Finance Committee on Feb. 1st, 2017

[Stephen Smith]

I think it will take at least a year or a year to 18 months. We have data from January already. I think you can get seasonal effects going on. Markets may be slowing down in any event. I think you want to have at least a full year, if not longer, to try to get a sense of what's happening in the marketplace before you do anything else.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Of course.

Mr. Finnigan of the Canadian Home Builders' Association, my riding is within the city of Vaughan. We have a number of large entrepreneurs in that riding, in both manufacturing and home building. I've spoken to a number of them who are in home building, and they generally say they're not worried about the greenbelt and the places to grow. It's more the time to get the product on the market that worries them. The developmental charges relating to sewer and water infrastructure are needed, and those charges go into the fund, and the debts are paid off after a number of years.

I do want to ask, though, about something that causes a little bit of a twinge, and that is the labour supply issue. What are you hearing from your partners and members within the GTA in terms of labour supply? I'm hearing that it is actually a constraint.

[Bob Finnigan]

It is a bit of a constraint to construction. It's slowing things down a little bit, but our concern in the longer term is that it's going to get worse with the shift from low-rise to high-rise housing. A lot of the trades have left the low-rise business. For certain trades—most recently carpenters, bricklayers, and things of that nature—definitely it's causing some pressure on pricing, but nowhere near what some of the other pressures are.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

I have a follow-up a question—

[The Vice-Chair, Conservative, Ron Liepert]

Be very quick.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

—to Ms. Donovan and Ms. Barker Watson.

What do you expect for housing starts this year in Nova Scotia? Do you see any sort of stabilization? I was very disappointed to hear that there have been layoffs within that industry in Nova Scotia. Do you have any commentary or any green shoots?

[Tamara Barker Watson]

We're definitely going to be down compared to last year. The last two years were probably the worst two years on record, and we're going to be down from those this year.

[Sherry Donovan]

That's not just in Nova Scotia, but we're talking—

[Tamara Barker Watson]

We're talking about Atlantic.

[Sherry Donovan]

—about Atlantic Canada as well. From the regional perspective, with the halts, pretty much, in Newfoundland and New Brunswick, starts are down, and in Nova Scotia, starts are down. I think overall it's not looking like a blue sky in any way.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Thank you, Chair.

[The Vice-Chair, Conservative, Ron Liepert]

That concludes our questions from our members, but, Tamara and Sherry, you travelled a long way. Is there anything you heard tonight from other witnesses that you might want to take a minute to just expand upon before we adjourn?

[Sherry Donovan]

I would reiterate that the blanket national policy just doesn't work. I think it's really important to consider, when making decisions, what the unintended consequences are and who they impact. It might seem like only a few jobs, but when I look at my builders, I've had seven major companies go out of business this year. One builder had 60 years in a family business. As far as the impact that had on the community goes, we're talking at least 50 to 60 people out of work in one very small community in Nova Scotia. When you look at all of these impacts and how they will flow downhill, I think it's really important to consider not just the bigger markets but also the little markets and how they add up to a larger number overall.

Thank you for the chance to speak.

[Tamara Barker Watson]

It's not just the builder. I need electricians. I need plumbers. I need drywallers. I need shinglers. If I go out of business.... Most builders are leaving them holding the bag. The suppliers are usually protected by lines of credit or personal guarantees. The banks are all 100% guaranteed. They'll own my house. They'll own my cottage. They'll own the boat. But I think it really can't be one rule for all of Canada. We are so different down home.

[The Vice-Chair, Conservative, Ron Liepert]

All right.

Thank you to all the witnesses.

Committee, we're done. We'll see you all next Monday and talk taxes.