Affordable Housing and Groceries Act

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

Sponsor

Status

This bill has received Royal Assent and is, or will soon become, 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

November 23rd, 2023 / 9:20 p.m.

The Deputy Speaker Chris d'Entremont

I did ask the member to withdraw that piece in which he said that no one has spoken to it because the member for Prince Albert has spoken to it.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:20 p.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Mr. Speaker, I withdraw that with respect to the hon. member for Prince Albert. Wow, the skin is thin.

Back to the point—

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:20 p.m.

The Deputy Speaker Chris d'Entremont

The hon. member for Pitt Meadows—Maple Ridge.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:20 p.m.

Conservative

Marc Dalton Conservative Pitt Meadows—Maple Ridge, BC

Mr. Speaker, on that point of order, I would be happy to provide my notes, as I spoke to the issue as well.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:25 p.m.

The Deputy Speaker Chris d'Entremont

We are starting to get into further debate, and I will be happy to call on members to ask questions when the hon. member is done. I am sure the hon. member for St. Catharines has a point to make in his speech.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:25 p.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Mr. Speaker, I have been making a clear point throughout the entirety of my speech and the Conservatives have been trying to shout me down, which they also tried to do to the member for New Westminster—Burnaby because they are embarrassed of their record.

What they should be embarrassed of is their record on housing. I was talking about, before I was interrupted, this mythical 45 minutes during the day which is question period when they pretend to care about Canadians who are struggling with housing, but they come up with a plan that would raise taxes on construction of housing. It would actually cut funding to municipalities. This is their plan.

The member who got up and said that there were Conservatives talking about the bill said that the government has no business in housing. It is shameful, but it shows where the Conservatives are at with respect to this. They talk a big game in question period and deliver nothing. They talk about Mike Harris' common-sense revolution, but we saw what happened during that time. We saw cuts. We saw hospital closures. We saw horrific things that communities are still dealing with to this day in Ontario, and the Conservatives seek to mimic it.

As I said, question period for them is about recycling slogans. There is no seriousness about their effort to fight homelessness and to build more housing. It is absolutely shocking that the Leader of the Opposition would go across the country to say that he is going to get housing built and not have a serious plan to deliver on it.

We have shown, in the fall economic statement, that we have a serious plan through the housing accelerator fund. We have seen announcements across the country, and we are seeing growth in housing starts through Stats Canada. We are seeing the results of this government's plan of action, and we are serious about this issue. The Conservatives are not. They have delayed and obstructed and they are continuing to do it. I do not know how many points of order the Conservatives have risen on during my speech.

The Leader of the Opposition even called co-op housing “Soviet-style” housing. It is absolutely shameful. I have constituents in my riding, and I think they would have constituents in their ridings, who rely on co-op housing as an effective means to get housing built. It is an effective means for affordable housing and a good way to build housing, and the Leader of the Opposition dismisses it. Again, he does not have a plan at all. He does not have a plan on climate change, and he does not have a plan on housing. They get up to talk about a big gain, but offer nothing except obstruction, yelling and heckling, and they are continuing the heckling. It is absolutely shocking.

They talk about food prices, and I genuinely believe them. We hear from our constituents, but the Conservatives have no plan. They talk about the price on pollution, but do not talk about the cost of food with respect to the costs of climate change. They do not talk about Bill C-56, which would enact competition law that would bring forward better regulations on competition and would have impacts. Again, it is just delay and deny. If only the rhetoric of question period, that 45 minutes of the day when the Conservatives pretend to care, could match the reality of the crisis. I wish that were the case. Sadly, it is not.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:25 p.m.

The Deputy Speaker Chris d'Entremont

I will remind the hon. member that question period is more than 45 minutes these days because it does go on long. It would be lovely if we could get it back to 45 minutes.

Questions and comments, the hon. member for North Okanagan—Shuswap.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:25 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Mr. Speaker, the member for St. Catharines seems to have forgotten to fit into his speech, which is supposed to be about the affordable housing and groceries act, that his Prime Minister had this big meeting with officers from all of the major grocery chains, and he promised to bring down the price of groceries by Thanksgiving. How much did that meeting bring down the cost of groceries by Thanksgiving?

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:30 p.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Mr. Speaker, the Conservatives talk a big game, but this legislation was tabled well before Thanksgiving. All we have seen is delay, obstruction and no action by the Conservatives. There is no care of Canadian food pricing. Again, the Conservatives talk a big game. They heckle, shout and yell, but their voting record speaks for itself, and it is not for Canadians.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:30 p.m.

Bloc

Monique Pauzé Bloc Repentigny, QC

Mr. Speaker, I think it is going to be a long night.

I thank my colleague for his speech because it went in all directions, especially at first. If we truly come back to Bill C‑56, the Minister of Finance said that there were studies that prove that Bill C‑56 would lower the cost of rent. My question is on the housing crisis, which has become a national emergency.

After the Bloc Québécois asked officials the question during the briefing for members, the officials said that there were no studies and that they may contact us later. That was on September 21. November 21 just passed and we are still waiting for the studies.

Does the member have any studies on hand proving that Bill C‑56 will lower the cost of rent?

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:30 p.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Mr. Speaker, the housing crisis is about getting more housing supply built. Reducing GST on purpose-built rentals will get more rentals built. We are already seeing the results with developers announcing thousands of units of housing being built. The member can wait for studies; I am going to listen to experts. We are seeing the results on the street and on construction sites. It is going to get the job done.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:30 p.m.

NDP

Jenny Kwan NDP Vancouver East, BC

Mr. Speaker, the member talked a lot about housing. The government, of course, purports that it wants to see more housing built faster, yet in the fall economic statement, it has slow-walked the rollout of money that would actually build housing Canadians could afford. That does not make any sense.

Now, on this particular bill, another thing that does not make sense is that the government is not making the GST exemption available to existing co-op and social housing projects. If they do not get access to that funding, some of these projects may actually become unviable.

If the member truly supports housing and seeing social and co-op housing being developed in this country, will he call on his own government to allow the exemption for existing projects?

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:30 p.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Mr. Speaker, I am proud of the government's record on housing. I was proud to cut the ribbon for the first affordable and subsidized housing units in the city of St. Catharines in my lifetime.

More work needs to be done, which is why I am excited by the announcements in the fall economic statement. Let us see more purpose-built rentals getting built under Bill C-56. The hon. member can keep yelling, but we are focused on Canadians, and we are going to get more housing built.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:30 p.m.

Conservative

Clifford Small Conservative Coast of Bays—Central—Notre Dame, NL

Mr. Speaker, with all due respect, when an individual is elected to this place, he should know a little bit about geography and that the name of the province that I come from is not Newfoundland but Newfoundland and Labrador.

I am not going to ask a question. I am going to call for this member to apologize to the people of Newfoundland and Labrador for calling our province simply “Newfoundland”. Will he do so?

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:30 p.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Mr. Speaker, I think I was specific in my comments. I specifically said that the province was named Newfoundland and Labrador and that the member is from the Island of Newfoundland. The province is the Province of Newfoundland and Labrador, which I acknowledged in my speech.

That is if the member was listening. Clearly, he was yelling too loudly during the heckling portion of his time over there, unfortunately. I did say that, and he can go back to Hansard or he can keep heckling all night long. I am sure that is what he is going to do.