44th Parl. 1st Sess.
April 26, 2022 10:00AM
- Apr/26/22 11:22:55 a.m.
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Madam Speaker, it is my pleasure to rise today to speak in support of budget 2022: a plan to grow our economy and make life more affordable.
Let us talk about the budget, finally. What is this budget all about? It has become apparent that fiscal prudence and economic growth serve as two major themes throughout this plan, and there is a clear reason for that. With a prudent and responsible approach, this is a budget that acknowledges and addresses the biggest concerns for Canadians based on four pillars: housing, climate protection, affordability, and jobs and growth.
Before I get into my budget speech, I want to emphasize that the budget’s comprehensive approach to these concerns is not by accident. It is a result of numerous consultations, community feedback sessions, town halls, emails, phone calls and more. For that, I want to thank everyone who has participated in the process of developing this budget. I want to specifically extend my gratitude to my constituents in Richmond Hill, because they took the time to engage with this process by attending my five community councils or contacting my office with their concerns.
I would like to start by giving some context for the fiscal prudence of this budget.
Throughout the COVID‑19 pandemic and during the lockdowns, the economic downturns and more, our federal government quickly and effectively rolled out our major financial support programs that helped keep businesses, workers and families afloat. We have been at a 115% recovery in jobs since April 2020, over three million jobs have been created since the depths of COVID‑19, and our unemployment rate has declined to 5.3%. It is lower than it was prior to the pandemic, and lower than it has been since 1976. Our focus has been on keeping Canadians safe and financially stable, and that continues to be the case today, but we know that we need a different approach from the one that was necessary during the pandemic. In essence, budget 2022 outlines a fiscally prudent plan to reduce deficits, lower the debt-to-GDP ratio and drive toward a near-balanced budget within five years.
Now, we need to turn our attention to growing an economy that is still in recovery, but we know that we cannot strengthen our economy without first thinking about affordability. That is why this budget continues to highlight our investment in affordable child care while touching on new commitments for affordable housing and dental care.
The overarching pillars of this budget can be further broken down.
The housing measures focus on building and supply, saving, and the banning of foreign investments.
The climate pillar invests in zero-emission vehicles, clean electricity, oceans and fresh water, and clean technology.
Under the jobs and growth pillar, we are helping small businesses benefit from tax cuts, establishing the Canada growth fund, and focusing on supporting tradespeople across the country.
Lastly, affordability plays a role in all of these pillars, but its own particular investments are most explicitly seen in child care and dental care.
I am really going to hone in on housing, which is a topic I am passionate about, because I know that it will likely have the greatest direct impact on Canadians and the constituents in my riding.
Budget 2022 targets affordable housing through increasing supply and making it more obtainable for buyers, especially young and first-time homebuyers whose dream of home ownership is in jeopardy due to the continuing rise in costs.
On the supply front, we have made a commitment to doubling the number of housing units built over a 10-year period. This commitment is going to come to fruition in several ways, including with the launch of a new housing accelerator fund. The $4 billion investment for this fund will be put toward creating 100,000 new housing units over the next five years.
In order to further speed up the construction of housing, we are also investing $200 million in the affordable housing innovation fund, which will encourage new innovative building techniques in the affordable housing sector. In fact, this fund will dedicate $100 million to support not-for-profits, co-ops, developers and rent-to-own companies in building new rent-to-own units, and will turn the discussion of affordable housing into a reality for our communities.
We also recognize that increasing supply does not always work effectively unless it is accompanied by quick and timely execution. For vulnerable populations that are in urgent need of affordable housing, waiting years for the supply to increase is simply not an option. Thanks to the tireless efforts of housing support providers in my riding, such as Blue Door, Home on the Hill, Yellow Brick House, Sandgate Women’s Shelter and more, there are services in place to help address the housing needs of vulnerable groups, but we need to do more to reduce the burden on their shoulders.
That is why our government launched the rapid housing initiative with the goal of delivering affordable housing units for vulnerable people in an expedited manner. Budget 2022 highlights our $1.5-billion investment in this initiative, which will create at least 6,000 additional affordable housing units across Canada. This budget also proposes to advance $2.9 billion in funding on a cash basis under the national housing co-investment fund, which will speed up the creation of up to 4,300 new units and the repair of up to 17,800 units for the Canadians who need them most.
