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, the Affordable Housing and Groceries Act, seeks to address the rising cost of living by amending the Excise Tax Act and the Competition Act. The bill aims to incentivize the construction of purpose-built rental housing by extending a GST rebate to builders and to promote competition by strengthening the Competition Bureau's powers to conduct market studies and address abuse of dominance, including revising the legal test for prohibition orders and increasing potential monetary penalties. It also seeks to eliminate the "efficiencies argument" that corporations have used to justify mergers.

Liberal

  • Strengthening competition law: The Liberal party views Bill C-56 as a crucial step in addressing the increasing cost of living by strengthening Canada's competition law. The bill aims to address concerns about large corporations abusing their market power and to ensure a fairer marketplace for Canadians.
  • Market study independence: The bill provides the Competition Bureau with market study powers while ensuring its independence. The commissioner will be able to initiate market studies, removing ambiguity and allowing the bureau to investigate specific market issues.
  • Addressing abuse of dominance: The bill seeks to lower the burden of proof for behaviours damaging to the public interest, aligning with international partners. It allows abuse of dominance to be established based on either intent or effects, enabling more effective enforcement against harmful conduct by large players.
  • Supporting affordable housing: Bill C-56 encourages the growth of purpose-built rentals to address housing issues in Canada. The government is investing in housing, working with municipalities and provinces to support the construction of new units.

Conservative

  • Bill is anticlimactic: The Conservative party believes that the bill, even after it becomes law, will not effectively address the issues of high grocery prices and the housing crisis in Canada. They argue that while the bill proposes minor changes to the Competition Act, it lacks the boldness to make the necessary significant changes to foster competition.
  • Carbon tax burden: The party emphasizes that the bill does not address the impact of the carbon tax on the cost of groceries, which they claim increases consumer expenses. The carbon tax, applied at multiple stages from production to transportation, significantly contributes to the higher prices Canadians are paying for food.
  • Lack of new start-ups: The Conservatives express concern over the decline in start-up businesses in Canada. They stress the importance of fostering start-ups to compete with larger corporations and create jobs, noting that Canada now has fewer entrepreneurs compared to 20 years ago, despite a growing population.
  • Inflation and debt: The Conservative party criticizes the Liberal government's spending policies, which they claim have led to increased inflation, debt, and taxes. They argue that the bill does not resolve these issues and will further burden Canadians, with rising prices, rents, and an unsustainable debt level.

NDP

  • Supports removing GST: The NDP supports removing the GST from purpose-built rental housing to incent the development of more market rent apartments, as increasing supply is good. However, they state that this is not enough.
  • Non-market housing needed: The NDP believes the government needs to do more to develop non-market housing, including co-ops and social housing, to ensure everyone has an enforceable right to housing. They express disappointment that the fall economic statement was not more ambitious in this area.
  • Unique needs unaddressed: Removing GST will not help remote communities, such as those in Nunavut, where there is a serious housing need. The member emphasized the need for public policy that is not dependent on providing incentives for profit-seeking companies.
  • Market isn't enough: The NDP believes that relying solely on the market to fix housing problems is insufficient and that it is the government's job to address the important things that the market will not take care of. They cite the need for a national school food program as another example of something the market will not address.

Bloc

  • Supports the bill: The Bloc supports Bill C-56 because it contains some good measures and does not contain any that are outright harmful, though they expected more and see it as a drop in the ocean of needs.
  • Increased investigative powers: The bill gives the commissioner of competition real investigative powers, which the Bloc has been calling for for 20 years, allowing them to compel testimony and order the production of documents.
  • Competition Act amendments: The Bloc Québécois supports the amendments to the Competition Act, including making mergers and acquisitions more difficult by repealing the provision that favors concentration if a purchase will result in a gain in efficiency, even if the merger will reduce competition.
  • Bill is insufficient: The Bloc considers it misleading to claim that the bill will help lower the cost of groceries and that this cannot possibly be the government's one and only response to the skyrocketing cost of housing and groceries.
Was this summary helpful and accurate?

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 1:40 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Madam Speaker, I would like to thank my hon. colleague from Elmwood—Transcona for his speech and also for his interventions with other members of this House. We have been studying this issue in depth at the agriculture committee and I have had the chance to question multiple CEOs; notably Galen Weston of Loblaw.

The problem is that we can see the data and everyone talks about small margins in the grocery sector. The fact of the matter is that the margins have actually doubled since the pandemic and the grocery chains are making record profits and they do have gross amounts of executive pay. Mr. Weston's compensation is 431 times the average salary of his employees. We know from unions representing grocery workers that in many cases those workers cannot afford to shop where they work. None of the CEOs could tell me how many of their employees are using food banks to get by.

