Affordable Housing and Groceries Act

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

This bill is from the 44th Parliament, 1st session, which ended in January 2025.

Sponsor

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-56s:

C-56 (2017) An Act to amend the Corrections and Conditional Release Act and the Abolition of Early Parole Act
C-56 (2015) Statutory Release Reform Act
C-56 (2013) Combating Counterfeit Products Act
C-56 (2010) Preventing the Trafficking, Abuse and Exploitation of Vulnerable Immigrants Act

Votes

Dec. 11, 2023 Passed 3rd reading and adoption of Bill C-56, An Act to amend the Excise Tax Act and the Competition Act
Dec. 5, 2023 Passed Concurrence at report stage of Bill C-56, An Act to amend the Excise Tax Act and the Competition Act
Dec. 5, 2023 Passed Bill C-56, An Act to amend the Excise Tax Act and the Competition Act (report stage amendment) (Motion No. 3)
Dec. 5, 2023 Failed Bill C-56, An Act to amend the Excise Tax Act and the Competition Act (report stage amendment) (Motion No. 2)
Dec. 5, 2023 Failed Bill C-56, An Act to amend the Excise Tax Act and the Competition Act (report stage amendment) (Motion No. 1)
Nov. 23, 2023 Passed 2nd reading of Bill C-56, An Act to amend the Excise Tax Act and the Competition Act

Debate Summary

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This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-56, also known as the Affordable Housing and Groceries Act, aims to address housing affordability by removing the GST on new rental housing construction, including apartment buildings, student housing, and seniors' residences, until 2035. The bill also seeks to enhance competition in the grocery sector and prevent anti-competitive mergers by empowering the Competition Bureau with increased investigative powers and by removing the efficiencies defence. Amendments to the Competition Act would empower the bureau to take action against collaborations that stifle competition and consumer choice, particularly in situations where larger grocers prevent smaller competitors from establishing operations nearby.

Liberal

  • Removing GST on rental housing: The bill would increase the GST rental rebate from 36% to 100% and remove phase-out thresholds for new rental housing projects. The government hopes this will incentivize developers to build more rental homes, including apartment buildings, student housing and seniors' residences across Canada, to address the housing crisis.
  • Amending the Competition Act: Bill C-56 seeks to amend the Competition Act to empower the Competition Bureau to investigate price gouging and price fixing, prevent anti-competitive mergers, and ensure large grocery stores cannot block smaller competitors. The government aims to foster a more competitive marketplace, stabilize food prices, and provide consumers with more choices.
  • Addressing Affordability for Canadians: The Liberal speakers emphasized the bill as a concrete step to address affordability challenges faced by Canadians, particularly concerning housing and grocery costs. They highlighted existing measures like the Canada Child Benefit and the Canada Workers Benefit, while noting Bill C-56's role in getting more homes built and increasing competition in the grocery sector.

Conservative

  • Supports removing efficiencies defence: The Conservatives support the removal of the efficiencies defence in the Competition Act, which currently allows companies to merge if they find efficiencies. They feel this change would give the Competition Bureau more power to prevent mergers that would lead to higher prices and less choice for Canadians.
  • Eliminate the carbon tax: The Conservatives are strongly opposed to the carbon tax, which they believe increases costs for farmers, truckers, and consumers, ultimately driving up grocery prices. They argue the carbon tax adds cost after cost to what the consumer pays and want to remove it to alleviate financial pressure on Canadians.
  • Housing affordability crisis: The Conservatives recognize the severity of the housing crisis and are critical of the Liberal government's handling of it, which has led to doubled housing costs, rents, and mortgages. They advocate for incentivizing municipalities to build more homes and cutting gatekeepers in the CMHC, streamlining the approval process for new housing projects.
  • Criticism of Liberal Approach: The Conservatives view the Liberal bill as inadequate and a "shrug emoji" in addressing the major issues of affordability, lacking substantial measures to tackle grocery prices or the housing crisis. They accuse the government of being out of ideas and plagiarizing Conservative proposals without fully committing to effective solutions.

NDP

  • Small steps on affordability: NDP members generally agreed the bill takes small steps to address issues of affordability in Canada, but that it does not go far enough. They stated that the housing and grocery prices are higher than ever, and the government needs to intervene with effective public policies.
  • Strengthen competition bureau: The NDP seeks to strengthen the Competition Bureau. One member stated that Bill C-352, introduced by the leader of the NDP, would impose harsher penalties on companies that fix prices and better regulate monopolies. The NDP believes the burden of proof should fall on companies to prove their activities benefit Canadians.
  • Address the housing crisis: The NDP believes there should not be a sole reliance on market-based solutions to the housing crisis. They have proposed an acquisition fund for non-profit organizations, to allow them to buy affordable social housing. Members stated that the government needs to take responsibility for the creation of social housing.
  • Grocery store profiteering: The NDP stated that Liberal's approach of meeting with grocery store CEOs will not be effective. They believe the government needs to recognize the role of corporate greed. They propose a windfall profit tax for grocery retailers who are price gouging, to ensure the savings are passed on to consumers.

