Thank you so much.
Good afternoon, Mr. Chair.
Good afternoon, members of the committee.
Thank you for offering us the opportunity to present our comments today.
My name is Carlos Castiblanco and I am an economist and analyst at Option consommateurs. With me is my colleague Sara Eve Levac, who is a lawyer.
Option consommateurs was created in 1983 and is a non-profit association whose mission is to help consumers defend their rights. Option consommateurs is directly involved in issues relating to competition, housing, and measures that affect consumers.
We are therefore in a good position to provide you with our comments on Bill C‑59.
Option consommateurs welcomes the bill and sees it as a step forward for protecting Canadian consumers. Our remarks will focus on three areas that the bill addresses: adoption of the tax recommendations made by the Organisation for Economic Co-operation and Development or OECD, initiatives to stimulate access to housing, and measures to strengthen competition.
I would also note that we have submitted a brief setting out the details of our position on the bill.
Bill C-59 proposes that certain recommendations that came out of the OECD project to combat erosion of the tax base be adopted. The goal of one such measure is to limit unreasonable tax deductions for interest expenses and other financing costs.
That initiative, which is intended to prevent corporate profit shifting by multinational corporations, is worded too broadly, however. It could extend to Canadian corporations in the energy sector, which might see their indebtedness rise at the same pace as the investments needed for the energy transition.
That could have a negative effect on rates, by potentially increasing the financing costs for new projects. For that reason, we are seeking an exemption from the measures relating to section 18.1 of the Income Tax Act for Canadian projects that provide regulated utilities.
On the subject of housing, we support the elimination of the GST on new purpose-built rental units constructed by cooperative housing corporations. We also welcome the incorporation of the housing policy into the Department of Housing, Infrastructure and Communities, provided that close collaboration is established and that it respects the jurisdictions of the other governments. This reflects the federal government's commitment to diversifying the housing stock and taking the lead on these initiatives.
Again, we emphasize the need to maintain careful coordination among the various levels of government. We also stress the need to increase the funding for programs associated with the National Housing Strategy and coordination of the programs by the Minister of Housing, Infratucture and Communities.
I will now give the floor to my colleague Sara Eve Levac for our comments on the proposed amendments to the Competition Act.