Thank you, Ms. Falk.
We'll probably get back to that.
We'll now go to Mr. Collins for five minutes.
Mr. Collins.
Evidence of meeting #130 for Human Resources, Skills and Social Development and the Status of Persons with Disabilities in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was industry.
A video is available from Parliament.
October 22nd, 2024 / 12:05 p.m.
Liberal
The Chair Liberal Bobby Morrissey
Thank you, Ms. Falk.
We'll probably get back to that.
We'll now go to Mr. Collins for five minutes.
Mr. Collins.
Liberal
Chad Collins Liberal Hamilton East—Stoney Creek, ON
Yes, thanks, Mr. Chair.
Thanks to the witnesses for your attendance here today.
I'll take us back to the study, which is housing innovation and how the government can assist both public and private partners with incentivizing new supply and getting us the units that we need to get us out of this housing crisis.
Mr. Pascoe, I'll start with you.
I've always found, through my time representing my constituents at two levels of government, that when all three levels of government work together, we find a greater success in whatever problem we're trying to tackle. In this instance, it's housing. We could certainly sit around the table today and call out municipalities and mayors across the country who we feel maybe aren't doing their part. However, that doesn't get us any further along the way in terms of getting us new supply and driving innovation in the housing sector.
Our government's taken a bit of a different approach. We created the housing accelerator fund, which speaks to many of the issues that you raised in terms of the delays there can be in the municipal process. We don't control municipalities. They fall under the jurisdiction of the provincial and territorial governments. However, we do play a role in the housing sector.
The housing accelerator fund seeks to incentivize municipalities to change the way they do business in terms of possibly creating a red-carpet process to incentivize new supply.
I know that in your area of the country, the City of St. Catharines has created a grant process for accessory dwelling units. They're using federal resources to provide those grants to your customers.
How do programs like that, along with those grants and the incentives, assist in terms of driving customers through your facility or to your door, and also how do they help in terms of driving innovation in your plant and in the industry?
Chief Commercial Officer, Flexobuild Incorporated
Certainly, we've had direct involvement in the housing accelerator fund, in the sense that St. Catharines was awarded some $24 million, I believe—don't quote me on that—to offer homeowners who want to put an ADU in their backyard up to $80,000. This is tremendous. It's absolutely fantastic. We're quite close to St. Catharines. Since then, we've had numerous inquiries. We're very active right now in the building process for those ADUs.
However, if I had to criticize the fund—this is based on my personal knowledge—St. Catharines has $80,000 to give out until the pot is empty. That is fine. It has to empty sooner or later. It has to end. However, neighbouring municipalities like Thorold, Pelham and so on get nothing. Rather than giving it to an individual municipality, I think a regional approach could possibly be much more effective. I can say that Thorold, which is quite near St. Catharines, has a much higher ADU uptake per head of population than St. Catharines, but they receive nothing.
Although the housing accelerator fund is excellent, obviously, a better understanding of how it could be distributed would certainly be more effective.
Liberal
Chad Collins Liberal Hamilton East—Stoney Creek, ON
That's a great recommendation for the study.
There is some question, of course, about next year, because different governments have different priorities. There'll be some question as to whether programs like that should stick around.
Can you provide recommendations on how the federal government can further incentivize or expand upon, as you just referenced, the current programs we have?
Chief Commercial Officer, Flexobuild Incorporated
Absolutely.
I keep coming back to tradespeople. You know, we can give out money left, right and centre, to be perfectly honest. “Here's all the money in the world.” However, if you have no one to build them, that's when it stops. Again, the incentivization of apprentices in the Red Seal trades, or of the employers of those apprentices, is something that should be discussed at some level to at least acknowledge it is problematic.
It's not because people don't want to go into the trades. It's because the jobs may not be there when they finish their training.
Liberal
Chad Collins Liberal Hamilton East—Stoney Creek, ON
Mr. Silveira, I attended York University to see what you have, in terms of the program you offer and some of the innovation you're driving on site.
One of the questions I have is this: How do we bridge the gap between the innovation you're driving—your process—and the traditional homebuilders who have their own blueprint that's worked for many decades? Some of those processes haven't changed for almost 100 years. They're doing things today the same way they may have done them decades ago.
How do you introduce your innovation to the industry, when some might feel a bit of discomfort adopting that as the new way of doing business in their realm, municipality or part of the country?
Director of Engineering, Printerra 3D Construction Printing
It comes down to two components: training and research.