All of this is going to mean more generous contributions, faster approvals, and an overall quicker and more efficient process that will make affordable housing more accessible, sooner.
Now let us talk about our future homebuyers: first-time homebuyers and youth who are going to be saving up for places they call home. In my riding of Richmond Hill, the cost of owning a home is at an all-time high. First-time homebuyers in Richmond Hill are now faced with the difficult decision between staying at home in a community that they know and love and having to move further away to be able to afford a place that fits their needs.
Our federal government is aware of these issues, which is why we are proposing a series of new measures, starting with the tax-free first home savings account. Through this, we are giving prospective homebuyers under the age of 40 the ability to save up to $40,000. This could mean around $725 million in support over five years for Canadians who are trying to save their money by having it go in tax-free and come out tax-free. We are also going to be doubling the first-time homebuyers’ tax credit to $10,000, which means up to $1,500 in direct support to home buyers. This amount is not insignificant for young people: every penny towards their home matters.
Providing financial support is not the only way to address the rising costs. We need to implement preventative measures that will protect buyers and renters. Through Budget 2022’s commitment to prohibiting foreign investment in housing and the development of a homebuyers' bill of rights, we will tackle the issue of foreign commercial enterprises using homes in Canada for non-residential purposes such as parking their money, and we will also put forth a national plan to end blind bidding.
There is one more component to housing, and it is something that we see quite often in Richmond Hill. The concept of multi-generational homes is very important to my community, as families prefer to stay together and feel connected to their homes and to their relatives. This budget’s introduction of the multi-generational home renovation tax credit helps provide up to $7,500 for families hoping to construct a secondary suite in their homes for seniors or adults with disabilities. This means more money for more space, without separating families from one another.
In closing, all of these are targeted and responsible investments that align with the themes of fiscal prudence as well as economic growth, while giving more Canadians safe and affordable places to call home. This really is a responsible and responsive plan, and I hope that every member of the house joins me in supporting it, because its supports are necessary to build a more affordable and resilient Canada.
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- Apr/26/22 11:37:54 a.m.
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Madam Speaker, I am pleased to rise to join the debate on budget 2022. I think it is the fifth budget I have been able to debate since arriving at this place.
This seems to be another case with the Liberal government of “if at first you don't succeed, try and try again”, duplicating past budgets with lots of spending and lots of added debt, but with a poor outcome. I think in the case of the government, though, the saying should be “in case you don't succeed, spend and spend again”.
I want to touch on three major items in today's budget. The first is housing. It is no surprise that I want to talk about housing, and it is covered a tiny bit in the budget.
We know there is a housing crisis of prices in Canada right now, an affordability crisis, and I want to read a couple of quotes from the housing minister. In February, just a couple of months ago, he said, “We have ensured that we have housed 1.1 million Canadians since the beginning of this government.... We have built over 480,000 units of housing through the...the national housing strategy.” Two months later, just last month, he said they spent $72 billion and have housed two million people. In two months, he claimed in the House, we have gone from 1.1 million Canadians housed to two million. That is 900,000 additional Canadians housed in just two months. Unfortunately, it is not true.
Here are the facts, and this is from the Parliamentary Budget Officer. This is not me making up this information, nor pundits. This is actually from the Parliamentary Budget Officer. Across the country we know the average house price has doubled since 2015. The Parliamentary Budget Officer stated that funding for housing programs intended to help low-income households has, under the government, actually decreased 15% in purchasing power.
The government will stand and tell us to look how much money it has spent. It has spent all these billions, but we know that there is an inflation problem. We also know there is a housing affordability problem, with prices going up. The Parliamentary Budget Officer himself has said that the money put in by the government, based in real dollars, is down 15%. He further stated that since 2015, there has been a 42% reduction under CMHC's low-income housing units for houses that have been supported. Again, just in April, the housing minister said two million Canadians have been housed, up 900,000, miraculously, from two months earlier. However, here we have the Parliamentary Budget Officer noting a 42% decrease.
