44th Parl. 1st Sess.
May 9, 2022 11:00AM
Madam Speaker, I am not really sure I understood the question. In any case, one thing is certain: When I speak with representatives from community and housing organizations, especially those in my riding, the issue of red tape comes up often.
It is important to understand that the housing sector, much like all community sectors in Quebec, has limited means and is short on employees. Moreover, the labour shortage affects them dramatically. There is a reason why Halte du Coin was asking for volunteers. It is because they do not have enough employees and they cannot pay $150 an hour. The salaries they offer are lower than public service salaries, so they have trouble retaining people with specific expertise. They all mention the red tape and paperwork, especially for grant applications.
I think there must be a way to harmonize all levels of government so that the criteria are more straightforward and the focus is on helping people, as it should be.
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Madam Speaker, there are indeed programs in Quebec. One of them was created after the federal government pulled out in 1993. It is called AccèsLogis Québec, and it is a very good program. Unfortunately, there is some uncertainty right now as to whether it will survive. Like everything else, it lacks funding.
At the federal level, we should focus on programs that really work, such as the rapid housing initiative, the RHI. There are some interesting programs that work but that do not have a big impact on affordability. The RHI is a very good program. The problem is that there is not enough money in it.
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Madam Speaker, I listened carefully to my colleague's speech.
At the beginning of his speech, he spoke a lot about the need for new housing. However, the housing announced in the budget will not be available for another two or three years, because housing cannot be built instantaneously. Still, there may be a way to help people find housing.
For example, in some regions, Airbnb has taken over 20, 25 or 30 housing units so that it can profit off of renting them out by the day or the week.
Would this not be a way to control these companies, to ensure that these units remain permanent rental units for residents?
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Madam Speaker, I would like to thank the member for that important question. Certainly in my riding, short-term rentals such as Airbnb are a huge part of the housing problem, because everybody wants to come to my riding for a holiday. I would comment that most of the laws regarding Airbnb are municipal and provincial, but I would certainly be happy to enter into that debate here if it were put forward.
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Madam Speaker, I am pleased to rise today to speak to Bill C-19, the budget implementation act. This bill proposes to officially implement many of the important measures contained in budget 2022, tabled just a few weeks ago, measures that would impact people from all walks of life in my riding of Mississauga—Erin Mills.
Budget 2022 contains targeted and responsible investments to create jobs and prosperity today and build a stronger economic future for all Canadians tomorrow. Its proposed measures set out to make investments in Canadians and to make life more affordable for them, in economic growth and innovation and in promoting a clean economy. In particular, budget 2022 takes significant steps to help build more homes and make housing more affordable across the country, and it is housing that I would like to talk about today.
As we know, everyone should have a safe and affordable home, but this goal, which was taken for granted by previous generations, is no longer within the reach of a growing number of Canadians, including young people in my riding of Mississauga—Erin Mills. Increasing the supply of housing would make housing more affordable, but it is not the only solution; there have to be more measures taken.
For example, in budget 2022 there is an issue that is addressed, and that is the concern that foreign investment and speculation will increase the cost of housing in Canada. The government has an important role to play in addressing these issues. The 2022 budget proposes new measures that would prohibit foreign investment in residential real estate and ensure that speculators and homeowners who quickly sell their properties pay their fair share of taxes. I know that Vancouver and Toronto have received most of the attention in this regard, but those impacts can also be felt in other parts of the country, including in Mississauga—Erin Mills.
Bill C-19 would enact the prohibition on the purchase of residential property by non-Canadians act. It is a new statute that implements a ban on foreign investment in Canadian housing. The ban on foreign investment in Canadian housing is aimed at curtailing foreign demand in light of concerns that foreign buyers may be contributing to pricing some Canadians out of the housing market. The proposed legislation would prohibit people who are neither Canadian citizens nor permanent residents from acquiring residential property in Canada, whether directly or indirectly, for a period of two years.
The government's intention in this regard is that refugees and persons who have been authorized to come to Canada on emergency travel to flee international crises would be exempt. Foreign students who are in the process of obtaining permanent residence would also be exempt in certain circumstances, as would work permit holders who are residents of Canada.
