:
Mister Speaker, I am pleased to rise today to introduce Bill , the affordable housing and groceries act.
I would like to explain why it is so important that we work together to pass this bill. This bill includes urgent measures to make life more affordable for Canadians, including removing the GST on the construction of new apartment buildings, which would help get more rental homes built faster.
The bill would also enhance competition across the economy, with a focus on the grocery sector to help stabilize food prices for Canadians.
[English]
Specifically, this legislation would increase the GST rental rebate from 36% to 100% and remove the existing GST rental rebate phase-out thresholds for new rental housing projects. That means for a two-bedroom rental unit valued at $500,000, our plan would deliver $25,000 in tax relief. This is about encouraging developers to build homes that otherwise would not get built. It is a game-changer for housing in our country. Mike Moffatt, one of Canada's leading housing experts, called this “a fantastic transformative step.” and Toronto's former chief city planner, Jennifer Keesmaat, said that this measure could be “the beginning of a sea change."
This is the newest measure in our ambitious housing plan, one that is about building more homes faster, cracking down on unfair practices by investors and ensuring that Canadians can afford a safe place to call home. Our plan includes the new tax-free first home savings account, which is already helping tens of thousands of Canadians save up to $40,000 tax-free toward that first down payment. Our plan also includes the $4 billion race-to-the-top housing accelerator fund, which is already breaking down barriers and encouraging municipalities to build more homes.
With Bill , we are doing even more with provinces like Ontario, Newfoundland and Labrador, and Nova Scotia already following our lead by eliminating provincial taxes on new rentals. We will build even more of the rental homes that Canadians need.
[Translation]
This bill also seeks to amend the Competition Act to give more power to the Competition Bureau so that it can investigate price gouging and price fixing.
It would put an end to anti-competitive mergers that drive up prices and limit Canadians' choices. It would also enable the Competition Bureau to ensure that big grocery stores cannot prevent smaller competitors from opening stores nearby. Our government is relentlessly focused on building an economy with stable prices, steady growth, and abundant, well-paying, middle-class jobs.
There are currently 980,000 more Canadians in the job market than before the pandemic. Both the International Monetary Fund and the Organisation for Economic Co-operation and Development predict that, on average, Canada will see the strongest economic growth in the G7 this year and next. DBRS Morningstar also confirmed our AAA credit rating earlier this month.
Since we were elected, 2.3 million Canadians have been lifted out of poverty. In 2015, 14.5% of Canadians were living in poverty. By 2021, that number had dropped to 7.4%. Our affordable Canada-wide early learning and child care system is supporting a record labour force participation rate of 85.7% for working-age women. It is also helping to grow the economy and make life more affordable for families from coast to coast to coast.
Furthermore, whether by enhancing the Canada workers benefit or by creating the Canada child benefit or the new Canada dental care plan, we have strengthened the social safety net that millions of Canadians rely on, while ensuring that Canada maintains the lowest deficit and the lowest debt-to-GDP ratio in the G7.
[English]
We are working hard for Canadians, but we know we have more work to do. Bill will deliver real, concrete solutions. More competition will help with the sticker shock at the grocery checkout counter. Eliminating the GST on rental housing will get more homes built faster, so that more Canadians have an affordable place to call home.
Bill is an important step in our plan to continue delivering on what matters most to Canadians, and I encourage my colleagues to support its swift passage.
:
Mr. Speaker, it is a pleasure to rise in the House for the first time this session to discuss the very important bill that we have in front of us.
This summer, I spoke to many constituents of mine in Guelph who had concerns about the price of housing, the price of groceries and big business taking over the marketplace in many areas. I am really pleased that the first piece of legislation of the session that we have in front of us to talk about is Bill , the affordable housing and groceries act.
The government understands that many Canadians are struggling to make ends meet in these times of high inflation. Many measures that we have been introducing have been to help people who are unfairly affected by the inflationary winds that are blowing globally right now. We need to do more than we have been doing in terms of targeted support. The bill in front of us today addresses what we could do to help build more rental housing, as well as to try to curb the inflation that we see in the grocery market in particular.
Families across the country are relying on parliamentarians to do what we can to help with measures such as those we have outlined in Bill and the ensuing debate that we will have.
