Evidence of meeting #39 for Finance in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was sector.
A video is available from Parliament.
Liberal
The Chair Liberal Karina Gould
Good afternoon, colleagues.
I call this meeting to order.
Welcome to meeting number 39 of the House of Commons Standing Committee on Finance.
Before we begin the meeting, I have a couple of items that I would like to bring to members' attention.
Liberal
The Chair Liberal Karina Gould
The first is with regard to committee business. Committee members would have received a budget request regarding the study of pre-budget consultations in advance of the 2026 budget. The amount requested is $56,100. Is it the pleasure of the committee to adopt this budget?
Liberal
The Chair Liberal Karina Gould
Excellent. Thank you.
I want to remind folks that we agreed a few weeks ago to host our European Union counterparts tomorrow morning. This is a reminder that an informal meeting with the Committee on Economic and Monetary Affairs of the European Parliament will be held on Tuesday, May 26, 2026. That meeting will take place at 9 a.m. That information will be sent to you shortly.
In advance of this informal meeting, the following motion must be adopted:
That the committee meet in camera, in an informal meeting, with the Committee on Economic and Monetary Affairs of the European Parliament on Tuesday, May 26, 2026; that the committee defray the hospitality expenses related to this meeting.
Is it the will of the committee to adopt this motion?
Liberal
The Chair Liberal Karina Gould
Excellent. Thank you very much.
We have a point of order from Monsieur Garon.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
Madam Chair, it's not exactly a point of debate, but please bear with me.
I wanted to suggest that the committee congratulate our colleague, Eric Lefebvre, who recently learned that he's going to be a grandfather for the first time. I move that we do so.
Liberal
The Chair Liberal Karina Gould
Is it the pleasure of the committee to formally congratulate Mr. Lefebvre?
Liberal
Liberal
The Chair Liberal Karina Gould
Okay.
Are there any more? Would anyone else like to disclose that they're becoming a grandparent?
Liberal
Liberal
The Chair Liberal Karina Gould
That's beautiful. Congratulations, Mr. Kelly.
On that lovely note, we are going to begin today's meeting.
I will remind you that today's meeting is taking place in a hybrid format, pursuant to the Standing Orders. Members are attending in person in the room and remotely using the Zoom application.
Before we continue, I would ask all in-person participants to consult the guidelines written on the cards on the table. These measures are in place to help prevent audio and feedback incidents and to protect the health and safety of all participants, including the interpreters. You will also notice a QR code on the card, which links to a short awareness video.
I would like to remind participants of the following points. Please wait until I recognize you by name before speaking. For those participating via video conference, click on the microphone icon to activate your mic. Please mute yourself when you are not speaking. For those on Zoom, at the bottom of your screen you can select the appropriate channel for interpretation: floor, English or French. For those in the room, you can use the earpiece and select the desired channel.
I would like to remind witnesses that committee members may ask questions in either French or English. If you will need interpretation, please take a moment now to prepare your earpiece and select in advance the listening channel you need to take full advantage of the time allotted for questions and answers. I will remind you that all comments should be addressed through the chair.
Pursuant to Standing Order 83.1, the committee commenced its pre-budget consultations in advance of the 2026 budget.
I would note for today's witnesses and for future witnesses that we have heard from some of you that you are concerned that your submissions are not yet published online. There is a reason for that. They are going through translation. They will all be published online as soon as this process concludes, so do not worry about that at all.
I would like to welcome our witnesses for this first hour.
From the Co-operative Housing Federation of Canada, we have Tim Ross, director general. From Habitat for Humanity Canada, we have Alana Lavoie, the principal director for government affairs. From the Mechanical Contractors Association of Canada, we have Ken Lancastle, chief operating officer.
With that, we will begin with Tim.
You have five minutes, Mr. Ross.
Tim Ross Chief Executive Officer, Co-operative Housing Federation of Canada
Thank you, Madam Chair.
I want to thank the committee members for having me here today. My name is Tim Ross, and I'm the CEO of the Co-operative Housing Federation of Canada, or CHF Canada, which represents co-operative housing across the country.
Canada has more than 2,200 non-profit housing co-operatives that house over a quarter of a million people. Over the past 50-plus years, co-ops have established a proven track record of providing long-term, safe, affordable, resident-managed housing with deep roots in communities.
Canadians are facing growing economic uncertainty and housing insecurity. In that context, housing co-ops offer something increasingly rare: stability. For more than 50 years, co-op housing has delivered just that: secure, affordable homes.
Our message to the federal government in this pre-budget consultation is clear. You hold the key to protecting and expanding access to affordable co-operative homes in Canada. Canada does not lack for housing solutions. What we lack is policy scale and predictability needed to deliver. Co-operative housing is one of the proven models that the federal government can use right now.
Today, I'll make four brief recommendations for budget 2026. In the context of a national housing strategy with many programs and budgets expiring—and expiring sooner than forecast—there's a need for greater certainty in the system.
