Bill C-56

Affordable Housing and Groceries Act

An Act to amend the Excise Tax Act and the Competition Act

Part 1 amends the Excise Tax Act in order to implement a temporary enhancement to the GST New Residential Rental Property Rebate in respect of new purpose-built rental housing.
Part 2 amends the Competition Act to, among other things,
(a) establish a framework for an inquiry to be conducted into the state of competition in a market or industry;
(b) permit the Competition Tribunal to make certain orders even if none of the parties to an agreement or arrangement — a significant purpose of which is to prevent or lessen competition in any market — are competitors; and
(c) repeal the exceptions in sections 90.1 and 96 of the Act involving efficiency gains.

Affordable Housing and Groceries Act

[Stephen Ellis, Conservative, Cumberland—Colchester, NS]

Madam Speaker, it is nice to hear my colleague across the way with platitudes for farmers. The real question has been asked multiple times in this House in different ways. For farmers who must hire temporary foreign workers and create housing and shelter for them, will those farmers qualify for the GST rebate on the housing?

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Madam Speaker, the whole issue is how we need to bring in foreign workers and temporary workers to be able to help pick the tomatoes, cucumbers and all the wonderful stuff we enjoy every day. Finding Canadians to do that is very difficult, so we all know that temporary foreign workers are a very important part of our economy. They have to be treated fairly, they have to be treated appropriately and they have to have decent housing. We know with the past practices we have seen, they lack all of those things. I think a variety of pieces of legislation have been put forward in different ministries that are going to ensure that when workers come they are treated fairly, they are paid appropriately and they are also housed. Whether that will fit into the GST requirements, I do not know. It is a new announcement, but I certainly would hope that there is whatever is required to ensure those workers who are feeding us every day get the support they need.

[Lindsay Mathyssen, NDP, London—Fanshawe, ON]

Madam Speaker, earlier one of the member's colleagues had talked about the bill as something that would be “transformational” and so critical, yet I found that a bit hyperbolic, considering we know this is a good first step, but only one of so many that are needed, in terms of housing, affordable housing and much-needed housing in this country. Even economists from RBC are saying that this is one step to improve housing stock, but that it would do nothing to lower rents in the short term.

As such, I would like to hear from my colleague what the government is planning to do to directly support low-income Canadians so that they can pay their rent.

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Madam Speaker, I do not think we should fool ourselves, and we should not be over the ceiling with anything. These are initiatives that are moving forward. I hope they will be able to materialize very quickly, but I think we have to be realistic. This is legislation that is coming in now. The needs of our communities are out there today, and there are people out there who are homeless and people in low-income families who cannot find housing because they tripled the rents that are required. I would like to see there be some rent controls in the systems that would prevent the doubling of rent.

[Scot Davidson, Conservative, York—Simcoe, ON]

Madam Speaker, right now, far too many Canadians are sitting around their kitchen table with their head in their hands, saying, “What do we do now?” They are filled with anxiety, fear and apprehension about what the future holds, and it is no wonder. As inflation continues to rise, everything continues to get more and more expensive. Young parents, working families, seniors and students are seeing their budgets stretched, and each dollar is not going far enough. This is causing most Canadians to feel a profound sense of hopelessness.

There is nothing more they can do to make things easier. There is nothing more they can do to afford a home of their own. There is nothing more they can do to ensure a better life for their children. They cannot take on any more extra shifts, a side hustle or a better-paying job. There are only so many hours in the day, and whatever extra income they make is immediately evaporated by price increases and tax hikes. Whatever they take home will make virtually no difference toward an achievable down payment on a home of their own. They cannot look for any more ways to save. They can cut back only so much, and at a certain point it becomes unaffordable just to put food on the table or gas in the car. There is no longer any money left over to save toward goals like home ownership, starting a small business or children's education.

Canadians who have worked hard and made sacrifices deserve better than to be left feeling hopeless because of our country's economic situation. They deserve better than to fall farther and farther down each rung of the income ladder, descending from middle class to poverty, and some even farther. They deserve to know that their government is ready to do whatever is necessary to address the cost of living crisis in Canada.

