Debates of Sept. 25th, 2023

Excise Tax Act

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I am very excited and very proud to rise today, for the first time since Parliament resumed, to represent and defend the interests of the people of my riding, whom I always represent with pride and dignity. I am talking about the good people of Rimouski-Neigette—Témiscouata—Les Basques, whom I salute.

The subject we are talking about today is very important to us. Mental health affects every Quebecker and every Canadian. In today's complex, extremely demanding and ever-changing world, more and more people are experiencing mental health problems.

In recent years, the COVID-19 pandemic has led to an explosion in the need for mental health care among Quebeckers and Canadians. Some people are even talking about a mental health crisis. The uncertainty, the anxiety and the hardship caused by this unprecedented situation have largely contributed to this secondary epidemic, which often slips under the radar. The Bloc Québécois will be supporting Bill C-323, an act to amend the Excise Tax Act (mental health services), precisely because we believe in the importance of facilitating and promoting access to mental health care. This measure is designed to improve the affordability of psychotherapy and mental health counselling services by exempting them from the GST, the goods and services tax.

As we go through the worst inflationary crisis in 40 years, it has become hard for middle-class people to make ends meet. Times are tough for many people. Everything is more expensive, including mortgages, rent, groceries, gas and equipment. When forced to choose between feeding their children or going to psychotherapy, pretty well everyone will choose the former. In that context, the Bloc Québécois believes that it is a good idea for the federal government to waive the GST on those services in order to give everyone a bit of breathing space. Investing in our mental health is always a win-win and is something to be encouraged.

Before going any further, I will answer a simple question: What is psychotherapy? Psychotherapy is a type of psychological treatment that aims to bring about changes in a person's attitude, behaviour or way of thinking so that person can feel better, find answers to their questions, solve problems, make decisions and understand themselves better. It has been regulated in Quebec since 2012 under Bill 21 from 2009, guaranteeing Quebeckers quality services.

Although mental health counselling is not a regulated profession or one subject to legal guidelines, it can be a meaningful and useful form of therapy. However, the Quebec psychologists' association points out that it is essential to check the service provider's training credentials before choosing that option, as counselling can be offered by individuals with widely varying levels of expertise and ethical obligations.

Quebec has long been a pioneer in social and health care policy. Our legislation in the field of psychotherapy in particular has been emulated by several provinces, including Ontario. We have always taken Quebeckers' well-being seriously, and that is reflected in our commitment to providing quality mental health services.

Because mental health issues are invisible, because prejudice about them persists, and because they are often taboo, mental health services are undervalued compared to other health services. However, mental health is just as essential to our health as physical health, which is why it is important to end some of the tax inequalities that still exist with respect to mental health services. For example, many health services relating to physical health are already zero-rated, such as optometry, nutrition services and occupational therapy. There is also a disparity between the various professional orders that can provide psychotherapy services. For instance, psychotherapy falls within the areas of expertise and practice of both physicians and psychologists. Since all their services are zero-rated, psychotherapy provided by a physician or psychologist is already zero-rated. If, however, it is provided by a member of one of the seven professional orders authorized to offer psychotherapy, it will be taxed.

We need to update our tax legislation to reflect the progress made in regulating psychotherapy in Quebec. Mental health services are just as essential as physical health services and it is time we treated them the same way in the tax system. Bill C-323 meets this need by levelling the playing field for all by completely eliminating the tax on these services, regardless of who provides them.

When it comes to access to mental health services, we cannot ignore the elephant in the room any longer: The inadequacy of the federal health transfers has a significant impact on our health care systems in the provinces and in Quebec.

On April 1, 2023, more than 20,400 people were waiting for mental health services in Quebec. Our public system is under pressure and, unfortunately, it will not improve any time soon because there is not enough money in the system.

We must keep in mind that Quebec and the provinces asked for $280 billion over 10 years but only received a fraction of this amount, a meagre $46 billion. This funding gap compromises our ability to meet the mental health needs of our citizens.

The Bloc Québécois would like to remind the federal government that it is still difficult to access mental health services in the public system. This is largely due to the inadequacy of health transfers.

When it comes to mental health, Quebec is not simply asking for additional funding. Since the 1980s, the Quebec government has developed mental health policies aimed at increasing access to and improving the quality of services provided to our constituents. These policies have evolved over time to adapt to the changing needs of society. We have integrated mental health care and prevention in a health and social services network since 1998. Successive action plans have strengthened this integration, fostering collaboration between health care stakeholders to speed up the healing process.

We understood that quick intervention could prevent the need for more specialized care. The most recent action plan, known as “Le Plan d’action interministériel en santé mentale 2022-2026 — S’unir pour un mieux-être collectif”, shows our ongoing commitment to mental health. This plan was developed in consultation with various community groups, researchers, workers and civil society groups. Several departments are involved, and the total investment in the plan has reached $1 billion over five years. The Quebec plan covers seven key areas and focuses on promoting mental health, improving access to care and preventing mental disorders. However, the needs are greater than ever, and we need to keep doing more.

In my riding, in the Lower St. Lawrence, requests for mental health counselling have doubled in recent years. In response to the reality of rural life and the lifestyle of agricultural workers, a farm outreach service was created by the Union des producteurs agricoles du Bas-Saint-Laurent. I am proud to support this initiative, which helps us take care of our people.

In conclusion, Bill C-323 is an important step in improving access to psychotherapy and mental health counselling services in Quebec and Canada. In keeping with Quebec's reputation as a pioneer in the field of mental health, the Bloc Québécois will be supporting this bill.

