyone to read. She herself has repeatedly emphasized that the private sector alone cannot solve the housing crisis. Large-scale construction of social and affordable housing is the only real solution. Unfortunately, this bill offers nothing at all for social housing and does nothing to make housing more affordable. Eliminating the GST on rental housing raises questions. How many rental units will it create? How many affordable units will it create? We do not have answers to those questions. Maybe regulations will provide answers.

The answer from an economic perspective is usually supply and demand. If supply increases, demand will be met and prices will go down. There is no guarantee that prices will go down, though. There is no guarantee that this will make more truly sustainable affordable housing available. Everyone in the sector, including non-profits, co-ops and municipalities, has solutions to these problems. They understand the situation. They are on the ground. They know what is needed.

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, of which I am a member, has conducted several studies on housing, the national housing strategy and the CMHC, among others. Some strong recommendations have been made, none of which are about demonizing the private sector. Instead, they suggest that it is time to look at building housing and renovating existing units. It is important to invest in what we already have, which is entirely possible.

The new Minister of Housing, Infrastructure and Communities appeared before our committee. There are currently 4,000 housing units just waiting to be renovated pursuant to the old agreements with the federal government. However, the federal government is not letting any money flow. As my colleague from Longueuil—Saint-Hubert said, we could have housing for these people by July, but the government is dragging its feet.

Approximately $82 billion in taxpayers' money was allocated to the national housing strategy, which is now five years old. Because of bureaucracy and red tape, no energetic action has been taken to meet the public's urgent needs. Nothing has been accomplished.

Five years have passed since the national housing strategy was launched, and there are still five more years to go. The government needs to do a 180° turn.

When a strategy is not meeting the needs, then it can be changed. That is particularly true when the government is creating programs and funds in which it is prepared to invest $900 million, but then it is waiting and failing to take action.

Given the current crisis, citizens deserve answers from their elected officials. It is time to act. This bill deserves—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

The hon. member for Hamilton East—Stoney Creek.

[Chad Collins, Liberal, Hamilton East—Stoney Creek, ON]

Madam Speaker, I very much enjoyed the speech from the member opposite. I have worked long and hard with her at the HUMA committee on many housing studies, as she just referenced.

I always put the province of Quebec on a pedestal when it comes to supporting non-market housing for residents who are in need of affordable housing. I am in the unenviable position of being in the province of Ontario, which has a Conservative government whose approach to affordable housing is to make people rich in the private sector.

My question, and the member emphasized this in her speech, is this: Why is it important that all three levels of government address the national housing crisis we have? In certain provinces it is happening, and they are making inroads. The province of Quebec is a great example, and I would put the province of British Columbia in that category as well. However, here in Ontario it is not working, because we have a provincial government that has no affordable housing programs to match municipal contributions as well as federal. Again, my question to the member is this: Why is it important that all three levels of government work together?

[Louise Chabot, Bloc, Thérèse-De Blainville, QC]

Madam Speaker, I want to commend my colleague. It is a pleasure to work with him on such important issues. I thank him for drawing attention to Quebec's initiatives.

There are many people in Quebec who also want to do more, but I think there are important programs in place. Why? It is a matter of political will. Long ago now, Quebec made a social choice to address the issue of housing. Of the three levels of government, Quebec and the municipalities are the ones that have the expertise in this area.

When the federal government decides to use its spending power and do its part to support what is being done, it must do so in only one way. We do not expect the federal government to give a slap on the wrist to the municipalities and governments that are not doing their job. We expect the federal government to support them by giving them—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

The hon. member for Lévis—Lotbinière.