Making housing more affordable is something that we need to look at, including where the federal government can influence the activities within the marketplace, so that young people, young Canadians, have the dream of owning a home again. Right now, it is increasingly out of reach, and paying for rent has become more expensive across the country. This is really affecting younger Canadians, as well as people who are just trying to get their foot into the market.
The housing crisis has an impact on our economy. When people are not succeeding, our economy does not succeed. Without more homes 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 less money is being spent in our communities for necessities such as groceries. This has a direct impact on small business.
Bill would enhance the goods and services tax rental rebate on new purpose-built rental housing; this would encourage the construction of more rental homes, including apartment buildings, student housing and seniors' residences across Canada. The enhanced rebate would apply to projects for which construction began on or after September 14, 2023, and on or before December 31, 2030, with construction completed before 2036.
Working on the supply is an important part of what the federal government could do to help. For a two-bedroom rental unit valued at $500,000, for a developer, the enhanced GST rental rebate would deliver $25,000 in tax relief to incent the developer to make the numbers work. This tool could help create the necessary conditions to build the types of housing that we need and that families want to live in. This, in turn, would open up the opportunity for renters to have a reduction in the cost they are paying for the units that are constructed.
The measure also removes a restriction on the existing GST rules to ensure that public service bodies, such as universities, public colleges, hospitals, charities and qualifying not-for-profit organizations, could build or purchase purpose-built rental housing and be permitted to claim 100% of the enhanced GST rental rebate.
The government is also calling on provinces that currently apply provincial sales tax or the provincial portion of the harmonized sales tax to rental housing to join us by matching our rebate for new rental housing. It was very encouraging to hear that Ontario, the province where my riding exists, will be participating in this program.
We are also requesting that local governments put an end to exclusionary zoning and encourage building apartments near public transit in order to have their housing accelerator fund applications approved. I know that Guelph has worked hard on this application. We have had many community discussions around this, but sometimes the numbers just do not work. In those cases, programs such as the one we are initiating today, through this bill, would help the numbers to work.
Launched in March 2023, the housing accelerator fund is a $4-billion initiative designed to help cities, towns and indigenous governments unlock new housing supply, targeting about 100,000 units across the country; speed up development and approvals, like fixing out-of-date permitting systems; introduce zoning reforms to build more density; and incentive development close to public transit. Last week, the government announced that London, Ontario is the first city to benefit from this fund. Of course, Guelph is watching that very closely. The fund also supports the development of complete low-carbon and climate-resilient communities that are affordable, inclusive, equitable and diverse. Every community across Canada needs to build more homes faster so we can reduce the cost of housing for everyone.
We are also looking at how we can help Canadians with their grocery bills, and we need to stabilize the price of groceries in Canada. Through the one-time grocery rebate in July, we delivered targeted inflation relief for 11 million low- and modest-income Canadians and families who need it the most. It was up to an extra $467 for eligible couples with two children and up to $234 for single Canadians without children, including seniors. This support was welcomed by Canadians, but we knew that more needed to be done to address the rising cost of groceries. The interim measure was really to address the increase in groceries and not actually the groceries' being purchased at a higher price every week. This is why we are taking immediate steps to enhance competition across the Canadian economy, with a focus on the grocery sector, to help stabilize costs for middle-class Canadians.
Through Bill , the government would be introducing a first set of legislative amendments to the Competition Act, intended to provide the Competition Bureau with powers to compel the production of information in order to conduct effective and complete market studies and to remove the inefficiencies defence, which is currently allowing anti-competitive mergers to happen if the corporate efficiencies are being used as a reason for them to go forward. Canadian customers would still pay higher prices even if these efficiencies are realized. The bill would empower the bureau to take action against collaborations that stifle competition and consumer choice, in particular, in situations where larger grocers prevent smaller competitors from establishing operations nearby.
This bill would build on our other measures that have been introduced to make life more affordable for Canadians. These include delivering the automatic advance payments of the Canada workers benefit, starting July 2023, to provide $1,518 total for eligible single workers and $2,616 for an eligible family, split among three advance payments and the final payment after a person has completed their 2023 tax return. We are also supporting three and a half million families annually through the tax-free Canada child benefit, with families this year receiving up to $7,437 per child under the age of six and $6,275 per child for children aged six through 17. Increasing old age security is another measure we have taken, including indexing that to inflation. We have also reduced fees for regulated child care by 50% on average, moving towards the cost of $10 a day by 2026, with six provinces and territories already reaching that goal.