We believe in a strong, innovative, united Quebec, where everyone has access to quality mental health care. That is why we will continue to press the federal government to increase health transfers, because Quebec and the provinces need more resources to meet the rising demand for mental health care.

[Lindsay Mathyssen, NDP, London—Fanshawe, ON]

Mr. Speaker, I thank my colleague for Cumberland—Colchester for tabling this important bill, Bill C-323, an act to amend the Excise Tax Act, mental health services.

As members know, the bill would expand the category of health care services exempt from point-of-sale taxes to include psychotherapy and mental health services. Members also know that physical health services, such as chiropractic and physiotherapy services, are already exempt from federal sales taxes. Eliminating that sales taxes from psychotherapy and mental health services would be one step further and would only be fair, because there are so many other services that are so similar that do not have to provide that federal sales tax on their services.

There should not be any health care service taxes in this country. Furthermore, all services, be it mental health care, dental care, pharmacare, physical health care, need to be covered in a way that is universal and free for all people in this country. A tax exemption is a small step in the right direction, which would reduce the cost of these services directly and increase access to them, so this is an important bill.

In December 2021, I had the honour of introducing my private member's bill, Bill C-218 in the House. Interestingly, my bill would also have amended the Excise Tax Act to exempt psychotherapeutic services delivered by psychotherapists and counsellors from the goods and services tax. They say imitation is the highest form of flattery, so once again, I thank the member for Cumberland—Colchester. Ultimately, Bill C-323 is so similar to my own bill, but as someone who is 175th on the list of precedence in private members' bills, I am happy to see this bill being brought forward. I am happy to support it.

I want to bring a little bit of historical context for the introduction of why I introduced Bill C-218. It was because of a local psychotherapist in London, Stephanie Woo Dearden, a registered psychotherapist, who asked me to take action on the issue. She contacted me in the fall of 2021, and so I did my research. I discovered that this bill had actually already been previously introduced by an NDP MP, Pierre-Luc Dusseault, in 2017, and I would like to thank him for his work on this issue. Like Bill C-323, our private members' bills work to ensure that psychotherapists are treated fairly, the same as their fellow practitioners in other health care fields. This bill would work to create equality among those who do the same kind of work and are exempt from the excise tax.

I was very happy to hear my colleague's speech earlier saying that the Liberals will be supporting the bill to go to committee. However, I urge them to fully support this very simple but necessary bill so that they can rectify the blatant tax inequality that has occurred. The government says that Canadians' mental health is a priority, and this is a key opportunity for it to do something that is very easy to do to ensure that something good is done for Canadians' mental health.

Just this past March, I presented a petition in the House of Commons to remove GST from counselling therapy and psychotherapy services, and that petition received over 14,000 signatures. I thank Barbara MacCallum for bringing that forward. There were so many signatories, 14,000, because they saw that the government must act to rectify this error, and it is quite a simple thing that the government can do.

According to the Canada Revenue Agency, if a profession is regulated as a health profession by at least five provinces or territories, the services of that profession are exempt from GST/HST. Now, the profession of counselling therapy or psychotherapy meets this criteria, and it has for some time. However, a tax exemption was refused because the provinces regulating the profession had different titles, but counselling therapy and psychotherapy are the same profession, as demonstrated by a shared scope of practice, comparable qualification requirements and aligned codes of ethics. They are also recognized under the Canadian Free Trade Agreement. The federal government must respect the expertise and practices of provinces and territories in the health care field with regard to naming their professions. My bill, Bill C-218, as well as Bill C-323, demand just that.

We all know the impact that COVID-19 has had on people's mental health, and it was certainly a crisis before the pandemic. However, we are seeing the consequences on folks now, and I see it my riding.

People are stressed out, and they are worrying increasingly about their skyrocketing mortgage payments, the increase in food prices and increases of the climate crisis. All of this stress builds up, and people need more and more support. The bill is a small but good first step toward helping people, but there are a lot of barriers that get in the way of the availability of psychotherapy and counselling to the degree people need it.

As we know, right now in Canada, provinces are spending about 5% to 7% of their budgets on mental health. Some percentages, sadly, are even lower. In my province of Ontario, it is at 3% under the Conservative government, yet many OECD countries spend about 12% to 14%. In the U.K., it is higher than that.

We have a two-tiered health care system in this country when it comes to mental health. This is a huge part of the problem. Getting help should not be dependent on how much money one has. New Democrats believe that everyone should have access to mental health supports, including psychotherapy, and we believe everyone deserves timely access to a full range of mental health treatments and services.

Last spring, I held a round table and a town hall in my riding, and I would like to thank the member for Courtenay—Alberni for joining me in that discussion to discuss those key issues around mental health care. I was honoured to speak with key community leaders and hear about their challenges. We talked about the need for parity between physical and mental health in our country.

According to the report by the Mental Health Commission of Canada, fewer than one in three people with current mental health concerns is accessing mental health services. Key barriers to accessing these services are, of course, financial constraints and long wait-lists. The people around that table spoke to me about the need to meet people where they are in this discussion, so just like everyone is an individual, their mental health journey is an individual journey. Just because one form of help is right for someone, it may not be something that someone else needs, and we need to work together to figure out all those different layers and forms of help people need.

Another thing we need to change in our system is how we treat key people who are delivering the mental health care we need. Many of those frontline professionals are in jobs that do not pay them a living wage. Because they are providing urgent care or social work, they told me, they felt less valued by the system. They also felt that governments do not fund those programs adequately. Governments think these workers do these jobs solely because they want to help people, as though that altruism should be free and as though those workers do not have student loans, mortgages or bills to pay.

