Bill C-56

Affordable Housing and Groceries Act

An Act to amend the Excise Tax Act and the Competition Act

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.

Grocery Industry

[François-Philippe Champagne, Liberal, Minister of Innovation]

Mr. Speaker, we did even more than that. For the first time in Canada's history, we called all the CEOs to come to Ottawa to tell them one thing. We expressed the frustration of 40 million Canadians, and we expect everyone to do their part, including signing the grocery code of conduct to help stabilize prices in Canada.

However, there is one thing that the members on the other side can do to help Canadians, which is to vote for Bill C-56 so we can reform competition and ensure that we have more competition in this country. Why will they not act?

Public Accounts

[Adam Chambers, Conservative, Simcoe North, ON]

Mr. Speaker, there has been plenty of legislation that Conservatives have agreed with and voted for. There were bills on disabilities, child care and extending COVID support payments. If it is good legislation, we will vote for it. In fact, the Liberals have legislation they still have not brought back to the House, such as Bill C-56, which Conservatives have indicated they would support.

Canadians were told that Liberals could not cut or pause the carbon tax for any Canadians because of fires, floods and hurricanes, and I want to know how any member in the Liberal Party sleeps at night. How does the member sleep at night knowing that they paused the carbon tax on heating oil when just six months ago, they said they could not pause anything because of hurricanes, floods and fires?

Innovation, Science and Industry

[François-Philippe Champagne, Liberal, Minister of Innovation]

Mr. Speaker, the hon. member and members of the House will have an opportunity to do something for Canadians. I have asked the Leader of the Opposition to do one thing for Canadians, which is something that he does not do very often, but that one thing is to vote for Bill C-56. Canadians will be happy to learn that Bill C-56 would reform competition by giving more power to the competition commissioner, removing the mergers that are harmful to competition and removing the clauses that are hurting competition.

We want more competition and lower prices in this country.

Bill C-34—Time Allocation Motion

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, there is no doubt that there is a genuine consensus of agreement in the legislation and the principles of the legislation, yet the Conservatives continue to want to prevent the House of Commons from being able to pass legislation with all forms of filibustering. A good example of that is Bill C-56, something that we debated earlier today as part of a private member's bill where members on all sides were talking about the importance of competition. However, Bill C-56 is yet another victim of Conservative filibustering.

I wonder if my friend and colleague could provide his thoughts in regard to the filibustering that takes place, which hurts Canadians.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Speaker, I am happy to answer the question again. There were 11 meetings at committee to talk about that and 20 hours of debate. This has been debated at committee. People had the chance to debate it, but now that the debate is taking place in the House and everyone agrees, it is time to vote.

Canadians watching at home are saying there were 20 hours of debate in 11 committee meetings and 20 hours of debate in the House. Members had the chance to debate it, and they said that they agree with the amendments. Now they are asking why the government is asking them to vote on it. It is to protect Canadians' national security and make sure we have modern tools in the tool box.

There are real questions, which I know Canadians are asking. What is the hidden agenda of the Conservatives? Why would they want to block legislation? Why are they blocking Bill C-56, which would reform competition? Why are they blocking amendments to the Investment Canada Act?

When it comes to national security, members need to forget their political affiliations and do what is right for Canadians.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Speaker, I like the question. I wish I could answer it. I do not know, honestly, because Conservatives agreed to the legislation and the amendments. They support them, yet they do not want to vote.

I am glad Canadians are watching. They must be wondering at home why the Conservatives agree but do not want to vote. What is the logic of that? The only thing I can find is that they want to obstruct the work of Parliament. They want to delay everything. They will not even allow Bill C-56 to pass, which we talked about before, to make sure we reform competition.

They say that Canada should work at the speed of business, and look at them this morning. What about the speed of business? What about voting on something they want? Find the logic in that. Folks watching at home are wondering why Conservatives agree but do not want to vote for it. It is very tough for me to understand that. I am sure my kids, who are watching at home, would ask how that is possible. That is the real question we are asking. Why do they not do what is right for Canadians? They supported the amendments. They support the bill. We had 44 witnesses. We had 20 hours of debate in the House, 11 meetings at the INDU committee and 20 hours of witnesses.

