44th Parl. 1st Sess.
May 2, 2023 10:00AM
- May/2/23 4:24:59 p.m.
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Madam Speaker, we are doing a lot, but I will mention two key things.
One is rapid housing, which is getting a lot of housing for our most vulnerable, for new Canadians, and they are built very quickly. If we talk to mayors right across this country, they will tell members that this is a very successful program, which is why we are about to introduce the third stage. The second thing is the $4-billion housing accelerator fund, which is going to help incentivize cities to eliminate a lot of their red tape and a lot of their long timelines to get housing built in the cities.
Those are two key things that we have put into place. There are many other initiatives, but I have run out of time.
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- May/2/23 4:25:45 p.m.
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Madam Speaker, I am so pleased that the member raised the issue of REITs, the real estate investment trusts, which allow corporations to intervene and turn homes into investment properties where the prices get spiked and taxpayers lose. I was pleased to hear her say that the Liberals were interested in looking at this. Motion No. 71, introduced by the Green member for Kitchener Centre, deals with it in detail, and I hope the member will support it.
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- May/2/23 4:26:16 p.m.
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Madam Speaker, I thank the hon. member for raising this.
When we heard about this in the finance committee, we were all very concerned about it. My understanding is that we are looking at it right now. We are studying it, and many of us are advocating for immediate and urgent changes.
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- May/2/23 4:26:37 p.m.
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Madam Speaker, I will be splitting my time with the member for Kenora.
Homebuyers across Canada are confronted by two massive obstacles that they must work through as they try to buy and finance a home. First, families are struggling with the devastating impact of the Liberal government's economic mismanagement and its housing plans. To great fanfare, the government announced Canada's national housing strategy in 2017 to make housing, it said, more affordable and accessible. It has been an obvious and utter failure.
Canada's home prices have doubled since 2015. Today, the average home price in this country is an eye-popping $800,000. Ask any recent buyer or aspiring buyer if they are better off today than they were eight years ago, and the answer is a resounding, emphatic no.
The second obstacle is the cost of financing a home, which has skyrocketed. Thanks to the Liberal government's massive deficit spending, Canada's debt has doubled to $1.2 trillion. On top of that, the interest rates to service that debt have skyrocketed and will soon hit $50 billion every single year.
The indirect costs of that debt are significant. Reckless spending has fuelled inflation to levels Canadians have not seen in 40 years, and this has driven up interest costs. The result is higher mortgage payments. Today the average mortgage payment in this country has doubled to $3,000 a month. These two factors have made home ownership more expensive and pushed it out of reach for countless Canadians, particularly young Canadians.
The lack of housing and higher costs have also been ruinous to home and apartment rentals. The average rent for a two-bedroom apartment in Canada's 10 biggest cities is now $2,213, compared to $1,170 before Canada's Liberals broke the housing market. Vancouver and Toronto are now the third and tenth most unaffordable cities in the world, outstripping places like New York and London.
Big city governments that delay permits and have excess red tape and taxes can add as much as $200,000 to the cost of each new home built in this country. No wonder people cannot afford to buy a home, with prices like this being driven up by the gatekeepers.
Owning a home and raising a family are the foundation of the Canadian dream, yet for many this dream appears to be slipping further and further away. It is out of reach because the Liberals are out of touch. Home ownership has become an impossibility for too many Canadians since the Liberals first took office. In Canada, it is considered affordable to buy a home if the cost is less than 30% of a household's before-tax income. It now takes 60% of Canadians' income to cover the cost of owning a home. Those who have scrimped and saved for years to afford their first home now find themselves questioning if they can ever achieve the Canadian dream.
This crisis did not happen overnight. It has steadily worsened every year the Liberals have been in office. The Bank of Canada's governor, as well as the finance minister, led people to believe that interest rates would remain low. Today, thousands of Canadians are grappling with the stark reality that those entrusted with governing and overseeing the nation's finances failed.
