44th Parl. 1st Sess.
October 17, 2023 10:00AM
- Oct/17/23 10:43:20 a.m.
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Mr. Speaker, I will be sharing my time with my friend and colleague, the hon. member for Winnipeg North.
We learned just this morning from Statistics Canada that inflation fell to 3.8% in this country. That is well below market expectations and good news for Canadians as our economy continues to stabilize.
We know that many Canadians are still having trouble making ends meet.
Our government understands that many Canadians are having a tough time these days. That is why our government is working hard to build an economy that works for everyone, with stable prices, strong and sustained growth and high-paying jobs. That is what matters most to Canadians.
There are over 1 million more Canadians in the labour force today than before the pandemic. The OECD and the IMF predict that Canada will have the strongest economic growth in the G7 next year. Moreover, rating agencies, including DBRS Morningstar, confirmed our AAA credit rating last month. That is the foundation for more investments in Canada. Our plan is working.
I want to highlight certain measures that our government introduced recently to continue to support Canadians. We know that for too many of them, including youth and new Canadians, the dream of being homeowners is increasingly unattainable, and the cost of rent keeps rising. I see it back home, especially in Côte-des-Neiges. People are struggling to pay their rent because it keeps rising all the time.
The housing crisis is also affecting our economy. Because of the shortage of housing 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 they are spending less money in our communities and on necessities.
That is why we began this fall parliamentary session by introducing Bill C-56 in the very first few days. This bill would enhance the GST rental rebate on new purpose-built rental housing to encourage the construction of more and more rental homes throughout the country, including apartment buildings, student housing and seniors residences right across Canada. For a two-bedroom rental unit valued at $500,000, this GST rebate for residential rental buildings could mean a tax break of $25,000. This is just one more tool to help create the necessary conditions to build the types of housing that Canadians need and families want to live in. This measure would also remove the restriction in the existing GST rules to ensure that public service bodies, such as hospitals and charities, as well as qualifying non-profit organizations that build or purchase purpose-built rental housing, are permitted to claim that 100% enhanced GST rebate.
The government is also calling on provinces that currently apply the provincial sales tax or the provincial portion of the HST to rental housing to join us by matching our enhanced rebate for new rental housing. In fact, Ontario, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island have already announced that they intend to follow our lead by eliminating the provincial component of the HST on those new purpose-built rentals.
Since we moved to remove GST on new rental housing, home builders from coast to coast to coast have announced they will be moving ahead with new or stalled projects. This means more housing for Canadians. I would certainly hope that Conservatives will stop playing procedural games with this bill so that we can deliver this important measure to Canadians because I do fundamentally believe that the Conservatives are supportive of creating more supply in the housing market.
In addition to the enhanced GST rebate, our government recently announced the next step in our plan to address the lack of housing in this country.
To ensure builders have the low-cost financing required to build more rental projects, the government is increasing the Canada Mortgage Bond issuance limit by $20 billion per year and designating the increased amount for funding mortgage loans on multi-unit rental projects insured by CMHC. Eligible rental projects must have at least five rental units and can include apartment buildings, student housing, and senior residences.
There is no fiscal impact for the Government of Canada as a result of this particular measure, and I would like to make that very clear. This is fiscally responsible policy, using policy tools at the government's disposal. This new measure alone would help build up to 30,000 additional rental units every single year. The increase to Canada mortgage bonds builds on the federal government's recent actions to make housing more affordable for Canadians, including the $4-billion housing accelerator fund, which was launched earlier this year, as members know. That fund helps to cut red tape to address outdated local policies, such as zoning issues that are preventing construction. It allows us to build more homes faster.
The government also introduced the new tax-free first home savings account, which is helping Canadians to contribute up to $40,000 tax-free toward their first down payment.
Since we implemented this new tax-free first home savings account in April, most of Canada's large financial institutions have started offering it. Today, 150,000 Canadians have already opened a tax-free first home savings account and many new accounts are being opened every day.
Our government also understands that inflation is, of course, challenging when it comes to the essentials Canadians must purchase every single day, such as food. Earlier this year, we addressed the rising cost of food by delivering targeted inflation relief for 11 million low- and modest-income Canadians and families, those who needed it the most. That was through our one-time grocery rebate, which meant up to an extra $467 for eligible couples with two children and over $200 for single Canadians without children, including single seniors.
I know that this support was welcomed by Canadians, but I also know that more work needs to be done. That is why Bill C-56 proposes to take immediate steps to help make groceries more affordable.
This crucial legislation would introduce a series of amendments to the Competition Act to strengthen competition, especially in the grocery industry. These amendments would give the Competition Bureau more power to investigate and take action when industries engage in unfair competition, such as price-fixing or unreasonable price hikes. They would eliminate the efficiencies argument to stop anti-competitive mergers that end up driving up prices and limiting consumer choice here, in Canada. These amendments would also allow the bureau to block collaboration efforts that undermine competition and consumer choice, for example, when major grocery chains prevent SMEs, their smallest competitors, from opening stores nearby.