We are looking at what we can do to influence the market to help people who are facing these costs. We are working on helping Canadians put food on their table, pay the rent and be successful within their communities. We want to ensure that Canada remains the best place in the world to live, work, go to school and raise a family. Making life more affordable is a key part of that.
I urge hon. members to support this legislation, and I am open to questions.
:
That is okay, Madam Speaker. I have all the time in the world today.
Canadians pay some of the most punishing prices in the world at the grocery store. Canadians pays double the rent they did only a few years ago. Canadians have it really tough, and inflation is the culprit, fuelled by the government's reckless spending and a punitive carbon tax. It has increased prices significantly over the past year, almost 18% for groceries alone. Inflation is rising in faster in Canada than in the United States, and has risen over 43% in the last two months. This is after the government said it was gone.
It is also a story about a lack of competition and competition laws to look after the consumer, the people, and to boost competition in the industry. After eight years of the Liberal government, we are finally seeing some results. We are finally seeing some competition law changes in a government bill. I will be the first to admit this is a really good idea, especially to eliminate the efficiencies defence, which, of course, right now allows any companies to merge if they find efficiencies. A lot of times those have been in job losses. Superior Propane used it not just once but three times because it is such a good law.
I say it was a great idea, because it was actually my idea. For the first reading of the efficiencies defence in Bill , I read in the House on June 8, and we were supposed to go to debate in November, but I digress. This is a great idea, and I give credit to the government where credit is due for taking this great idea. It is a good start. That is combined with the 's idea only a few weeks ago to eliminate the GST in purpose-built rental housing, which is a great idea. I want to congratulate the Leader of the Opposition on his first piece of government legislation. Just wait until we form government. It is going to be something.
This is a big one. As much as we can shrug and say this bill would do some of what we want to do to tackle grocery prices in Canada, this bill misses one of the biggest, most pressing actions of all, which is to remove the carbon tax, which is added for farmers with no rebate. The median price is $150,000 per farm. Where does that price go? It gets added to what the consumer pays. What about the carbon tax for the trucker who picks up the food from the farm? Where does that price go? There is no rebate; it gets added to what the consumer pays. The carbon price is added on the cold storage facility that stores the food. Where does that carbon tax go? It gets added to what the consumer pays.
Where does the carbon tax to the grocery store go? It is added on what the consumer, who drives to the grocery store and picks up the groceries, pays. The carbon tax adds cost after cost to what the consumer pays. It punishes farmers and consumers. At the end of the day, when we look at what is missing from this bill, when talking about trying to tackle grocery prices, we are missing the deletion of the carbon tax, which is something that the Conservatives really support.
Additionally, Canadians can buy food across Canada from really only five competitors. Let me tell everyone this right now. If anyone has ever visited No Frills, Provigo, Zehrs, Fortinos, Valu-mart, Dominion, Superstore or Shoppers Drug Mart, they have shopped at Loblaws. For those who have ever gone to Farm Boy, Lawtons, Foodland or Longo's, and my favourite, the Canadian Federation of Independent Grocers, which is not independent, they are all owned by Sobeys. Those who have ever gone to Jean Coutu, Super C, Food Basics or Brunet have gone to Metro.
Three Canadian competitors plus Walmart and Costco makes five competitors controlling 80% of all the grocery retail in Canada. By comparison, Americans have 10. At least they have dealt with it. The Americans are not perfect, but at least they are there. When we compare Canadian grocery prices to American ones, the Americans have no carbon tax, there are more competitors and the prices are lower. If Canadians are buying $40 or $50 worth of groceries, Americans are paying only $25 to $30. Sometimes it is really great to have these American neighbours so we can compare what they have and what we do not have.
How big is Loblaws? Let us talk about that for a moment. This is really neat to me. Loblaws sells 62% of Coca-Cola in Canada. Let us think about that for a minute. Loblaws is so big that it controls the whole market for Coca-Cola.