Bloc

  • Supports in principle: The Bloc supports the bill because they cannot be against it. While the bill does not set out any harmful measures and does include some mini-measures, it is clearly not a panacea.
  • Criticism of Liberal approach: The Bloc criticizes the Liberal government for a lack of long-term thinking and action on issues like the housing crisis and rising food prices, accusing them of being out of touch with the needs of their constituents and only acting when poll results are unfavorable.
  • Provinces' jurisdiction: The Bloc emphasizes that housing is under the exclusive jurisdiction of Quebec and the provinces. The federal government should not interfere, especially when Quebec has innovative and effective programs.
  • GST rebate insufficient: The Bloc argues that the GST rebate for new rental apartment buildings will not significantly lower prices or address the critical need for social housing. They believe the government's approach is a half measure that benefits private builders, rather than addressing the core issue of affordable housing for the most vulnerable.
  • Competition Act changes welcomed: The Bloc welcomes the amendments to the Competition Act, particularly measures that give the Competition Bureau real investigative powers and make mergers more difficult. These changes are seen as long overdue, though questions were raised about whether the changes will really impact the domination of a few players in the market.
  • Need for social housing: The Bloc stresses the urgent need to construct social housing and affordable housing to solve the housing crisis. A significant portion of new builds needs to be social housing to meet the needs of the most vulnerable populations.
  • Federal overreach: The Bloc opposes federal conditions on funding and interference in areas of provincial jurisdiction, like housing. They criticize the government for delaying the release of funds to Quebec due to a desire to attach the Canadian flag, hindering the province's ability to address the housing crisis effectively.

Green

  • Supports removing GST: The Green Party supports the removal of the GST on rental home construction as proposed in Bill C-56, viewing it as a good measure, but insufficient to address the depth of the current housing crisis.
  • Need structural changes: The party calls for structural changes, such as ending the dependence of GDP growth on rising home prices and addressing the lack of competition in the grocery sector, but also advocates for immediate solutions like excess profits taxes on the oil and gas sector and grocery chains to fund a guaranteed livable income for Canadians.
  • Address financialization of housing: They stress the need to remove speculation and investment interests from housing, advocating for the elimination of real estate investment trusts and a return to co-op housing models to make housing more accessible and affordable.
  • Need acquisition funds: The Green Party highlights the importance of an acquisition fund to allow non-profits to preserve affordable housing units, and calls for sustained investments in social and co-op housing.
Was this summary helpful and accurate?

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:35 p.m.

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

I am going to interrupt the hon. member because I do not believe that the member being asked the question is listening. I will therefore ask the hon. member to repeat his question.

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:35 p.m.

Bloc

Mario Simard Bloc Jonquière, QC

Madam Speaker, that is incredibly kind of you. However, I am not expecting an answer that is very long on details.

If we want to help the less fortunate, the people struggling to pay for their groceries and housing, I was saying that we need to make the right diagnosis. To reach a diagnosis, we need to identify the money that we are collectively injecting and that is going to the wrong people. If I were to say that the oil companies managed to rake in $200 billion last year while getting $82 billion in tax credits, people would probably call it an outrage. However, this seems to be what the member is presenting today by talking mostly about the carbon tax and saying that she thinks it is still not enough.

I wonder if she can justify that to her constituents.

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:35 p.m.

Conservative

Rachael Thomas Conservative Lethbridge, AB

Madam Speaker, the hon. member asked who is benefiting from the government's spending. Is it the already wealthy and the big corporations? At the end of the day, I am not here representing them. I am here representing everyday, hard-working Canadians. I fly under the Conservative banner, not the Liberal banner, so I cannot help but be on the side of the everyday person, the person who works hard, gets up in the morning and thinks about their day ahead and hopes they are going to be able to make it through. I am on the side of the person who drops their kids off at school and then rushes off to work; maybe leaves during lunch hour in order to pick up a couple of things and do a few errands; runs back to work and finishes up their full day; runs to day care to grabs their kids; runs home; makes a meal; puts the kids in bed; plops on the couch for half an hour and then heads to bed to wake up the next morning and do the same thing all over again. That is—

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:40 p.m.

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

Questions and comments, the hon. member for Courtenay—Alberni.