As I said, there is a time for debate, but there is also a time for action. The time for action is now.

Lowering Prices for Canadians Act

[Jean-Denis Garon, Bloc, Mirabel, QC]

Mr. Speaker, this weekend in my riding I was at the Saint‑Janvier Optimist Club, whose mission is to work for youth and children. I want to take this opportunity to commend Linda Cardinal and the entire team who work very hard for children.

Attending this type of event always allows us to reconnect with people, the business community and community organizations, and I find it interesting that we are talking about competition in the House today because I heard people talking about that on Saturday evening. I was at that event with people from the Mirabel Chamber of Commerce, who came to see me to tell me that every year, there is a gala for entrepreneurs in Mirabel, but that this year the gala will not be held because the entrepreneurs are in over their heads, because businesses are extremely worried as they wait for extensions and flexibility for their emergency loan and because for some members the survival of their business is potentially at risk.

If we want to increase competition and stimulate entrepreneurship, and if we want people who enter stores and businesses to be able to shop—we talked about mergers and acquisitions that reduce the number of businesses in the market—then we need to make sure small and medium-sized businesses can survive and breathe and enjoy some flexibility. I find it mind-boggling that, out of all the parties that have spoken today, not one so far has asked the government to extend the deadlines and show flexibility when we know this would immediately increase competition.

I ask the government once again to show some flexibility. What it has shown to date is complete disregard for our entrepreneurial base. The government says it has shown flexibility, that it took measures during the pandemic and invested significantly. Yes, but the current economic circumstances are exceptional, as they were during the pandemic. Times are tough. This must be extended.

That said, it is true that we have a bill in front of us that is good for competition. It is time we started talking about our competition regime. What does this bill do? It increases penalties for some anti-competitive behaviour. We need tougher, more meaningful penalties. It changes the competition regime for Canadian businesses, big multinationals, when they merge with or acquire other companies, so that consumers and the price they will pay are considered in the Competition Bureau's decision-making process. It allows the Competition Tribunal to issue additional, broader orders so that mergers, acquisitions and so on can be more easily prevented. It extends the limitation period for the review of mergers and acquisitions from one year to three years.

These are good measures given our ailing competition regime. We talked about this during the debate on Bill C‑56. Around the world, when there is a major merger or acquisition, competition authorities ask two general types of questions. The first is, how will this make things more efficient? Will these businesses, which are expanding and increasing market concentration, operate more efficiently? That is a legitimate question. The second type of questions is, considering that consumers will have fewer places, fewer stores where they can shop, do they risk being fleeced? Could they end up paying more? Could there be an increase in the cost of living? Do consumers risk being held hostage by this smaller number of larger businesses?

Canada's system is unique in the world in that the Competition Bureau is not allowed to ask this second type of questions. As a result, in certain markets, such as grocery stores, we have seen market concentration, merger after merger, acquisition after acquisition. It is now at the point where there are three major grocery stores in the market, not including Walmart and Costco, even though Canada is a G7 country. When the minister invited representatives from these big companies, they were all able to sit around a small coffee table, in 10 square feet. That is just one example of the disease plaguing our competition system.

HSBC Bank Canada is the perfect example. It is selling its subsidiaries around the world because it needs cash. What is happening? HSBC is selling its subsidiaries and, obviously, it is the biggest, strongest player that is most likely to buy that bank, especially since we know that the mortgage market is struggling and some banks are vulnerable. The system is already vulnerable.

The Competition Bureau is keeping an eye on that to determine whether there are efficiencies to be had. Of course, there are efficiencies to be had. We do not have to have an honorary doctorate, like the member for Trois-Rivières, to know that. The biggest bank is going to buy the portfolios of customers from other banks. It will own the mortgages and will be able to close branches and reduce the number of players in the market. HSBC will likely not have any storefront locations after the merger or acquisition. It will be the same bank with the same customers. It will provide the same loans, with the same employees and the same systems.

The Competition Bureau allows this because it will save money. However, not even the Competition Bureau is authorized to check on whether this will reduce competition, and consumers are the ones who end up paying. What is interesting is that the government even recognized that. With Bill C-56, the message is that Canada's competition regime needs to be changed, because consumers have been getting shafted at every turn for decades.

