Madam Speaker, I am glad to have a moment to be able to get up and speak to Bill C-56, an issue that I know matters to all of us here in the House.
On September 21, the Deputy Prime Minister and Minister of Finance introduced an act to amend the Excise Tax Act and the Competition Act. This government has consulted and worked alongside the public to establish a tangible solution to alleviate this burden for hard-working Canadians. In doing so, we have arrived at Bill C-56, which would establish the affordable housing and groceries act.
This act is primarily focused on taking a stand against the cost of living crisis and delivering on the government's agenda of making life more affordable for all Canadians. We envision this act would be welcomed by all members of Parliament as it addresses many of the problems our constituencies have raised, by making life more affordable. This act does nothing other than endorse that objective, which is one we all care about.
In our public consultations on addressing the cost of living crisis, we received repeated requests to tackle the rising cost of groceries. The government fully understands that higher prices have made life more challenging for many Canadians and their families. I think we all know that because all of us go to grocery stores. We are surprised at the markup on so many items, as well as the tremendous profits our grocery companies are making on the backs of all of our families.
In May, a young lady from a neighbouring constituency reported that she must leave her home near Jane and Eglinton at 6:00 a.m. to commute nearly an hour to the Fort York Food Bank, and wait additional hours to shop for her groceries. She does this in the hopes of providing food for her children, ensuring they do not go to school hungry, and also to have a hot meal ready for them when they come home. It is very sad that, in 2023, in Canada this is happening.
Today, we are introducing a solution that will hopefully help her and prevent other Canadians from enduring this hardship. Over the past 12 months, we have consistently fought inflation effectively. We have managed to reduce inflation to 4%, almost two basis points lower than all 33 OECD countries, but we need to continue to drive it down even further. That is why last week, we summoned the CEOs of Canada's major grocery chains to Ottawa to devise a plan to stabilize grocery prices by Thanksgiving or face consequences if they fail to do so.
It is quite a challenge to attempt to do this, but I think it is important that the government take to task the different companies so they get a better understanding. They are reaping the profits on the backs of everyone else. They need to be reducing prices as much as they possibly can because Canadians are suffering as a result of what they are doing. If they fail to provide a plan by Thanksgiving, then the government will use whatever tools it has in the tool box to force them to do that.
The opposition leader and his one-liners will not support Canadians, but our effective measures, we hope, will. Finding ways to reduce the cost of living is no easy task. A relevant adage runs along the lines of, “If you don’t miss two or three planes a year, you are spending too much time in the airport.” This government understands that, and that is why it is exploring ways to address the affordability crisis without stifling or controlling the market.
In 2022, our government passed significant legislative amendments to the Competition Act, including provisions to combat price-fixing with some of the world's highest penalties. Since then, we have launched a comprehensive review of the Competition Act and engaged in public consultations with the aim of modernizing Canada's competition framework.
Our government is now introducing amendments that would prevent large business mergers with anti-competitive effects, empower the Competition Bureau to conduct precise market studies, and halt anti-competitive collaborations that harm small businesses, particularly small grocers. Our government has also bolstered the bureau's enforcement capacity by increasing its funding by $96 million. There have been decisions made in the past by the Competition Bureau that did not align with the message we are attempting to deliver today.
Taking this feedback into account, we have removed the efficiencies exception from merger review. As a unique feature of Canadian competition law, the efficiencies exception currently protects from state intervention mergers that would harm competition, as long as the efficiency gains they generate offset the harm to competition. All of these are very important steps to take to ensure competition is healthy and that there is actually more competition in Canada.
The provision has been a long-standing focus of criticism, often cited as an example of the act’s ineffectiveness and poor outcomes. Many pointed out that the law focuses too narrowly on calculating efficiencies that benefit specific firms over the short run, which, in turn, enables industry concentration and consumer harm over the long run. Again, this is exactly what we are trying to prevent from happening.
Through this initiative, the government proposes to repeal the exception, following which an anti-competitive merger could now be remedied by order of the Competition Tribunal, notwithstanding the efficiencies generated. Abolition of the defence puts competition first and brings Canada in line with international norms.
Our government will continue to work on affordability for Canadians and promote a marketplace that would allow our economy to grow. Through various measures, we provide more authority to the Competition Bureau to better understand anti-competitive mergers that limit choices for Canadians and block competition that restricts Canadians' options.
This proposed package comprises carefully selected areas that could directly contribute to addressing the most immediate concerns, while the government continues to consider further reform proposals to be introduced in the near term through future legislation.
A negation of our constant fight against inflation is the rising cost of rent, which continues to make life increasingly unaffordable for people. We have people throughout our country who are gouging renters and making it extremely difficult to make ends meet for many Canadians, no matter where they live in Canada.
This act seeks to take concrete steps to deliver real-time relief to renters from coast to coast to coast. In these efforts to do this, we will be incentivizing housing unit construction. We are enhancing our GST rebate model, currently at 36%. We will be increasing it to 100%, effectively removing GST from construction costs for new rental units intended for long-term renting, such as apartment buildings, student housing and senior residences.
We know that has already had a big response back from the development community. Yesterday a developer indicated he was going to build 5,000 rental units and would have them in the system very quickly.
The measure also removes a restriction in the existing GST rules to ensure that public service bodies, like universities, public colleges, hospitals, charities and qualifying non-profit organizations, that build or purchase purpose-built rental housing are permitted to claim the 100% GST rental rebate.
This will accelerate much-needed rental housing builds across Canada. This enhanced GST rebate would apply to projects beginning on or after September 14, 2023, up until December 31, 2030. All projects in this timeline must be completed by December 31, 2035.
This rebate will only apply to new builds and not renovations, solely to incentivize supply and fight to bring down the increase in rent costs.
I hope Canadians see an evident and comprehensive response from the government to address the current cost of living crisis affecting us all. This bill presents the most logical steps towards ameliorating the standard of living for many Canadians and keeping us on track to become one of the top G7 countries in reducing inflation. If that is something this House seeks to accomplish, and I know it does, there is no valid reason to oppose this bill.