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:40 p.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Madam Speaker, I know that when it comes to the Conservatives in Ontario, it is the developers who are benefiting when it comes to housing, which is the conversation of today.

We have heard the federal Conservatives talk about selling off government land and government buildings. As New Democrats, we would see benefits in leasing those lands and working with the developers and non-market housing groups to develop housing. My question to the member is this: Is the Conservatives' model more like a Queen's Park, Ontario Conservative, Doug Ford greenbelt model, or would their model actually have safeguards to protect the public from developers and their friends?

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:40 p.m.

Conservative

Rachael Thomas Conservative Lethbridge, AB

Madam Speaker, I would rule that question out of order. It was a provincially based question.

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:40 p.m.

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

I would ask the hon. member to not tell me how to do my job.

Resuming debate, the hon. member for Vancouver East.

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:40 p.m.

NDP

Jenny Kwan NDP Vancouver East, BC

Madam Speaker, I am pleased to rise to enter into this debate.

With respect to housing in Canada, as we all know, we are faced with an intense chronic housing crisis. In fact, I would argue that the Conservatives, when they were in government, were the ones who cancelled the co-op program, which is a proven model in Canada that provides safe, secure, affordable housing to community members. More than that, co-op housing provides a community within a community through that model. What did the Conservatives do in 1992? They cancelled the national co-op housing program.

Now, based on the discussion and the leader of the Conservatives, one would think they are going to be the saviour in addressing the housing crisis, but let us be clear: They Conservatives were the people who helped cause the housing crisis we are faced with today in this country. Of course, after the Conservatives cut funding for housing programs and eliminated the co-op program altogether, we had the Liberals come into office. What did they do? They cancelled the national affordable housing program in 1993, further escalating the housing crisis. The truth is that successive Liberal and Conservative governments failed Canadians. They failed to ensure that there was social housing built, and they failed to ensure that there was co-op housing built, to the point of where we are today.

I still remember, when I was in the community in 1993 working as a community legal advocate, the shock that went through my system and through our whole community when we heard that the government had cancelled the program. Part of my job was to try to assist people, including seniors, people with disabilities, indigenous people and women. There were women fleeing violence and women who needed housing because they were in a domestic violence situation. They needed housing for themselves and their children, and they were losing their children because they could not secure safe, affordable housing. It was not because they were bad parents, but because successive Liberal and Conservative federal governments walked away from them and did not provide the housing that was critically needed then.

Fast-forward to today, and where are we at? We have a situation where, just today, a report came out that in my community in Vancouver East and in the greater Vancouver area, it was found in the most recent study that the homelessness count had increased by 30% from the last count. The truth is that, in many ways, I do not need a report to tell me so, although having that data is really important, because I see it in the community with the encampments that have surfaced. It is everywhere. It has proliferated everywhere. In my riding of Vancouver East, we have a permanent encampment. What is wrong with this picture? We have to ask this question.

Why is it that successive Liberal and Conservative governments have allowed this to happen? It is unjustifiable. Housing is for people to live in; it is not a commodity for investors to use to turn a bigger and bigger profit. That is what has happened over the years since the Liberals and Conservatives walked away from co-op and social housing. They allow the market to flourish and then to benefit from it at the expense of people who need homes. Not only are people unhoused; renters are also getting renovicted. Seniors on fixed income, long-time tenants in a building, are being displaced and renovicted, and they will no longer have access to a home. They cannot afford a home. They will no longer be able to live in the place where they have lived for many years. This was allowed under both Liberals and Conservatives and was escalated, I would say, by their bad housing policy and by their walking away from the people in our communities that are in need.

We will hear the Liberals say that in 2017, they entered back into the housing environment with the national housing strategy. If anybody has taken the time to read it, and I urge all Liberal members to pick it up, the report from the Auditor General indicated they do not even know who is benefiting from the government's programs. In fact, they do not even know whether those who are in need, those who are most vulnerable, are accessing the supports they need. “Incompetence” would be one way of describing it, but it is not justifiable with where things are at today.

Now, the Conservatives have a leader who goes around acting as though he were the saviour. Let us be clear: When he was part of the Harper administration as a cabinet minister, under that administration, Canadians lost 800,000 units of affordable housing. That is close to a million units. A million families or individuals could have had access to housing that they do not have now. What is their solution today? It is more market-driven solutions. Let us be clear: It is the market-driven solutions that the government had relied on that got us here today. Nowhere do the Conservatives in their plans talk about building social housing or co-op housing.

The Liberal program does not talk about affordability. How strange is it? What planet do we live on that we operate in this way? It is no wonder we have a housing crisis. The bill that the government has tabled on the GST piece is to facilitate more housing being built. I want to be clear that we need more housing, but we also need to make sure that the housing that is built is accessible to people, meaning that it is truly affordable for people. It is strange to me that the government decided in some weird, altered universe, in this bill, that it would exclude co-ops from accessing the GST exemption. Why on earth would one do that? It makes no sense whatsoever.