Unfortunately, the Liberal government has shown, time and time again, that it is completely out of touch with the day-to-day realities faced by Canadians. It is unable to step up and take responsibility for the situation facing our country, the situation for which the government is directly responsible. To the Liberals, out-of-control inflation is a global phenomenon and not the result of eight years of uncontrolled inflationary spending. Instead of changing course or finding solutions, the Liberals are always looking for a scapegoat. To them, it is far easier to find someone else to blame than to do something that will actually address the staggering cost of fuel, groceries, rent and mortgages.

This is clear once again, based on the contents of Bill C-56, which is supposed to be the Liberals' comprehensive affordability bill to address high grocery prices and rental prices. The proposed legislation sends a message from the Liberals to every Canadian who is feeling hopeless and is struggling to afford the most basic of necessities. What is that message? It is that the government does not care about how hard things have become and that, given the lack of concrete measures in this bill, the Liberals are not serious about making life more affordable.

Since last year, the cost of groceries in Canada has gone up 6.9%. The cost of food is up 18% since 2020. No matter how they look at it, Canadians are paying more and more each month to feed their families. However, Bill C-56 would do nothing to lower food costs for Canadians by addressing the primary reason why grocery prices are increasing: the Prime Minister's carbon tax. The Liberals' expensive carbon tax makes everything more expensive. It affects the entire supply chain from farm to plate: the farmer who is taxed to grow the food, the trucker who transports it, the store that sells it and the family that buys it. After eight years, everyone is paying more and hurting more as a result. Because of the carbon tax, it is now cheaper for Canadians to buy onions that were grown and packaged in Mexico and transported across North America than it is to buy the exact same onions that were grown and packaged here in Canada. It has become unbelievable.

We know that Bill C-56 would not address the most significant driver of food prices in Canada, but what would it do? In Bill C-56, there are measures to ensure increased competition in the Canadian marketplace. Some of these common sense measures were introduced by Conservatives earlier in the year. We support efforts to improve economic freedoms of Canadians through increased competition. However, the massive market share held by Canada’s biggest grocers, Loblaws, Sobeys and Metro, is a problem that has been decades in the making. Even if the bill were to become law tomorrow, no Canadian would see their food bill go down. In fact, in the government’s press release for Bill C-56, it admitted that its goal is to stabilize food prices, not lower them.

Just last week in the House, during question period, the Prime Minister said he was glad the rebates Canadians received cancelled out all of the increased costs his government is responsible for putting on Canadians, but that is just not good enough. Under the Prime Minister, high grocery bills are here to stay. That is the difference between this tired, corrupt, out-of-touch Liberal government and Canada’s common sense Conservatives. We believe that the current status quo is not acceptable. That is why Conservatives would lower costs for Canadians by axing the carbon tax and by bringing home more powerful paycheques that would buy affordable food once more.

We know that the government never knows where the puck is going. As with so many other issues, this is the case with the housing crisis facing our country. The government is a day late and a dollar short. The average rent in Canada has now increased by 6.5% since 2022. The costs of mortgages, rent and down payments have doubled, and nine in 10 young people say they will never be able to afford a home. After denying there was a problem and doing nothing for far too long, the Liberals have now proposed in Bill C-56 to remove the GST from new purpose-built rental housing. While this is a step in the right direction after years of broken promises, it is far too limited in scope to make enough difference for too many Canadians who have seen their dream of owning a home shattered.

As part of the leader of the official opposition’s comprehensive plan to build more homes, Conservatives have pledged to remove the GST on the building of any new homes with rental prices below market value. The Liberal rebate proposed here would make it easier for developers to build more expensive homes that only the ultrarich can afford.

I often say that my primary responsibility and the responsibility of the official opposition is to make the government the best it can be. As a Conservative MP, I take this job seriously. While it is good to see some of the measures Conservatives have advocated for incorporated into this bill, it ultimately does not go far enough. Canadians want more action. Bill C-56 shows that the Liberals are not taking housing and affordability issues seriously, and it is just another confirmation for Canadians that the best the Liberal government can be is just not good enough. As more powers of sale take place and as the lines get longer at the food banks every day, the Liberal approach is not working for regular people.

