Good morning.
First, I would like to thank the committee for inviting FRAPRU to appear.
My presentation will be in French but I can take questions and discussion in English afterwards.
First of all, it is important to mention that FRAPRU is pleased with the federal government's interest in implementing a poverty reduction strategy. We hope that the federal government's next efforts will lead to a real poverty reduction strategy that takes a holistic view, rather than arriving at piecemeal strategies, measures or programs.
In our view, in a strategic way, if we really want to focus on poverty reduction measures, we must inevitably begin by recognizing economic, social and cultural rights, which go hand-in-hand. In our view, not only should the recognition of economic, social and cultural rights be the basis for public policies, but it is also one of the key ways to ensure the long-term basis for these policies, so that the next poverty reduction strategy is not the effort of a single government, in this case the one in place. At the moment, the development of a Canadian poverty reduction strategy, along with the national housing strategy, provides an opportunity to build a strong foundation for the long term.
Some of my colleagues have already spoken about this, but I am pleased to be able to emphasize the importance of the right to housing in the fight against poverty. FRAPRU is a group whose main focus is the right to housing and the fight against poverty. We believe that the right to housing is the cornerstone for ensuring that several other rights are respected and, as a result, meeting several other needs. As my CHRA colleague said, if you do not have a place to live, it's hard to talk about adequate food, and if you spend too much on housing, you're not able to meet all of your other housing needs. It is important to keep in mind that housing is one of the essential determinants of health. A poverty reduction strategy cannot be built without a comprehensive analysis of needs and the right to housing.
Today, we are discussing a poverty reduction strategy. At FRAPRU, we are convinced that in a country as rich as Canada, not only do we have the means to reduce poverty, but we should also really be moving towards a strategy to eradicate it.
The portrait of renter households in Canada is rather disastrous for such a rich country. My colleagues talked about that a little while ago. It was mentioned that there are four million tenants in the country, of whom there are 1.6 million tenant households whose needs are considered urgent, that is, they pay too much or they have a housing that doesn't meet their needs. That said, another figure is even more striking. I don't want to dwell too much on statistics, but I think there are some that must awaken our consciences. In Canada, 1 in 10 tenants spend more than 80% of their income on housing. So close to 400,000 renter households in Canada are forced to spend 80% of their income just to pay their rent. You can imagine that there isn't much left after that for their other needs. This is not to mention the homelessness situation in Canada and the tragic situation in many indigenous and northern communities, where there is a very high rate of inadequate housing. These communities also lack easy access to electricity and drinking water.
What can be done about the right to housing in order to address these problems? FRAPRU has put forward three solutions.
First, long-term subsidies for existing social housing must inevitably be maintained. We can't rely solely on the $30 million allocated in Minister Morneau's budget from last year. In the long term, the financial accessibility of existing social housing must be ensured.
In addition, we must focus our efforts on creating programs to build new social housing. At FRAPRU, we did the calculations and determined that the CMHC budget should be doubled to meet all the needs. So the amount should be increased from $1.7 or $2 billion to $4 billion, just to build new social housing and make sure that these units are affordable to low-income households in the long term. That's what social housing can do.
At the moment, there are several discussions on how to best ensure the right to housing and to ensure that low-income households have access to decent housing. Individual aid often has adverse effects, such as rent increases. We are convinced that we can fight poverty through affordable and long-term social housing.
Finally, we need a national housing strategy that recognizes the right to housing from the get-go and serves as a cornerstone for building long-term programs. As mentioned, it is difficult to build with programs spanning two or three years. A long-term, massive investment strategy is required to enable communities, community groups, cities, provinces and territories to build and plan for the long term.
Lastly, I will say a few words on the importance of transfers to the provinces.
For us, the fight against poverty isn't a matter of provincial, territorial or federal jurisdiction. There are already very adequate transfer mechanisms in place to make investments in the fight against poverty. These transfers have to be much larger. Several transfer amounts have not been indexed. Compared to 1990 levels in constant dollars, they are well below what they should be.
Clear priorities need to be established to ensure that some of the transfers in the fight against poverty, housing in particular, are not used to replace budgetary envelopes already set out by the provinces. These transfers have to be used to make additional investments in social infrastructure, for example. We must ensure that this money will be used for the construction and renovation of infrastructure, which will make it possible in the longer term to fight poverty effectively.