Why is that important? Take an independent like Freson Bros. Freson Bros. is Canada's largest independent grocer in the great province of Alberta and they have independent grocers. Freson Bros. is so great. As an independent supplier in rural Canada, they have Red Seal butchers and Red Seal bakers.
They employ really great individuals in their local independent stores. These are really, truly independent stores that pay good wages in rural areas, and yet they have to pay more for Coca-Cola because Loblaws holds the monopoly.
That is what monopolies do. They hold dominance and they control prices. When one has less choice as a consumer, then the monopolies win. If it was not for Coca-Cola having dominance through Loblaws, maybe that would be something that we could pay less for.
That example can be used over and over again when it comes to products that consumers try to buy every day in their stores. We call it abuse of dominance and it is prevalent among our big five major grocers.
Worst of all, Canadians are paying increases on food that is actually shrinking. Shrinkflation is the phenomenon of buying products that are actually decreasing in size. A lot of Canadians are not even aware of this. When one goes to the grocery store and one buys a pack of, let us say, granola bars for our children, normally there would have been six in a box. Consumers are now finding that there are five.
When parents go to put those granola bars in their students' lunches, they are paying a little bit more for a product that is smaller. That phenomenon is shrinkflation. That is coming because of inflation, because of this dominance of monopolies.
All the while, Canadians are seeing food prices that are actually going up. Food prices in all of Canada, this year, increased 6.8%, almost 7%. The two-year increase is 17%. Meat had a 6.5% increase this year. Over two years, it was 13.5%. Eggs increased around 3% this year. Over two years, it was 20%. Breakfast cereals increased 10% this year. Over two years, it was 25%. Fresh vegetables increased 9% this year. Over two years, it was 19%. Coffee, and we all need coffee, especially, sometimes, in the House, increased 8% over one year. Over two years, it was 24%.
Food purchases by restaurants increased 8% this year in costs, and 14% over two years. Think of a lot of these restaurants, these small, independent local businesses that took on loans during the pandemic and now have to try to pass these costs off to consumers. It is really difficult for consumers who want to go out for a meal.
From seed to source in Canada, there is also little choice. We talk about what has come into Canada. We talk about the growing influence of Walmart and Costco. Decisions made by the Competition Bureau over the last 20 or 30 years allowed, in one instance, one grocery store to buy another; and allowed a major chain, Amazon, to buy Whole Foods, which I think will have a dominant effect in the future, even though it has decreased stores lately.
We think of where we have Amazon warehouses. If we look at the next 50 years, we may not even be using grocery stores any more. When we look at automation and the increase of innovation, grocery delivery could be all in the form of warehousing. When we look at what that impact of Amazon, an American company, not a Canadian company, has, it is pretty significant, when we look at what it could mean over the next 20 or 30 years.
When we look at the consolidation, the actual competition laws that exist, yes, we have had some pretty bad decisions by the Competition Bureau, but it was all the result of a bad Competition Act.
We allowed Sobeys to buy IGA. This one is amazing to me. The Independent Grocers Association should be independent and was formed as being independent. Sobeys now owns IGAs. They say half are independent. I do not really believe that. They are owned by a major corporation.
Metro bought A&P. Loblaws bought Shoppers Drug Mart. I think, at the time, when the Competition Bureau looked at it, it said, look, we have a pharmacy, we are not going to have an impact for consumers.
Now, as we look at it, Shoppers Drug Marts, which are open sometimes to midnight, are the only grocery store in some of these rural towns across Canada. What I am hearing is that they are making as much as 20% profit on fresh produce. Let us think about the costs already. Again, it is based on supply and demand, but we allowed this under our laws. We allowed Loblaws to buy Shoppers Drug Mart. Sobeys bought Longo's. It bought Farm Boy, and again, there is less independence. We have allowed this through our existing competition law.
The result has been that if one walks into any store, it is an illusion that it is not part of the big three. It is also a consolidation that gives Canadians little choice. We talk about freedom. It is the freedom of Canadians to decide where their money is going to go, where their paycheques are going to go. The illusion has been, through this lack of competition, that Canadians have choice.
The reality is that Canadians have little choice. Even with the Loblaws brand of Your Independent Grocer, it is no more independent than any other grocery store or any other business.