First, it's imperative that the federal government renew rental assistance for co-op and non-profit housing for at least 10 years. Programs like the federal community housing initiative and the Canada community housing initiative are set to expire in 2028. Without renewal, thousands of low- and moderate-income households living in co-ops risk losing their homes.
Rental assistance is one of the most effective tools we have. It's a nimble tool that ensures households pay no more than what they can afford for housing: typically, 30% of income. It prevents displacement and homelessness, especially when life circumstances change, and it's cost-effective. Supporting households in co-ops costs significantly less than supporting the same households in comparable market rents, because co-ops are permanently affordable and more relatively affordable than market housing over time. That's why rental assistance must remain a core pillar in the national housing policy.
Second, we must also see continued and increased investment in urban, rural and northern indigenous housing, taking a “for indigenous, by indigenous” approach. We recognize the federal government's recent updates regarding funding for urban, rural and northern indigenous housing. We strongly encourage the use of a “for indigenous, by indigenous” approach in deploying these dollars. This will ensure the resulting housing is culturally appropriate and responds effectively to the nature of housing need. As well, the scale of housing need in indigenous communities is significant and sustained, and this investment is absolutely required.
Third, we must prioritize co-op housing in Build Canada Homes. The co-op housing sector has thousands of units in our development pipeline, thanks to the momentum created by the co-operative housing development program. This program has already committed to nearly 2,800 new co-op homes, with roughly 1,500 now under construction. This is a great success story, but the demand for the program greatly exceeds its funding envelope. This is a window of opportunity to advance new shovel-ready co-op construction through a strategic partnership with Build Canada Homes. To do that at scale, non-market developers, including co-ops, need long-term predictable funding and financing tools, along with workable guarantees and security requirements.
Lastly, let's protect the housing that's already out there and is affordable. The federal government should continue to enable the repair and renewal of non-market community housing. Many co-ops and non-profits were first developed in the 1970s and 1980s and now require repair and renewal. While some work can be undertaken through commercial lending and refinancing, additional support is often required, particularly for non-market homes whose original federal operating agreements disallowed the generation of sufficient capital reserves for capital renewal.
Federal repair programs have recently closed without a sense of when or if they will reopen. These initiatives need to be recapitalized or successor programs created. There is great uncertainty in the marketplace right now. Without action, we risk losing affordable homes faster than we can replace them. If we fail to preserve these homes, we will lose affordable units faster than we can build them.
Canada does not lack housing solutions. We lack the scale and predictability needed to deliver. Partnering with co-op housing is a strategic investment in Canada's future.
Thank you.
Liberal
The Chair Liberal Karina Gould
Thank you very much, Mr. Ross.
We'll continue now with Ms. Lavoie for five minutes.
Thank you.
Alana Lavoie National Senior Director, Public Policy, Habitat for Humanity Canada
Thank you very much.
Chair and members of the committee, thank you so much for the invitation to appear today.
As mentioned, I am here to speak on behalf of Habitat for Humanity Canada and our 44 local Habitats across this country serving in communities large, small and in the north. I'm also here to speak on behalf of the families we serve—and the families we could serve in the future—by providing them with access to affordable home ownership.
Across the country, too many households are being priced out of stable, suitable housing. There are options for them, and affordable home ownership should be one of them. We are all facing increasing construction costs, financing and systemic barriers, and uncertainty over the flow of federal housing investments over time. We see, every day, the impact of affordable home ownership and other forms of stable housing—the stability it creates for families, the freeing-up of rental supply and the way it helps communities remain inclusive and resilient.
Today we have three recommendations to bring forward to this committee that build on those you heard about from my colleague.
Our first recommendation is to build on the success we've seen so far with the establishment of Build Canada Homes. It could provide clearer targets and outcome metrics for the non-market housing sector. We really see Build Canada Homes as an important step. We see so much potential for it to play a meaningful role in increasing the affordable housing supply. However, the sector does need clarity on how success will be measured, what affordability outcomes are expected and how we, as a sector, will be part of delivery. Clear targets and transparent reporting would strengthen its mandate and help us plan our projects with confidence. These targets should click in, effectively, with the elements of my next recommendation and that of Habitat for Humanity.
Our second recommendation is that budget 2026 lay the groundwork for the next national housing strategy, with a 10-year framework that starts imminently, as soon as possible, co-created with the affordable housing sector, including a dedicated affordable home ownership pillar. A robust path forward would address the real uncertainty we are facing right now, with projects stalling in the pipeline for this year alone. This comes from the additional sunsetting of existing national housing strategy programs. These long-term frameworks will provide the certainty we need to assemble land, build the partnerships we need to deliver, and scale our delivery over time, while ensuring that support for non-market and the broader community housing sector does not erode.