The Competition Bureau allowed this to happen under the old rules. This has made it to the desk of the Minister of Finance, who is about to sign it. If I were the Minister of Industry, I would really feel like I was a laughingstock. It is imperative that this transaction be put on hold until we see whether Bill C-56 passes, depending on the will of Parliament, so that the Competition Bureau can reissue a notice under the new rules of Bill C-56, taking the consumer into account. That is why it is so important to review our competition system.

Bill C-352 looks at supply chains, which is a good thing. We experienced this during the pandemic. We know that when there are mergers and acquisitions, transactions often involve head offices elsewhere and there is a risk that foreign suppliers will replace local suppliers. A few years ago that was not seen as dangerous. However, with the closures during the pandemic, we realized the extent to which consumers’ buying power in Quebec and Canada could be weakened by supply chain disruptions in the event of a major shock to international trade. We have come to realize that, sometimes, it is good insurance to have local or national suppliers. It is a very good thing.

Furthermore, we will be able to give the Competition Tribunal some power to cancel mergers and acquisitions. We realized after all that, because the Competition Bureau’s advisory opinions are not always perfect, consumers were being cheated far more than people thought. Some trial and error is involved here, and, often, when the Competition Bureau has not taken everything into account, when circumstances have changed, the consumer ends up paying.

They say that a transaction will be cancelled if it takes the new company that merged or made an acquisition to a 60% market share. That could be at 30%. We are not sure where these figures come from, but we think this deserves to be properly assessed in committee and, perhaps, be amended. That said, the bill does leave the tribunal a lot of latitude to take other criteria into account.

There is also the dominant market position issue. Until now, companies with a dominant position have been prevented from forcing their competitors to not do business with some suppliers. A number of practices have been blocked, but nothing prevents these companies from abusing their dominance and charging prices that are too high. We know that when a company gains market power, when it becomes a monopoly or comes close, its first reflex is of course to raise prices excessively high, because the consumer has no other place to shop. The consumer is stuck with one brand, one company. In some regions, there are very concentrated markets where the consumer is stuck with one company.

What this bill shows is that the competition regime is in serious need of reform. Most of all, it shows that Canada's competition regime has been favouring business and capital, not consumers, for decades. With today's cost of living, the importance of putting consumers at the centre of our thinking, at the centre of our approach, is not lost on anyone.

I would therefore like to thank the leader of the NDP for introducing this bill. We will be pleased to debate it in committee.

[Ryan Williams, Conservative, Bay of Quinte, ON]

Mr. Speaker, Canada has a competition problem. I think we all know this; it has been repeated over and over today in the House. After eight years, Canadians pay the highest prices in the world for almost every good and service they can imagine. Canadian monopolies are making money on the backs of hard-working Canadians. It is not corporate greed; it is government incompetence driving these changes with the unwillingness to change the Competition Act, as well as the carbon tax driving up the prices of almost every good and service.

We can look at all of it. Canadians pay the highest cellphone bills on the whole planet. We pay three times as much as the Australians and twice as much as people do in the U.S. and in Europe. For Internet, we pay some of the highest fees. When it comes to rural Canadians, seven million Canadians, 60% of them do not have high-speed Internet. When it comes to trying to get high-speed Internet, most of them get it from the sky, from Starlink and Xplore, which are owned by American companies. With banking, six banks control 80% of all the mortgages in Canada. For airlines, 85% of all of them are controlled by two companies in Canada.

We are talking about the highest grocery bills. A 50-dollar basket in Canada is only $35 in the United States. A decade ago, we used to have eight Canadian grocery companies, which has now been whittled down to only three Canadian companies and two American companies that control 80% of all the groceries in Canada. Even for beer, we have InBev, Molson Coors and Sapporo that account for 90% of all the beer sales in Canada. What a travesty that this is controlled by three companies.

