Mr. Speaker, five years ago, I rose in the House to note that my son, Léon, was finishing elementary school. Naturally, five years later, it is time for his high school graduation ceremony, which he will be attending on Saturday. I would like to tell him that I am very proud to be his father and offer him my sincerest congratulations, especially since he made a name for himself in Quebec with his performance at the Quebec Games last summer, where he won two gold medals in swimming, for the breaststroke.
I also want to say that I will be sharing my time with the hon. member for Lac-Saint-Jean. Let us start by saying something important about Bill C-26: The Bloc Québécois will vote in favour of this bill simply because it is necessary to transfer funds quickly and without delay to help Quebec build and set its housing priorities.
It is rather ironic that the Auditor General of Canada issued a report on child care services. As members know, this policy resulted in an unconditional transfer being made to Quebec. That is because, in 1997, Quebec had already created the network of early childhood centres to provide affordable child care for everyone. This system is renowned and has proven its worth.
Transferring the money directly to Quebec will allow Quebec to manage its affairs as it sees fit and in accordance with its own reality. That is precisely what Bill C‑26 does. It transfers the funds earmarked for affordable housing to the authority that has jurisdiction in this area. As a result, Quebec will be able to ensure that it develops strategies based on its priorities and aligned with the realities of the various communities within its territory. It will be in a position to develop its own strategy for social and affordable housing.
Another advantage is that it reduces administrative costs, because the province already reports on its own expenditure through its own budget. Instead of duplicating costs, the government sends the money directly, cutting red tape and eliminating duplication, which means that everyone wins. Since the money comes without conditions, Quebec will be able to use a variety of means to influence the rental supply, whether that means building housing-related infrastructure, such as sewers and water systems, introducing tax relief or building social and affordable housing. In short, Quebec will have the tools it needs to take effective action using the various levers at its disposal.
Transferring this $1.7 billion allows the provinces to take immediate action, and that reduces wait times. It differs from the strategy of Build Canada Homes, which is just another Crown corporation that creates more duplication, more management costs, more public servant hiring and so on. Transferring the money to the provinces reduces the size of government and gives responsibility to the governments that are actually responsible for housing. Quebec and the provinces each have their individual realities. Quebec's reality differs from the reality in British Columbia. Yukon's reality is completely different from New Brunswick's reality. If every province takes charge of its responsibilities based on its own reality, we will end up with more tailored, more flexible programs.
Over the past few months, at meetings of the Standing Committee on Public Accounts, I have personally questioned various departments about their definitions of urban, rural and remote regions. As the member for a region that could be described as rural and remote, this question concerns me tremendously. What we observe is that the federal government has a distorted view of rural regions. To the Government of Canada, any census area with a population of 100,000 or less is a rural region. Geographic factors apparently do not matter. Abitibi-Témiscamingue is located six or seven hours from urban areas, depending on the destination. That makes it impossible to compete with cities located in the suburbs. The reality is that transferring the funds to Quebec ensures that realities like mine are respected.
Another issue is all the regulatory requirements in federal programs that do not apply to Quebec because it has the Civil Code. Basically, this creates new obligations for Quebec stakeholders, resulting in additional delays and costs to meet a requirement that does not even apply in Quebec. I would like to take this opportunity to thank Lynda Perreault, a member of my team who works in my office and helps organizations navigate the complexities of organizations such as CMHC and Build Canada Homes.
To date, Build Canada Homes still cannot meet its own 30-day deadline for responding to proposals. It made that commitment during a technical briefing on February 17. The truth is, Build Canada Homes does not have enough staff to review the applications. As a result, it has to ask CMHC—or perhaps I should say “the agency formerly known as CMHC”—to do what it used to do: review applications. Who suffers as a result? The projects and the organizations themselves.
For my region, the upshot of this is that we will often miss the construction season. Unfortunately, our summers are shorter than elsewhere. We lose years to administrative delays. Mortgage costs are often passed on to the organizations that wanted to balance their budgets without taking out a mortgage. Winter construction in Abitibi—Témiscamingue is not t really an option. Our winters are very long, so we have no choice but to be more efficient during the summer. Delays result in additional costs for many non-profit organizations that are just trying to create social and affordable housing for vulnerable populations. They end up with extra costs, forcing them to cut back on their operations, which means they end up helping fewer people.
A lot of construction is happening in Abitibi–Témiscamingue right now. However, it is private development. While that is a good thing, it means that families and lower-income individuals are unable to afford these new properties. Furthermore, several developers were told that their applications would be transferred to Build Canada Homes. The reality is that this has not happened. They have to start all over again and resubmit their projects. This means even more hours of work lost for non-profit organizations. If the money had been transferred to Quebec, this sort of problem would not be happening. The solution is so simple.
That is, of course, provided that it does not take two years to sign the agreements, meaning that inflation eats up the lion's share of the funds allocated to Quebec. The Canada housing infrastructure fund agreement was finally signed after two years. The result was an agreement under which Quebec received only $1 billion of the program's $6-billion budget, or 16.6%, which is far less than its share of the population. This is also what is known as a fiscal imbalance. Quebec should have received $1.3 billion to match the figures calculated using the needs identified by the Union des municipalités du Québec, yet we received $300 million less.
The Liberal members from Quebec do not boast too much about that. If we add the inflation of the past two years, we must acknowledge that that money will not go as far today as it could have. It is important to remember that Quebec municipalities are currently experiencing one of the most serious housing crises ever, while a lot of the infrastructure is aging and no longer suitable to today's reality. It is time for Ottawa to do what it must do, which is to unconditionally transfer the money to Quebec and the provinces as soon as possible. This would be a win-win situation for everyone.
I want to give some examples. In 2016, funding for major housing-related infrastructure was also announced, and that funding was immediately allocated to Ontario. It is interesting because the programs in Ottawa are designed with Ontario's reality in mind. It took over three years to reach an agreement with Quebec. I have to talk about inflation again. Then came COVID-19. Then came the skyrocketing cost of housing. Because of this, we were not able to build as many housing units. The amount of housing built was much less in Quebec because of all these constraints. If Quebec's reality had been respected and this money had been transferred with no strings attached, the housing shortage that we have been seeing across Quebec, and particularly in Abitibi-Témiscamingue for the past 20 years, would not be as significant now. That is not without consequences.
I can give a wide range of examples that show that federal programs do not work in Quebec and in rural and northern regions like mine. Energy efficiency requirements are problematic. Ottawa wants to tell us how we should manage energy efficiency, but Quebec City's criteria are different. This means we have to send an inspector on site. That results in additional costs and delays. All of this means we cannot meet deadlines. We cannot finish construction on time, and we lose years of construction time.
It is entirely Ottawa's fault. Ottawa should mind its own business and do what Bill C-26 thankfully calls for, namely, respecting the jurisdictions of the provinces and Quebec and transferring the funds unconditionally.