Government Operations Committee on June 16th, 2021

[Jean-Yves Duclos]

That's a very good question, and that's why I would like to ask Ms. Cahill to answer it.

[Karen Cahill]

Thank you for your question.

Under the Phoenix agreements, current funding covers the two existing agreements. We are still working with the bargaining agents on the damages caused by the Phoenix pay system.

I can't tell you yet whether we're going to have to request more funds. However, those that we have received and those that came under vote 10a, as you mentioned, cover the current agreements.

[The Chair, Conservative, Robert Gordon Kitchen]

Thank you, Ms. Cahill.

We'll now go to Mr. Green for two and a half minutes.

[Matthew Green, NDP, Hamilton Centre, ON]

Thank you.

A recent report suggested that Hamilton is now less affordable than Los Angeles and New York City. There are also reports that a condo developer is looking to invest a billion dollars in buying up single-family homes.

I know that the honourable minister in his prior role was responsible for the national housing strategy, so I know he'll be able to answer with some degree of specificity, hopefully, the following questions: Under CMHC's request for $1.5 billion under vote 1a, how much of this funding would go toward female-focused housing and how many new affordable housing units would be converted and built with the requested funding?

[Jean-Yves Duclos]

Thank you, Matthew, and thank you for the reminder that in the earlier mandate it was indeed closer to our investment strategy to make it more affordable and more inclusive and safer for Canadians to find a home. I would point out that Minister Hussen has been extremely active on that in the last year and a half.

For the precise details on the estimates number that you mentioned—the $2.5 billion—let me turn to Glenn.

[Matthew Green, NDP, Hamilton Centre, ON]

It's $1.5 billion. It's is under the rapid housing initiative, to help Mr. Purves perhaps find it.

How many new affordable housing units would be converted and how many of them would go towards women-focused housing projects?

[Jean-Yves Duclos]

That's a great question.

Let's see whether Glenn has the information.

[Glenn Purves]

Sure. The funding will support the creation of a minimum of 4,500 new affordable housing units for Canadians. At least 25% of that $1.5 billion will go toward women-focused housing projects, and units will be constructed within 12 months of when funding is provided to the program.

[Matthew Green, NDP, Hamilton Centre, ON]

Does CMHC still define affordability at 125% of market value, or are we talking about real affordability, closer to the 80% range?

[Glenn Purves]

I don't have the answer to that. That's a question for—

[Matthew Green, NDP, Hamilton Centre, ON]

Mr. Duclos, in your previous role, you were the minister responsible for the national housing strategy. How would you define affordable housing?

[Jean-Yves Duclos]

I believe, again, that you might want to talk to my colleague, Minister Hussen, for the current state of affairs. The right answer is that it's based on local conditions, obviously, and sensitive to local views on what is affordable, because we need to work with provinces and territories.

[Matthew Green, NDP, Hamilton Centre, ON]

But I believe the CMHC—

[The Chair, Conservative, Robert Gordon Kitchen]

Thank you.

[Matthew Green, NDP, Hamilton Centre, ON]

—which is responsible for it, defines it at 125% of affordability.

[The Chair, Conservative, Robert Gordon Kitchen]

Thank you, Minister.

We'll now go to Ms. Harder for five minutes.

[Rachael Thomas, Conservative, Lethbridge, AB]

Thank you.

Minister, you and Minister Anand have talked a lot about the importance of our relationship with indigenous people. Originally in her mandate letter, it was set out that she would allocate 5% of all procurement contracts to indigenous-led businesses. You've talked about the importance of that, even here today.

Unfortunately, when it comes to procuring anything, really that rate is actually only 2%. It's 2% of all procurements that is being allocated to indigenous-led businesses, which is a tremendous failure in comparison to the 5% set out in the original mandate letter. In the meantime, a sole-source contract was awarded to China for PPE.

Why wasn't there a competitive process, and why wasn't opportunity given to indigenous-led businesses?

[Jean-Yves Duclos]

Thank you, Ms. Harder, for asking the question.

I suppose and suspect you were there at the beginning of the meeting when we talked about the importance of thinking about procurement in a broad way, taking into account both the important advantages of providing services and goods to Canadians through appropriate procurement and also the economic advantages, the fact that we want procurement to be increasingly green procurement—

[Rachael Thomas, Conservative, Lethbridge, AB]

Minister, my question is very direct, and so a direct answer would be appropriate.

[Jean-Yves Duclos]

That's exactly where I was going, because past the green procurement supply chain that we want to build, there is the social impact of procurement and supporting indigenous—

[Rachael Thomas, Conservative, Lethbridge, AB]

Why was a sole-source contract given to China instead of an indigenous-led business? They were deliberately ignored.

[Jean-Yves Duclos]

Supporting indigenous businesses and workers is exactly what the objective of this—

[Rachael Thomas, Conservative, Lethbridge, AB]

Then why was a sole-source contract given to China?

[Jean-Yves Duclos]

Supporting those indigenous businesses, workers and communities is, as I said—

[Rachael Thomas, Conservative, Lethbridge, AB]

You're supporting them by giving a sole-source contract to China?