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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 addresses housing affordability and grocery prices by amending the Excise Tax Act to include a GST rebate for builders of rental apartment buildings and amending the Competition Act to increase the power of the Competition Bureau, increase fines for serious offences, adjust the legal threshold required to find a major player guilty of abusing a dominant position to reduce competition, and allow the commissioner of competition to independently undertake a market study. An additional amendment would extend the GST rebate to co-operatives. The bill aims to incentivize construction of rental housing and strengthen competition in the marketplace, particularly in the grocery sector.

Liberal

  • Supports Bill C-56: The government introduced Bill C-56, the affordable housing and groceries legislation, as a tangible way to support Canadians. The bill aims to strengthen the Competition Bureau to increase competition, particularly in the grocery sector, and addresses housing issues through proactive measures and investments.
  • Government is proactive on housing: The government has adopted a historic housing strategy with significant investments, unlike the negligible role of the federal government in the previous 30 years. The government is committed to working with municipalities and other levels of government to increase housing supply, particularly in the non-profit sector, through legislation and budgetary measures.
  • Focus on job creation: The government has prioritized job creation through infrastructure development and support for Canadians, resulting in over a million jobs created since the pandemic. These efforts aim to support Canada's middle class, provide essential programs for those in need, and increase affordability through initiatives like affordable child care and increased OAS for seniors.

Conservative

  • Economic mismanagement: The Conservative speakers repeatedly blamed the Liberal-NDP government for economic mismanagement, leading to inflation, high interest rates, and increased reliance on government assistance. They argue that the government's policies have made the Canadian dream unattainable for many.
  • Housing affordability crisis: The Conservatives highlighted the doubling of housing costs and rents under the current government, attributing it to deficit spending and a lack of investment in infrastructure. They criticized the government's housing initiatives as mere 'photo ops' with little concrete action, leading to a decline in new home construction.
  • Carbon tax burden: The speakers criticized the carbon tax, claiming it increases the cost of food, utilities, and gas, further burdening Canadians. They emphasized the need to axe the tax on gas, groceries, and home heating to alleviate financial strain on families.
  • Proposed Conservative solutions: The Conservatives promoted their plan to balance the budget, lower inflation, and reduce interest rates. They also mentioned a bill called the 'Building homes not bureaucracy' bill and emphasized a focus on jail for repeat offenders, border control for illegal guns, and freedom of speech.

NDP

  • Supports C-56: The NDP will support bill C-56 as it makes small movements toward addressing corporate greed in the grocery industry and in housing. They are happy to see any movement on the issue, although they believe the bill does not go far enough.
  • Competition Bureau improvements: The bill includes important amendments that were based on the work of the NDP leader, giving the commissioner the ability to launch their own investigations without needing permission from the minister and raising penalties for abuse of market dominance.
  • Need for non-market housing: The NDP is pleased to get rid of the GST on purpose-built rentals, but it must be accompanied by direct action to build more non-market housing because that is housing that can be built and sustained at rents that people can truly afford.
  • Extending GST rebate: The NDP expressed disappointment that the government still refuses to extend the GST rebate to projects with secured funding under the national housing strategy that are led by non-profits, which could be the difference they need to accommodate higher interest rates and proceed with projects.

Bloc

  • Housing crisis in regions: Federal housing programs do not work for the regions, like Abitibi—Témiscamingue, because they are not designed for regional realities. Programs should be adapted to suit projects in remote regions, including Canada Mortgage and Housing Corporation programs, to address the housing shortage.
  • Modernizing Competition Act: The Bloc Québécois has been calling for a comprehensive reform of the Competition Act for years, but the government missed an opportunity to thoroughly modernize the act. The process was rushed, limiting the ability to consider recommendations from the Standing Committee on Industry and Technology.
  • Amendments to Competition Act: Despite the challenges, the committee adopted important amendments, including increasing fines for serious offences, adjusting the legal threshold for finding abuse of dominant position, and giving the commissioner of competition the power to independently undertake market studies.
  • Protecting consumers: The Bloc Québécois introduced an amendment to target the adverse effects of a lack of competition on consumers, aiming to prevent exploitation through predatory pricing. The amendment seeks to address the lack of oversight that has allowed shady conglomerates to take over affordable housing and turn it into unaffordable housing.
Was this summary helpful and accurate?

Motions in AmendmentAffordable Housing and Groceries ActGovernment Orders

December 5th, 2023 / 1:55 p.m.

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

I imagine the hon. member would like to receive the document hand to hand.

The hon. member for Kingston and the Islands.

Motions in AmendmentAffordable Housing and Groceries ActGovernment Orders

December 5th, 2023 / 1:55 p.m.