Many attended that round table, and they warned us that, like the frontline workers we see in the health care sector right now, mental health care workers are leaving their professions in droves because they do not have adequate pay, stable pensions, the benefits they need or safe working conditions. These services are critical, and it is up to governments to ensure that those workers have the supports they need to be able to provide the services others need.

Other mental health care workers told me that, while they see people in extreme crisis, mental illness is not the sole cause. Yes, there are people who live with a number of diagnosed psychiatric ailments, but so many whom they treat now are dealing with prolonged stress and post-traumatic stress disorder. These are caused by other factors, such as homelessness, physical sexual abuse and poverty, and these are things that the government has to address as well. The workers demanded that the government deal with these problems so that people could move away from relying so heavily upon mental services while dealing with the man-made stresses we create, ensuring that people live in these debilitating cycles.

In conclusion, the bill is a good step forward, as I have said. It is a small step, but a good step forward, and I support it because I support my own bill, so I support this one.

Canadians who are seeking help with mental health services should not be reliant upon the fact that they cannot pay for them, so I and New Democrats support the bill. I want to thank everybody who helped me to develop Bill C-218 and who will continue to work to force things such as this bill and this issue to move forward.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Mr. Speaker, I am honoured to rise in the House today on behalf of the residents of Kelowna—Lake Country. I would like to thank my Conservative colleague, the member for Cumberland—Colchester, for introducing private member's bill, Bill C-323. It is my privilege to second this bill and speak to it today.

Canadians are facing a mental health crisis. The statistics are alarming. Nearly 200 people attempt suicide daily. One in four Canadians is experiencing anxiety, and 56% of the people who are struggling are not receiving the care they need and deserve. According to the Canadian Mental Health Association, the CMHA, in any given year, one in five people in Canada will personally experience a mental health problem or illness. By age 40, about 50% of the population will have or have had a mental illness. This continues to be a significant issue in my community and home province of British Columbia.

Back in 2010, the Government of B.C. estimated that mental health problems cost our economy an estimated $6.6 billion annually. When looking at increasing statistics of people struggling, we can only assume this would be much higher now. The CMHA reports that about 17% of British Columbians, somewhere around 800,000 people, are experiencing a mental illness or substance use issue today. The limitation of accessing mental health services already poses a barrier to many in accessing health care and tackling our nationwide health crisis.

In addition to the ongoing addiction health crisis, Canada is faced with a crisis in mental health. An estimated 84,000 children and youth in B.C. have a diagnosed mental disorder, yet fewer than one-third of those children seeking help are receiving mental health services. That means as many as 58,000 children in B.C. are not receiving the treatment they need.

I know that I have just given a lot of statistics about unmet mental health needs. However, behind each of these statistics is a person, a family affected and a community affected. Recently, a mom from Kelowna—Lake Country reached out to let me know about a situation her child was going through where she has a physical health condition that she is attempting to get resolved. The mom says her child is dealing with mental health issues of depression and suicidal thoughts because of bullying due to her physical conditions. This is just one of many situations people have brought to my attention, and we need to do everything possible to ensure that people and families have access, in a variety of ways, to mental health services.

Right now, looking at attempted suicide rates and deaths, societally we are paying for mental anguish in the most extreme way possible. It is clear from the numbers that many people are waiting until the point of crisis. That can mean too many hospital stays and perhaps cycling through our criminal justice system instead of receiving treatment, or worse. As we heard recently, a woman came forth publicly in August to explain how she was having a mental health crisis and a clinician at Vancouver General Hospital shockingly suggested medical assistance in dying, MAID, as an option.

Bill C-323, an act to amend the Excise Tax Act, works to put health service providers on equal footing when people come to them for mental health assistance. I am proud to second this bill and speak to it today. This legislation sets to end the charging of GST or HST upon the services of psychotherapists and mental health counsellors. For context, psychotherapists and mental health counsellors are currently the only regulated mental health service providers who must remit GST or HST tax on their services. This would put them on equal footing with other health professionals.

Psychotherapy and mental health counsellors often are also not covered by many insurance providers, and the additional cost of the GST or HST on their services limits their capacity to serve many Canadians in the time of need, especially at this time of high cost of living, when paycheques are so stressed. It makes no sense for fully regulated psychotherapists and mental health counsellors to be subjected to this type of taxation when physicians, psychiatrists, registered nurses, registered psychiatric nurses, psychologists, occupational therapists and social workers are all exempt.

Health Canada has reported that 24.7% of Canadians over the age of 15 report having unmet mental health needs. We need to do everything possible to get help to people so they are not living in mental anguish and so families are not heartbroken when getting devastating phone calls no one ever wants to get, like 12 families a day do in Canada, who hear loved ones died of suicide.

The Conservatives are offering tangible solutions within federal jurisdiction to help people. This is a compassionate common sense bill.

Not only are there costs to the federal government associated with this legislation by it not happening, but any loss in tax revenue resulting from the tax exemption would likely be inconsequential in the greater scope of federal budgets. Many organizations and stakeholders, like the Canadian Counselling and Psychotherapy Association, have spoken in favour of removing the GST or HST taxes from the services of psychotherapists and mental health counsellors.

The Standing Committee on Health heard extensive testimony from Dr. Carrie Foster, president-elect of the Canadian Counselling and Psychotherapy Association at the time, and Lindsey Thomson, director of public affairs for Canadian Counselling and Psychotherapy Association earlier this year. Both witnesses expressed that this policy would help to alleviate Canada's mental health crisis.

The Liberal government has failed Canadians when it comes to supporting their mental health. As of last fall, the $4.5 billion in Canadian mental health transfer funds promised by the Liberal government in its 2021 campaign platform had yet to be fully committed. The Conservatives have taken action and continue to fight for the mental health of Canadians.