As well, speculative trading in the Canadian housing market contributes to higher prices for Canadians. These transactions can include the resale of homes before they are built or before they are lived in, such as the assignment of a contract of sale. This creates an opportunity for speculators to be dishonest about their original intentions and creates uncertainty for everyone involved in an assignment sale as to whether GST or HST apply. The current rules also result in the uneven application of GST or HST to the full and final prices of these new homes that have not been lived in before.
Therefore, as proposed in budget 2022, Bill C-19 would amend the Excise Tax Act to make assignment sales in respect of newly constructed or substantially renovated residential housing taxable for GST or HST purposes. The amendment also excludes from taxable consideration the amount of deposit paid under an original agreement of purchase and sale that the original purchaser is recovering through that assignment of sale.
This amendment would eliminate the ambiguity that can arise under the existing rules regarding the GST or HST treatment of assignment sales by making all assignment sales by individuals taxable. It would also ensure that the GST or HST applies to the full amount paid for a new home, including any amount paid as a result of an assignment sale, resulting in greater consistency in the tax treatment of new homes.
The government also wants to make housing more affordable for the homes people already live in. For example, seniors and persons with disabilities deserve the opportunity to live and age at home, but renovations and upgrades that make their homes safe and accessible can be costly. In my riding of Mississauga—Erin Mills, we see a lot of multi-generational homes, where grandparents live with their children and grandkids in a single dwelling. The opportunity for them to live comfortably is significantly reduced because of the inability of homeowners to provide for important renovations to have that accessibility available to parents as they age.
The home accessibility tax credit already provides supports to offset some of the costs that I am talking about. However, with the rising cost of home renovations, many seniors and people with disabilities feel that they cannot afford the modifications that would allow them to continue to live safely in their homes.
As proposed in budget 2022, to better support independent living and to better support these multi-generational homes, Bill C-19 would amend the Income Tax Act to increase the annual expense limit for the home accessibility tax credit from $10,000 to $20,000. This enhancement would apply to the 2022 and subsequent taxation years. It would provide up to an additional $1,500 in tax support for renovations and alterations that are already eligible under the home accessibility tax credit, for such expenses as the purchase or installation of wheelchair ramps, walk-in bathtubs, wheel-in showers, building a bedroom or bathroom to permit first-floor occupancy, and installing non-slip flooring to help avoid falls.
Our government was elected in 2015 with a promise to deliver a national housing strategy, because even seven years ago it was already hard for Canadians to own a home. We have delivered that strategy and continue to build upon it. We are taking further action to make housing more affordable and to give Canadians that same chance to own a home, as our parents did.
We all know that no one level of government can solve this problem. Our Liberal government is leading the way, and we need every level of government to recognize this issue and work with us to take action. When we talk about building homes, we have to work with the provincial, regional and municipal governments to ensure that developers are operating in a fair and equitable way that is promoting affordable housing and promoting the swift and quality construction of homes that people in my riding of Mississauga—Erin Mills, for example, can take advantage of.
The measures I just mentioned today in Bill C-19 and from budget 2022 would help make the housing market fairer for Canadians and support more affordable home living for seniors and people with disabilities. If we are serious about taking action on the housing market, I hope that all members in this House can support Bill C-19.
In conclusion, each and every member in this House has a story of a constituent in their community who has struggled with housing and who cannot see a future with a comfortable living space that they can rely on. Housing is a basic right that we should be able to afford to Canadians, and I am proud of the measures being taken in Bill C-19 to ensure that we are continuing to build upon all of the important work we have done with respect to affordable housing over the past seven years.
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Madam Speaker, it is a huge privilege and honour to rise today on the budget implementation act, Bill C-19. I am also very grateful to serve the federal NDP as the critic for mental health and harm reduction.
There are many things in this budget that are a movement toward progress. There are many areas of this budget where there are huge shortfalls. I really want to follow up on what my colleague for Mississauga—Erin Mills spoke about recently, which is housing, because housing has such an impact not just on the economy for small businesses, workers and volunteers in our communities but also on people's mental health, especially when we are seeing the skyrocketing rates of real estate and rents that are out of touch for Canadians. The people who are the most impacted are workers, seniors and those who are the most marginalized. People who were not homeless before are becoming homeless because they are being pushed out onto the streets.