Liberal

Mark Gerretsen Liberal Kingston and the Islands, ON

Madam Speaker, I am pretty sure I heard some of the member's own colleagues yell “no” there.

It really comes down to a bill that has substantive measures in it for Canadians. It is a bill that Conservatives voted to send to committee. It is a bill that the whole House seems to be supportive of in terms of the measures contained within it. Even the Conservatives know better than to try to vote against this one, so what do they do? They put absolutely every delay tactic possible in place to prevent the bill from actually moving forward and getting supports to Canadians. This way, the Conservatives can say they were supportive of it the whole time, even though they allowed absolutely no efforts to actually get it through the process. Once again, we are now in a position where we have had to program this—

Motions in AmendmentAffordable Housing and Groceries ActGovernment Orders

December 5th, 2023 / 2 p.m.

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

The hon. member will be able to finish his speech after Oral Questions.

The House resumed consideration of Bill C-56, An Act to amend the Excise Tax Act and the Competition Act, as reported (with amendments) from the committee, and of the motions in Group No. 1.

Affordable Housing and Groceries ActGovernment Orders

December 5th, 2023 / 5:15 p.m.

Conservative

Michelle Ferreri Conservative Peterborough—Kawartha, ON

Madam Speaker, it is always a true honour to stand in the House of Commons to speak on behalf of the best community in Canada, Peterborough—Kawartha.

After eight years of a Prime Minister who has recklessly spent taxpayer money, we have a cost of living crisis. If the economy does not work, then nothing works. Charities and social programs suffer, and everything we need to take care of our most vulnerable is no longer available.

Why are there tent cities across this country? Why are full-time employed nurses living in their cars? Why are seniors forced back to work? Why do we have the highest rate of food bank usage in history? Why are Canadians getting poorer? Why do we have the lowest GDP per capita growth rate since the Great Depression? It is because we have a Prime Minister who does not care about monetary policy. Those are his words, not mine.

This is basic Budgeting 101. Most kids can tell us that if we spend more money than we make, we are going to have a major problem. That is exactly what the Prime Minister has done. He did not understand what would happen if he borrowed gobs of money. He was warned many times, but, as we have seen over and over again, the Prime Minister refuses to listen to the people. He doubles down on policy that creates chaos and suffering. The Prime Minister promised everyone that interest rates would stay low for a long time.

Who remembers the exchange on CTV in 2020 with the Prime Minister? CTV's Glen McGregor said, “Future governments are going to have to carry that debt. The servicing costs on that are going to be very high.” The Prime Minister replied, “Sorry?” Glen McGregor responded, “The servicing cost on that debt that you are going to have to carry, that you're adding to right now. Right?” The Prime Minister said, “Interest rates are at historic lows, Glen.” Three years later, we are in a very serious situation.

The current housing minister is also on record telling Canadians that interest rates will stay low for a long time and not to worry. Surprise, just as Conservatives predicted, they did not; now we have chaos and suffering.

In order to understand how we got here, we need to understand why. What is the motivation of the Liberal-NDP government? It believes that government knows best and that it will take care of the people, that the people are not capable. Let us take the Liberals' favourite talking point, for example: child care. This is a classic example of a program that has created more losers than winners. The Liberals drove up inflation by overspending and borrowing gobs of money, which drove up the cost of living. What happened? That promised money to make child care more affordable became less valuable, because this is the cycle of overspending. Child care centres now need more and more money, because money is worth less. It is a vicious cycle, and we will never get out of debt. We will go further and further into debt.

Do members know that, right now, we are spending more on servicing our debt than we are on health care transfers in this country? It is wild that a government in charge of fiscal responsibility has not seen what it has been doing. It does not understand that when one spends more than one makes, one accrues debt. The government does not have money. It has Canadian taxpayers' money, and it can only make money by taxing people. That is what we have seen in this country. People's paycheques have decreased over and over again.

Because I am the critic for families, children and social development, I want to read an open letter by ADCO, which is the Association of Day Care Operators of Ontario. It really explains the ideology behind the government and why it is so important to understand this. The letter says, “The framers of the program,” referring to the $10-a-day child care, “seem to have a strong preference for building a government-run child care system, even if it means parents with young children have to work more hours so that they can pay higher taxes to cover the costs. The assumption seems to be that all children are better off in government-managed institutionalized care and that all parents can and should be employed full-time.”

This out-of-control spending has caused chaos in every sector of our country. As I have said, when the economy does not work, nothing works. However, we have a finance minister and Prime Minister who continually gaslight Canadians and tell them that they have never had it so good. Canadians are not stupid, but they are miserable.