I want to tell a little story also about Kleenex in Canada. We can no longer buy Kleenex in Canada. Is that not sad? At the end of the day, Kleenex is beholden to the big brands. Loblaws, for instance, because it has a monopoly, decides where it wants to put certain brands. It says to suppliers that if they are going to lower prices, this is where they need to lower them to. If they are going to drop five or 10 cents, this is where it is at. Right now, that is held by Kruger paper in Canada, and that is the Scotties brand, with the funky boxes and great colours.
The problem with that and the story of Kleenex leaving Canada is this. As we did last week, we have a “perp” walk and bring all the five grocers in. The government officials told them to lower prices and that they are going to impose a tax on them. We know that, with these companies being big conglomerates and publicly traded companies, a tax will only go to the consumer. We know this in a capitalist society. It is simple economics. Everyone knows this. The conglomerates put pressure then on the manufacturers.
Let me say this. I have a Kruger paper manufacturing facility in Quinte West in my riding, which employs 120 employees. If the companies feel the pressure to decrease prices, they start to find savings in other areas of that business, which means layoffs and shorting shifts, hurting Canadian workers. That is the power that these big monopolies have. With respect to competition laws and how we have to fix them, we need to fix the dominance that these big monopolies have. It is Kleenex today and we do not want it to be Kruger tomorrow. That is really important. Big players cannot control smaller players. We have to make sure small players have their say when it comes to the Canadian economy because then it is really the consumer who has the say.
I want to talk about shrinkflation. It is really fascinating. It is the process of shrinking product sizes while keeping the prices the same or even increasing them. In essence, people are getting less for the same amount of money. This trend is becoming more prevalent in the grocery industry and its consequences ripple through our households.
Let us start with the grocery stores themselves. As people walk through the aisles, they might notice that their favourite products do not seem as big as they used to be. A cereal box, a bag of chips or a carton of ice cream all appear slightly smaller. Manufacturers are reducing the quantity of the product. It is often in subtle ways, like reducing the number of cookies in a pack or slimming down the width of a candy bar. I have some examples of this. A year ago, a jar of Nutella was 400 grams and now it is 375 grams, which is a 6.3% reduction. Campbell's Chunky soup was 540 millilitres and now it is 515 millilitres, which is a 5% reduction. Crispers used to be 175 grams and is now 145 grams, which I noticed the other day when I was picking up some groceries for my children for school. This is a reduction of 17%.
With respect to a family on a budget, I talked to somebody the other day who said that for their family, because of the increases in rent and mortgage and bringing home less of a paycheque, they make a dinner for the family and they make something else for their children. They cannot afford to give the same meal to the children as they do for their family, and it might be a grilled cheese sandwich. Even with Kraft Singles, before, a package was 24 slices and now it is 22 slices. When people are making lunch or dinner for their family, that is a big deal; It is a reduction of 9%.
We have Chewy granola bars. A box used to contain six bars and now it contains five bars. A bag of Tim Hortons fine-ground original blend coffee used to be 1,000 grams and now it is 930 grams, which is a reduction of 7%. That is pretty sad.
When I talk about a box of granola bars that went from six bars to five bars, there is something else significant that happens with that reduction. That is the imposition of a new tax, called the snack tax, that goes onto everyday grocery items. Not a lot of Canadians know this, but there is a snack tax that goes on many items like cookies, chips, ice cream or granola bars, which maybe sometimes is the only thing we can put in our child's lunch bags. When the manufacturer uses shrinkflation and decreases prices, that snack tax is automatically implemented. This means that because of inflation, because of dominance of our monopolies and now because manufacturers are shrinking their products, we actually have government tax going on some of these items in the grocery stores. The government is now making money on items because of inflation and that is really sad.
When we take this to committee, this is something we are obviously going to study. I know my colleague before me from the NDP talked about some other elements. How sad is it that the government is making money on certain elements of what is happening in the grocery store? That is what is happening when it comes to shrinkflation.
When it comes to looking after the consumer, who looks after rent and groceries, we certainly have a lot of ideas we need to implement that are going to help the consumer. A lot of these ideas came from this side of the House but also from a lot of great committee work from members on this side of the House. We need to be very cognizant when we are putting all this forward that we are doing the best we can for consumers, the families who every day need to make decisions for their households at the grocery store.