In my home riding and the community I live in, Port Alberni, we saw real estate go up in the last year by 46%. In Oceanside, it went up 34%. The average price of a home is over $1 million, yet we have seen wages remain fairly stagnant. I am probably the only member of Parliament in the House who, after being elected, moved away from his home community to better serve his riding and cannot actually move home. This is because the price of real estate in my home community of Tofino has gone up 400% since I was elected. This not only has an impact on me, but we can imagine the workers in Tofino and how impossible it is for them, or for the small businesses that require workers.
I know this is a huge challenge. We heard solutions come from the Liberals and questions from the Conservatives about housing, but they are fairly consistent in that they have centred their efforts around the free market. The free market will not solve these problems.
I grew up in the seventies and eighties in Victoria, British Columbia. I am really proud of where I grew up and the community I lived in. It took leadership and worked with the federal government to develop some co-ops. As we know, Canada went on a robust co-op housing program that was actually developed through a minority government of the Liberals and the federal NDP working together in the early seventies under our leader David Lewis. It was that agreement that got the national housing program going. They started to develop about 25,000 units on average throughout the 1970s and 1980s.
I was really fortunate to grow up in a co-op housing development. My dad was a transmission mechanic. He still is, actually, and is in his early seventies. He has been working on transmissions for over 50 years. I am so proud of my dad. My mom worked at HRDC as a clerk. They were middle class, if we want to call it that. I am proud of my mom, and it was Mother's Day yesterday. To my mom I say that I know I was not home, but happy Mother's Day. I love my mom and thank her so much. To all the moms in our community, I give thanks.
My parents worked really hard. The co-op was unique in that it provided safe, secure and affordable housing for my mom and dad and my brother Rob and I, but it also provided safe and secure housing for seniors, single parents, people of lower incomes and people on income assistance. I can go back to that co-op in Victoria to this day and some of the friends I grew up with are grandparents and live in that co-op. Their kids and their grandkids live in that co-op.
The problem is that there are not enough co-ops anymore. When the government pulled out of building co-ops and pulled out of the national housing strategy in the early 1990s, we lost 25,000 units a year. We are talking about over 750,000 units to this day in the shortfall of co-op housing.
I was visiting my friends John and Beth last night, who live in co-op housing here in Ottawa. They received safe and secure housing. They were on a wait-list for four years, terrified, which impacted their mental health. They were working two or three jobs and trying to figure out how they were going to make ends meet. They wanted to make sure their daughter Kira could live in a co-op, but they are not even taking names now in the co-op where they live because the wait-list is so long.
In fact, my daughter, who just graduated from the University of Ottawa, dropped me off today and she said, “Dad, I can't talk about ever owning a home, because I don't want to be disappointed.” It is just terrible that this is what we are leaving our children and the people in our communities.
We can look to Europe. First, I will go back to where we are at. We were at 10% of our housing being non-market housing in the 1970s and 1980s. Now we are at about 3%. We can look to Europe, which is at 30%, and Vienna, which is at 60%, because they understand how important it is to have safe, secure and affordable housing. The free market is not going to give us that. It has not. We are developing very rapidly on Vancouver Island.
I sat in local government in Tofino. I remember how frustrated we were when the federal government downloaded to provinces, which then further downloaded to local governments. I was part of the initial Tofino housing corporation. I am proud that today we are finally building a development that we talked about 20 years ago. Here we were, this small local government: this small municipality was trying to figure out how we were going to develop non-market housing to meet the needs of our community.
What a task for small communities to take on. They do not have the expertise or aptitude, and often do not have the leadership. They do not know how to do it. I can assure the House that if the federal government puts money on the table, local governments will access it. They will find the land.
Our province of British Columbia is building half of the non-market housing in the country right now. It needs a federal partner to go to the lengths it is going to. The province just had applications for over 12,500 shovel-ready units by local governments: local non-profit housing. They had funding for 2,500. It would have been great to see the federal government pick up the other 2,500. We are halfway there on shovel-ready developments that could help make sure people have affordable housing.
