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- Parry Sound—Muskoka
- Ontario
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- Oct/30/23 3:26:23 p.m.
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Mr. Speaker, I move that the 11th report of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, presented on June 12, be concurred in.
We are talking about the national housing strategy report, which was done by our human resources committee and delivered in June 2023. We should know that the national housing strategy is a program the Prime Minister announced with great fanfare in 2017, as I have said in the House before.
He and a number of his colleagues stood in front of a big building under construction and talked about how this strategy, which was going to be about $40 billion, would be a life-changing, transformational strategy. The federal government was back in the housing business, and it was going to be a really big deal. It was a 10-year plan.
It is still a 10-year plan. The numbers were ballooned to $82 billion, and at the time of the study, it was going to change the world, which was all well and good. We know the Prime Minister is particularly good at these photo ops and announcements with quite a rhetorical flourish.
We received the study in June 2023. Just before that, we had spoken with the former minister of housing. We asked the minister of housing, a couple of different times, if he would describe the housing situation in Canada as a crisis. He could not use that word. What we heard from the minister at the time was that housing was a challenge, and there were some problems and difficulties, but he could not use the word “crisis”.
I would also like to inform the House that I will be splitting my time with the member for Kelowna—Lake Country.
Fast forward to a few weeks ago, there is a new Minister of Housing, and there is a renewed sense that we need to do something about the housing situation in Canada. The new minister, when asked if Canada was in a housing crisis, a year after the previous minister, acknowledged that, Canada is in a housing crisis. He used the word himself.
When I asked him at the time if, in 2015, eight years ago, and 2017, when the Prime Minister announced this life-changing, transformational national housing strategy, Canada was in a housing crisis. He would not use the word “crisis” when it came to that. He said we had some challenges. There were some difficulties, but he would not describe it as a crisis at the time the Liberals launched this national housing strategy, this $82-billion, 10-year program.
We heard from the CEO of the Canada Mortgage and Housing Corporation, which is the agency responsible for delivering the national housing strategy and all the programs therein. The Canada Mortgage and Housing Corporation is also responsible for insuring a lot of mortgages in this country, millions of mortgages. It does a lot of research on the housing situation in Canada. We have heard a lot from it about the fact that we are in a crisis and that Canada needs to build, in total, about 5.8 million homes by 2030 to restore some semblance of affordability in the housing market.
It is important to acknowledge at this point that the most homes that Canada has ever built in a single year was in 1976 when building a home was a little easier. Homes were not nearly as complex, but 270,000 units were built that year. The average today is about 240,000. We would need to ramp up the building of homes to about 745,000 units per year to meet that affordability target that the CMHC itself says we need to do.
What was this national housing strategy supposed to do? We know, from the reports and from listening to the CEO of the Canada Mortgage and Housing Corporation, that this national housing strategy was to remove 530,000 Canadian families from core housing need, reduce chronic homelessness by 50%, protect 385,000 community housing units already in existence, provide 300,000 households with affordability supports, repair 300,000 existing housing units that needed repair and create 100,000 new housing units.
With the $82 billion, we are just over halfway through the program, which begs the questions of where we are at and what it has accomplished.
Even the CMHC would acknowledge that we have a long way to go, and it would acknowledge that in part because its own research has told us that the situation is worse than ever. At the time that the Prime Minister announced this strategy, we had some housing challenges. Today, it is a crisis.
We now know that, after eight years of the Liberal Prime Minister, rents have doubled. We also know that, after eight years of the Prime Minister, house prices have doubled and mortgages have doubled. Frankly, despite the grand proclamations of the Prime Minister and the constant patting of themselves on the back for all the great work they are doing with this national housing strategy of $82 billion, it seems as though the Liberals are starting to catch on that just saying they are going to do good things with photo ops and announcements is not really solving the problem.
As it turns out, now the Liberals are announcing new things and new ideas, including things like removing the GST from purpose-built rentals. They are finally catching on, but I worry it might be too little, too late because, in the midst of all of this, in the midst of a housing crisis getting worse and worse, the government has been spending money like it is going out of style. It borrows excessively. The Liberals stand behind this whole business that they were there for Canadians during COVID, but we know that a couple of hundred billion of that borrowing had nothing to do with COVID supports, and that is having an impact on inflation.
In fact, Tiff Macklem, the governor of the Bank of Canada, has said that inflation in shelter prices is running above six per cent. Part of this, he says, is due to higher mortgage interest costs following increases in interest rates. However, it also reflects higher rents and other housing costs, and these pressures are more related to a structural shortage of housing supply. He also said it is going to be easier to get inflation down and make housing cheaper if monetary and fiscal policy are rowing in the same direction.