This bill is equivalent to the shrug emoji. We can support it, but it needs a lot more to actually make grocery prices affordable in Canada. After eight years, the tired Liberal government is out of ideas. There are a few good ideas in here thanks to Conservatives, but it fails for the most part to follow through with better ideas to address the major oligopoly in Canada, which gives Canadians little choice and has them paying more at the grocery store for less.
Shrinkflation and the taxes that follow are eating more of Canadians' paycheques. The carbon tax takes a chunk from farmers, those who deliver the food and of course the consumers who buy the food.
Competition Act changes are good, but we must go further to stop the abusive dominance provisions that exist in the Competition Act. The provisions that are the most prevalent include those that allow monopolies to take advantage of Canadians, of consumers, and most importantly, of manufacturers and farmers in the whole process.
Most of all, we need more competition in Canada from food manufacturers and farmers to ensure Canadians have freedom of choice. When they have freedom of choice, they will decide best where to put their money, where to put their hard-earned paycheques. We need more competition to bring lower prices home for Canadians and their families.
:
Madam Speaker, I want you to know that I am very critical of this bill. Obviously, it does not set out any harmful measures. It sets out some mini-measures and some relatively important things. It is clearly not a panacea, but we will support it because we cannot be against it. However, when I read the bill, I could not help but be very critical of it for the following reasons.
We are dealing with a government that is incapable of thinking long term or seeing past the end of its nose. We have been in a housing crisis for two, five, 10, 15, 20 years, yet never has there been any long-term action except for a failed national housing strategy. We are in a situation where food prices have increased exponentially. Still, it took a Liberal caucus meeting where backbenchers were probably so angry at the government that something had to be done.
What was the centrepiece of its action? No joke, the decided he was going to do something. He decided he was going to call up the people who represent 80% of Canada's grocery retail market for a meeting. He picked up the telephone and then realized there were only five of them: three big chains, Costco and Walmart. It took him 30 seconds to make the calls.
Economics teaches us that industries find ways to concentrate. Some are more complex than others. However, when there are so few players controlling the grocery market that they could all tee off together, the industry concentration is obvious. The Conservatives are no better. Concentration has been an issue for years. Everything had to blow up before the Minister of Industry decided to invite them over for a coffee. There are so few of them that they would only need one Nespresso pod.
What has happened since 1986? Steinberg and A&P closed down. Loblaws acquired Provigo. Sobeys acquired IGA. Metro acquired Adonis. In the 1980s, there were 13 grocery chains. That was already a small number, but now we are down to three. Now we have to include Walmart and Costco to say there is some competition. The Minister of Industry was never interested in this. It is funny: The Liberals are suddenly seeing that an election may be looming. It is funny: All of a sudden they are seeing their poll results. It took polls for them to realize that their constituents would like to eat three meals a day.
This serves as a very sobering reminder of how out of touch the Liberals are. I would remind the House, however, that this all began under the Conservatives, and no one did anything. We know what happened. Are the Bloc Québécois members the only ones saying this? Not necessarily, although we have been proposing measures for 20 years to improve competition and ensure that consumers come first. The Competition Bureau is also saying these things. More and more mergers and acquisitions are happening. No one is stopping them. The profit margin on products is increasing.
What does that mean? It means that it costs companies less thanks to economies of scale and additional savings when they merge. At the same time, they are charging more for their products. Between those two things, they are earning an excess of profits due to a lack of competition. These people are lining their pockets. No matter what the Conservatives say, it is not the result of free enterprise and the genius of capitalism. It is the result of less competition.
We therefore need to seriously rethink how this market is organized, because a market that works is one where consumers can go and see a competitor, where people can say that if the price is too high at company A, they will go and purchase from company B. Those companies would then have to compete with one another. This is no longer the case in Canada. When five individuals sitting in a room control 80% of the market, we no longer have a healthy grocery market.
As I said, Bill proposes measures that the Bloc Québécois has been requesting, not for two years, not for five years or eight years, not just since the Liberals came to power, but for 20 years. That is a verifiable fact. We care about the middle class and purchasing power, even between election periods.