I get frustrated. I look to my community. We have a non-profit housing group in Ucluelet. Randy Oliwa called me the other day and said, “Gord, we can't even get an answer on a $5,000 planning grant to get things off the ground.” The Beaufort Hotel was being purchased. It is a hotel that already has low-barrier housing and private sector housing. The group made an application through the rapid housing initiative. The applicants were told that it looked very positive, but they got denied because they were oversubscribed. They had $5 billion in applications and they only had $1 billion on the table.
They were told to reapply, so they reapplied and got denied again. They decided to apply through the women and children shelter and transitional housing fund, and then got denied again. They brought in Lookout, a great partner from Vancouver, to develop non-market housing and ensure that the people living in this building were not going to get punted and thrown out on the streets. Again, they got denied. Now they are using the co-investment fund. The steps and hurdles these groups have to go through to make sure people have affordable housing are just ridiculous.
I want to speak a little about how important housing is, not just for small businesses, workers and people in our communities, but also to ensure that people are not suffering: those who are on the streets and who may be living with a substance use disorder. I was at a low-barrier housing unit in Duncan, B.C., where they built these sleeper cottages. I met a man who had his first home. It was basic needs. It was not low barrier; it was no barrier. For the first time in his adult life, he told me, he was not homeless or living in prison. He was on opioid therapy as a result, which he could never access living as a homeless person. He was treated like a criminal: He was moved from park to park, living in fear and not sleeping.
Another woman I met at the same low-barrier housing was moving to low-barrier from no-barrier housing. As a result of having that, she had been sober for eight months. For the first time in her adult life, she has a chance. Without housing, how can people have mental health? When people are homeless, they do not sleep.
The Prime Minister's goal to house 50% of the homeless people in the next 10 years is not good enough. It is not good enough. We need to move rapidly. We need to build non-market housing, and the government needs to step up its game. We need all parties to work collectively on this, because the free market simply will not solve the problems of our needs right now. Housing is a basic human need. It is a human rights issue. It is an economic issue. It is a social issue.
I have not even tapped into indigenous housing, because I am being told I am running out of time. I could speak another 10 minutes on that alone. I hope we can work together in the House to scale things up rapidly.
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Madam Speaker, I want to thank the member across the way for his passion around housing, as well as mental health and harm reduction.
I was waiting for the member to talk about the budget allocations for co-op housing. He talked about the need for co-op housing, and I 100% agree with him on that. I am quoting the executive director of the Co-operative Housing Federation of Canada, Tim Ross, who said, “Starting with 6,000 new homes over the next five years, we are optimistic that the new co-operative housing development program will kick-start the development of the next generation of co-op housing at scale in Canada.”
There is $1.5 billion there. He ended with indigenous and northern housing. I am looking at the $300 million going towards indigenous and northern housing. Could the member comment on how we are finally getting a start where we need to see it?
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Madam Speaker, I would say we are getting a start and we are talking about thousands now when it comes to co-op housing, but it falls far short of the 25,000 units we were building per year in the 1970s and 1980s. That is still 19,000 short of what we were doing then. How are we going to make up the gap?
Right now, the federal government's plan in terms of filling the workforce labour market shortage is to bring in new immigrants, but it does not tie housing to immigration. There are huge problems when it comes to the lack of cohesive planning, when it comes to housing and ensuring that we have a strong workforce.
In terms of indigenous housing, there is some money in the budget, which New Democrats helped negotiate, to get this agreement going. We talked about the agreement as the floor. We have much work to do. I have lots more to say on this, and I will.
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Madam Speaker, I appreciated the member's personal journey and story with co-op housing. I thought he did an excellent job, but I would like to ask him about the issues facing those who need government housing, particularly with inflation.
There are a lot of seniors in my riding who could use the housing described by the member. They live on very fixed incomes, so when inflation goes up 6% or 7%, that may not sound like a lot to folks in this room, but when people have only $100 a month for groceries, it is a lot and it really impacts their ability to eat well and feed themselves. We are seeing this impact families as well.
I would like the member to comment on the impact inflation is having on his constituents and whether he is at all concerned that the Liberal government is not addressing this.