In 2020, the Conservatives successfully passed a motion to create a national three-digit suicide prevention hotline, which was put forth by our Conservative colleague, the member for Cariboo—Prince George. The 988 hotline will apparently finally be launched in November of 2023 by those slow-to-do-anything-in-government Liberals.

I recently put forth a private member's bill, Bill C-283, the end the revolving door act, which sought to get mental health assessments and addiction treatment and recovery in federal penitentiaries, as determined and offered by a judge at the time of sentencing. It would have expanded and focused the mental health and addiction recovery services available to those who found themselves repeatedly entering and exiting our criminal justice system.

It is well known that mental health and addiction issues are leading causes of recidivism in Canada. Better provision of mental health assessment and curative treatment while inside a federal penitentiary is a common sense approach to tackling this issue, helping not only those who are incarcerated but also to help the communities they go back into after their release. I was proud to have a wide base of support for this, including those confronting our mental health crisis on the front lines and who work in criminal justice.

Unfortunately, though this was a non-partisan common sense bill, the end the revolving door act was voted down by the Liberals and their NDP partner, as well as half the Green MPs, and it did not proceed. I hope the members in those parties will not waste this new opportunity we have before us today to take action for those in need of mental health services.

I was happy to see this legislation to amend the federal taxation regime on mental health professional services from my Conservative colleague as another tool to help people. The Conservatives are the ones bringing practical mental health initiatives forward with compassion and common sense. On this side of the House, the Conservatives will continue to advocate for people to fight Canada's mental health crisis.

In summary, the bill is an important step in tackling Canada's mental health crisis by removing barriers to mental health services, putting psychotherapists and mental health counsellors on equal footing with other regulated health professionals and helping to alleviate financial burdens by those struggling. That is why I am proud to support the bill, and I call on all members of the House to support this compassionate common sense legislation.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I want to make a quick reference to what the member for Kelowna—Lake Country said. She has tried to give an impression that the Conservative Party of Canada, which is not a progressive conservative party, genuinely cares about the issue of mental health and it would do something about it as a national government. That is a bit far-fetched.

When the Conservatives were in government, I went through some of those opposition days. Where were these ideas then? The issue of mental health is of great concern to Canadians. I did not witness the Conservative government do what its members talk about now, yet they say we have done nothing.

Since 2015, we have invested hundreds of millions of dollars into mental health. We have established programs and worked with stakeholders to establish and support things like Wellness Together Canada. People can call a 1-866 number and receive help. That is something tangible over and above the hundreds of millions we have transferred for mental health.

For the first time in the last 20 years, we have a national government that has invested in a substantial way in mental health. There is absolutely no doubt whatsoever in my mind that health care is an issue for all Canadians. When they think of health care, they think of issues like mental health, long-term care and dental services. These are all important issues for Canadians, but we need to recognize that the federal government needs to work on those issues with provincial entities.

The good news is that the bill we are debating today is a positive one that could move us forward. There is a need for the committee to look at it and get an assessment on whether we can implement some amendments that would give some clarification in some areas, and hopefully get the support to move it to third reading. I welcome the idea of having debates on the issue of mental health.

I remember a former colleague of mine back in the early 1990s, Dr. Gulzar Cheema, who was the health critic for the Province of Manitoba. When we were talking about mental health care, he said that we almost needed to designate a separate ministry, and we advocated for that. Interestingly, he moved to British Columbia and became the first-ever minister of mental health for the Province of British Columbia.

Mental health does matter. We see it on our streets in many different forms. When we talk about housing and the homeless, a wide spectrum of reasons need to be incorporated to explain why it happens. Mental health is one of those reasons.

When we think about what this legislation tries to do, it is very admirable. Psychotherapy and mental health services are becoming more and more recognized. We see provincial and territorial jurisdictions recognizing the value of these professions and the need for them. We are starting to see more interest.

We need to remember that health care is a federal and provincial jurisdiction. Ottawa provides a great deal of money and we have the Canada Health Act. However, the provinces and territories establish the necessary regulations.

[An hon. member]

What about your dental care plan?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I know the Conservatives do not support the dental care plan. That is fine. The moment of truth will come out on that. The issue is whether they support genuine changes in dealing with mental health. I am trying to give some free advice to my Conservative friends on this.

At the end of the day, we need to work with provinces and territories to look at how we can ensure that we have a proper regulated program so we can ensure that psychotherapy and mental health care services that have been recognized by our provincial jurisdictions can receive things such as the tax break being proposed in this legislation.

If we take a look at the very basics of what is being suggested in the legislation, I would pose the question for the members opposite, and this is something the standing committee will have to take a look at. If someone says that he or she is a life coach, would that life coach not have to pay the tax?

Some Conservative members want to be able to individually identify those who should or should not pay the tax. That is the problem with the Conservatives. It does not work that way. That is why we need regulations.

The judgments of the Conservative Party are very difficult to understand and comprehend. I would not want to get into the mind of a Conservative member in dealing with issues such as this. It could be somewhat interesting, to put it nicely. At the end of the day, a regulated mental health service is important.

We can talk about that here, but we have standing committees. That is why we support it going to the standing committee. The standing committee should take its time and have a good discussion on the issue. I would think it would want to invite, for example, the minister of health from the province of Quebec and other ministers to get their feedback and thoughts. We need to have a good understanding of psychotherapy, mental health services and how they can be regulated and supported with respect to health care services.