There are some good things in this bill. It gives the commissioner real investigative powers. Instead of just conducting small studies and giving his opinion, as he is currently being forced to do, he will be able to compel people to testify. He will be able to ask for documents. A competition bureau needs to be able to investigate. In Canada, the commissioner's powers are limited.
The bill broadens the range of anti-competitive activities. Right now, we have a model that is unique in the world, but we are not the best country in the world. Members know what I think about that. When companies want to merge, the Competition Bureau lets them as long as doing so will generate efficiency gains, because that will lower costs.
However, the commissioner cannot say that the result will be less competition and therefore fewer reductions, higher prices and more money in the pockets of company shareholders because of a lack of competition. The commissioner cannot prevent that. Today, we will be able to take a step toward doing so. That is good, but it is just a start.
We will support the bill, but we are not commending the government for this, far from it. The government is congratulating itself on this. However, the members on the other side of the House have some soul-searching to do, as do the Conservatives. There is still a lot of work to be done. We need to review the notion of abuse of dominance. We need to prevent the big players from abusing their large share of the market. That is just a start. This bill is disappointing, but we cannot be against it.
Let us talk about housing. Right now, there is a flaw in the market: It is not housing the poorest. That is a serious problem. Canada is still part of the G7. The market is not housing the poorest. The market is not building co‑operative housing. The market did not build the Centre d'hébergement multiservice de Mirabel, which helps people who hit a rough patch, such as a separation or substance abuse problems. The market is not putting people back to work, and that is what is needed. While we should be talking about this, while it should be our primary concern, while there are 10,000 homeless people in Quebec, while there are people sleeping in tents, the and the are in a kind of intellectual symbiosis all of a sudden. They have become buddies. They are both attacking municipalities.
Instead of helping to release the $900 million for Quebec, they go on about the national housing strategy because Ottawa wants to put a Canadian flag on the corner of the cheque. Suddenly, there are too many regulations. They are against protecting farmland, even though food is supposedly important to them. They are against protecting our architectural heritage. They are against harmoniously organizing our municipalities. They are against housing.
In the meantime, this is what is going on in my riding. When land was expropriated to build the Mirabel airport in the 1970s, the stolen land eventually had to be returned. At the time, airport easements were implemented. Today, there is one runway. At the time, there were plans for six. Today, for much of the land in Mirabel, which is zoned residential, federal regulations prevent the municipality of Mirabel from building housing, from housing people.
It is funny. The federal government does not care about those regulations. They are within its jurisdiction. Rather than doing what it needs to do, it is going after mayors. It is going after municipal consultants and cities. When Mirabel made the request in 2007, it never heard back. It never heard back in 2014, either. In 2022, at committee with the minister and again with the deputy minister, not a word came from Ottawa. I wrote to the about this over the weekend. I urge him to review those easements.
The problem is, Quebec is being blackmailed by Ottawa, which is imposing conditions on releasing the funds. Meanwhile, real people, real families are on the street, living in tents or giving birth in their cars.
I want to say one last thing. We need to think about the demand. It takes four seconds to increase an immigration target, but it takes time to build housing. Even if the federal government's plan to eliminate the GST worked, it applies to housing starts in 2030, which will not be complete until 2035. The National Bank and the TD Bank have the same message: The immigration plan is poorly thought out. As usual and as with the GST rebate, no studies were done. That is what we were told at the briefing. We were told that the market is buckling under the demand.
That is because the Liberals are always busy coming up with stunts to win votes. They continue to invite the grocery stores, increase immigration targets, come up with poor plans for housing, impose conditions and turn a blind eye to their own federal regulations that hinder the creation of housing. With the attitude of this government and the Conservatives, I predict that this crisis will be even worse in 10 years.
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Madam Speaker, I rise today to speak to Bill .
As the member for Shefford, I have had a lot of people talk to me about the issue of social housing and homelessness. The town of Granby has been hit hard by this crisis and, as the critic for seniors, during my tour of the four corners of Quebec, I was also made aware of the housing challenges that seniors face.
We cannot remain indifferent and believe that a wave of a magic wand will fix all this. We have a duty to be conscientious. The issue of housing is constantly in the news right now, so we cannot be against the idea of studying this bill in committee.
In my speech today, I will summarize the bill. I will then talk about the importance of respecting what each level of government can do. Finally, I will present the Bloc Québécois's proposals.