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Madam Speaker, in March 2020, the Office of the Superintendent of Financial Institutions reduced the domestic stability barrier to 1%, thus freeing up an additional $300 billion in capital. The government at the time said that it expected the banks to lend it out, and the banks did loan it out. Mortgage credit has exploded over the last two years of the pandemic, from $1.7 trillion to $2 trillion today.
Should the government have put in place measures to ensure that this additional $300 billion in credit did not all go into the residential mortgage market, thus fuelling the explosion in house prices and the skyrocketing housing prices we have seen over the last 24 months?
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Madam Speaker, I appreciate the chance to share some reflections with respect to the budget and the implementation act, Bill C-19.
I want to start by talking about housing. In my view, the extent to which all levels of government work together to address the skyrocketing cost of housing will define my community over the coming years. I am sure this is true for the communities of many other members in this place as well.
Last year, as I have shared before, there was a 35% increase in the cost of housing in Kitchener. What does that mean? It means we have seen, by the last point-in-time count, a tripling in the number of folks who are living unsheltered. We are seeing encampments continue to grow, where folks are resorting to living in tents. We are seeing students who are unable to move out of their parents' homes and unable to afford rent, as well as seniors on fixed incomes whose anxiety continues to rise as they see their rent rising too. I often think of the health care workers I met this past summer, who shared with me that they were planning on leaving and heading further west because they, too, could not afford the soaring cost of rent.
As I have done here before, I want to start by sharing what I appreciate about what is in the budget, and that is some early signs that the federal government may be finally beginning to take some meaningful action when it comes to addressing the cost of housing.
A specific example is that there is significant investment in this budget with respect to co-op housing. Back in the eighties, in 1982, there were 6,500 units built that year alone of deeply affordable, dignified co-op housing. I have personally had the experience of living in co-op housing. I can attest to how important co-ops are and ensuring that units remain affordable in perpetuity. In this budget, there is a commitment to build 6,000 units. Now, that is not in one year but over several years, but it is significantly more than the 477 that were built in 2020. It is a $1.5-billion investment. Those are the kinds of investments I would like to see more of.
There is also a commitment to reinvest more funding in the rapid housing initiative, a program that has been oversubscribed. What does that mean? It means that great organizations like Indwell, which is looking to repurpose faith communities to build affordable housing, have not been able to get funds in the past. My hope is that, with a renewed commitment to the rapid housing initiative funding, which has $1.5 billion allocated to it, more organizations like Indwell will be successful in securing funds to build more affordable units.
There is also a commitment to end the blind bidding process, which we know would only allow for more information to be shared that could also address the crisis we are in.
I want to mention two items that were in the budget but are not in Bill C-19. One is removing the preferential tax treatment currently given to house flippers. I hope the government will ensure that this is in future legislation. It was committed to in the budget, as well as the housing bill of rights. It would ensure the requirement of a home inspection, which is one of the things that would help address the overheated market.
Of course, we do need more investments from both the federal and the provincial governments in non-market housing and other ways to reduce the commodification of housing.
There are several items I remain deeply concerned about. I will start with climate, because no doubt we need to be honest. If we want even a 50% chance of keeping global average temperature increases below 1.5°C, which is what is required for a livable planet, and we do our fair share of the global carbon budget, it means 86% of our known fossil fuel reserves in this country need to remain unextracted. To do so means that we will need to invest in workers, in their upskilling and retraining, to ensure they have access to the economy of the future.
There are organizations like Iron & Earth, a worker-led not-for-profit that has been calling for $10 billion to go to workers for a prosperous transition, to ensure they have access to the support they need. Instead, what is in the budget is $7.2 billion directed toward carbon capture and storage, a new fossil fuel subsidy, at a time when we are being told these would be phased out. That is exactly what we need to be doing. We need to be phasing out these subsidies and prioritizing those funds to workers and to proven climate solutions.
When it comes to health care, this pandemic has exacerbated existing gaps, so I want to pause to reflect on a few other significant gaps that I would encourage the governing party to move forward on.