I would like to hear my colleague's thoughts on the fact that through both Liberals and Conservatives we have a policy, over the last 40 years, of too much corporate deference in this country and not enough hard analysis of how we are letting corporations get away with this. Canadians are being asked to shoulder the blame while corporations are continuing to make a lot of money off their backs.

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 1:45 p.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Madam Speaker, my colleague has done so much work on this. Canadians do see that they have just a handful of companies that largely control their access to food, which is something they cannot just decide to do without, and that the leadership of those companies do not feel any sense of responsibility for their incredible money-making power, which has grown, as the member for Cowichan—Malahat—Langford has pointed out, over the last number of years. The leadership of the companies do not have any sense of responsibility for the fact that they are the ones who control the food.

This is not just another product on the market. This is Canadians' access to the basic necessities of life. The companies have been allowed to do that for exactly the reason that my colleague identified, which is a sense of deference: If they are a big company, they must be doing something right and we do not want to get in their way. However, we have to do better in Canada than to allow a handful of companies that control our access to food to single-mindedly pursue the highest return to their shareholders, because it is Canadians who are getting burned.

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 1:45 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Madam Speaker, it is a pleasure to rise to speak on Bill C-56. It is yet another initiative the government is taking to support Canadians. From virtually day one, through the introduction of legislation and taking budgetary measures, as a government we have been very supportive of having the backs of Canadians, whether with the very first piece of legislation we introduced back in 2015-16 regarding a tax break for Canada's middle class or the many support programs put together during the pandemic that ensured small businesses and Canadians had the disposable income and supports necessary for Canada to do as well as it has. This was done through a team Canada approach, not only getting us out of the pandemic but putting our economy in a great position to do exceptionally well going forward.

This is reflected in one of the most important stats I believe we have, which is regarding employment. Employment numbers are very encouraging, especially when we compare Canada to other jurisdictions particularly in the G20 or the G7. Relatively speaking, Canada is doing quite well. It does not mean we let up. It means we need to continue to recognize the issues Canadians are facing on a daily basis, which is what Bill C-56 is all about.

Bill C-56 would be there to support Canadians. Before I speak about Bill C-56, I want to recognize this week is a very important week, because we are doing the formal expansion of the dental program. This will allow for seniors and people with disabilities to participate in the dental program, which is going to help literally hundreds of thousands of Canadians. Again, this is a very progressive move. It is a move that clearly demonstrates there are elements with the House of Commons today, contrary to the Conservatives', that are there to provide more hope and opportunities for Canadians.

Bill C-56 would, in essence, do a couple of things. I want to focus on two points. First and foremost is the issue of competition. Changes would be made to the Competition Act that would ensure we have more competition here in Canada going forward. For example, it would get rid of the efficiencies argument. The efficiencies argument is something corporations have used in the past in order to justify taking over large businesses. The one I have often made reference to is a very good example because it is relative to the debates and discussions we have had for a number of months now. It is about the price of groceries, the concerns over that and the steps being taken, whether by the Minister of Finance or the standing committee calling the big five grocery companies to come to Ottawa to be held more accountable for their actions. I see this as a positive thing.

Bill C-56 would provide more of an opportunity to ensure healthier competition into the future. The best example I can come up with offhand is when the current leader of the Conservative Party sat around the cabinet table of Stephen Harper and that government actually approved the Loblaws purchase of Shoppers Drug Mart. For individuals watching or listening in to the debate, I invite them to visit a Shoppers Drug Mart, where they will see a great deal of food products. We are talking about a multi-billion-dollar deal that took away competition. I do not know all of the arguments that were used at the time, but what I do know is that was the last time we saw such a major acquisition of a grocery line. I would suggest that was not healthy for Canadians, and we are starting to see that today.

We are now down to five major grocery stores and we are looking at having a grocery code of conduct. We need to establish that certain behaviours are not acceptable. I was pleased when Canada Bread actually got a fine through the courts. It was tens of millions of dollars because of price fixing. We need to ensure the Competition Bureau has teeth for this type of thing. Not only does it get rid of the efficiency argument, but it also increases the opportunity for fines and gives it more power to conduct investigations. That would make a positive difference. I think all members of the House should support this legislation.