In order to better know about the technology, we have to invest in research. We need to have a guided research plan in order to identify the gaps we have from the industry side of things. In the industry, we're going to see exactly what the gaps are. That covers research. Then, the research data are going to inform the development of standards, which is a very important component for the large-scale adoption of additive construction as a whole.
The second and probably most important one is training. You need to have the available workforce. I already said that the available workforce is hard to find. Everyone agrees on that, at least most of us here. The available workforce is already decreasing. Training the tradespeople who are already in the industry, especially the concrete industry, for example, is going to be much easier than training people from outside the industry. This applies to the robotics industry as well. The auto industry uses a lot of robots already, so getting those people and bringing them into construction is something we also see as possible.
Conservative
Tracy Gray Conservative Kelowna—Lake Country, BC
Thank you, Mr. Chair.
Thank you to all the witnesses for being here today.
The Canadian Roofing Contractors Association's 2024-27 strategic plan includes a goal to “be the change” by being proactive and leading. This study is looking at innovation in homebuilding and how government red tape in municipalities or federal agencies like the CMHC is undermining it.
Are there bureaucratic regulatory requirements that roofers encounter that are getting in the way of homebuilding?
Executive Director, Canadian Roofing Contractors Association
I don't know if there are necessarily federal ones getting in the way of building homes across the board.
To the extent that federal policy can link what it does right down to the municipal level, to say, “Hey we have this. We want to give it to you. However, we need to see something,” it might be helpful. We're already seeing linking funding to outcomes in current government policy. That might be helpful.
The other thing it can do is.... My colleague Daniel mentioned incentivizing employers to take on apprentices, because it is a major commitment for an employer to take on an apprentice. If there's something the feds can do in that regard, it would be helpful.
I think the greatest impediment to growing one's business is, in fact, the availability of the people right now, even on the immigration side. I know that immigration right now is getting a bit of a rough ride, but when it comes to roofing and building envelope construction, these are good-paying jobs. They pay between $35 and $75 an hour. These are not low-paying jobs at all.
Making sure that roofing and building envelopes, from a federal government immigration policy perspective, is carved out from any kind of perception that it's low-wage would be helpful.
Conservative
Tracy Gray Conservative Kelowna—Lake Country, BC
We've heard other testimony that the capital gains tax increase is causing investment, in particular in innovation, to leave Canada. In a press conference in June, the finance minister said the Liberal capital gains tax hike is going to increase the number of homes being built in Canada.
My question is whether you think the capital gains tax hike will increase innovation and homebuilding.
I'll go first to Mr. Pascoe.
Chief Commercial Officer, Flexobuild Incorporated
I think I said it earlier, but any tax, levy or charge put upon any sort of homebuilding entity is a negative result.
I'm not an expert on tax law or what you just mentioned—I'm sorry—but anything that is prohibitive against homebuilding is not a good thing. I think raising taxes, charges or levies is obviously a negative.
Executive Director, Canadian Roofing Contractors Association
Somebody must have been at my board meeting last week, because our board talked about this then.
To quickly answer your question, no. It's having an effect that I don't think was intended at all.
Director of Engineering, Printerra 3D Construction Printing
No comment.
Conservative
Tracy Gray Conservative Kelowna—Lake Country, BC
Okay. Thank you.
We've heard other testimony that Canadian home builders are now moving to the U.S. and are actually building the same number of homes, either in Canada or in the U.S., due to red tape, bureaucracy and increasing taxes and costs in Canada.
Have you heard about this, and why would building in the U.S., for example, be more favourable than in Canada?
Mr. Pascoe, do you have any comments?
Chief Commercial Officer, Flexobuild Incorporated
I personally haven't heard that story, to be perfectly honest. I can only speculate as to why they would do that otherwise.
Executive Director, Canadian Roofing Contractors Association
I've heard it directly, including from my son, who said, “If I get a job offer in the U.S., Dad, I'm probably not coming back.”
Executive Director, Canadian Roofing Contractors Association
It's very real. A lot of it has to do with the ability to afford to buy a home themselves. From a personal perspective, there are opportunities down in the United States and the taxes they have to pay here versus there.... It's very real.
I've heard it directly, and I can tell you from first-hand information that they are going.
Director of Engineering, Printerra 3D Construction Printing
Within our industry, of course.... I mentioned at the beginning that I'm part of various committees and we are developing standards and doing research across the border. There is a lot more development on the other side of the border.
I cannot say exactly why, but in most cases, they have more abilities to.... For example, when it comes to building permit applications, they have the ability to use innovation in a faster way without going through long permit processes, because they're using something that is still not regulated. That is needed for the technology to develop.
Conservative