If we look at the top 20 Canadian companies, the average age of those companies is 110 years. The average founding year for Canadian companies is 1914. In the U.S., the average age is 80 years, and the average founding year is 1944. Of the top five biggest companies in Canada, our oldest is RBC, which was founded in 1864. In the U.S., it is in Microsoft, which was founded in 1975. We have major monopolies that have controlled all Canadian markets. They control everything Canadians buy. After eight years of the government, the Prime Minister, coupled with the NDP government, is just not worth the cost, literally, for almost everything Canadians buy.

Why do we want competition? Competition is freedom. It is freedom of choice. Families can decide where to put to put their money, their hard-earned tax dollars. That always means better service. It always means lower prices. However, to have freedom, one needs to have courage to change the rules and to break up the trust to stand up for Canadians' wallets.

The Competition Act is the culprit. It is outdated. It was meant to be based on an industrial 1960s-style policy that was meant not for competition in Canada but for competition in the world. We wanted Canadian companies to get as big as possible in order to be able to compete internationally. That meant we made sure all our big companies, starting from the founder, the Hudson's Bay Company, which was the original monopoly, were a big as possible and ensured those companies could compete. However, at the invention of free trade and as we have gone global in the world, we have never changed the Competition Act, so the Competition Act, in fact, protects only large companies. It protects them to get bigger, and at the end of the day, Canadians pay the highest fees on the whole planet.

After eight years, here are the mergers that have been approved by the Competition Bureau. Air Canada was approved to buy Air Transat. Rogers was approved to buy Shaw in 2022. WestJet bought Sunwing, which was approved in 2022. Bell was approved to buy MTS. Superior Propane was approved to buy Canexus. Superior Propane was approved to buy Canwest Propane. Sobeys, in the grocery market, was approved to buy Farm Boy in 2018. Tervita bought assets from Babkirk Land Services in 2015. The most egregious, to me, is happening right now. It is RBC, which has been approved to buy HSBC. RBC, Canada's number one bank, with 21% of all the mortgages, has a hard time getting new clients. When it looked to buy new clients, of course it looked at the deal with HSBC, which had 800,000 mortgage holders, and said “Is this not a great deal?” and that it would love to buy it. Why would it not, with 800,000 mortgage holders? The Competition Act, based on outdated rules, said that this company was going to get bigger and saw nothing in these rules to stop the merger.

Let me tell members what this merger would do. Of those 800,000 mortgage holders, HSBC has 10% of all Vancouver mortgages and 5% of all Toronto mortgages. When we look at the housing markets in the world, Toronto is the number one hottest market in the world. Vancouver is the third-hottest market. The approval of this merger would effectively mean that, when we look at prices for mortgages, the lower mortgages by the scrappy competitor, HSBC, would be bought wholeheartedly by RBC. We will want to compare those numbers. RBC, last week, had a posted variable mortgage rate of 7.15%, HSBC at 6.4%. That is a basis point difference of 75 for a mortgage market, which may not have meant anything three years ago when interest rates were really low. However, when interest rates go higher, that means that a family in Toronto or Vancouver with a half-a-million-dollar mortgage would be paying, per month, $312 more, based on the fact that this competitor would be gone.

The Competition Act favours monopolies; it says so in the purpose statement. Part of the change in this is the courage to change the rules. Conservatives were the ones who came up with eliminating the efficiencies defence, the defence that allows, in the Competition Act, any big companies, regardless of their size and regardless of the merger, to be able to merge based on efficiencies. A lot of times, they were job markets or job losses. I know that the removal of the defence is a good idea because it was my idea, my private member's bill, which was introduced in the House on June 12, when it was read for the first time. It was scheduled to go the second time and the government first took it with Bill C-56. Now, of course, the efficiencies defence removal is coming under this private member's bill. Of course, this is a good idea. Conservatives are looking forward to presenting more good ideas as we look to tackle the Competition Act.

It comes down to one thing: do we stand up for the people or do we stand up with monopolies? When we look at the monopolies across Canada, we certainly have to be brave in terms of looking at how to tackle those.