Many Liberals, including myself, recognize that we need to get more done on the issue of mental health. What that means is not only talking about it here on the floor; we have to be talking to our provincial counterparts. It means that we have to work with the many different stakeholders.

I made reference to the Wellness Together Canada site. People can google it. They will find that there is a number of stakeholders, or sponsors or supporters. I can point out Bell Canada as one example and its commitment to assist on the issue of mental health. I can identify individuals, non-profit groups, all of which have a genuine interest in the issue. That is why, when we look at this legislation, not only I but, I believe, the Liberal caucus see the merits of it. That is why there is great value in seeing this legislation go to committee.

I would strongly encourage the committee not limit itself to the consultations that need to take place on this legislation because of its ramifications. We need to work with the stakeholders in this situation. For individuals who are passionate about our health care and believe that the federal government has a role to play, this is a very important debate. A portion of that debate is going to be taking place in the standing committee.

I look forward to the amendments that will, in all likelihood, be brought forward to enhance the legislation. Canadians from coast to coast to coast will benefit if the national government is able to contribute in any way to the development of mental health care as a more tangible part of our health care system, and supporting our provinces, territories and other stakeholders.

We have demonstrated that in recent years with our investments.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Mr. Speaker, I would like to begin by acknowledging the position taken by the member who just spoke. I assume he was speaking on behalf of the Liberal government. I must commend his stance, because all too often we see governments, whether Liberal or sometimes Conservative, oppose bills simply for the sake of opposing them. Obviously, it is currently a Liberal government.

The Bloc Québécois has introduced many bills, and we have often been disappointed to see the Liberals oppose certain ones for no good reason. Basically, they want to prevent their opponents from building a track record. Even if the bill is a good one, the Liberals will oppose it.

In this case, there is some light at the end of the tunnel. I hope this will not be the only time. The Liberals are saying that even though Bill C-323 is not one of their own bills, it may have enough merit to be considered. That is a good start.

My colleagues will have guessed that there is a good chance that the Bloc Québécois will support Bill C‑323, based on what I have been saying. We are not supporting it because it is a Bloc bill, because it is not a Bloc bill. It is not an NDP bill either. It is a Conservative bill.

This is worth noting because I often feel disappointed by the kinds of questions the Conservatives ask in the House and their priorities, like oil and gas, abortion and firearms. There comes a point where there are other things to talk about. When their attention shifts to other topics, the results are sometimes positive. Bill C‑323 is a good example. I congratulate the Conservatives for tabling this bill. It shows a different side of them. Even if it never happens again, we are glad of it now.

I am going to say a few words about Bill C‑323, a bill to amend the excise tax. Whenever we make a transaction, we pay a 5% federal excise tax. The bill's goal is to amend a specific section of the act to exempt psychotherapy and mental health counselling services from this tax.

We know that some services are considered essential, and we want to make it so that taxpayers do not have to pay extra for them. When these services are taxed, they become even more expensive for taxpayers. Therefore, eliminating the tax is a way to lower their cost for the people who use them.

We know that there is a dearth of mental health services. Often, when people start getting therapy it takes a bit of time. Problems are rarely solved in one counselling session. This gets expensive very fast.

Unfortunately, this 5% tax, or the federal portion, is added to the 10% tax, which is the Quebec portion. On a $100-per-hour fee, the client pays an additional $15. Eventually that really hurts the budget. Sometimes a person who needs mental health services has money, but sometimes they do not. It is good for people to get help. We welcome this kind of support.

I can share a story. I know that I am running out of time, unfortunately. My constituency office is above a centre called the Centre des Ils et des Elles, a multidisciplinary professional centre for childhood and early childhood. It offers all sort of services, such as speech language pathology, psychoeducation, occupational therapy, psychology, special education, and even sexology.

One of the centre's co-founders is himself a psychoeducator. I met him because my office is upstairs from his, and also because I used some of his services to help my son on his personal journey. This well-known psychoeducator told me that the situation is not normal. He says that he is providing essential mental health services, yet patients do not pay taxes when they go to an optometrist, chiropractor, hearing aid specialist or doctor.

Why should people have to pay taxes for mental health services when they do not pay taxes for any other recognized services? There is an inequity there, and we need to put an end to it.

I would like to congratulate the sponsor of this bill. Above all, I want to say that psychoeducation is one way of lightening the load on psychologists and enabling qualified people to meet the high demand for mental health care.

I would like to comment on another aspect of the bill, namely the issue of mental health counselling, which is not regulated in Quebec. We may want to raise questions about this in committee to determine the impact of recognizing this practice from a tax standpoint when it is not regulated.

[Stephen Ellis, Conservative, Cumberland—Colchester, NS]

Mr. Speaker, it is an honour to stand here and represent the folks in our country who suffer from mental health issues. Bill C-323 is a common-sense initiative. We know very clearly that the Liberal government has failed to support the mental health of Canadians, even though we know this is a burgeoning issue.

We know very clearly, from statistics, that more than 6.7 million Canadians are affected by mental health issues. By age 40, which we have heard before, almost one in two Canadians will have suffered with a mental health diagnosis. Sadly, the Liberal government, in its multiple failures, has failed to honour the $4.5-billion Canada mental health transfer that it announced in platform 2021. It has never been allocated.

The difficulty with that is it was a much-lauded announcement about how the Liberals were going to look after the mental health of Canadians. It was very sanctimonious with much pomp and circumstance. Of course, Canadians were, once again, left disappointed with the Liberal government's lack of action. It is very good at making announcements and very poor at doing things.

We know very clearly that there is a significant cost to the economy when we speak about the effects of mental health. We know, from The Centre of Addiction and Mental Health, that nearly 500,000 Canadians are prevented each week from attending work due to mental health issues. It also notes on its website that the cost of leave due to mental health is nearly double the cost of physical health problems.

