Bill C-56

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

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.

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Affordable Housing and Groceries ActGovernment Orders

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

Liberal

Michael Coteau Liberal Don Valley East, ON

Mr. Speaker, I appreciate the opportunity to stand in the House of Commons on behalf of the good people of Don Valley East and speak to this important bill that really looks at housing. It looks at providing a GST rebate, and it really does speak to making life more affordable for Canadians.

I am proud to be a Liberal. I have always been proud of being a Liberal. I am proud to be a Liberal because I believe that the government can help to make life easier for people, to put in place programs and services that are designed to help people.

There is something I remember when I was back at Carleton University learning about the social contract. It is really the relationship between the state and the citizen. I remember learning a bit about Rousseau, Hobbes and Locke, and the development of the social contract. I believe that there is an obligation of government to put in place different types of services, programs, understandings and agreements that look for ways to better position people. I think that Bill C-56 does exactly this.

This bill will look at ways to build more capacity in the system to build more homes. We know that during the Conservatives' time in power under former prime minister Harper from, I believe, 2009 to 2015, a lot of changes took place in this country when it came to housing. For example, there were 800,000 fewer units of affordable housing. The price of homes from 2009 to 2015 doubled in this country. According to TRREB, the Toronto real estate board in my area, homes went from about $300,000 to $600,000. That was under the Conservative government.

The big question is: What did the Conservative government do to actually look at maintaining affordable prices in the city I represent, Toronto? The answer is simple. The Conservatives did absolutely nothing. On top of that, they ran massive deficits. The Harper government, back in 2009-10, ran a $55-billion deficit that year. In 2011, it was $33 billion. In 2013, it was $18 billion. That amounts to over $100 billion in a six-year period by the Conservative government when it was in power. At the same time, it made massive cuts. It did not invest in affordable housing or housing in general. What it did was to actually make cuts in the system and hurt people.

There is an ideological difference between being a Conservative and being a Liberal in this House. On one side, the Conservatives will make massive cuts and reward the richest and big businesses by giving out subsidies and, at the same time, run massive deficits. The largest deficit to date, during those time periods, was under the government of Stephen Harper.

When we run deficits, it is to invest in people. When we invest in public education, infrastructure, health care, dental care and child care, we are investing in the people of this country, unlike the Conservatives when they are in power. They actually wanted to take things like the retirement age and move it from 65 to 67. They made life harder for people. Under the previous Conservative government, 800,000 affordable units were gone and now Conservatives have the audacity to stand up in this House and say they believe in making these types of investments.

The member for Prince Albert was very clear. I wrote this down as I was here listening. He said that “it is not up to government to build houses.”

On one side we have a government that is making the types of investments that are put back into investing in people, and on the other side we have an opposition that has a track record. Conservatives do have a track record in this House. One just has to look a few years back to see their track record. It is about making cuts to the system.

I have been in this House for two years, and in two years I have seen the Conservatives opposite vote against some really good pieces of legislation that invest in people. Removing the GST from homes is about building more capacity in the system. Investing in dental care for young people is about investing in our future. Investing in child care in this country, which Conservatives for months spoke against, is the best investment. I have always said that, from day one.

The best investment a country can make is to invest in the young people of tomorrow, but the Conservatives have an ideological difference compared to the Liberals on this side. They believe in making cuts to these types of programs. They believe in providing more resources to those who have the most. They do not believe in taking those resources Canadians bring together through that social contract, though that belief system that we can all work together to build a better country. They do not believe in making those types of investments in people.

We provided a grocery rebate. They voted against it. On the $10-a-day child care, they voted against it. Maybe a few of them changed their mind near the end, but throughout the entire discourse, they were ideologically against it. With dental care—

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:40 p.m.

The Speaker Greg Fergus

The hon. member for Mégantic—L'Érable is rising on a point of order.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:40 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I just want to offer my colleague a chance to do the honourable thing.

While he was speaking, he realized that he had said something that was untrue. He said that we voted against the grocery rebates, when that is completely false.

