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

November 23rd, 2023 / 10:10 p.m.

The Speaker Greg Fergus

The member for St. Catharines is rising on a point of order.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:10 p.m.

Liberal

Chris Bittle Liberal St. Catharines, ON

Mr. Speaker, I know we have been hearing a lot about the price on pollution in debate today, but when I stood up, the Conservatives were very eager to keep us on track with the bill, and we are wavering on relevance here. As loud as the hon. member yells, she needs to get back to the bill.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:10 p.m.

Some hon. members

Oh, oh!

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:10 p.m.

The Speaker Greg Fergus

Order. Relevance is always important, but the member for Renfrew—Nipissing—Pembroke appears to me to be on message.

I will return the floor to the member for Renfrew—Nipissing—Pembroke.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:10 p.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

Mr. Speaker, together, these policies represent a triple threat to affordable food prices, but that was not enough for the proudly socialist coalition. They were not happy enough with Canadians sucking up bad policies through paper straws. That is why the minister for Communist China's environment is using a pollution prevention order to ban plastic food packaging. The Liberals are not passing legislation. They are not even using regulation. They are issuing an order under the Environmental Protection Act.

The government was given extraordinary power by Parliament to protect the environment from actual danger. Past orders included requiring dentists to prevent mercury from getting into the environment when disposing of dental amalgams. They were never meant for taking recyclable food containers off store shelves. This is another obvious abuse of power.

It is the same as when the Liberals illegally banned plastic straws. They knew this sneaky policy will increase the price of food, the same way they knew imposing the carbon tax and the costly fuel regulations would hammer Atlantic Canada especially hard. They knew it and they did it anyhow. They knew their policies would make life unaffordable. They knew making energy more expensive would make food more expensive. They knew it, but they did not care about Canadians struggling with the cost of living.

Their ideological obsession has morphed into a religious obsession. The church of climate socialism believes we must repent for the sin of capitalism or else we will face a climate apocalypse. Anyone who dissents from climate socialism is branded a heretic. The Liberals need this deep faith in their own righteousness to justify to themselves that it is okay to call this an affordable groceries bill when it has nothing to do with grocery prices. As I said from the start, the contents of the bill were lifted from Conservative bills. Conservatives put forward positive policies. We look forward to seeing how they can be improved in committee.

The government could have chosen plenty of positive-sounding political titles to market the bill. Instead, the Prime Minister made the decision to gaslight Canadians. He will fly around the country dumping tonnes of carbon into the atmosphere claiming he has an affordable groceries bill that proves he is not completely out of touch. Meanwhile, the environment minister, the unrepentant vandal who once attacked the home of Ralph Klein and terrorized his wife, seeks to increase the cost of food with more plastic bans. Not only will this plastic packaging ban lead to higher prices, but it will also reduce competition. This would be like Harper introducing the drug-free prison act while Peter MacKay and Jason Kenney are going around handing out crack pipes to convicts. I can just imagine what the member for Winnipeg North would have to say about that.

Let us get the bill to committee. Even though it has been plagiarized from Conservative bills, we have to go over it with a fine-tooth comb. We know the Liberals like to copy and paste things into legislation. We know it because they did it when they tried to ban hunting rifles. That bill was riddled with the kinds of typographical errors that come from copying and pasting text between different types of documents. That Liberals are lazy and lackadaisical about legislation is not a surprise to lawful firearms owners, but after eight years, one would have thought they would be making fewer errors with experience.

The truth is that they are tired and worn out. That is why we have seen a steady march of senior Liberal staffers out of government and into senior lobbying positions. The smart ones are fleeing a sinking ship. The desperate ones are trying to bail it out. The bad ones claim the ship is not sinking. The Liberals claim the ship is flying full of affordable food. Canadians will pay a heavy price for Liberal delusions. The Prime Minister is not worth the cost.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:15 p.m.

Conservative

Pat Kelly Conservative Calgary Rocky Ridge, AB

Mr. Speaker, I rise on a point of order. There seemed to be such enthusiasm in the House for the member's speech. If she has anything more to add, I wonder if there is unanimous consent to give her a few more minutes.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:20 p.m.

The Speaker Greg Fergus

Is there consent?

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:20 p.m.

An hon. member

No.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:20 p.m.

Bloc

Monique Pauzé Bloc Repentigny, QC

Mr. Speaker, this is not easy.

I tried to keep up, but it was very difficult, because the member's speech was all over the map. I will try to narrow the focus, because—I just have to say it—I am very professional. We are talking about Bill C-56, so I will talk about Bill C-56. If we were talking about something else, I would talk about that.

Let us get back to Bill C-56 and take a look back at the Conservative opposition day on April 28, when the Conservatives announced that they wanted to penalize municipalities that were not building enough housing. I would like to come back to the importance of municipal politics. Municipalities know their area and the needs of their population. They provide services directly, and they are the ones that manage the living environments in their neighbourhoods.

When I hear the Conservatives say that municipalities and cities are the ones delaying the process, what message does that send? We are led to believe that they might want the municipalities to dodge public consultations so that real estate developers can take over. I would like to know what the member thinks about that, although I admit that I do not expect to get a real answer to my question.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:20 p.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

Mr. Speaker, it is no surprise to hear this kind of question from the “block everything” party. In fact, what our legislation was going to say is that what would happen is that we would—

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:20 p.m.

Some hon. members

Oh, oh!

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:20 p.m.

The Speaker Greg Fergus

Order. The hon. member for New Westminster—Burnaby is rising on a point of order.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:20 p.m.

NDP

Peter Julian NDP New Westminster—Burnaby, BC

Mr. Speaker, the Conservatives are the “block everything” party.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:20 p.m.

The Speaker Greg Fergus

That is not a point of order.

I will allow the hon. member for Renfrew—Nipissing—Pembroke to answer the question.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:20 p.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

Mr. Speaker, Conservative legislation would have provided extra incentive for the municipalities that chose to build more housing and remove the barriers, such as costly development fees that do not justify what the work being done is or the building permit cost that, right now, is $15,000 a house in some places.