I want to read some messages that have come through to me:

Hi, Michelle...I'm a single mom of a 19 YO in college and a 15 YO in high school with no child support. I'm paying almost $1600 rent plus approx $1000 for utilities, car payment and insurances for a 3 bedroom townhouse in the “ghetto of Burlington”. As tenants move out, they are gutting the units, adding central air, stainless appliances and raising rents to over $2500. I work in healthcare and live basically cheque to cheque. I only buy groceries that are on sale or in the reduced bin. Thankfully I was gifted a large freezer and buy fresh items on sale and am able to freeze. I make a decent wage. I do not know how others do it making less than I do. Something needs to be done.

There is also this one:

We bought our house six years ago and we have a variable mortgage, so we are already feeling the effects of the higher interest rates. Over the last year and a half, our mortgage has gone from $3400 a month to $5000. My husband and I both work full-time and we have two young kids. We have had to rent our basement in order to afford our mortgage increase. If even one single month goes by that we don't get the rent income, we will not make our mortgage. If our mortgage continues to rise, even with the rent income, we won't make our mortgage. It is extremely scary. Every time the interest rate rises, I wait for the letter in the mail to tell me how much higher my mortgage is going to be. It's terrifying and quite literally taking away from the quality of life that I can offer to my children.

That is the message I cannot say loud enough in this House: Our children are feeling the consequences of this.

I recently gave a talk about basic politics to grade 5 students. They are 10 years old. We did a mock House of Commons. It was very fun to get these kids engaged in politics. I said, “Okay, we get to decide what issue you guys want to debate. We will take a vote and do the majority.”

Six kids raised their hand. Do members know what the number one issue was for every one of them? It was that everything is too pricey. They said their parents cannot afford gas, cannot afford food and cannot afford the mortgage.

This is the burden we put on our children when we do not put fiscal responsibility first and when we do not care about monetary policy. That is exactly what the Liberal Prime Minister has done, and it is hurting our most vulnerable. We can read any headline. Charities cannot make it happen anymore. Today is International Volunteer Day, but people cannot find volunteers because they cannot afford the gas to drive to volunteer. That is the reality of what we are living in this country.

We have put forth lots of solutions. I will be brief in what the solutions are, but the real solution has to come down to the fact that the government cannot tax the farmer who makes the food. Farmer Brown from Ontario phoned me this week. He said that he wanted me to tell the Prime Minister that the carbon tax will make everything cost more, that everything must go up in price. Whatever they spend to make the product, they have to get back when they sell it. Whatever amount the carbon tax is increased by, the price will have to go up that amount. They have to get that money back, and the only way to do that is to raise prices.

Farmer Brown gets it. Why does the Prime Minister not get it? We are long overdue for common sense, and Conservatives will bring it.

The House resumed consideration of Bill C-56, An Act to amend the Excise Tax Act and the Competition Act, as reported (with amendment) from the committee, and of the motions in Group No. 1.

Affordable Housing and Groceries ActGovernment Orders

December 5th, 2023 / 5:25 p.m.

The Deputy Speaker Chris d'Entremont

It being 5:30, pursuant to order made Thursday, November 23, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the report stage of the bill now before the House.

The question is on Motion No. 1.

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 5th, 2023 / 5:30 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I request a recorded division.

Affordable Housing and Groceries ActGovernment Orders

December 5th, 2023 / 5:30 p.m.

The Deputy Speaker Chris d'Entremont

The recorded division on the motion stands deferred.

The question is on Motion No. 2.

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 5th, 2023 / 5:30 p.m.

Conservative

Dominique Vien Conservative Bellechasse—Les Etchemins—Lévis, QC

Mr. Speaker, I request a recorded division.

Affordable Housing and Groceries ActGovernment Orders

December 5th, 2023 / 5:30 p.m.

The Deputy Speaker Chris d'Entremont

The recorded division on the motion stands deferred.

The question is on Motion No. 3.

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 5th, 2023 / 5:30 p.m.

Conservative

Jacques Gourde Conservative Lévis—Lotbinière, QC

Mr. Speaker, I request a recorded division.

Affordable Housing and Groceries ActGovernment Orders

December 5th, 2023 / 5:30 p.m.

The Deputy Speaker Chris d'Entremont

The recorded division stands deferred.

Pursuant to order made Thursday, November 23, the House will now proceed to the taking of the deferred recorded divisions at report stage of the bill.

Call in the members.

(The House divided on Motion No. 1, which was negatived on the following division:)

Vote #471

Affordable Housing and Groceries ActGovernment Orders

December 5th, 2023 / 6:20 p.m.

The Deputy Speaker Chris d'Entremont

I declare Motion No. 1 defeated.

The next question is on Motion No. 2.

The hon. government whip.