The first is with respect to mental health. Many parliamentarians will say the words “mental health is health”, and I am glad that more folks are saying those words, but we need to treat it that way. Mental health advocates across the country have been calling for a new Canada mental health transfer to provinces. While the budget mentions an intention to engage in this, the only commitment is to a wellness portal. While I am sure this is a worthy investment, we need to be mindful of the significant dollars that are required from the federal government to move toward parity in mental health funding so that it is true that mental health is health and we can eliminate the wait times we see across the country, and certainly in Waterloo-Wellington. I am hearing that this remains the case in our community as well.
When it comes to long-term care, I had the chance to ask the Prime Minister directly last week about the safe long-term care act, which has been talked about in the supply and confidence agreement between the Liberals and the NDP, and when there will be plans to introduce that act. There is no mention of that in Bill C-19 or in the budget. In fact, the only mention of long-term care in the budget was the money that was allocated in 2021.
Just a few days ago, I was speaking with a woman who was reflecting about her mom, who is waiting for a bed in long-term care. With tears in her eyes, she shared that she did not know whether her mom would make it out of hospital and into long-term care. I think of the personal support workers I have spoken with, who have shared that they do not get to give four hours of care. They are lucky if they do four minutes of care a day. We know there is more that the federal government can and should be doing to put standards in place when it comes to investing in long-term care. I would encourage the governing party to prioritize doing so.
Last, I will pause to reflect on following through with promises made to Canadians with disabilities. It is actually one of the areas that I have been encouraged by in my time in this place. We now have 100 MPs from all parties, including four colleagues in the Waterloo region, who have all said that it is time to follow through.
We know that Canadians with disabilities are disproportionately living in poverty across the country. About 40% of those living in poverty are Canadians with disabilities, and it is 1.5 million people across the country. The governing party has promised to introduce substantial legislation for the Canada disability benefit, a guaranteed income for every Canadian with a disability across the country. In this place, I have had the chance to share stories of folks in my community about what it means to them not to have access to this and what it means to be living in poverty as a result of not getting appropriate supports.
I continue to encourage the governing party to introduce substantial legislation for the Canada disability benefit. I will pass my thanks again to the 103 MPs from all political parties who have come together to say we can do better and we must.
Some might say, “Well, wait a second. This all sounds well and good, but can we afford these things?” I want to close by sharing some of the ways we can afford these significant and important investments, and we do not need to do it simply by increasing debt.
We can and should stop gifting oil and gas companies, which are making record-breaking profits, billions of dollars and should reinvest it. We have had a lot of promises about taxing the rich, but the budget reduced the campaign promise for a 3% surtax on some of the largest companies, whose profits soared in the pandemic, down to 1.5%. It avoids any talk of an inheritance or a wealth tax. Even the vacancy tax, as I have shared in this place before, in Bill C-8 was down to 1%, and it exempts every Canadian and every corporation in the country. In Vancouver it is up to 5%, and in doing so, they have been able to reinvest millions of dollars in affordable housing. Of course, there is no talk of closing corporate tax loopholes, which we know is a measure we need to do.
With that, I will close and welcome questions.
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Madam Speaker, I want to thank my colleague for his speech and for his advocacy. We share a region and a city. I know he mentioned an organization called Indwell, which is an affordable housing provider. We have met with them, and we are all advocating together.
I wonder if the member could explain the importance of programs, and the benefits of federal programs such as the rapid housing initiative, with the understanding that the federal government can and will do more. Also, could the member explain the importance of wraparound services? We cannot have housing without supports and we cannot have supports without housing. Then, basically related to that, could the member explain how provinces, and in our case the Province of Ontario, need to step up with more health supports for affordable housing?
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Madam Speaker, let me share what a joy it is to be working alongside the member for Kitchener—Conestoga. He brings a tone to this place that I think we need more of: It is a more collegial tone: one of actually working together to get things done.
When it comes to the rapid housing initiative, I could not agree more. Indwell is a great example of an organization that we hope, through new investments in the rapid housing initiative, has that much better of a chance of building exactly the kinds of investments that we know we need. When it comes to wraparound investments, this is a great chance to talk about shelter care.
In our community, the organization House of Friendship has learned exactly what it takes to not only provide housing but to ensure that those who are living in shelter have access to the mental health and addiction support services they need on site. With him, I am so proud to continue to let others across the country know about the success that House of Friendship has had in our community. It could be replicated in other organizations across the country.
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