Therefore, we know that announcing with great fanfare an $82-billion 10-year comprehensive plan to solve the housing challenge of the time, fast forward to today, has turned into an absolute crisis in the housing market and, frankly, a crisis that is, in part, created by the inflationary pressures that the government, and its excessive spending, is putting on the market.
Now we have this report that says that, yes, it is bad. We have work to do. That is effectively the message. Even Ms. Bowers acknowledged that it is going to be very challenging to meet the targets. We know why. The Governor of the Bank of Canada has told us that the inflationary spending of the government is just making it harder. Every nickel it spends is making it harder.
The members of the government do not seem to understand that we need to get out of the way and not only incentivize the private sector, but also bring down the inflationary deficit spending and axe the carbon tax, which is making everything more expensive. We need to reduce the taxation burden. We need to reduce the taxation of deficit borrowing on the backs of Canadians so that they can afford to eat, heat their homes and maybe even have a home one day.
Nine out of 10 young people in this country have given up on the dream of ever owning home, and the responsibility for that falls squarely at the government, its inflationary spending and its reckless way of borrowing billions of dollars. The government says it is going to borrow money so Canadians do not have to, but its members do not realize that the money being borrowed by the government is being borrowed on behalf of all Canadians. It falls to all of us to pay it back. Therefore, we have a situation today where a government will borrow billions of dollars to give Canadians a few hundred dollars to help them pay for things that, because of the government's borrowing, now cost thousands more dollars.
We have a situation where our government is now so desperate that it is playing politics, so it is axing the carbon tax in some parts of the country where the Liberals' poll numbers are really bad, but not in the rest of the country, as we found out, because people there did not vote Liberal. That is the problem. People have to vote Liberal if they want to get treated better by the government and if they want the government to relieve them of the pressures of its inflationary spending.
The national housing strategy can be described as a failure. The Conservatives have written a dissenting report on this, and we need to recognize that the government is simply not getting the job done. Even though its members have great talking points and photo ops, they are making life more expensive every day for Canadians. Canadians know that, despite their promises, the Prime Minister is just not worth the cost.
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- Jun/13/23 10:09:57 a.m.
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Mr. Speaker, I move that the fourth report of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, presented to the House on Wednesday, October 19, 2022, be concurred in.
I will be splitting my time with the member for Calgary Nose Hill.
We have a housing crisis in this country. To restore affordability, the Canada Mortgage and Housing Corporation has reported that we need 5.8 million homes by 2030. That works out to 760,000 new homes per year until 2030 for us to restore affordability. The best we have ever done in Canada is to build about 260,000 units of housing a year.
We are now faced with this massive undertaking and all the challenges that go with it to get these units built, whether it is the labour shortage, the skilled trades shortage or, of course, dealing with all the different levels of government involved in the housing space. Municipalities are on the front lines of the housing crisis, and the provinces are very much on the front lines as well.
As for the federal government, some years ago, the Prime Minister, with great fanfare, launched this national housing strategy, describing it as a transformational housing plan and saying the federal government was back in the housing business. All we can see today is that rents have doubled, home prices have doubled and mortgage rates are skyrocketing. People's variable rate mortgages, and I happen to be one of them, have skyrocketed in a year. There are an awful lot of Canadians who do not have a variable rate mortgage who will be going to the bank maybe this summer or fall, and they are going to find out they cannot afford their house anymore. That is all in the midst of a housing crisis where we need to build 760,000 units a year to restore affordability.
We have a government that is long on talking points and long on photo ops but very short on delivery. We do not see a lot of ribbon cutting for new housing. Frankly, we do not need to see any ribbon cutting to know that the situation is only getting worse. Members could ask a student in Toronto if they can find a place to live. Covenant House Toronto reports that a huge number of people living there are students at local universities and colleges. That is completely insane in a country like Canada.
We have heard the Leader of the Opposition talk about young people being stuck in their parents' basements because they cannot find a place to live. They have done everything right, they have a good job and they cannot find a place to rent or maybe even buy one day. We need literally all levels of government working together to solve this crisis, and we need to hold those on the front lines accountable for what they are or, in most cases, are not doing to make housing more affordable.
We have heard the Leader of the Opposition talk about holding municipalities to account. He talks about firing the gatekeepers. He is absolutely correct. As a former mayor, and before that the chair of the planning committee in Muskoka, I am quite used to dealing with vested interests on expensive waterfront properties, but also vested interests in the urban towns of Muskoka. Pushing for higher density in some of these smaller communities is not always easy. I talk a lot about the challenges we see in larger centres, but they also happen across the smaller communities in this country.
