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

September 25th, 2023 / 4 p.m.

Conservative

Dan Mazier Conservative Dauphin—Swan River—Neepawa, MB

Madam Speaker, it is really too bad that my colleague from Manitoba is taking this intervention from his home in Manitoba when this is a very important subject of affordability.

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:05 p.m.

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

It is best to not make references to where members are speaking from. Virtual proceedings are the norm now. We do not mention where people are making their statements from.

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:05 p.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Madam Speaker, on a point of order, we know that Parliament has recognized virtual. We know that the Conservatives participate virtually. This is an inappropriate attack—

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:05 p.m.

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

I just addressed the issue.

The hon. member for Dauphin—Swan River—Neepawa.

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:05 p.m.

Conservative

Dan Mazier Conservative Dauphin—Swan River—Neepawa, MB

Madam Speaker, it is really too bad. This is part of the problem of the abuse of the virtual system.

Meanwhile, we have a provincial election going on back in Manitoba. I am sure the member is helping out there.

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:05 p.m.

Green

Mike Morrice Green Kitchener Centre, ON

Madam Speaker, on a point of order, there is nothing abusive about using virtual Parliament. In the Standing Orders, it is made very clear that sitting in the House or virtually is seen as the same. I think it is important for you to make that very clear.

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:05 p.m.

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

I absolutely agree with the hon. member. That is the way we proceed in the House. It is now the acceptable way of the House to proceed. We make no references to which site the member is speaking from.

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:05 p.m.

Conservative

Dan Mazier Conservative Dauphin—Swan River—Neepawa, MB

Madam Speaker, the member went on quite extensively about the rising costs of food. He seems to have a very good grasp of it.

Could the member acknowledge, though, that the carbon tax does in fact increase the price of food?

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:05 p.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Madam Speaker, I do not think there is any doubt that, through the supply chain, the carbon tax is obviously something that is a factor for pricing of food. It is why the NDP has been concerned and has proposed so many affordability measures.

We want to make dental care accessible to Canadians. That is why we proposed the dental care plan. For so many families that rely on child care, we have fought for years and years. We ran on a $10-a-day child care program in 2015, when I was first elected, because we recognized that there are a lot of things that affect the prices Canadians pay for the various things that they cannot do without. There are a lot of things that put pressure on their household budgets.

Parliament is a very appropriate place to talk about the ways we could help control the cost of things that people cannot do without. That is a debate I have always been quite willing to show up for, both in person and virtually, whenever—

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:05 p.m.

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

We will do without the references.

The hon. member for Mirabel.

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:05 p.m.

Bloc

Jean-Denis Garon Bloc Mirabel, QC

Madam Speaker, Bill C-56 includes measures to eliminate the GST on new rental housing. In the long term, this could impact supply, at least theoretically. However, this is for housing that will be built a long time from now, housing that will be started in 2030 and completed in 2035. Meanwhile, during a briefing, we learned that the government had not commissioned any analysis or study on how much this measure will cost or what impact it will have on new housing construction.

I would like to know if this way of doing things worries my colleague. Once again, this is a quick pre-election ploy of creating a measure without knowing how much it will cost or what the outcome will be. The Liberals did the same thing when it came to increasing the immigration target with their friends at McKinsey.

Has the government's tendency to propose legislative changes without doing the necessary calculations become problematic?

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:05 p.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Madam Speaker, I think it would be good if the government did its research before announcing these kinds of measures. Yes, I think it is important for us to have that information.

It seems as though this was decided very quickly, perhaps at a caucus meeting where people were unhappy and asked the government to do something about the housing crisis. This is the only component in the Liberals' social and affordable housing strategy. We are going to need more than that if we really want to address the housing crisis. Yes, there are signs indicating that the government acted quickly, on the spur of the moment, rather than taking a more strategic approached based on good research.

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:10 p.m.

Green

Mike Morrice Green Kitchener Centre, ON

Madam Speaker, one of the elements of the member for Elmwood—Transcona 's speech that I really appreciated was his honesty about the decades of underinvestment in social housing that have contributed to the crisis we are seeing now across the country.

Could the member speak to how important this is? If we were even to double our social housing stock, we would still be just in the middle of the pack of the G7. Can he speak to how the CMHC, for example, could get back into the business of building affordable housing across the country?

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:10 p.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Madam Speaker, when I was first elected, one of the things I did in Elmwood—Transcona was to bring together a group of organizations in the riding that had an interest in the housing question, because there was a lot of talk then about a new national housing strategy and I thought that we should be ready in Elmwood—Transcona for when the strategy hits the ground.

In that effort, I spoke to some folks who used to work for the federal government and the provincial government kind of prior to the cancellation of the national housing policy by the Liberals in the 1990s. One of the things they said was that because the offer for funding every year was reliable, people could plan. Someone could say that they did not have the capital right now, but they could access funding to create a plan to scout out some of the land that they might be able to acquire in order to have a budget and, over the course of six or seven years, deliver a project in a community.

For so long, we have not had that despite some of the offerings in the national housing strategy. The co-investment fund was depleted. Nobody knows when it is going to be replenished. Nobody knows when people will be able to make a request under that program again. It is very hard for non-profits that are not sitting on a pile of cash to be able to do the planning work to be able to deliver housing. That is one of the ways the cancellation of the national housing project strategy, and the ad hoc approach since, has really cost us getting affordable and social units.

Affordable Housing and Groceries ActGovernment Orders

September 25th, 2023 / 4:10 p.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Madam Speaker, I would like to follow up on that last question. It is worth pointing out that prior to 1980, the notion of homelessness simply did not exist in Canada. There were certain inner city skid rows with local charities, but housing began to be the crisis in the 1980s as the government began to underfund, and then, of course, when Paul Martin cut the national housing program which gave the green light to multiple provinces. We have seen a slow-moving hurricane finally touch down in real time over the last 30 years, such that now upwards of 280,000 Canadians are touched by homelessness in any given year. That is a staggering number.

I want to ask my hon. colleague about the importance of making it a priority to get housing, to get non-market housing and co-operative housing, built so we can have homes for seniors, for single mums and for families. We need to make this a national priority to make up for the years of disregard from both the Liberals and the Conservatives on the fundamental right to housing in our country.