The PBO further states that CMHC's shift to capital contributions over affordability assistance, like rent assistance, means that little short-term relief is actually delivered to Canadians. Further, he says that while these capital contributions are spread out over time, even when looking at the long term, the actual result in lowering rents for Canadians is very little and maybe not worth the investment. The PBO also states that there are as many Canadians living in vulnerable housing now as there were in 2015, after $30 billion to $72 billion. It is hard to say how much because the housing minister changes the numbers each time he stands to speak. It is $30 billion in one moment and then $72 billion. Say it is on the low side, at $30 billion in spending. What do we have for it? We have as many Canadians in vulnerable housing as we did in 2015. Homelessness in Edmonton has actually doubled in the last couple of years under the government.
I want to get to the second part: growth and the economy. What has $1.4 trillion in debt, hundreds and hundreds of billions in added debt, by the government gotten us? The finance minister stands in this House, just as she did yesterday, and states that we have the highest GDP growth according to the IMF. Well, according to the IMF, with numbers that come directly from the IMF website, in 2021, the year the minister claimed we were number one, we were actually fifth in the G7 for growth. We are second in 2022. In 2023, the IMF predicts we are going to below the advanced economy average for growth. Think about that. In 2021, we were fifth in the G7. That is after a 67% increase in the price of oil. Here we have our economy surging because of the price of oil and we are still fifth. In 2022, we are seeing another 12% increase in the price of oil, yet we are still not at the top in the G7.
There is an OECD report out called “The Long Game”. It says that Canada is going to have the worst-performing advanced economy from 2030 to 2060. When I was reading through this report and saw we are going to be the worst from 2030 to 2060, I thought maybe we will be okay from 2022 to 2030. Then I read the next page and it said that oh, by the way, from 2020 to 2030 Canada is going to have the worst-performing economy in the OECD as well. This is the OECD; this is not me. These are real numbers from the OECD. In that same report, the OECD talks about productivity. Canada is going to have one of the worst productivity improvements in the OECD.
Part of the name of the budget is “A Plan to Grow Our Economy”. This gets back to my comment about the government: “If at first you don't succeed, try and try again”. The Liberals have been trying for years and years and spending more and more, and what do we get? We get what the OECD says is going to be the worst-performing economy in the OECD. Turkey, Greece and second world countries are all going to have higher economic growth than Canada.
I will go on to the environment. Here is a quote from our environment minister from January 31: “I would like to remind him that over the past few years, our government has implemented more than 100 measures and invested $100 billion in the fight against climate change.” What are these 100 measures brought in by the government and this $100 billion, as the environment minister claims? According to Stats Canada and the Library of Parliament, GHG emissions have actually risen every year under the government. Therefore, $100 billion of taxpayer money is spent and there are 100 new regulations and programs, but we get higher GHG emissions. I wonder where we would be if the government had done nothing. I think we would be a lot better off.
I want to get back to another claim by the finance minister. Besides saying we have the fastest-growing economy in the G7, she talks about our GDP growth being the highest in the G7. What she leaves out is that this is not what we call real GDP growth, which is the real growth when we take inflation out of the GDP. When we take out our out-of-control inflation, we actually drop quite a bit in the G7. We are not the top, as the Liberals claim. Adjusted for inflation, OECD numbers say we are the fifth in the G7 for economic growth.
We heard today claims about the debt-to-GDP ratio. We notice the Liberals always say “net debt-to-GDP” or they just say “debt-to-GDP”. They do not talk about the gross debt-to-GDP. Do members know why that is? When we take the real debt or the gross debt, we are not the best in the G7, we are not the second and we are not the third. We are actually the fourth. When we look at the developed nations of the OECD, we are the ninth worst out of 38 for debt-to-GDP.
What is the difference between what the Liberals are claiming and the truth and reality? In net debt, they include the half a trillion dollars in assets of the CPP and the Quebec pension plan. They do not count the liabilities and all the money put aside by our parents, ourselves and our grandparents. They do not include that liability, but they include the money they have set aside. The government is therefore not counting every penny set aside for someone tomorrow, next year or in 10 years when it makes the claim of how great our financial situation is. Other OECD nations do not record the net amount like we do, so it is a false statement. It is unfortunate that the government continues to mislead Canadians on how bad things are with our debt, which actually has to be eventually repaid one day, one would hope.
