Bill C-56 (Historical)

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

Chrystia Freeland Liberal

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

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 / 5:40 p.m.

Green

Mike Morrice Green Kitchener Centre, ON

Mr. Speaker, I thank my hon. colleague from Joliette for his question, which is so important.

The definition of affordable housing differs from one government program to the next. If one definition of affordable housing applies to just 80% of the market, we are not really talking about affordable housing. We therefore need to push the government to establish a definition of affordable housing that is truly affordable.

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 5:45 p.m.

NDP

Matthew Green NDP Hamilton Centre, ON

Mr. Speaker, we heard the hon. member speak about the housing crisis. I would like to suggest that what we have is a crisis of capitalism. We have the commodification of people's very existence, identified in the real estate investment trust that the member has highlighted. We have Vanguard, BlackRock and others. In my community, we have nine apartment buildings that are facing renovictions and demovictions.

To the people who are going to be meeting in Hamilton in about an hour, from those nine apartment buildings, what do you have to say about the crisis of capitalism and the impacts it has on housing?

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 5:45 p.m.

The Deputy Speaker Chris d'Entremont

I have nothing to say as the Chair occupant.

The hon. member for Kitchener Centre.

Affordable Housing and Groceries ActGovernment Orders

October 5th, 2023 / 5:45 p.m.

Green

Mike Morrice Green Kitchener Centre, ON

Mr. Speaker, I would say that housing is a human right and it deserves to be more than a preamble in a bill. It needs to be enshrined in legislation.

The House resumed from October 5 consideration of the motion that Bill C-56, An Act to amend the Excise Tax Act and the Competition Act, be read the second time and referred to a committee.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:15 p.m.

St. Catharines Ontario

Liberal

Chris Bittle LiberalParliamentary Secretary to the Minister of Housing

Mr. Speaker, before I begin, I would like to say that I am sharing my time with the hon. member for Don Valley East.

We are here today to talk about Bill C-56. This bill, unfortunately, has been delayed by the Conservatives, time after time. We have seen their obstructionist policies throughout this Parliament, but specifically on this bill, which would bring relief to Canadians.

It is interesting to watch. I have been sitting here for a while, listening to speeches. The argument from the Conservatives is that they did not have enough time to debate this piece of legislation. At the same time, when they have gotten up, none of the members have actually talked about the legislation. They have not talked about what is going on. They talk about the carbon tax or whatever else it is they are interested in, except what is going in the bill. It is fascinating.

It is a sign of a sure filibuster that the Conservatives do not want to talk about this, because they know it is beneficial and it would help Canadians. They know it would get housing built, especially in eliminating the GST on purpose-built rentals. We are already seeing the benefits. We are already seeing developers across Canada switching their construction to purpose-built rentals, because they know this is coming. We need to build more housing in this country.

There is this mythical 45 minutes a day during question period when the Conservatives pretend to care about getting housing built and the concerns of Canadians. They churn out slogans and repeat them, repeat them, repeat them, repeat them. Did I do that four times?

Clearly, as they are shouting at me about the carbon tax again, the only environmental plan the Conservatives have is recycling slogans. They are so obsessed with it that they would vote against Ukraine in a time of war, even though Ukraine already has a price on pollution. The Conservatives would abandon Ukraine during war, when Ukraine asked us to pass that legislation.

The Conservatives are yelling about a price on pollution. They are clearly eager about that. It is getting under their skin, because they are hearing from their constituents, who expected the Conservative Party to stand up for the Ukrainian people. They are yelling. They cannot handle it. They cannot take the heat on this file.

The hon. member from Newfoundland cannot handle it, that his constituents expect him to stand up for—

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:15 p.m.

Some hon. members

Oh, oh!

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:15 p.m.

The Deputy Speaker Chris d'Entremont

Order, order. We just had a great vote, and everything went really well, I thought. Let us continue that collegiality on this.

The hon. parliamentary secretary has the floor.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:15 p.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Mr. Speaker, since this is time allocated, I am happy to be up here as long as they want me to be, through points of order. I am happy to be here until 11 o'clock or whenever the next series of votes happens.

The hon. member from Newfoundland, from the Conservative Party, was and still is yelling at the top of his lungs. I guess it is his first day here. He does not know that it is not his turn. He is from the island of Newfoundland. He is from the province of Newfoundland and Labrador—

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:15 p.m.

The Deputy Speaker Chris d'Entremont

When it is time for questions and comments, I will put the hon. member for Coast of Bays—Central—Notre Dame up first. I will make sure he gets an opportunity to ask the hon. member a question.

The hon. parliamentary secretary.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:15 p.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Mr. Speaker, to be clear, I am sure the member for Avalon will back me up on this. It is the province of Newfoundland and Labrador, but I believe the hon. member is from the Island of Newfoundland proper. I am sure he will yell out something a little later.

Clearly, the embarrassment is real for what the Conservatives have done and how they have betrayed Ukraine. It is absolutely shameful.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:15 p.m.

An hon. member

Oh, oh!

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:15 p.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

That is a good point from my colleague, Mr. Speaker, that MAGA politics are making their way into the Conservative Party. It is an embarrassment.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:15 p.m.

Some hon. members

Oh, oh!

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:15 p.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Mr. Speaker, I am happy to respond to all the comments. I was going to move on, but it is clear that the Conservative Party is getting upset any time we mention Ukraine. We cannot mention Ukraine, because they are going to get—