Finally, I would point out that the cost to the Canadian economy is almost $51 billion per year when direct health care costs, lost productivity, and reductions in mental health and quality of life are taken into consideration.

The other thing, which is a very sad issue, is that nearly 4,000 Canadians die by suicide every year. On average, that is 11 Canadians every day. The other thing we know is that people with mental illness are more than twice as likely to have a substance use problem than those who do not. We know clearly, as these are things we have heard in this House many times, that almost 20 Canadians are dying every day due to overdose.

A third of Canadians over the age of 15 report having unmet mental health needs. We know, from the report that Statistics Canada released September 22 about mental disorders and access to mental health care, that this is clearly an issue for Canadians and it is something that needs to be addressed.

We already know that 6.7 million people have difficulties with their mental health. This report states that nearly five million people meet the diagnostic criteria for major depressive disorder, bipolar disorder, generalized anxiety disorder, social anxiety disorder, alcohol use disorder, cannabis use disorder and other substance use disorders.

More Canadians met the criteria for a mood or anxiety disorder in 2022 than in 2012. The prevalence has basically doubled. I sense a theme here. Perhaps there is a connection to mortgage costs, rental costs, food costs and heating costs, all of which have doubled under the Liberal government.

Sadly, only half of those with a mood, anxiety or substance use disorder have spoken to a health care professional. In the words of this report, disparities in coverage for counselling services will need to be addressed.

This bill may need minor additions, and certainly I am open to having those amendments made at committee. I urge members to support Bill C-323 for the sake of the 20% of Canadians struggling with mental health issues at this current time.

[The Deputy Speaker, Conservative, Chris d'Entremont]

It being 12:36 p.m., the time provided for debate has expired. The question is on the motion.

If a member participating in person wishes that the motion be carried or carried on division, or if a member of a recognized party participating in person wishes to request a recorded division, I invite them to rise and indicate it to the Chair.

[Stephen Ellis, Conservative, Cumberland—Colchester, NS]

Mr. Speaker, given what happened this morning, I ask that this motion be adopted on division.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, we would request a recorded vote, please.

[The Deputy Speaker, Conservative, Chris d'Entremont]

Pursuant to Standing Order 93, the division stands deferred until Wednesday, September 27, at the expiry of the time provided for Oral Questions.

Affordable Housing and Groceries Act

[Chrystia Freeland, Liberal, Deputy Prime Minister and Minister of Finance]

moved that Bill C-56, An Act to amend the Excise Tax Act and the Competition Act, be read the second time and referred to a committee.

Mr. Speaker, before I begin, I would like to seek unanimous consent to share my time with the member for Guelph.

[The Deputy Speaker, Conservative, Chris d'Entremont]

Is it agreed?

[Some hon. members]

Agreed.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I am pleased to rise today to introduce Bill C‑56, the affordable housing and groceries act.

I would like to explain why it is so important that we work together to pass this bill. This bill includes urgent measures to make life more affordable for Canadians, including removing the GST on the construction of new apartment buildings, which would help get more rental homes built faster.

The bill would also enhance competition across the economy, with a focus on the grocery sector to help stabilize food prices for Canadians.

Specifically, this legislation would increase the GST rental rebate from 36% to 100% and remove the existing GST rental rebate phase-out thresholds for new rental housing projects. That means for a two-bedroom rental unit valued at $500,000, our plan would deliver $25,000 in tax relief. This is about encouraging developers to build homes that otherwise would not get built. It is a game-changer for housing in our country. Mike Moffatt, one of Canada's leading housing experts, called this “a fantastic transformative step.” and Toronto's former chief city planner, Jennifer Keesmaat, said that this measure could be “the beginning of a sea change."

This is the newest measure in our ambitious housing plan, one that is about building more homes faster, cracking down on unfair practices by investors and ensuring that Canadians can afford a safe place to call home. Our plan includes the new tax-free first home savings account, which is already helping tens of thousands of Canadians save up to $40,000 tax-free toward that first down payment. Our plan also includes the $4 billion race-to-the-top housing accelerator fund, which is already breaking down barriers and encouraging municipalities to build more homes.

With Bill C-56, we are doing even more with provinces like Ontario, Newfoundland and Labrador, and Nova Scotia already following our lead by eliminating provincial taxes on new rentals. We will build even more of the rental homes that Canadians need.

This bill also seeks to amend the Competition Act to give more power to the Competition Bureau so that it can investigate price gouging and price fixing.

It would put an end to anti-competitive mergers that drive up prices and limit Canadians' choices. It would also enable the Competition Bureau to ensure that big grocery stores cannot prevent smaller competitors from opening stores nearby. Our government is relentlessly focused on building an economy with stable prices, steady growth, and abundant, well-paying, middle-class jobs.

There are currently 980,000 more Canadians in the job market than before the pandemic. Both the International Monetary Fund and the Organisation for Economic Co-operation and Development predict that, on average, Canada will see the strongest economic growth in the G7 this year and next. DBRS Morningstar also confirmed our AAA credit rating earlier this month.

Since we were elected, 2.3 million Canadians have been lifted out of poverty. In 2015, 14.5% of Canadians were living in poverty. By 2021, that number had dropped to 7.4%. Our affordable Canada-wide early learning and child care system is supporting a record labour force participation rate of 85.7% for working-age women. It is also helping to grow the economy and make life more affordable for families from coast to coast to coast.