First, let me first remind the House that Bill essentially contains four measures. The first is a GST rebate for the construction of new rental apartment buildings. As everyone knows, this will not really bring prices down, no matter what the says. During recent briefings, we asked for the studies on which the Deputy Prime Minister based her claim that prices would go down. No one was able to confirm that assertion. She did not have an answer and wanted to check the information and get back to us later. I think it is unlikely that she will ever get back to us.
Clearly, this does not replace the Marshall plan for low-cost housing that the member for , our critic for social programs, is calling for. My colleague was kind enough to accept my invitation to come and speak with the community organizations involved in these issues in my region, in collaboration with the Groupe Actions Solutions Pauvreté and its two subcommittees on social housing and homelessness. Their expertise is so valuable and deserves to be recognized more.
However, to return to the GST rebate on new rental apartment buildings, some developers may be swayed by profit-related concerns to build rental apartment buildings rather than condos, and this could ease the pressures driving the cost of market-based housing higher.
According to the Société d'habitation du Québec, although roughly 40% of Quebec households are renters, only 14% of new construction between now and 2030 is expected to be rental housing. This means that the current shortage will worsen in the years to come. If Bill can raise that percentage, at least it will help reduce the shortage.
Part 1 of the bill, which amends the Excise Tax Act, proposes giving builders of rental properties a GST rebate equal to 5% of the selling price. The rebate would apply at the time of sale, or deemed sale if the builder becomes the owner. However, the rebate will only apply where the purchaser has already been fully exempted, such as a government agency or municipality, or partially exempted, such as a non‑profit organization or housing co‑operative. Thus, Bill C‑56 will have no impact on the cost of social or community housing projects. It only covers private housing. Even so, this is the kind of change that will need to be considered in committee and studied.
Another aspect of the bill is that it proposes three amendments to the Competition Act. One proposal is to give the Competition Bureau of Canada real power to conduct an inquiry when it studies a sector. We regularly proposed this type of measure prior to 2011 in bills on gas prices. The proposal makes it harder for companies to merge. We were already asking for this. Another proposal is to broaden the concept of anti-competitive practices. It is worth looking at.
Right now, when a company wants to buy out a competitor, the Competition Act provides that the bureau will allow it only if the company can show that the buyout will lead to gains in efficiency, even if the merger lessens competition. This provision promoting concentration is unique in the industrialized world and is repealed in Bill C‑56.
The Bloc Québécois, including the member for , called for this measure. The Bloc will stick to its way of doing politics: It will be a party that makes suggestions. It will continue to make suggestions throughout this session, while also avoiding spreading disinformation.
For a long time, the Bloc Québécois has been saying that the provinces and municipalities are best placed to know the housing needs in their jurisdictions. The federal government should not interfere. Let us not forget that housing is the exclusive jurisdiction of Quebec and the provinces. Need I remind our colleagues that sections 92(13) and 92(16) of the Constitution state that property and civil rights and matters of a local nature are provincial legislative jurisdictions? This means the federal government has no standing to interfere.
The numbers speak for themselves. Bill C‑56 is just one drop in an ocean of needs. With the rise in demand, Quebec will need 1.1 million extra housing units within the next six years. Homelessness is rising in every region of Quebec. The homeless population has jumped by 44% over the last five years to reach an estimated 10,000.
The housing shortage and the resulting high cost of available apartments are playing a direct part in this crisis. The Bloc Québécois already has a wide array of suggestions and comments concerning possible solutions to the housing crisis currently raging across Quebec and Canada.
We initially took a favourable view of the Canada-Quebec housing agreement signed in 2020. The agreement is worth $3.7 billion, half of it provided by the federal government. However, we were dismayed that the negotiations leading up to the agreement took three years. Funds intended for Quebec were frozen until the two levels of government could find common ground. The Bloc Québécois is concerned about the federal government's constant need to dictate how Quebec should spend its money.
Once again, Quebec wants its share transferred to it without conditions. Had this been done back in 2017, Quebec could have started building and renovating numerous housing projects, including social housing, three years sooner, which would certainly have alleviated today's rampant housing crisis. Unconditional transfers would significantly streamline funding processes, whereas the various agreements add to the red tape involved—