The Canadian dream was once a straightforward proposition: work hard; play by the rules; finish school; get a decent job; get married; save each month for a down payment; have a family; and one day retire, owning one's home. However, for many of my constituents in New Brunswick, those who have done everything right, this dream is unattainable today. That is, no matter how hard families work or how much they save, the dream of home ownership is a mirage.
The Liberals have failed to deliver affordable housing, and that was made abundantly clear in the Auditor General's report last November, which revealed that, despite spending tens of billions of dollars, and the Liberals are great at rattling off program after program and the mounds of money they have spent, when it comes to homelessness, the numbers keep rising.
The Auditor General says that the departments responsible, Infrastructure Canada and Employment and Social Development Canada, failed to even adequately track results, instead relying on outdated national shelter data to assess the effectiveness of their programs. In fact, the government's numbers, even using numbers the Auditor General said were less than reliable, indicate homelessness has increased nationally by 6.6% since 2018. We are talking about hundreds of thousands of people who no longer have homes.
The Auditor General also underscored that the Canada Mortgage and Housing Corporation, or CMHC, which oversees the majority of the housing strategies under the government, has no idea who benefits from its initiatives. Low-income families are being priced out of the market by funding rental housing that is supposedly affordable, but proves to be unaffordable for working families. It is an absolute mess.
Housing is one pillar of the Canadian dream, and the other is raising a family, yet the high cost of living, driven by inflated housing prices, has further discouraged Canadians from that other joy of life, which is starting a family. The average household debt in Canada reached 183% of disposable income in 2022, limiting the financial freedom and security of many Canadians.
The risk of homelessness is also going up because demand for homes has surpassed supply. New Brunswick's many affordable units were purchased in the last couple of years in my riding. This has forced people out, as buyers either moved in or increased rents. Families have been forced to move elsewhere to work and live. This has had a twin impact on the labour market, as small communities now cannot keep young families, which tend to be part of the economic foundation of these economies because they provide work for businesses and start small businesses, and it is not always by choice. This is happening because they are being priced right out of their neighbourhoods.
For those who cannot move or find an affordable place to live, the result is sadly and frequently homelessness, and this has a devastating impact on one's mental health, as well as personal safety. For the most vulnerable, those who are on the edge of poverty or trying to break the cycle, there are nowhere near enough shelter spaces, supported housing for persons with addictions or disabilities, rental units, or even starter homes. It is imperative that we address the housing crisis at its core by scaling up and building more. No government program is going to solve this problem. We need to build homes for future families. The Liberals cannot, but Conservatives will get it done.
The CMHC has noted that, as of April 27, the housing shortage throughout Canada is going to worsen. The agency has predicted that there will be a 32% decline in home building this year, as the cost of borrowing remains high and building costs have risen by 20% in the past year alone.
How is the carbon tax working now? We said it was a tax on everything, and it is. It is driving up the cost of living in this country, especially on new homes. It is Canadians, despite the government insisting it is doing everything right, who are paying the price. A Conservative government would incentivize home construction across Canada.
Step one would be to fix Canada's affordability crisis is restoring credibility to Ottawa's budgets. We would restore the federal government's finances, which have contributed to inflation and higher interest rates on home buyers. We would impose penalties on big city gatekeepers for excessive obstruction of housing projects. We would require cities seeking federal funds to pre-approve zoning for high-density housing and employment on land surrounding transit stations and hubs.
Last, we will sell off at least 15% of underutilized federal buildings in its property to ensure these buildings become affordable housing for families.
We must make the dream of home ownership a reality for families again. This is the only way we can secure a brighter future for our nation, for our children and for the next generation.
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- May/2/23 4:37:04 p.m.
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Madam Speaker, I certainly appreciated the speech of my hon. colleague. I am just not sure what side of the fence he is on because, on one hand, he wants the federal government to take more action and, on the other hand, he, I believe, as a Conservative, would agree that it is market forces that determine a lot of housing affordability and it is individuals, Canadians and companies and so on, that build housing.