Furthermore, whether by enhancing the Canada workers benefit or by creating the Canada child benefit or the new Canada dental care plan, we have strengthened the social safety net that millions of Canadians rely on, while ensuring that Canada maintains the lowest deficit and the lowest debt-to-GDP ratio in the G7.

We are working hard for Canadians, but we know we have more work to do. Bill C-56 will deliver real, concrete solutions. More competition will help with the sticker shock at the grocery checkout counter. Eliminating the GST on rental housing will get more homes built faster, so that more Canadians have an affordable place to call home.

Bill C-56 is an important step in our plan to continue delivering on what matters most to Canadians, and I encourage my colleagues to support its swift passage.

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

Mr. Speaker, three years ago, the finance minister said that interest rates would stay low for a very long time. Then she dumped hundreds of billions of dollars of fuel on the inflationary fire, giving Canadians the most rapid interest rate hikes seen in the last three decades.

In November she said she would balance the budget and would be careful not to pour fuel on the inflationary fire that she started. She then turned around and dumped a $63 billion jerry can on it.

Two months ago, she was doing victory laps, saying that she stopped inflation. It has gone up 43% since then.

Now her deficits have fuelled inflation and put Canadians most at risk in the G7 for a mortgage default crisis. When will she balance the budget so Canadians will not lose their homes?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Speaker, I would like to point out that the question has absolutely nothing to do with the legislation we are presenting. However, let me take a moment to clarify some of the incorrect assertions embedded within it.

It is really important to be honest and truthful with Canadians. The truth is that Canada has an AAA credit rating, which was reaffirmed by DBRS Morningstar this month. It is also important to be clear with Canadians that we have the lowest deficit in the G7 and the lowest debt-to-GDP ratio. Those are the facts. Everything else is a partisan muddying of the waters.

When it comes to our legislation, it speaks to the immediate needs of Canadians today: getting more rental housing built now and bringing more competition into the economy, including the grocery sector, to keep prices down.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I commend the Deputy Prime Minister on her speech, which seemed to be full of good intentions.

The Canada Mortgage and Housing Corporation, or CMHC, released some alarming and very troubling statistics. By 2030, Quebec will need 1.1 million housing units. It will be the hardest-hit region of Canada. The Government of Quebec also released some statistics. Homelessness has gone up 44% in the past five years. Those are the numbers. We are in the midst of a housing crisis, but for the past six months, the federal government has been withholding $900 million and taking a paternalistic and irresponsible attitude. In the midst of a housing crisis, the cities, which the federal government is once again accusing of dragging their feet, are unable to submit applications to build new housing projects.

I would like the Deputy Prime Minister to explain to us today why the government has been withholding money for new housing projects for six months, if housing is truly one of its priorities.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Speaker, I agree with my hon. colleague from the Bloc Québécois that there really is a housing crisis. That is why we introduced our bill last week, the first week after the summer break. We are absolutely certain that this bill is urgent. We agree that there needs to be more housing. We agree that more rental housing needs to be built and that it must be done quickly.

I hope that every member in the House, including the members of the Bloc Québécois, will support us because I agree with them that Quebec also needs more housing and more rental housing.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Mr. Speaker, New Democrats are very aware of the fact that we need non-market solutions, as well as market solutions, in order to address the housing crisis. The minister, in her remarks, mentioned three planks of the government's housing plan: a tax-free savings account for down payments; the housing accelerator fund, which talks a little bit about affordability but does not talk about social housing or make affordability a requirement of the program; and this bill's GST measure. All these things have in common that they are largely market-based initiatives.

The NDP has called for a non-profit acquisition fund and a replenishment of the coinvestment fund. These are things that really ought to happen hand in hand with any market-based measures. Therefore, what measures is the government planning on presenting this fall alongside the legislation that will lead to the creation of new social and affordable housing units in Canada?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Speaker, I would like to thank the member for Elmwood—Transcona for the work that he has been doing alongside our government, together with me, on the housing crisis. I believe that this measure of lifting the GST on all rental construction would help all Canadians with housing, including affordable housing. The fact is that we need to add to supply. That is what this measure would do, and this would have a positive impact on everyone who rents, as well as on people looking to buy.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, it is a pleasure to rise in the House for the first time this session to discuss the very important bill that we have in front of us.

This summer, I spoke to many constituents of mine in Guelph who had concerns about the price of housing, the price of groceries and big business taking over the marketplace in many areas. I am really pleased that the first piece of legislation of the session that we have in front of us to talk about is Bill C-56, the affordable housing and groceries act.

The government understands that many Canadians are struggling to make ends meet in these times of high inflation. Many measures that we have been introducing have been to help people who are unfairly affected by the inflationary winds that are blowing globally right now. We need to do more than we have been doing in terms of targeted support. The bill in front of us today addresses what we could do to help build more rental housing, as well as to try to curb the inflation that we see in the grocery market in particular.

Families across the country are relying on parliamentarians to do what we can to help with measures such as those we have outlined in Bill C-56 and the ensuing debate that we will have.

Making housing more affordable is something that we need to look at, including where the federal government can influence the activities within the marketplace, so that young people, young Canadians, have the dream of owning a home again. Right now, it is increasingly out of reach, and paying for rent has become more expensive across the country. This is really affecting younger Canadians, as well as people who are just trying to get their foot into the market.

The housing crisis has an impact on our economy. When people are not succeeding, our economy does not succeed. Without more homes in our communities, it is difficult for businesses to attract the workers they need to grow and succeed. When people spend more of their income on housing, it means less money is being spent in our communities for necessities such as groceries. This has a direct impact on small business.