The co-op program, as indicated, is a proven model in the delivery of housing in our communities. Co-ops create communities within communities. One can see it when walking into a co-op housing project. One can see the love within the community and the supports that are there for each other. People take care of each other and they build community with each other. To not support co-ops makes no sense. The NDP will absolutely be moving amendments to address that issue.

The other piece the NDP will doing is calling on the government to amend the bill to allow for existing non-profit housing projects to access this exemption. This would allow for some projects to become viable and, in other instances, for projects to create better affordability for the communities in need. That is what we need to do, to work towards, in that direction. We also need to actually set up some level of eligibility criteria in terms of affordability, to make sure the private developers are not just going to get a benefit but that there is also a further return to the community, and that is on the affordability criteria.

We have to think about housing in a holistic way. The NDP is putting forward these ideas. Above all else, we need the government to build social housing and co-op housing like we used to. Housing is for people to live in and not just to make a profit from.

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:50 p.m.

Conservative

Bob Zimmer Conservative Prince George—Peace River—Northern Rockies, BC

Madam Speaker, I appreciate the member's comments, but I want to ask her a question.

I represent, through my portfolio, the territories. One thing I will be speaking about in the House is the lack of housing in Nunavut specifically. Per-unit costs have risen to $1.1 million because of inflation and carbon taxes. That is why no units were built this year, because it is simply too expensive, as the local government has said.

If it is so bad with the current Liberal government, why does the NDP keep supporting it in the House?

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:50 p.m.

NDP

Jenny Kwan NDP Vancouver East, BC

Madam Speaker, where the NDP is at is this: Unlike the Conservatives, New Democrats are here to fight for the people and to get more for the people. We are not just here to talk about how great we are and then deliver nothing, having been part of a previous administration that cut housing programs for the people in need. We are creating affordability through different means, and that is why we fought tooth and nail to get the dental care plan.

Yes, the leader of the Conservatives has had access to dental care services all his life through the public service, but most Canadians do not. We will fight tooth and nail on affordability on all fronts.

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:50 p.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Madam Speaker, I have heard Conservatives talk about selling 6,000 buildings and 15% of public lands. We only need to look at Ontario, where the Doug Ford Conservatives did a deal for the greenbelt; they sold public lands and put $8.3 billion into the pockets of developers. In my home province of British Columbia, the B.C. Liberals sold private lands to benefit their friends, who were donors to the B.C. Liberal Party.

What policies and framework would the member like to see put in place to protect Canadians from Conservatives, their friends and their donors?

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:50 p.m.

NDP

Jenny Kwan NDP Vancouver East, BC

Madam Speaker, for the federal government to make available federal lands for the development of housing, first and foremost, we need to ensure there is a public return to the community. The Conservatives do not want to put any requirements in place, because they only want to line the pockets of their pals, the investors and developers. For the NDP, there has to be a return to the community.

In the spirit of reconciliation, we have to make land available by returning land back to indigenous people, first and foremost. Second, for buildings that are made available for development, to turn it into social housing, it has to be social or co-op housing. The rents have to be reduced to below market, so that people can access it and it is truly affordable for the community.

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:50 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, I am originally from Nova Scotia, and I look at a history lesson that I think we can all learn from. The private sector does not build housing when we really need it and does not build it in a hurry. The first public housing ever built in Canada was in the wake of the Halifax explosion in 1917, when thousands lost their homes, and governments, including as far away as the U.K., created a fund. The government moved in and built, to this day, some of the nicest and most sought-after housing in Halifax, in the Hydrostone district. It was the first public housing effort ever in Canada.

Within months of the Halifax explosion, the governments had created apartments, temporary but serviceable, for 832 people. They had a roof over their heads. It was done quickly and affordably. We are lacking the sense of emergency, particularly for those who are acutely homeless, living rough or living in tents.

Does my hon. colleague from Vancouver East think we should adopt a strategically different approach to the emergency for people who are homeless?

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:55 p.m.

NDP

Jenny Kwan NDP Vancouver East, BC

Madam Speaker, there is no question that the urgency is real. This housing crisis is a chronic crisis. It has been more than 30 years since the government walked away from building social and co-op housing.

To speak to the member's point, it can be done. We just need the political will to do so and for government to say that it will build social and co-op housing, with the models it used to use. When veterans returned from the war, we built victory homes; Canada, at that time, said it would not allow—

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 1:55 p.m.

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

We have to resume debate.

The hon. member for Kenora.