When we look at grocery prices and grocery stores, only three Canadian companies, three Canadian grocery chains, own two-thirds of the whole market. They are Metro, Shoppers and Sobeys. We can look over the years at how that was able to occur. In 1986, Safeway was able to buy Woodward's. In 1990, A&P was able to buy Steinberg's. Sobeys bought IGA. That one is the most egregious to me. The Independent Retail Grocers Association is not independent; it is owned by Sobeys. We have Loblaws buying Safeway. Metro bought A&P. Loblaws bought Provigo. Amazon has bought Whole Foods. Metro has bought Jean Coutu. Sobeys has bought Farm Boy and Longo's. There is no competition in Canada; there are only oligopolies.

When it comes to the grocery sector, we also have another item, another piece, that makes it completely uncompetitive; that is the carbon tax. The carbon tax has added on for the farmer. The medium farm in Canada pays $150,000 in carbon taxes and gets no rebate, meaning it passes that cost on to the consumer. Truckers get a carbon tax added on to the price of fuel. They do not get a rebate, so that gets added on to the price for consumers. Cold storage facilities and warehouses all get a carbon tax added on to their heat bills and to their bills to freeze food and keep it cold. All of that gets added on for consumers. When the carbon tax gets added on one, two, three, four or five times, the food goes up one, two, three, four or five times. That is why, when we compare Canadian grocery prices to American grocery prices, Americans pay less; it is because they have no carbon tax.

Large monopolies should not be able to merge with one another. The large monopolies should not be able to gobble up other, smaller competitors. That is the key we are missing in the Competition Act. When we have large competitors competing internationally, that is one thing. When we have Canadian monopolies buying small competitors just so they can get bigger, just so that they can make more money on the backs of hard-working Canadians, that is wrong. To break that up and to change the Competition Act takes courage, and that is what we want to do as Conservatives on this side of the House.

Competition is freedom of choice and freedom of courage. Let us have the courage to change the Competition Act and to create competition for a change, for my home, your home and our home. Let us take competition and bring it home.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, it is a pleasure to rise and address the issue that the leader of the New Democratic Party has brought to us this morning in the form of a piece of private member's legislation.

It is interesting to look at Bill C-56, a government piece of legislation. I think some of the principles are there. I look forward to hearing the feedback from my friends in the New Democratic Party with respect to Bill C-56. I believe that Bill C-56 is going to be able to make a difference.

Before I get into that, I think it is important for all of us to recognize a few facts. One is that Canadians are hurting in a very real and tangible way. We recognize that. If we compare inflation and the price of groceries in Canada to other places around the world, Canada is doing fairly well, but that does not mean that we just accept that. It is important that we continue as a government to look at ways to bring more stability to the prices of groceries, to even have an impact on reducing the cost of groceries indirectly, which is still important, and directly, provide that support to Canadians. An example of that would be in the last budget. In the last budget we had a grocery rebate. I believe over 11 million people directly benefited from that. That put more money in the pockets of people during a difficult time, ensuring that they would have that additional disposable income.

I would suggest there are many benefits throughout the budget that help Canadians with disposable income, such as the national child care program, the national dental care program, both brought in by this government, again, with the idea of ensuring that disposable income, which could go toward groceries, would in fact, be helped.

More specifically, in regard to the bill itself, when we think in terms of the big five grocery chains, Loblaws, Metro, Sobeys, Walmart and Costco, our government called them from the minister's office here in Ottawa and had them make a presentation to the standing committee in a genuine attempt for more accountability. That was relatively unique. We want to ensure that there is a healthier sense of competition and that consumers are not being taken advantage of, as we know that can take place. In fact, not that long ago, colleagues will recall when Canada Bread company was caught price fixing. Over the last couple of years that allegation was established and the company taken to court. I believe there was an agreed-upon fine somewhere in the neighbourhood of $45 million to $50 million. That was because the government does take this issue seriously.

Bill C-56 deals, in good part, with ensuring there is a healthier sense of competition. Let me give an example. They call it the efficiency debate. Members might recall that Shoppers Drug Mart used to be a stand-alone independent company, producing literally hundreds of millions of dollars in sales throughout the country. They used the issue of efficiency partly to justify the merger of Loblaws and Shoppers. That was the last real significant merger that we saw in the grocery industry. There is no doubt that Loblaws and Shoppers benefited immensely by that, using that particular argument. The ones who lost out were the consumers because there is less competition when two large companies form one, based on the issue of efficiency.