Bill C-56 would enhance the goods and services tax rental rebate on new purpose-built rental housing; this would encourage the construction of more rental homes, including apartment buildings, student housing and seniors' residences across Canada. The enhanced rebate would apply to projects for which construction began on or after September 14, 2023, and on or before December 31, 2030, with construction completed before 2036.

Working on the supply is an important part of what the federal government could do to help. For a two-bedroom rental unit valued at $500,000, for a developer, the enhanced GST rental rebate would deliver $25,000 in tax relief to incent the developer to make the numbers work. This tool could help create the necessary conditions to build the types of housing that we need and that families want to live in. This, in turn, would open up the opportunity for renters to have a reduction in the cost they are paying for the units that are constructed.

The measure also removes a restriction on the existing GST rules to ensure that public service bodies, such as universities, public colleges, hospitals, charities and qualifying not-for-profit organizations, could build or purchase purpose-built rental housing and be permitted to claim 100% of the enhanced GST rental rebate.

The government is also calling on provinces that currently apply provincial sales tax or the provincial portion of the harmonized sales tax to rental housing to join us by matching our rebate for new rental housing. It was very encouraging to hear that Ontario, the province where my riding exists, will be participating in this program.

We are also requesting that local governments put an end to exclusionary zoning and encourage building apartments near public transit in order to have their housing accelerator fund applications approved. I know that Guelph has worked hard on this application. We have had many community discussions around this, but sometimes the numbers just do not work. In those cases, programs such as the one we are initiating today, through this bill, would help the numbers to work.

Launched in March 2023, the housing accelerator fund is a $4-billion initiative designed to help cities, towns and indigenous governments unlock new housing supply, targeting about 100,000 units across the country; speed up development and approvals, like fixing out-of-date permitting systems; introduce zoning reforms to build more density; and incentive development close to public transit. Last week, the government announced that London, Ontario is the first city to benefit from this fund. Of course, Guelph is watching that very closely. The fund also supports the development of complete low-carbon and climate-resilient communities that are affordable, inclusive, equitable and diverse. Every community across Canada needs to build more homes faster so we can reduce the cost of housing for everyone.

We are also looking at how we can help Canadians with their grocery bills, and we need to stabilize the price of groceries in Canada. Through the one-time grocery rebate in July, we delivered targeted inflation relief for 11 million low- and modest-income Canadians and families who need it the most. It was up to an extra $467 for eligible couples with two children and up to $234 for single Canadians without children, including seniors. This support was welcomed by Canadians, but we knew that more needed to be done to address the rising cost of groceries. The interim measure was really to address the increase in groceries and not actually the groceries' being purchased at a higher price every week. This is why we are taking immediate steps to enhance competition across the Canadian economy, with a focus on the grocery sector, to help stabilize costs for middle-class Canadians.

Through Bill C-56, the government would be introducing a first set of legislative amendments to the Competition Act, intended to provide the Competition Bureau with powers to compel the production of information in order to conduct effective and complete market studies and to remove the inefficiencies defence, which is currently allowing anti-competitive mergers to happen if the corporate efficiencies are being used as a reason for them to go forward. Canadian customers would still pay higher prices even if these efficiencies are realized. The bill would empower the bureau to take action against collaborations that stifle competition and consumer choice, in particular, in situations where larger grocers prevent smaller competitors from establishing operations nearby.

This bill would build on our other measures that have been introduced to make life more affordable for Canadians. These include delivering the automatic advance payments of the Canada workers benefit, starting July 2023, to provide $1,518 total for eligible single workers and $2,616 for an eligible family, split among three advance payments and the final payment after a person has completed their 2023 tax return. We are also supporting three and a half million families annually through the tax-free Canada child benefit, with families this year receiving up to $7,437 per child under the age of six and $6,275 per child for children aged six through 17. Increasing old age security is another measure we have taken, including indexing that to inflation. We have also reduced fees for regulated child care by 50% on average, moving towards the cost of $10 a day by 2026, with six provinces and territories already reaching that goal.

We are looking at what we can do to influence the market to help people who are facing these costs. We are working on helping Canadians put food on their table, pay the rent and be successful within their communities. We want to ensure that Canada remains the best place in the world to live, work, go to school and raise a family. Making life more affordable is a key part of that.

I urge hon. members to support this legislation, and I am open to questions.

[Stephanie Kusie, Conservative, Calgary Midnapore, AB]

Madam Speaker, I was very honoured in June 2022 to host a round table on housing in Calgary, where I welcomed such individuals as Craig Dickie from Anthem United; Kory Zwack from Calgary Housing; Michele Ward from Homes by Avi; Cliff Stevenson and Jackie Stewart, both from BILD Calgary; and Brian Hahn from BILD Calgary. I apologize; Cliff Stevenson is from CREA. Of course, there was my favourite councillor, Dan McLean, from ward 13. To share with my colleague, since we are both working on solutions together to solve the housing crisis, the problems identified at that time included lack of supply due to land release, approval timing and not enough lead time or certainty for those who wish to build homes. There was also the cost of utilities, with the carbon tax now really adding to that.

I would like to ask my colleague why the government always does too little too late.

[Lloyd Longfield, Liberal, Guelph, ON]

Madam Speaker, we have had similar discussions in Guelph, with round tables that have the service providers, the builders and the community agencies focused on housing solutions. In fact, similar to Calgary, we have identified supply as being one of the major issues, as well as approval. How can we speed up the approvals process? The housing accelerator fund will be addressing the approvals process by providing funds for communities to increase their support for the approvals process. This bill in particular is looking at supply. In particular within that, it is looking at supply of rental housing, and within rental housing, making sure that 30% of the rental housing is affordable.