The government continues to work with leaders of Canada's five largest grocery chains and, of course, domestic and international food processors, to take this action to stabilize food prices. Price stabilization requires the full engagement of everyone, of the entire supply chain. We are encouraged that grocers and manufacturers have agreed to work with us to find solutions that are in the best interests of Canadians.
In closing, these are real, concrete actions that will make life more affordable for Canadians. More competition will ease the sticker shock at the grocery store checkout line, and that is important. Eliminating the GST on the construction of new homes will get more homes built faster. That, too, is critically important.
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- Oct/17/23 10:53:29 a.m.
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Mr. Speaker, I certainly appreciate the members opposite raising important issues local to their own communities. I have to say that I am hearing very similar things in my community. I know that the banks are working very hard to find solutions for their customers.
The news this morning that inflation is falling is certainly welcomed by our government not only in that we need to stabilize inflation to ensure that we stabilize prices, but also that we need to make sure that the Bank of Canada continues to work on interest rates and ensure that Canadians are well served by our institutions.
I think the elements of BillC-56, as I pointed out in my speech, are important to help Canadians who are struggling to find homes and to help Canadians who are facing higher prices at the grocery store. I certainly hope the member opposite will support that bill.
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- Oct/17/23 10:55:18 a.m.
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Mr. Speaker, of course, we are working tirelessly to respond to the housing crisis. In fact, we were the first to acknowledge that there actually was a crisis. We put money on the table.
Yes, negotiations with Quebec took some time. I am glad we were able to reach an agreement, as my colleague mentioned. We signed an agreement with Quebec to transfer funds.
The money is there. We expect it to be used to build more housing. We will keep on keeping on.
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- Oct/17/23 10:56:54 a.m.
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Mr. Speaker, I always appreciate the questions from my hon. colleague. They help elucidate all of us in the House as to the situation in her community.
I know that in the last budget, many of us worked very hard to ensure that we had the right strategy, not just the money, but the right strategy, to address indigenous and northern housing. That was found in budget 2023.
I look forward to working with the member on further issues, including the issue she raises today.
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- Oct/17/23 2:36:05 p.m.
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Mr. Speaker, I am always happy to work for the middle class. We are always happy as a government to continue supporting the middle class. The Conservatives, on two occasions, voted against a tax break for the middle class, and now they pretend to care about the middle class. I am confused. We have legislation on the floor of this House that would stabilize grocery prices and would help build more homes from coast to coast to coast in this country. I know that many Conservatives are voting in favour of that bill; they have said so publicly. What about the leader of the Conservative Party? Will he vote for this bill?
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- Oct/17/23 2:37:32 p.m.
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Mr. Speaker, I would remind my colleague opposite that Canada continues to have the lowest deficit among all G7 countries. I would also advise her, in case she missed the news this morning, that Statistics Canada announced inflation has come down in Canada. That is because our plan is working.
However, we know that Canadians still need support, which is why, before this House at this very moment, we have legislation that would help to reduce grocery store prices for Canadians. Why are the Conservatives playing partisan games with the interests of Canadians and of the middle class?
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- Oct/17/23 2:38:51 p.m.
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Mr. Speaker, I appreciate the questions coming from the Conservatives, but I wonder if they are keeping up with the announcements made by our government. About an hour ago, we announced new measures that will help reduce costly banking fees, which Canadians have told us are a very real irritant for them. This is real support for Canadians.
We are going to enhance low-cost and no-cost chequing accounts for Canadians. We are going to make sure that Canadians get repayment relief from their banks. We are acting every single day in the interests of Canadians in order to help them meet the moment. Where are the Conservatives? They are nowhere.
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- Oct/17/23 2:43:04 p.m.
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Mr. Speaker, I represent a riding in Montreal. Having spoken to Montrealers, I can say that they are afraid the Conservatives will set us back. We can expect cuts from the Conservatives, cuts in pensions for our seniors, cuts for families with young children. They will certainly set us back—
Some hon. members: Oh, oh!
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- Oct/17/23 2:43:48 p.m.
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Mr. Speaker, I would like to respond to my colleague because I know for a fact that Montrealers are afraid that the Conservatives will set us back, because the Conservatives are going to cut pensions for our seniors and subsidies for families with children. They will certainly set us back on the environment and the fight against climate change.
I am surprised to hear a Conservative colleague talk to me about Montreal, because right now I can tell you that Montrealers are not interested in the Conservative plan.
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- Oct/17/23 2:52:36 p.m.
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Mr. Speaker, I have a great deal of respect for my Conservative colleague, so I would like to correct him. Statistics Canada confirmed today that inflation in Canada has dropped.
With regard to his questions, I would also like to mention that our government will, of course, update the House on our revenues in this fall's economic statement. That is coming soon, as members know. My colleague will, of course, have access to the numbers and will be able to analyze them. I would be pleased to answer his questions after that.
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