I am asking him to withdraw his remarks.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:40 p.m.

Liberal

Michael Coteau Liberal Don Valley East, ON

I will continue, Mr. Speaker. Thanks for the advice.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:40 p.m.

Some hon. members

Oh, oh!

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:40 p.m.

The Speaker Greg Fergus

Before you continue, the hon. member for Mégantic—L'Érable raised an issue, and I hope it will be reflected so that the record will stand.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:40 p.m.

Liberal

Michael Coteau Liberal Don Valley East, ON

Mr. Speaker, maybe tomorrow the member opposite can go through Hansard to look at exactly what I said, and he will find the answer in Hansard because it is recorded. I will continue. I do not appreciate the interruptions. Sometimes the truth hurts.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:40 p.m.

Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Mr. Speaker, I rise on a point of order. Again, in another case, the member indicated we did not support with our vote the child care bill, which is not true. I would appreciate it if he would correct his record.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:40 p.m.

The Speaker Greg Fergus

In consultation, it is clear the voting record is a voting record, but it is not a point of order that can be raised here. However, I would encourage all members to please make sure they do reflect accurately what has gone on and what is a matter of record in the House of Commons in order to make sure members do not introduce comments that could be disorderly to the House if they are inaccurate.

The hon. member for Don Valley East has the floor.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:40 p.m.

Liberal

Michael Coteau Liberal Don Valley East, ON

Mr. Speaker, sometimes the truth hurts. When Conservatives stand in this House and vote against a free trade agreement with Ukraine, it hurts members on the other side because sometimes they do not have the power to stand up and actually do what they believe and they just follow the direction, through party discipline, of their leader. I understand it can hurt sometimes. Then they look for other ways to compensate by standing up and using procedural processes, or—

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:40 p.m.

The Speaker Greg Fergus

The hon. member for Yorkton—Melville is rising on another point of order.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:40 p.m.

Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Mr. Speaker, you have made it clear that we cannot say indirectly what we cannot say directly. This individual, like all others across the floor who spoke to our vote on Ukraine, has misled this House. I am a Canadian Ukrainian and I chose my vote. No one told me on this side of the floor how to vote. This is inappropriate and misleading.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:45 p.m.

The Speaker Greg Fergus

That is ranging into debate at this point.

I will turn the floor back to the member for Don Valley East.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:45 p.m.

Liberal

Michael Coteau Liberal Don Valley East, ON

Mr. Speaker, I have been interrupted several times by members opposite, because it does hurt Conservatives. Half of them probably believe in climate change and maybe the other half do not. I am making that assumption based on previous statements and voting records. It must really hurt to be part of a party that does not believe in climate change or a free trade agreement with Ukraine to help support the folks who need the help in Ukraine.

My main point at the end of day is that there is an ideological difference between Liberals and Conservatives when it comes to how we invest in people. Conservatives have a track record of always putting in place the same plan no matter where they are. They could be in a provincial legislature, a school board, a council or in the federal chamber, but it is the exact same formula. They say they are going to cut taxes and then they invest in those who have the most. They place the burden on the people who need the most help and cut programs and services.

We can look at their track record. This is a proven fact. The Harper government is a perfect example. It had a $55-billion deficit in 2010-11, and what did Canadian citizens get? They got nothing, except cuts. This is the track record of the Conservative government and that is why it is important for us, as Liberals on this side of the House, to make sure we continue to support Canadians by making sure bills like Bill C-56 go forward, continue to invest in people and build this country up.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 9:45 p.m.

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Mr. Speaker, my question for my hon. colleague concerns the parliamentary secretary's response to my colleague from Repentigny.

My colleague asked him about the goods and services tax rebate on rental buildings. What is its impact? How many more housing units are we expecting to be built as a result of this measure? How much can we expect rents to drop?

We want to base our decisions on science and scientific knowledge, but the parliamentary secretary practically told my colleague to take a hike by saying it was not important, that she could wait for studies, and that it was a question of ideology.

Does the hon. member agree with his parliamentary secretary?

I was very disappointed in his response.