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

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Madam Speaker, the current situation is that Canada has let oligopolies take over. That is true in the food industry, and it is also true in the banking sector. Taking action to fix that may require more courage, but it will have an impact on people's wallets. This situation also exists in the gas industry. It would take more courage for the House to address these issues. It is also true in telecommunications.

As with the reform of the Competition Act, I applaud the progress that has been made by the Minister of Innovation, Science and Industry. I was there for his presentation this morning at Canada's competition summit. There is now a willingness to act that I believe was needed. For several years, I have also been urging the Standing Committee on Industry Technology to take action on competition reform, which is an important solution.

However, at this time, no action is being taken about the oligopolies. I look forward to seeing what splashy measures the government proposes when Parliament returns.

Will they have any impact? How can the government take a coercive approach with the large chains without raising prices and passing the cost on to consumers? I am very worried, so I look forward to getting some answers.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Madam Speaker, I would like to share a story. There are four grocery stores just a block away from where I live. One of them is a major chain store, like the oligopolies my colleague is talking about. Another one is a small independent grocery store owned by a Portuguese family. All their children work there. Strangely enough, the prices at the small independent store are sometimes half of what the chain store charges. Inflation, however, supposedly affects everyone equally. There has to be something wrong with the logic of the major grocery chains.

I would like to know what my colleague thinks when the Liberals, half-heartedly and almost on bended knee, beg these huge oligopolies to stabilize prices. What is the use of stabilizing prices when prices are already too high and people are going without food?

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Madam Speaker, my colleague from Rosemont—La Petite-Patrie is in no position to lecture anyone about going down on bended knee and demanding things from the government, but that is another debate.

However, the question remains. Where are the profits going? They are certainly not going to our farmers, who are on the verge of bankruptcy. Things are really tough right now. My region has had a drought, and that is on top of rising input and fuel costs. The challenges are enormous. It is important to strengthen local distribution channels and ensure direct access to farmers. The growing number of intermediaries means that, if everyone takes a share, consumers end up paying more.

Right now consumers have very little direct access to farmers. The major players who control the distribution market are taking so much money that processors are no longer making any money and consumers are paying twice as much.

Local distribution channels must be strengthened. We need to invest in our regions and create public markets and permanent structures that will encourage consumers to visit. That way, we can improve our agricultural industry and our economy.

[Richard Lehoux, Conservative, Beauce, QC]

Madam Speaker, when it comes to local distribution and slaughtering capacity, we know the situation could substantially improve. There are only a few abattoirs throughout the regions, in Quebec and across Canada. There is an over-concentration.

Does the federal government have a role to play here?

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Madam Speaker, there are no abattoirs in Abitibi—Témiscamingue. It is a serious problem for our agriculture. Our farmers have to get their beef slaughtered more than 500 kilometres away. How is it that are we able to get programs to compensate the transportation of livestock, but we cannot get programs that should be fully funded by the governments? Obviously, it is hard to make abattoirs profitable. Having programs, however, would help us create economic diversity.

There is a cost to the quality of meat, the transportation, the environment and others. We need to invest in regional abattoirs.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Madam Speaker, it is a pleasure to rise today to speak to Bill C-56, the affordable housing and groceries act.

The entire world is experiencing a global inflation crisis. Due to the COVID-19 pandemic, the illegal Russian invasion of Ukraine and supply chain and climate change challenges, inflation is a worldwide issue. Compared to other G7 countries, Canada has fared very well, but that does not mean our country is immune to the factors driving up high prices around the world.

COVID-19 was an unforeseen global crisis. The world essentially ground to a halt. Canada has performed relatively well through the pandemic recovery thanks to the resiliency of the Canadian economy and in part to the programs the government introduced to support Canadians and business owners. However, just because Canada is doing better than many other G7 nations, that does not mean Canadians are not experiencing difficulties.

This past summer, I spoke to many constituents in Surrey—Newton who had concerns about the price of housing and the price of groceries. Therefore, I am very pleased Bill C-56 was the first piece of legislation the government introduced this fall session. Due to global inflation, the government understands that many Canadians are struggling to make ends meet. Although we have been introducing measures that have helped Canadians, we must continue to do more to provide targeted support. Bill C-56 addresses what we would do to help build more rental housing and to try to curb the rise in prices we have seen in grocery stores throughout the country.

Making housing more affordable is something we must tackle, including where the federal government can influence the activities within the marketplace so all Canadians have the opportunity of owning a home. Bill C-56 puts forward legislation to encourage the construction of much-needed purpose-built rental housing. We are proposing to eliminate the GST on the construction of new apartment buildings, student housing and seniors residences across Canada. Working on housing supply is an important part of what the federal government is doing to help Canadians. For a rental unit valued at $500,000, the GST rental rebate would deliver $25,000 in tax relief to developers and builders. This tool would help create the necessary conditions to build the types of housing that we need and that families want to live in.

This legislation would also remove a restriction on the existing GST rules to ensure that public service bodies, such as universities, public colleges, hospitals, charities and certain not-for-profit organizations, could build or purchase purpose-built rental housing and be permitted to claim 100% of the enhanced GST rental rebate.

We are also calling on provinces that currently apply PST or the provincial part of the HST to rental housing to join us by matching the federal rebate for new rental housing. It is very encouraging to see that certain provinces would be participating in this program. We are also requesting that local governments put an end to exclusionary zoning, and we are encouraging them to build apartments near public transit in order to have housing accelerator fund applications approved.