The other part to the legislation is something that I believe would make a huge difference. We know housing is an issue in Canada. Never before have we seen a national government invest as much in housing as we have with this Prime Minister and this government. We are talking about historic levels of funding. This is in terms of our involvement, support and encouragement in housing, like non-profits, and that is what Bill C-56 would do. It would encourage the growth of purpose-built rentals. These things would have a huge impact. We are talking tens of thousands of new units. The policy is so sound that provinces are also looking at engaging with the provincial sales tax component. They realize this is a good way to ensure we build purpose-built rentals.

Ironically, as has been pointed out, the Conservative Party has taken a position that is very anti-housing. When the current leader of the Conservative Party was responsible for housing in Canada, it was an absolute disaster. The federal government did not do its work back then and that is very clear by the actions, or lack of actions, from the Conservative Party. He might say he was just following Stephen Harper's orders. Maybe that is his excuse. However, on Thursday going into Friday, there was a voting marathon. There was a vote dealing with housing and ensuring that the money would go to supporting over 80,000 new apartments, including an affordable home component. The Conservative Party members who showed up to vote actually voted no to that measure. That reinforces that the Conservative Party of Canada, under its current leadership, does not support housing.

When Conservative members raise issues about housing, they have zero credibility on that file. Never before have we had a government that has demonstrated as much leadership in working with municipalities and provinces, and invested more financial resources than this government in the history of Canada. On the other side, we have an incompetent Conservative leader who was a disaster when he was the minister responsible for housing. When there is such a huge demand, what does the Conservative Party do? The members who decide to vote, show up and vote against supporting housing. They are oozing with hypocrisy. Unfortunately, that example is not alone. I was listening to the back and forth, and the questions that were being asked.

Consistently, this government has recognized the importance of Canada's middle class and those aspiring to be part of it. We want an economy that is going to work for all Canadians in all regions. That is the reason we have invested so much energy into trade. Trade supports all of us.

It is surprising, when we think of affordability, that the Conservatives voted against the trade agreement. I have talked a great deal about that, the principles of trade and how important it is that we get behind the Canada-Ukraine free trade agreement. Hopefully I will get more time to focus on that in a while, but I was shocked to see the Conservatives not once, not twice, but on three occasions vote against financial supports for Ukraine. There were votes on individual lines, and they voted against Ukraine once again.

It is a consistent policy with the Conservative Party. Whether on housing or trade, the Conservative Party is reckless in its policy development. A number of Conservatives have stood today on this legislation and talked about affordability. We recognize affordability. That is why we brought in the grocery rebate. That is why we have legislation such as this, which will have a positive impact. What is the Conservative Party's policy? It is very simple. It is a bumper sticker that says, “Axe the tax”.

The Conservatives' whole concept of axing the tax is stealing money from Canadians. That is what they are doing, because most Canadians get more money back than they pay for the price on—

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 1:55 p.m.

Some hon. members

Oh, oh!

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 1:55 p.m.

The Assistant Deputy Speaker Carol Hughes

Order. I would remind members there will be 10 minutes of questions and comments. If members have something to say, they should wait until then.

The hon. parliamentary secretary.

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 1:55 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, let us think about it. They are saying they are going to get rid—

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 1:55 p.m.

The Assistant Deputy Speaker Carol Hughes

The hon. member for North Okanagan—Shuswap is rising on a point of order.

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 1:55 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Madam Speaker, I believe the language the member used is unparliamentary. We cannot say indirectly what we cannot say directly. He basically stated that Conservatives are stealing from taxpayers. I would ask him to withdraw that statement and apologize.

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 1:55 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, on the same point of order, if they take away the rebate, they are taking money out of the pockets of Canadians. Many would say that is taking away—

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 1:55 p.m.

The Assistant Deputy Speaker Carol Hughes

This is a debate. I would remind members that they cannot say indirectly what they cannot say directly.

If the hon. member would withdraw his comment, we will go to Statements by Members and he can continue his speech later.

The hon. parliamentary secretary.

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 1:55 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, I withdraw it.

The House resumed consideration of the motion that Bill C-56, An Act to amend the Excise Tax Act and the Competition Act, be read the third time and passed.

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 6:15 p.m.

The Deputy Speaker Chris d'Entremont

Pursuant to order made on Thursday, November 23, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the third reading stage of the bill now before the House.

If a member participating in person wishes that the motion be carried or carried on division, or if a member of a recognized party participating in person wishes to request a recorded division, I would invite them to rise and indicate it to the Chair.

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 6:15 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I would request a recorded vote.

Affordable Housing and Groceries ActGovernment Orders

December 11th, 2023 / 6:15 p.m.

The Deputy Speaker Chris d'Entremont

Call in the members.