Finally, our third recommendation is that budget 2026 continue to advance the examination of tax and financial levers that would reduce the cost of delivering affordable housing. Federal action on financing, risk sharing and de-risking some of the investments that are needed in the sector, and additional tax measures—building on the success of the GST exemption—would help us make a difference in terms of achieving project viability. This could include looking at measures that de-risk projects for non-market builders and at existing tools in other organizations, such as the Canada Mortgage and Housing Corporation. Apply those to BCH's work with the non-market housing sector. This would allow us to bring more projects to construction. If we want more affordable homes built, we need to keep moving forward to address the underlying structural barriers that slow delivery.
All of these elements, smartly assembled, would allow us to go further as a sector.
In closing—I will keep it brief today—Habitat for Humanity Canada believes that budget 2026 could help strengthen Canada's housing system by pairing ambition with clarity, as well as with long-term certainty and practical delivery tools. We are asking the federal government to give the non-market sector a clearer path to scale, including for affordable home ownership, through measurable targets for BCH, a long-term housing strategy with sustained funding and additional levers to lower the cost of building and providing more affordable homes.
Thank you so much for the opportunity to appear today. I look forward to any questions.
Liberal
The Chair Liberal Karina Gould
Thank you very much, Ms. Lavoie.
Mr. Lancastle, we'll continue with you for five minutes.
Ken Lancastle Chief Operating Officer, Mechanical Contractors Association of Canada
Thank you very much, Madam Chair.
Good afternoon, members of the committee.
I very much appreciate the opportunity, like my colleagues, to be here with you today. My name is Ken Lancastle. I am the chief operating officer of the Mechanical Contractors Association of Canada or, as we will commonly refer to it, MCA Canada.
Our association represents mechanical, electrical and plumbing contractors across the country working in the industrial, commercial, institutional, residential and service repair and maintenance sectors of Canada's construction industry. This also includes industrial process contractors who are critical to turnaround and shutdown activities for Canada's industrial capacity. Simply put, our members build and maintain the systems that Canadians rely on every single day and the systems that power our economy.
Just to put some of that into perspective, our sector accounts for roughly 40% of all construction activity across the country. We support more than 440,000 direct jobs, and the sector contributes more than $63 billion annually to the Canadian economy. It's an economic workhorse, and it's foundational to Canada's economic strength and our future growth.
Today, as the country faces increased demand for housing and infrastructure as well as industrial development, our sector is going to play a critical role in delivering on that capacity, but we face persistent challenges, particularly with respect to labour availability and productivity challenges.
Governments at all levels have taken important steps to address labour shortages. These programs are incredibly welcomed by our sector, but their full impact will take time while demand for construction is expected to rise in the near term. As well, construction productivity continues to lag compared to other sectors of the economy. Recent studies from Statistics Canada have demonstrated a national productivity slowdown in the Canadian construction industry despite the amount of work required in the years ahead.
The next federal budget provides an opportunity to take targeted action now, action that can remove impediments to business so that our sector, which is so critical to infrastructure and housing development, can continue to build. MCA Canada has put forward four practical recommendations.
First is tax relief on overtime earnings for skilled tradespeople. Construction workers regularly put in additional hours to meet project deadlines; however, those additional earnings are taxed at the same marginal tax rate as regular income, ultimately reducing the incentive to take on extra work. A targeted tax credit would provide a meaningful incentive for certified tradespeople to work additional hours, helping to address short-term labour pressures.
Second, expand the productivity superdeduction to explicitly include construction. Construction is highly capital-intensive. It requires significant upfront investment in tools, equipment and technology, yet tax recovery timelines limit the ability of firms to reinvest. When budget 2025 introduced the productivity superdeduction, construction was not clearly defined or included. Including construction, equipment and technology would allow firms to invest in more efficient tools, technologies and processes while allowing firms to find economies of scale to meet the demand.
Third is enhanced support for tools and personal protective equipment. Upfront costs remain a barrier to entering the skilled trades, particularly for under-represented groups. Increasing the tradesperson tool deduction to $3,000, indexing it to inflation and expanding eligibility to include personal protective equipment would reduce some of those financial barriers and support increased recruitment while making work sites safer and more inclusive.
Finally, strengthen federal prompt payment legislation. We recommend amending the Federal Prompt Payment for Construction Work Act to require the mandatory annual release of holdback on multi-year projects. This holdback is often held until the substantial completion of a project, but it can also mean that millions of dollars are being kept from a project payment supply chain.
Some provinces such as Ontario have already adopted this approach, but the federal framework has not yet addressed it. This change would help to unlock some of that cash flow in the supply chain and support the timely delivery of federal infrastructure projects.
In closing, Canada's mechanical, electrical and plumbing contractors are ready to meet the moment. At the end of the day, if we want to build more housing and infrastructure, we need to unlock the capacity that already exists in the system, and that's what these measures are designed to do.
With that being said, I want to thank the committee again for the invitation to speak here today, and I look forward to any questions there may be.
Liberal
The Chair Liberal Karina Gould
Thank you very much, Mr. Lancastle.
We're now going to start with Mr. Lefebvre for six minutes.
Liberal
The Chair Liberal Karina Gould
I'm sorry...no.
Ms. Cobena, you have the floor for six minutes. Go ahead.