Launched earlier this year, the housing accelerator fund is a $4-billion initiative designed to help cities unlock new housing supply, targeting approximately 100,000 units across the country. I look at lead times for projects, particularly in the Lower Mainland and more particularly in Surrey, and they are up to two years. To bring that down, this $4-billion bill would help cities hire more planners, inspectors and plan checkers so the process can be passed and there would be more inventory in the market. It would also support the development of complete low-carbon and climate-resilient communities that are diverse, affordable, inclusive and equitable. Every community across this country needs to build more homes faster so we can reduce the cost of housing for all Canadians.

Through the one-time grocery rebate issued in July, we delivered targeted inflation relief to 11 million low- and modest-income Canadians and the families that needed it the most. This support was welcomed by Canadians, but we know that more needs to be done to address the rising cost of groceries. This is why we are taking immediate steps to enhance competition across the economy, with a focus on the grocery sector, to help stabilize costs for Canadians.

With Bill C-56, we would also be helping Canadians by stabilizing the price of groceries. We are introducing a set of legislative amendments to the Competition Act that would ensure more effective and modern competition law to promote affordability for Canadians and help our economic growth. This bill would empower the Competition Bureau to take action against collaborations that restrain competition and consumer choice, in particular in situations where the larger grocery store chains prevent smaller competitors from establishing operations nearby. The government is taking concrete steps to help stabilize food prices and improve competition in Canada. Canadians can be assured that the government will continue to work day in and day out to bring them much-needed relief.

Bill C-56 builds on other measures that the government has introduced to make life more affordable for Canadians. We are supporting 3.5 million families annually through the tax-free Canada child benefit, including over 28,000 children in Surrey—Newton, with families this year receiving up to $7,400 per child under the age of six and $6,300 per child for children aged six to 17. We have increased old age security, have enhanced the Canada workers benefit and have also reduced fees for regulated child care by an average of 50%, moving toward $10-per-day day care by 2026. Six provinces and territories have already reached that goal. In my own province of British Columbia, the capacity has doubled on this $10-a-day day care system.

We have strengthened the social safety net that millions of Canadians depend on, and we are working on helping Canadians put food on their table, pay their rent and be successful within their respective communities. We want to ensure that Canada remains the best place in the world to live, work, go to school and raise a family. Making life more affordable is a key part of that. I urge all members of the House to support this legislation to help Canadian families.

[Mike Lake, Conservative, Edmonton—Wetaskiwin, AB]

Madam Speaker, like other Liberals, this member just lists off in his speech a long list of new Liberal spending. It is record spending, of course, as everybody knows, not many times more than previous governments but many billions of dollars more than previous governments.

Many of them have talked about the fact that they are subsidizing, through a grocery rebate, 11 million Canadians. Does the hon. member recognize that the fact that the government needs to subsidize groceries for over a quarter of our population is a sign of an absolutely devastatingly bad Liberal economic policy?

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Madam Speaker, I am very proud of the fiscal prudence our government brought to Canada. Our government absolutely understands that our job is to balance fiscal responsibility and compassion, and we have done that.

If we review our record, Canada has the lowest deficit in the G7 nations. Canada also has the lowest debt-to-GDP ratio in the G7. Canada's AAA credit rating was reaffirmed just two weeks ago. Canadians can afford to be compassionate to the most vulnerable among us, and we will be. That is why we gave this grocery rebate. Now we know that we need to work on the Competition Act, as well as bringing in more housing so people can have an affordable lifestyle.

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

Madam Speaker, we passed a bill in the House that allocates $4 billion to a housing accelerator fund for municipalities. The federal government cannot talk to Quebec municipalities; it has to come to an agreement with the Quebec government. Negotiations are under way, and the share due to Quebec comes to $900 million. I would like to remind everyone that housing is a provincial jurisdiction.

According to what we learned this morning, the federal government is nitpicking and dawdling. It is having a hard time choosing a colour for the tiles and the carpet. Then it questions whether a given apartment should have 8 or 14 lights. What a waste of time. Again, this is a provincial jurisdiction. There are currently 10,000 people in Quebec who do not have a roof over their heads.

What will it take to get Ottawa to send that $900-million cheque?

We need it now.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Madam Speaker, I totally understand how important this $4-billion accelerator fund is to the municipalities, particularly in Surrey—Newton. As I said earlier, the wait-list for the plans and projects is too long. We have to bring it down. We need to have those efforts with Quebec. Similarly, all those efforts are not only needed in Surrey, but they are needed across the country, including in Quebec.

The housing minister recently met with Minister Duranceau to pursue the work the hon. member is talking about. We hope that, in the coming months, municipalities, Quebec and the Canadian government will work together, hand in hand, to help municipalities have more housing supply for Quebeckers.

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

Madam Speaker, the hon. member's speech typifies what we are hearing from the Liberals. There is a recognition of the crisis of high food prices, and they talk about stabilizing them. That would be stabilizing them at the highest level ever with some of the highest margins ever. They have called in the CEOs, who were previously found guilty of price-fixing with bread. Studies have shown that margins have gone up during the pandemic.

What is the member expecting these CEOs to do with these voluntary measures?

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Madam Speaker, we are also looking to give more powers to the Competition Bureau to conduct marketing studies and compel information from companies so a decision can be made to bring the prices down.

[Arpan Khanna, Conservative, Oxford, ON]

Madam Speaker, it is such an honour to rise for my first debate on such an important issue that not only the residents in Oxford are facing, but also Canadians across the country.

Before I begin and dive deep into Bill C-56, I would like to take a few moments—

[The Assistant Deputy Speaker, Carol Hughes]

We have a point of order from the hon. member for Abitibi—Témiscamingue.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Madam Speaker, the interpreters are signalling that there is feedback. I am not sure whether it is from an electronic source close to the microphones, but the interpreters are hearing a thud.