Evidence of meeting #36 for Finance in the 43rd Parliament, 2nd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was shelters.
A video is available from Parliament.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thanks so much, Mr. Chair.
Thanks to all our witnesses. We deeply appreciate that you're here today.
I'm going to go very quickly.
I'll start with you, Mr. Tremblay.
How much in the past year has CMHC provided in liquidity supports for Canada's big banks? They've received over $40 billion in profits so far. Also, how much over the past year has CMHC devoted to the actual construction of new affordable housing?
Senior Vice-President, Policy and Innovation, Canada Mortgage and Housing Corporation
Mr. Chair, in terms of how much liquidity we've provided, I'll have to get the information on that to the committee. I don't have it handy.
In terms of how much we've provided for affordable housing, as of December 31, 2020, within the national housing strategy program since the launch, I don't have it annually, but we've committed more than $12 billion for housing.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thank you very much.
OSFI tells us that CMHC gave $150 billion in liquidity supports for Canada's big banks, so the ratio is basically 14 times more for supporting the bank profits rather than providing affordable housing.
Thank you for that.
Dr. Kershaw, very quickly, is part of your laboratory looking into issues such as a wealth tax, which other countries have put into place?
Also, you did make reference to co-operative housing. The former Liberal government gutted the national housing program. How important is it to have that right to housing and the construction of non-profit and co-operative housing solutions?
Founder, Generation Squeeze
There are two parts to that question. I'll take the second part first.
It's absolutely essential for us now to be thinking about investing in particular in green energy-efficient co-ops. As this big gap between home prices and earnings grows, we need to be thinking that more and more people are going to be relying on alternative tenures like co-ops.
In terms of the taxation of wealth, I think it's a broader conversation. Your party has been focusing a lot on taxing the uber-wealthy: those with $20 million in assets. I think if we want to help our housing affordability, we would include housing wealth income much lower than that. I think we should be thinking about it. Only 9% of Canadian homeowners live in homes that are worth more than $1 million. It might be a threshold that's worthy of some discussion.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thank you very much.
Mr. Prud'homme, all over the country, we have seen horrific things happening in long-term care. How worried is the Réseau FADOQ by the sector's breakdown, lack of funding and low standards?
Director General, Provincial Secretariat, Réseau FADOQ
Thank you for your question.
The Réseau FADOQ has actually been very concerned about the issue since the 1990s, when we started to see drastic changes happening in the sector and resources being stretched.
I would say two things could happen.
It's a fact that most people right now need home care, so it's time to walk the talk, as they say. The needs are clearly known, but the budget fails to address them. A first step is needed to get things back on track.
As far as health transfers go, I will quickly say that population aging should absolutely be taken into account. Consider this: those 65 and over make up 17% of Canada's population—23% of Quebec's population. The government absolutely has to increase transfers on the basis of the aging population in the provinces and territories in order to improve long-term care.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Mr. Céré, how in favour are you of a guaranteed basic income?
Spokesperson, Conseil national des chômeurs et chômeuses
It depends on what you mean by guaranteed basic income. There are many schools of thought.
Is a guaranteed basic income an alternative to all of the support and income replacement measures?
By those measures, I mean every form of income replacement, from occupational illness coverage and wage loss insurance to car insurance. Is the idea to replace all of those things?
If so, it would have to be laid out, but good luck with the constitutional negotiations with the provinces.
If the purpose is to ensure a living wage for everyone, it's a welcome initiative. Provided the EI system undergoes a broad and in-depth review, I think it would be a good starting point. It could be a good place to start, in terms of making sure those who lose their jobs, at the very least, have a basic level of income.
Liberal
The Chair Liberal Wayne Easter
We're going to have to cut you there, Mr. Céré.
We have Mr. Fast for about two and a half minutes, followed by Mr. Fraser for two and a half minutes.
Go ahead, Ed.
Conservative
Ed Fast Conservative Abbotsford, BC
Dr. Kershaw, you are in favour of taxing housing wealth. Is that correct?
I think, in an answer to Mr. Julian's question, you said that there needs to be a move more towards taxing housing wealth.
Founder, Generation Squeeze
Well, we already do that in this country. For sure we already tax property.
I would suggest that it would make more sense to us to shift to taxing high-value properties more so we cut taxes to earnings for low- and middle-income earners.
Conservative
Ed Fast Conservative Abbotsford, BC
Can you tell me how Generation Squeeze and CMHC came together on this? Who provided the impetus for this study?
Founder, Generation Squeeze
That's a great question.
I could read to you the email I wrote when applying to the solutions labs. This was my applying to CMHC.
Founder, Generation Squeeze
One of the people who had been most eloquent talking about generational equity, housing and wealth had been Evan Siddall. As I was looking for partners to develop the solutions labs, I reached out to Evan and asked if he would be interested in partnering, and also, given that I was applying to CMHC for funding, if he could do that with me given that there might be conflict of interest.
Founder, Generation Squeeze
We're coming down to the end of the road.
We'll be giving our report towards the end of June, just before the summer break. It's been extended because of the COVID situation. We had to do more of it online, and that required a pause.
We have three working groups creating policy prototypes related to monetary policy, tax policy and protecting people should the—quote, unquote—“bubble” ever burst, those who might be most vulnerable in that situation.
Conservative
Ed Fast Conservative Abbotsford, BC
Mr. Tremblay suggested that CMHC had no role in formulating tax policy, yet CMHC entered into a partnership with you to work on something that focuses on the tax elements of intergenerational inequity. I'm having trouble squaring that, because you've just suggested that Mr. Siddall was a natural partner because he shared your approaches to the issue of intergenerational wealth, especially the issue on tax.
I hope I haven't misquoted you.
Founder, Generation Squeeze
I would pause you there. I think that your characterization there isn't accurately repeating what I said.
Founder, Generation Squeeze
I would say that Mr. Siddall was very strong at talking about housing wealth and intergenerational tensions, and he had this lovely speech about how he wakes up thinking how he would ask his mom to help him solve the housing crisis. That's very in keeping with Gen Squeeze language and framing, so that orientation is something that we crossed paths on and made CMHC a good partner.