I am reminded once again, just as I was when the government brought in its budget a few months ago and I looked through the first pages, that the tired Liberal government no longer has a vision. There is no vision for this country. Canada should be a world leader, not an international embarrassment. We should be at the forefront of so many sectors, like agriculture and advanced manufacturing, not lagging far behind. We should be a country that can ensure that its citizens have a roof over their head. That is the most basic expectation we can have, but the Liberals have failed in this.

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

Madam Speaker, it is interesting that the member talks about inflation on groceries and that the Conservative Party supports competition, yet when the leader of the Conservative Party was in government with Stephen Harper, that is when we saw the merger of Loblaws and Shoppers. Today, combined, they make up, I think, close to 40% of total grocery sales. There was actually a reduction of competition when the leader of today's Conservative Party was in government with Stephen Harper, yet they say that they support competition. It is somewhat weird to be hearing that. The member says we need to get away from the price on pollution, yet Erin O'Toole, another leader of the Conservative Party, said we should have a price on pollution.

Why should Canadians trust the Conservative Party of today?

[Scot Davidson, Conservative, York—Simcoe, ON]

Madam Speaker, I would say two things to the hon. member for Winnipeg North.

First of all, the carbon tax relief would be instant for Canadians. The Liberals looked at where they were in the polling, and, all of a sudden, we have Bill C-56. Let us rush, rush again. I would also say, to bring up housing because it is so important in my riding, the Liberals have had, think about it, eight years to build houses. I know there are a number of ridings across Canada where people are living in tents. The snow is about to fly. Here we are with Bill C-56, and the snow is about to fly in two months. Are we going to bus people to Florida?

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Madam Speaker, in his speech, my colleague talked a lot about the carbon tax, although he should have focused on Bill C-56. I will elaborate on this because, lately, many Quebec Conservatives have said that there is a second carbon tax that applies in Quebec. From what we understand, this is not true. I am sure Quebec Conservatives would never knowingly state falsehoods, so I think they must not be informed. They did not do their research and did not make a meaningful contribution to the debate.

What we have is actually a regulation that requires oil companies to reduce their greenhouse gas emissions by 2030, but with billions of dollars in subsidies to help them do so. Some say that there will still be an added cost at the pump.

Is my colleague saying that the Conservatives are protecting the record profits of oil companies that, in turn, pass the cost of all that on to ordinary Canadians?

Instead of protecting ordinary Canadians, are the Conservatives protecting oil companies’ record profits?

[Scot Davidson, Conservative, York—Simcoe, ON]

Madam Speaker, I am going to try to make my colleague understand.

In York—Simcoe, people feel that they are on the outside looking in. They are paying the carbon tax, and right now they feel like they are subsidizing China to produce. They are looking around and saying to me, “Scot, we have got onions coming in from Egypt and Morocco. We are losing our competitive edge internationally.” This has got my farmers very worried. The government could have passed Bill C-234 for farmers, and that would have made a huge difference to grocery prices. Farmers are going to have to dry their grain and their beans. Half of my riding is on propane, half on natural gas. We want the infrastructure, and the carbon tax is not working for the people of York—Simcoe.

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

Madam Speaker, we have heard that the Conservative leader wants to sell 6,000 government buildings. We know what that looks like, when the private sector gets involved with government. We just saw Doug Ford's government try to sell off the Greenbelt in Ontario, which would have amounted to $8 billion going to a handful of developers, with no assurances that the housing that would have been developed would have been affordable.

There is nowhere in the world that the free market has solved an affordable housing crisis. Does my colleague agree that public land should be in public hands and that any buildings used for housing should be leased out and in the hands of the public for non-market housing? Will he condemn the—

[The Assistant Deputy Speaker, Carol Hughes]

The hon. member for York—Simcoe has time for a brief answer.

[Scot Davidson, Conservative, York—Simcoe, ON]

Madam Speaker, I always thank my colleague for his support of my plastics bill. I think he has spoken 96 times now on the importance of my plastics bill, Bill C-204, that is going through the Senate again. It will be back in the House.

