Mr. Speaker, I would like to point out that I will be splitting my time with the member for Mississauga South.
I would like to focus tonight on three specific issues that I have been involved with in this Parliament and previous ones: number one, housing, in terms of our economic action plan; number two, skills training and, more precisely, skills shortages, the mismatch; and third, if I have time, the budget initiatives for assisting persons with disabilities and helping them find places in the Canadian workforce.
First is housing. The importance of the housing industry in this country cannot be understated. I will provide some of the facts. The first fact is that it is one of the most key economic drivers in the whole nation. It is the single biggest investment that Canadian households will ever make. It is, on average, 40% of a family's total assets or net worth. It accounts for around 20% of Canada's GDP. According to the Canadian Home Builders' Association's estimates, the total spending on residential construction and renovations is over $120 billion annually. It provides more than 900,000 direct jobs for Canadians. Lastly, it is a fact now that Canada's housing industry is the fifth largest in the world.
Why is that significant in relation to Canada's economic action plan? It is significant because it is often said in economic circles that the health of the economy can be measured by the health of housing starts or the housing industry. We have been very fortunate over our term in government to be able to foster the conditions of a healthy platform for private market housing in this country, and we continue to do that with our economic action plan, continuing on with the first-time home buyer's tax credit, so that more Canadians can achieve the dream of home ownership.
Also, in consecutive budgets, due largely to the good work of our finance minister, we have moved to ensure accessibility and sustainability of the social housing stock in this country, providing housing for those who are most in need. In fact, we have committed $1.25 billion in funding beginning this year to renew the investment in affordable housing for five years. We are also renewing the homelessness partnering strategy and implementing our housing first approach to homelessness. In 2013, our government announced nearly $600 million over five years to renew and refocus the homelessness partnering strategy using a housing first approach, which involves giving people who are homeless a place to live and then providing them the necessary supports to sustain them in that housing.
Why is that important? It is important for us to take action for those who are truly in need in this category. What is also important is to give them a hand up to enable them to take advantage of the supports to move themselves up economically so that one day they can buy new homes.
Affordability is one of the largest issues in the country today. Interestingly enough, in our discussions through the Conservative housing caucus with all the sectors involved in housing across this country over the last two years, we have done a bit of analysis on how much taxation plays in the role of single family housing, multi-family housing, or any type of housing. It is quite shocking to see the graph. It is similar to what we see on the gas pumps when we put gas in our vehicles, we see the breakdown of how much the government takes through taxation for a litre of gas. In a similar nature, the housing industry, particularly the Canadian Home Builders' Association, is working on quantifying that.
It varies across the country from community to community, but what is shocking is the first drafts and first average estimates of what the taxation load is for a new homebuyer: fully 25% of the cost of that home. I believe the average cost of a home in the country now exceeds $400,000. I think the average home price in Canada is in the $460,000 range, and now one-quarter of that price is in direct taxation.
Tonight I also heard a speech by the member for Skeena—Bulkley Valley. He said that our government has somehow reduced environmental regulations and protocols. I can speak to that in the housing industry. When I was in the industry for 25 years and had my own company, when we went to develop a properly zoned piece of land in our community, we would be required by the province, in my case Ontario, to do all the environmental assessment reports, send them to that ministry for evaluation, and seek approvals. The average time to get a result was three to five years. There were carrying costs of the land, let alone the taxation costs, and the development charges that went with that land.
What we have done at the federal level is this. We have reduced the duplication of those studies, because not only did we have to do it for the Province of Ontario, we had to do it for the federal ministry of natural resources as well. It did not accept the report we did for the Province of Ontario, and paid for. It demanded a different report that said the exact same things. What we have done as a government is remove the duplication. We have also put reasonable time limits on how long it should take the bureaucracy to process those applications.
Is that a bad thing for a small business like mine, which had 20 employees? No, it is a good thing, because what it does is keep people working, especially in down times. That is important to our country. There are 900,000 jobs in the construction industry on average over the years.
The opposition talks about understanding small businesses and their needs and supporting them. It should be stated that the housing industry is made up primarily of small builders across the country who build fewer than 20 houses a year. Yes, there are the big developers in the major centres and the big home building companies. We hear about them. However, more than 90% of homes in our country are built by small builders. Should our government be supporting them by reducing taxation on these small companies so that they can employ carpenters and workers, the type of people who are producing this product for Canadians, the product that counts the most? That is what our government is doing.
Let me move on to skills shortages. Where we have moved on skills shortages primarily is by providing assistance that immediately ties back to that important housing industry. It is with the apprenticeship incentive grant, the apprenticeship completion grant, the new Canada apprenticeship loan, and a host of tax credits students can take advantage of through the apprenticeship job creation tax credit. This helps to move young people into the trades and through the trades, where there are many jobs. In fact, we need to de-stigmatize the trades in our country instead of saying that every young person needs to go to university and get a university degree. That is not the case. We need to build a culture in our country that equalizes the cultural status of being a tradesperson in this country.
I am not going to get to my third point on persons with disabilities, unfortunately. However, on skills shortages, our government is working toward matching talent with task. Who better to set the task than the employer? With the Canada jobs grant, the employer and our governments, three parties, have skin in the game to bring this about.
I am pleased that I could rise tonight to talk about just a couple of the areas I am personally involved in. Our budget is delivering real, tangible results for Canadians.