As much as the Conservatives criticize the Liberals, I will remind my friends across the way that the same thing happened while Stephen Harper was prime minister. It was the Conservative government that approved that particular merger. In good part, it was based on the efficiency defence. That is why Bill C-56, which I believe the Conservatives are filibustering, would change the game. I am not 100% sure they are filibustering it, but I would be surprised if they were not. We will have to wait and see, and maybe do a little more research on it. Suffice it to say that Bill C-56 would change the game, because we can no longer use the efficiency argument. We need to have more of a focus on Canadian consumers, and we would see that in some of the changes in the bill.

In Bill C-56, we would see more of an empowerment of the Competition Bureau, giving the bureau additional money and resources to conduct investigations to ensure we have healthier competition in a wide spectrum of areas. The best way to keep corporations more responsible, to prevent price-fixing and some of the shenanigans that take place, which ultimately shaft consumers, is to ensure there is healthier competition. That is why we looked to the Competition Bureau to give the legislation more authority, not only from a legislative perspective but also as a budgetary measure. As a government, we have invested more, into the tens of millions of dollars, so the bureau would be in a better position to conduct the investigations necessary to protect our consumers.

Over the last year, I have been invited to grand openings in the community, and one thing I really appreciate is that it is the small businesses of Canada that provide the backbone to our economy and that are so important to the whole idea of competition. I look at some of the ethnic grocery stores. I am a little reluctant to use the word “ethnic”, so I will say “community-based grocery stores”. Look at the impact they have in the community by providing additional competition, not to mention some wonderful alternative foods. In my community, there are a Punjabi grocery store and a Filipino grocery store that emphasize products from those two communities. Superstores nowadays are starting to broaden their selections, which I suggest has a lot to do with competition. Superstores will start to lose more and more of their market if they do not diversify the types of products they offer.

The same principles apply with regard to prices. We would encourage all opposition members to look at Bill C-56 as legislation that can and would make a difference for the consumers of Canada, for all of us because we are all consumers. The government is focused on having the backs of Canadians, in supporting Canada's middle class and those aspiring to be part of it and in boosting up individuals who need to be boosted, while, at the same time, ensuring that the wealthiest 1% pay their fair share. It is one of the very first actions the government took in 2015; we raised the taxes of Canada's wealthiest 1%. We have the backs of Canadians and will continue to do so through legislation and budgetary measures.

Human Resources, Skills and Social Development and the Status of Persons with Disabilities

[Louise Chabot, Bloc, Thérèse-De Blainville, QC]

Mr. Speaker, I am not going to try my hand at interpretation at this time of the day. All I understood was that there was some question as to whether the national housing strategy was the right measure, and whether it had accomplished its mission after five years.

Personally, I would rather ask the government the following question. There are five years left in this strategy. When we returned to the House of Commons in September, the housing crisis was already bad. The government wanted to respond by introducing Bill C-56, which aims to abolish the GST on the construction of rental housing.

The government is spending $82 billion on the national housing strategy, which includes several programs. That said, a strategy is meant to be adjusted when it is not working. I would have expected the government to ask itself how it intends to resolve this situation or help resolve it over the next five years by supporting Quebec and its municipalities when it comes to social and affordable housing. That is how it is. I do not expect them to throw the baby out with the bathwater, but I do expect them to make major adjustments to the strategy so it can achieve its objectives.

The Economy

[Justin Trudeau, Liberal, Prime Minister]

Mr. Speaker, our goal is to make life more affordable and ensure that companies pay their share.

The Minister of Innovation, Science and Industry met with the CEOs of the big grocery chains and of domestic and international food producers to clearly explain the need for a more affordable grocery basket and improved competition.

I hope that all members will join us in expediting the passage of Bill C‑56 on affordable housing and groceries to improve competition in the food sector, among others.

Canada-Ukraine Free Trade Agreement Implementation Act, 2023

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Mr. Speaker, this legislation was tabled in the House last week on October 17. I am hoping the member can enlighten me, because the government's own policy requires that before the tabling of legislation, 21 sitting days have to expire so that members of Parliament can take a look at the agreement before any enabling legislation is brought in. We did not have that presented to members of Parliament. We also do not have an economic statement.

