Madam Speaker, let me begin by saying hello to the people of Abitibi—Baie-James—Nunavik—Eeyou and paying my respects to the Cree nation following the death of Charly Washipabano, who was a member of Hockey Abitibi‑Témiscamingue's board of directors and a program coordinator with the Eeyou Istchee Sports and Recreation Association.
I am rising in connection with the debate on Government Business No. 30, which seeks to impose a gag order and make amendments to Bill C‑56. This bill, which aims to eliminate the GST on the construction of rental housing and amend the Competition Act, was introduced in the House in September by the Deputy Prime Minister and Minister of Finance.
The government's motion authorizes the Standing Committee on Finance to expand the scope of the bill in order to amend it in three ways.
The first amendment would increase the penalty amounts. This increase is right out of Bill C-352, which amends the Competition Act and contains several elements that would become obsolete with the passing of Bill C‑56. The motion proposes to “increase the maximum fixed penalty amounts for abuse of dominance to $25 million in the first instance, and $35 million for subsequent orders, for situations where this amount is higher than three times the value of the benefit derived (or the alternative variable maximum)”. In the case of a large company, the maximum penalty could be even higher, up to three times the value of the benefit derived from the practice.
The second and third amendments deal with abuse of a dominant position and the Competition Bureau's powers of inquiry when conducting market studies. As currently worded, the amendments being submitted to the committee have no real effect. The goal is to “allow the Competition Bureau to conduct market study inquiries if it is either directed by the Minister responsible for the Act or recommended by the Commissioner of Competition, and require consultation between the two officials prior to the study being commenced”.
The Competition Bureau has significant powers. It can compel witnesses to appear, demand documents and request searches if necessary. However, these powers are available to the bureau only when it is investigating a clear infringement following a formal disclosure. The investigation then becomes quasi-criminal. However, when the bureau is conducting a study to determine whether competition is working properly in a given field or market, it has no such powers. For example, in its report on the state of competition in the grocery sector, published in June 2023, the bureau noted that the grocery chains did not really co-operate with its study. They refused to hand over the documents it had requested and refused to answer some of its questions.
Government Business No. 30 includes a proposed technical amendment to the way the Competition Bureau can conduct a market study, although it does not change much from current practice.
The third amendment will “revise the legal test for abuse of a dominant position prohibition order to be sufficiently met if the Tribunal finds that a dominant player has engaged in either a practice of anti-competitive acts or conduct other than superior competitive performance that had, is having or is likely to have the effect of preventing or lessening competition substantially in a relevant market”.
Everyone knows that there is a serious housing crisis in Quebec and across Canada. We often hear about rising prices and housing shortages in major urban centres, in big cities, but it is also an issue in rural regions and smaller towns. The housing crisis is in its 18th straight year, and its impact is being felt more and more in the towns, villages and communities of Abitibi—Baie-James—Nunavik—Eeyou. In Val‑d'Or, for example, the vacancy rate is now around 1.4%, adding pressure to the average cost of rent, which has jumped by 5.4%.
The housing shortage, combined with higher rent, is directly impacting the most vulnerable, by which I mean people living alone, single-parent families, women, young people, seniors, first nations and Inuit people, immigrant families, and persons with disabilities. Unfortunately, some of these people often end up having to stay in shelters longer or live in apartments that do not meet their needs, and that is unacceptable. We also need to consider the growing number of people left homeless by this crisis. It is important to find real solutions to this problem. The ongoing housing crisis is adding to the already pressing needs, and the homelessness problem is only getting worse.
The social housing stock is also aging. The government needs to upgrade and renovate it as quickly as possible, while ensuring that rent remains completely affordable for the low-income families living there now or in the future.
The government's national housing strategy, which was launched in 2017, falls far short. The funding allocated for social housing, both to maintain existing units and to build new ones, is not enough to meet the needs of all the nations.
When it comes to housing, there is nothing to indicate that Government Business No. 30 will add any value to Bill C-56 in terms of lowering rents.
It would be surprising if a property owner decided to lower rents just because they did not have to pay GST on the new building they bought. What is more, it is important to remember that the cost of higher mortgage payments will likely be passed on to renters.
I understand the minister's intention in moving this motion, but the measure to provide a GST rebate on the cost of labour and materials will apply to future rental properties, regardless of the market value and rental prices.
I represent Nunavik, where residents experience the impact of the housing shortage in many persistent ways. In Nunavik, 47% of Inuit live in overcrowded housing, compared to 7% for Quebec as a whole. This means their situation is seven times worse. The housing problem in the Far North is nothing new. Nunavik has been short on housing since the 1990s, when Ottawa stopped funding housing construction for five years. We have never caught up since, and now that has to change.
We have a moral responsibility, from one nation to another, to ensure that Inuit communities have decent housing. Housing is definitely one of the most important social issues in Nunavik. It is not uncommon for five, six, seven, eight or even more people to live together in a two-bedroom dwelling. If one of these people has social problems, the entire family is affected. The situation is far from ideal for raising children and supporting their education.
There can be up to three generations living in one house without much privacy. This has numerous consequences for their quality of life. Some 98% of Nunavik's Inuit residents live in social housing provided by the Kativik Municipal Housing Bureau. Approximately 1,000 families are hoping for housing, yet only about 100 units are built each year. Construction costs are astronomical, at least three times higher than in southern Quebec. Materials arrive by boat, and it is difficult to build more than 100 homes a year. Even at that rate, we cannot keep up with population growth.
It is important to note that, in my community, the housing shortage is also affecting the economy. Large mining and forestry companies would like to bring workers to the region. However, they hit a brick wall when it comes to housing. Companies have no choice but to reserve homes and rent housing for fly-in, fly-out workers, which reduces housing availability for the rest of the population.
As the families, children and social development critic, I feel it is important to address the impact that the housing shortage is having on families and children.
In its eighth report on housing and poverty in Quebec, the social housing group Front d'action populaire en réaménagement urbain states that three out of five renter families have had to cut back on activities, clothing and even groceries in order to pay their rent. According to the same report, no less than 30% of parents with children aged five and under live in a home that does not meet their needs, often in terms of space, because of the lack of housing in their price range.
What is the government waiting for? Why does it not take action now? The situation is urgent.