Obviously, we are in a problem here in our nation. We have an aging population, no growth coming and an out-of-control deficit. Canada needs better, and that is why I will not be supporting budget 2022.
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- Apr/26/22 12:22:12 p.m.
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Madam Speaker, the member's speech really goes to the heart of where many Canadians are. What she is hearing in her riding is very similar to what I have heard across my riding.
When we talk about affordability now, we know that it is increasingly harder for so many families and sectors in our society. I would ask the member to highlight for us some of the things in this budget that would make it easier for Canadians, seniors and families to be able to continue through what have been very trying times.
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- Apr/26/22 2:42:31 p.m.
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Mr. Speaker, rather than tackling the supply issues driving the housing and affordability crisis, the NDP-Liberal government has doubled down on its failed approach. The NDP-Liberal budget promises the same failed programs that will not see any additional houses built this year or help a Canadian family afford a home who otherwise could not. The average home price in Canada is now $868,000, up nearly 30% in the last year alone. Canadians need help now. When will the Liberal government take this housing crisis seriously?
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- Apr/26/22 2:44:37 p.m.
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Mr. Speaker, the best way to deal with housing affordability is to increase housing supply and to do it faster. Unfortunately, if the member opposite is so concerned about housing supply, she should talk to her leader, who opposes our collaboration with municipalities to increase housing supply. She should talk to her colleague from Calgary Centre, who opposes a ban on foreign ownership. She should talk to her colleague from Mission—Matsqui—Fraser Canyon, who believes we should just download the costs to provinces. She should talk to her colleague from Stormont—Dundas—South Glengarry, who believes we should just get out of the whole national housing strategy.
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- Apr/26/22 2:46:50 p.m.
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Mr. Speaker, the solution to housing affordability is housing supply. We are collaborating with municipalities through the housing accelerator fund to build 100,000 new homes in the next two years and double the number of new homes built in the next 10 years. We are also extending supports through the first-time homebuyer incentive and the tax-free savings account to first-time homebuyers. We are also tackling speculation by banning foreign ownership of Canadian residential real estate in the next two years, and we are building more affordable housing.
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- Apr/26/22 3:49:13 p.m.
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Madam Speaker, I was interested in the reference my colleague made in a previous response to the national housing strategy.
Housing affordability is a huge issue in the riding of Cloverdale—Langley City, and I have been really pleased to see in this budget the commitments to housing. I wonder if my hon. colleague could speak for a moment about the housing commitments that are being made and how they will positively impact ridings such as mine.
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- Apr/26/22 7:23:23 p.m.
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Madam Speaker, the line I use very often is that a week is an eternity in politics, and for the past five years it has become increasingly difficult and more stressful for anybody buying a home or looking to rent anywhere.
In Cornwall and my riding of SDG, the average price of a home is now $430,000. In the province of Ontario, last month the statistics showed the price was over $1 million on average to purchase a home. It was $800,000 across the country. Those are the average prices. I hear stories repeatedly of how rents are skyrocketing, the supply is low and young people living in their parents' basements are giving up on the idea of ever being able to save up enough money to buy their own home. These stories are heartbreaking, and what has happened over the course of the past few years is extremely frustrating.
I have to admit I do not think the Minister of Housing likes me too much. He references me in response in question period quite often because the last time we had this debate on housing a few months ago, I spoke about the Liberals' failed approach when it comes to housing. It is clearly broken when the housing minister sees prices that have doubled in the past five years and claims that the government's plan is working and is a benefit to Canadians.
I criticized the shared equity program, but not just for myself. I shared examples from stakeholders and proof from Canadians that they do not support that program. The minister then twisted my words. He could not even get my riding name right, but suggested that I was somehow against homelessness funding or doing anything in that regard. I will be blunt. That is pathetic and desperate.
The line I used was “desperate people do desperate things.” The minister is getting increasingly frustrated because Canadians are seeing the frustration they are facing in every single part of this country. It was also revealed in some documents recently that the minister authorized bonuses for the Canada Mortgage and Housing Organization, which has the simple and pure mandate of making housing affordable for Canadians. With all the stats that I just showed and the frustration in the air in every part of this country, the minister deemed in his judgment that it was appropriate to give $40 million in bonuses to an organization and team that is responsible for affordable housing. He did not like that very much, and continues to cite it.