The government has attached a lot of importance to Bill C-56, so I am just wondering why the government did not take the time to do those two key priorities. We have plenty of time to consider this legislation. Instead, maybe we should devote the House's time to Bill C-56, which the government often likes to complain is not moving ahead.

Requirement of Royal Recommendations for Bills C-353 and C-356

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I rise with respect to what the Speaker said on Thursday, October 19, when he raised two items for Private Members' Business that appeared to infringe on the Crown's financial imperative and asked members to bring forward interventions on these matters.

Without commenting on the subject matter of the two bills in question, I submit that Bill C-353, sponsored by the member for Thornhill, and Bill C-356, sponsored by the member for Carleton, both infringe on the Crown's financial prerogative and that both bills require a royal recommendation.

Subclause 21(1) of Bill C-353 relating to the programs to encourage co-operation provides that:

The Minister may, in cooperation with the Minister of Citizenship and Immigration, establish and implement programs designed to encourage individuals to co-operate with the Government of Canada to secure the release of Canadian nationals and eligible protected persons who are held hostage or arbitrarily detained in state-to-state relations outside Canada.

Subclause 21(2) of Bill C-353 further provides that “the Minister may pay a monetary reward to the individual who provides that information in an amount and manner determined by the Minister.”

I submit, respectfully, that there is no authority in statute or in an appropriation to establish such a program set out in subclause 21(1), nor the authority to make payments subject to the provisions set out in subclause 21(2). Therefore, subclause 21(1), in toto, seeks to impose a new and distinct draw on the consolidated revenue fund in a manner that is not currently authorized.

Turning to Bill C-356, I submit that the repurposing of $100 million from the housing accelerator fund and the provision to give effect to a 100% GST rebate on the new residential rental property for which the average rent payable is below market rate both seek to infringe on the Crown's financial prerogative.

First, the housing accelerator fund was established as a program administered by the Canada Mortgage and Housing Corporation and is funded by a voted appropriation by Parliament through the estimates process. The member is seeking to change the terms and conditions and the purposes of the housing accelerator fund in a manner that is inconsistent with the program parameters as established and that therefore deviates from the authority granted by Parliament. The tabling of the main estimates and supplementary estimates is preceded by the recommendation of Her Excellency the Governor General for voted appropriations. That royal recommendation sets the maximum amount, the purpose and the terms and conditions of the voted appropriations contained in the estimates documents and voted upon by Parliament.

Second, the 100% GST rebate on new residential rental property would be a rebate paid out of the consolidated revenue fund for which a builder, landlord or buyer could claim the said rebate. I would point out that Bill C-56, which also proposes a 100% GST rebate for purpose-built rental housing, while different in design, was accompanied by a royal recommendation. Since, when brought into force, it would create a new and distinct draw on the consolidated revenue fund, it stands to reason that the program for which the terms, purposes and conditions of the GST rebate envisioned in Bill C-356 cannot rely on the royal recommendation provided with Bill C-56. Bill C-356 must, similarly, require a new royal recommendation to authorize a new and distinct draw on the consolidated revenue fund.

Carbon Pricing

[Soraya Martinez Ferrada, Liberal, Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec]

Mr. Speaker, what I can say with a straight face is that the Conservative Party has voted against every measure proposed by this side of the House to provide support to families. The Canada child benefit and every investment we have made in housing come to mind. We still expect the Conservatives to vote in favour of Bill C‑56, which will stabilize grocery prices and get rid of the GST on new housing construction.

On this side of the House, we are taking care of people every day.

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, if they really wanted to pass Bill C-56, they would put it on the agenda. Since October 5, the Liberals have not called Bill C-56 for debate in the House. They should make a decision and stick with it. One would think they would have a better sense of what they want.

Meanwhile, the middle class knows what is coming. They are lining up at food banks. This morning, the newspapers were saying that food banks are desperate. In the last three years, food prices have risen by 23%.

Meanwhile, the Liberals and the Bloc Québécois want to drastically increase carbon taxes. Voting for the Bloc Québécois is costly now, and it is going to get even more costly.

Will the Liberals abandon their plan to raise carbon taxes?