Does my colleague agree with his colleagues, such as the member of Parliament for Mission—Matsqui—Fraser Canyon and the member for Stormont—Dundas—South Glengarry, who have said that the government should do less on housing and pull back from its investments in the national housing strategy?
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- May/2/23 4:38:05 p.m.
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Madam Speaker, I am not sure the member was listening to my speech. Nowhere did I say the government ought to spend more and do more. If anything, the government's spending is one of the reasons that inflation has been on fire in this country and home ownership is more difficult. I am not sure where that criticism came from, or the belief that I think the Liberals are not doing enough. They are actually going in the wrong direction.
When it comes to the markets, the federal government has the most responsibility for setting the conditions for economic growth and home construction. It has failed utterly. The problem is the Liberals do not recognize they are going in the wrong direction. That is why we need a new direction, under Conservatives.
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- May/2/23 4:38:49 p.m.
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Madam Speaker, on April 25, the Conservative member for Battlefords—Lloydminster said the following in the House:
...I am someone in this place who is on the record about respecting provincial jurisdiction. I believe provinces actually know better than the federal government does when it comes to their own jurisdiction and what works. Again, I respect provincial jurisdiction and provinces know what is best for the people who live in them.
The debate was on housing.
Given that the Conservatives have decided to move an “Ottawa-knows-best” motion that imposes conditions on the provinces, does my colleague think that the member for Battlefords—Lloydminster will be uneasy about voting in favour of the Conservative motion?
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- May/2/23 4:39:30 p.m.
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Madam Speaker, I have no idea. We would have to ask the member that question.
I am here to support this motion with the other Conservative members. I am ready to do that.
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- May/2/23 4:39:52 p.m.
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Madam Speaker, I live in Vancouver, which I think is the epicentre for the housing crisis not only in this country but around the world. It is fair to say that it is indeed a crisis.
Housing anchors us in our communities. It is not just a commodity that can be traded, purchased and sold. It is an absolute necessity. It is how people anchor themselves for work; their children go to schools and people connect to community.
This has been a crisis for many years I was just curious to put this to my hon. colleague. To hear him speak, one would think the housing crisis in Vancouver and the Lower Mainland began in 2015. I can tell the member most assuredly it did not. It started back in the early 1990s when the government of Brian Mulroney actually cancelled the federal government's participation in the national housing program and, of course, the Liberals promised to restore it and did not, so we have really had an absent federal partner for many decades.
I wonder if the member acknowledges that. Could he tell us what specifically he would do to make sure that we can build truly affordable housing and not just rely on market supply? What does he think the federal government could do to make sure that people get access to social or affordable housing?
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- May/2/23 4:41:06 p.m.
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Madam Speaker, there are two points from the hon. member that I would like to respond to.
First of all, that is what makes this problem so infuriating. What began as an issue primarily for Vancouver and Toronto has now spread across the country. Even the smallest communities in my riding on the east coast, places with populations of 6,000 and 8,000, are experiencing homelessness, a lack of affordable housing and huge, huge price increases. This has been growing and I recognize that, but what is fundamental to understand is how much worse it has become over the last eight years with home prices doubling across the country. It is a tough file and there is no doubt about it, but it has become so much worse under a government that is doing everything wrong.
Where I disagree with my hon. colleague is that the NDP views the housing stock as static, as fixed, and that we have to try to control and regulate it. Our view on this side is that we need to expand the stock of homes—
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- May/2/23 4:42:15 p.m.
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We have to resume debate.
The hon. government House leader is rising on a point of order.
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- May/2/23 4:42:21 p.m.
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Madam Speaker, I request that the ordinary hour of daily adjournment for the next sitting be 12 o'clock midnight, pursuant to order made Tuesday, November 15, 2022.
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- May/2/23 4:42:38 p.m.