I can say that in the city of Cornwall, the challenge of both hidden homelessness, which is what we call it, and also visible homelessness has shaken our community in the past couple of years. We actually have homeless encampments now near the port of entry under the international bridge going to Cornwall Island and into the United States.
The approach from the government needs to change. The shared equity program is broken. Members do not need to take my word for it. Mortgage Professionals Canada, which represents mortgage brokers, lenders and insurance and service providers, said last month that the federal government has failed to address Canada's housing affordability problem. When it came to the first-time homebuyers' incentive program, it said that it is “simply failing”. That is the part that needs to end. The spokesperson said that “almost all clients dislike the idea of becoming a co-homeowner with the government, if they can avoid it.”
That says it all. The fact that we are at a point now where the government believes it needs to put out money to help people contribute toward the equity in their homes speaks volumes about how our system and housing system are broken.
My question to the parliamentary secretary is this. Will the government finally change course?
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- Apr/26/22 7:27:34 p.m.
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Madam Speaker, this government recognizes the housing affordability challenges that Canadians are facing today. Too many in this country are struggling to meet even their most urgent housing needs, and as my colleague points out, too many are struggling to achieve their dream of buying a home. However, unlike what my colleague said in the House earlier this year when he said that we should be done with the issue, we believe that the federal government needs to do its part. In fact, I think he owes Canadians an explanation for why he opposes investment in affordable housing and opposes supporting those who dream of owning a home.
Our government has prioritized housing since the beginning of its mandate. My colleague mentioned earlier that the system is broken, but since 2015, we have invested nearly $30 billion to support, create and repair 440,000 homes across the country from coast to coast coast. We launched the national housing strategy in 2017, the first of its kind. Is it broken? It helped over two million Canadians across the country. We have made housing affordability a central pillar of our new budget, pledging billions to boost supply and put housing within reach of everyone in this country. That includes expanding and extending programs with proven records of success, such as the rapid housing initiative to quickly build more affordable housing and the first-time homebuyers program.
My colleague's constituents are well aware of the impact the first-time homebuyers incentive has had, as 24 families in Stormont—Dundas—South Glengarry alone are now homeowners thanks to funding from that initiative. Other federal programs have funded nearly 1,000 new units in his own riding, and those successes are repeated across the country.
Our new budget proposes a new tax-free first home savings account. This would allow people to save up to $40,000 for the purchase of their first home. We will also work to develop a homebuyers' bill of rights to protect homebuyers. Our plan includes support for people across the housing continuum, especially the most vulnerable in our country.
The member should tell Canadians now if he believes, like many of his colleagues, that the government should not play a role in making housing more affordable. Does he not believe that housing is a human right? Canadians deserve a clear answer from him and his party.
Meanwhile, our government believes that we can and should be in the business of helping Canadians meet their housing needs. Canadians expect us to get the job done. We hope that he and his colleagues will get their story straight. Do we need to make sure that housing is a human right? Do we need to give support to homebuyers regarding affordability? On this side of the House, that is what we are doing and that is what we are going to do.
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- Apr/26/22 7:31:05 p.m.
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Madam Speaker, the very reason I am standing in the House talking about affordable housing is that I care. We care about it across the country.
I will never challenge the intent of the government and say that it does not care about housing affordability, homelessness or helping first-time homebuyers. This is about the approach it is taking to try to get there. The Liberals have had seven years. They claim they have done a, b, c, d and e, and in that time, housing prices have doubled. More people are walking away. We have more homelessness present in our communities, and we have more people requesting social housing because they cannot afford rent and cannot afford to buy a home. There is a lack of supply, and the challenges go on.
My argument continues to be about the direction the government has taken. I will give the Liberals the benefit of doubt that they mean well, but this is about actions and results. I will ask my constituents in Stormont—Dundas—South Glengarry and all Canadians to reflect on the past five to seven years under the Liberal government. Is housing more affordable for them? Are they further ahead? The answer is clearly no.
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