As mayor and as chair of planning, I always fought the good fight and made sure that we had more density and more homes built. The Leader of the Opposition, and hopefully the soon-to-be prime minister, will challenge all municipalities and all cities in this country to make decisions to increase density, particularly when the federal government is on board and assisting larger centres with massive investments in transit infrastructure, for example. It is insane to me that the federal government is happy to support municipalities with transit infrastructure, with dollars for new SkyTrain stations and new subway stations, but it does not require the land around those stations, the land around the multi-billion dollars transit infrastructure, to be pre-emptively rezoned for high-density residential housing.
This makes sense. It makes sense for the public investment of federal dollars. It makes sense for the public investment of municipal dollars as well. It is a green way to live, as higher density is better for the planet. Frankly, it is better for the municipalities as well.
A lot of people do not realize that single-family detached residential homes do not actually pay enough tax to cover the cost of the services the families who live in those homes demand. Municipalities need higher density residential housing. It makes more sense fiscally. It is more sustainable. As the Conservative Party, we are calling on municipalities to get on board and for everybody get on the same page to work together to increase the density of our urban centres for the sake of the planet and for the sake of young people who are desperate to get started in their lives and maybe start a family one day.
The housing spectrum is a continuum, and people move through that continuum as their needs change and adjust. Right now, the biggest gap or the biggest blockage in that continuum of housing is purpose-built rentals. We know that purpose-built rentals have not been constructed in a meaningful way since the late seventies. That is because the government of Pierre Elliott Trudeau had an ideological problem with the tax treatment for the construction of rental units, as it thought it was making landlords rich. As a result of that change in policy, purpose-built rentals stopped getting built. Members will notice, if they go around any of the larger centres such as Toronto or Vancouver, or even smaller cities such as Winnipeg and Halifax, those purpose-built rentals are starting to get pretty old. We need some major investment in those rentals because they are all over 50 years old now, and they are getting pretty tired.
Therefore, along comes the condo construction business because the developer does not have to carry the capital costs of a rental building, so condo owners start buying up condos and they start renting those out. CMHC changed the rules so people can put 5% down, not just on their first home but maybe on their second and third as well. In many ways, we should be really grateful, frankly, that this happened because the vast majority of landlords in this country now are families who maybe bought a second property and tried to fill a gap. However, it is not enough. We need more purpose-built rentals in this country, and we need a federal government that is working with provincial governments and municipalities to make sure that the private sector is incentivized to build specifically what we need.
With trillions of dollars of investment required in the housing space in this country, there is no way government can do it all on its own. Every nickel of government spending at this level should be focused on those most vulnerable in our society, and we should get the private sector on board to build everything else. The biggest gap is purpose-built rentals, so a federal government working with provincial governments and municipal governments could work with the private sector stakeholders to direct them to build those purpose-built rentals.
Freeing up space in rentals would free up movement within the housing continuum to bring the market back into equilibrium. People could then move through. Adult children would not have to live in their parents' basement anymore. They could go through this transition more naturally into a rental property and then maybe buy their first home. Then folks who are aging and do not really want to stay in their big house anymore, as they need something smaller, would have something they could move to as well. The flow of people moving through housing in this country can happen again.
However, it is not going to happen without federal leadership, which we are not seeing from the current federal government. We have a Minister of Housing who does not really believe that the situation is a crisis, and we have a Prime Minister who loves photo ops, announcements and speaking points, but none of them really seem to know how to get the job done.
That is why Conservatives are focused very much not only on talking points, but also on real results, and on making sure that municipalities are working in lockstep with the provinces and the federal government to ensure that we close the gap with purpose-built rentals and make housing more affordable again. Once we fix housing in this country, we can literally fix everything. The absolute foundation of our society and our economy is housing, and we are failing right now. I am sorry, but the federal government is failing right now.
Therefore, as Conservatives, we have proposed some very common-sense ideas. It is common sense for the common people to hold other levels of government to account to make sure that every nickel of public investment is creating results, not just photo opportunities.
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- Apr/21/23 11:53:15 a.m.
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Mr. Speaker, “we see the interest rate increases over the course of 2022 leading to lower housing starts this year.”
Those are the words of a market analyst at the CMHC. Excessive Liberal borrowing and spending caused a spike in interest rates and will stall new housing construction. CMHC has also said that we need to build 5.8 million homes by 2030 if we have any hope of restoring affordability.
Why, then, is this costly coalition so determined to block the construction of the homes Canadians so desperately need?
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