In support of Lake Simcoe, I am glad he also supports our plan to put 15% of federal government properties into houses that people can afford.

[Leah Taylor Roy, Liberal, Aurora—Oak Ridges—Richmond Hill, ON]

Madam Speaker, it is an honour to rise to address Bill C-56, our affordable housing and groceries act, as affordability is an issue of great concern to many of the constituents in the riding of Aurora—Oak Ridges—Richmond Hill, which I have the privilege of representing.

Affordability continues to be a major challenge for Canadians. Despite the inflation rate decreasing from a high of 8.1% last June to 4% last month, prices remain high. As we all recognize, global events, including COVID-19 and the post-COVID economy, the climate crisis and, of course, the unconscionable invasion of Ukraine by Russia have contributed to high inflation worldwide. Even though the Canadian economy has done well, compared to most other countries, it is of little solace to Canadians who are struggling. While global inflation was not caused by the Government of Canada, it is the responsibility of us all to continue to put forward measures to help Canadians.

The pandemic created a unique challenge through the closure of businesses, the creation of labour shortages and the disruption of supply chains. For the first time, for many, we saw some of the worst consequences of an interconnected global economy. The reality was exacerbated by extreme climate events such as flooding, forest fires and heat waves that have swept across countries and continents. In fact, 2023 was the worst year on record for wildfires in Canada. In addition to all that, the war on Ukraine impacted vital food exports that Canada, as well as many other countries, rely on. This conflict has increased global commodity prices, further exacerbating inflation and affordability issues here at home.

Inflation in Canada has decreased to 4% from a high of 8.1% in June 2022, as I have already said, and that is considerable progress. However, the stark rise in oil and gas prices due to large cuts by the Saudi Arabia energy minister and OPEC highlights the precarious nature of this commodity and illustrates that we are not yet at the stable prices Canadians need. A lot of the increase in inflation recently was due to the rise in oil and gas world commodity prices.

A noteworthy point by Tiff Macklem asserts that the source of inflation is from these impactful global events and not, as the opposition believes, that putting a price on pollution is the driving force. In fact, Tiff Macklem, who the opposition loves to quote, calculated that the price on pollution only contributes 0.15 percentage points to inflation, a very small percentage of the inflation we have experienced. This does not take into account the cheques that Canadian households, in provinces that are part of the federal backstop program, receive four times a year, which help to offset these increases. Additionally, while we have no specific estimates of the inflationary impact of climate events, we do know that there has been a great deal of money spent fighting these events. The decreased food supply due to climate change has had an additional impact on inflation rates.

While we must fight the climate crisis, we must also fight the affordability crisis. Thus, we are introducing additional measures to do just that. We are introducing measures to respond to the affordability challenge. With Bill C-56, our affordable housing and groceries act, we are proposing amendments to the Excise Tax Act and the Competition Act to make rental housing more affordable and encourage greater competition to stabilize prices.

First, we are removing GST on new rental housing for apartments, student housing and senior residences to encourage newbuilds to support the housing crisis. It is not the only answer, but we have heard from many housing advocates that this will definitely help. Increasing supply in all sectors of the housing market will drive down rental rates. This measure is being applied to all rental units that are being built. This plan is a continuation of the Liberal government's 2015 commitment to affordable housing with the social infrastructure funding stream and other programs, so this is building on actions that have been taken.

This government has been putting forward measures to address the housing affordability crisis for years, but we see that more is needed. This is an additional measure that will help increase supply and bring down rental costs. This is also meeting the SDG objectives of reducing poverty, inequalities, improving health care and creating economic growth.

Additionally, we have done many things to address the cost of groceries. I sit on the agriculture committee. We have had two studies on food prices, one on food security and one on grocery prices. A number of recommendations were made in these studies, and the proposed changes to the Competition Act would address many of these.

However, we still need to do more. Therefore, the government, the Prime Minister and Minister Champagne called in not only the heads of the major grocery chains but also the heads of the—

[An hon. member]

Oh, oh!

[Leah Taylor Roy, Liberal, Aurora—Oak Ridges—Richmond Hill, ON]

Madam Speaker, yes, I realize I said a name I should not have.