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Pursuant to order made Tuesday, November 15, 2022, the minister's request to extend the said sitting is deemed adopted.
Resuming debate, the hon. member for Kenora.
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- May/2/23 4:43:00 p.m.
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Madam Speaker, I greatly appreciate the opportunity to take part in this important discussion today on our opposition day motion looking to address the housing crisis that we are seeing right across this country.
It truly is a crisis. Unfortunately, the housing minister has not been able to say that it is a crisis, but at least we have heard that terminology reflected in the comments of some of the other members of his caucus. I believe the hon. member for Davenport mentioned that it is a crisis. It is great to see that although the minister may not acknowledge it, some of the Liberal members are able to acknowledge that.
When we look across the country, we have seen that over the last eight years housing prices have doubled. Many young people feel they will never be able to own a home. The cities of Toronto and Vancouver have been mentioned by many of my colleagues. Those two cities are among the most unaffordable places to live in the world. As my colleague from New Brunswick Southwest mentioned, it takes many people up to 60% of their income just to be able to afford a home these days after eight years of this Liberal government.
It is incredibly concerning for a number of reasons. One that hits me is that the Liberal government has spent so much money on housing accelerators, housing strategies and all these wonderful things that the Liberals like to say are getting the job done, but the fact of the matter is that it is not getting the job done. The housing crisis is far worse in this country than it was when the Liberals took office.
Never before has a government spent so much to achieve so little. In fact, we have the fewest houses per capita of any of our allies in the G7, despite having an incredible wealth of land in this country.
As we know, Liberal spending has led inflation to rise to 40-year highs, making the cost of everything more expensive, and also leading to interest rates rising, making housing and constructive even more expensive. In fact, it is estimated that this coming year, there will be a 32% decline in construction. That would be a direct result of the government's policies and would make it even more difficult to build housing in this country. As well, there are 63 countries where it is faster to get a building permit for that construction than in Canada.
We have a lot of work to do to get more homes built, to speed up those permits, to make it possible to get things built in Canada once again. That includes removing taxes and fees that are, on average, adding $200,000 to the cost of every new home in Canada. When we put that all together, it is very clear that it is a housing crisis.
I mentioned Vancouver and Toronto. Obviously, these crises are in the major centres, but we are also seeing this crisis play out in my backyard, in northwestern Ontario, in communities like Kenora, Dryden, Sioux Lookout and Red Lake. Right across northwestern Ontario, there are challenges, not necessarily from the affordability side but from the supply side, in particular. Homes are being sold before they can even get to market, because there are so few available. As of now, the Kenora District Services Board estimates that there are 1,300 households currently on an affordable housing wait-list in the Kenora District. That is an increase of 1,000 in the last nine years.
I want to share a little about my own story. Recently, just in the last year, I purchased my home in my riding. It was a long process. It took over a year for me to be able to find that house. I lost out on many bids, because of the fact that there is such little supply. A house would come on the market, and it was almost impossible to get access to it unless one was right there at the front of the line. That highlights the crisis.
I did ask my sister her permission to share this story. She is moving back to Kenora after spending the last few years in Thunder Bay. She and her boyfriend both have great jobs. He is an engineer and she is taking on a new role doing X-rays at the Kenora district hospital, and they are struggling to find a place to live.
It goes without saying that this housing affordability issue is obviously a concern for the people who are struggling to find a place to live, but it is a concern for our entire economy in northwestern Ontario. We cannot attract new people to our region. We cannot attract people such as my sister to come back to the region to work, live and raise their families if they have nowhere to live.
That is one of the most major impediments to our economic development in northwestern Ontario. We have shortages of health care workers. We have shortages of workers in virtually every sector, including tourism, which is so vital to our economy in the summer months. We cannot fill those gaps in large part due to the fact there is such little housing supply.
I will share another personal angle on this. I had the opportunity to be in Thunder Bay last week for the Northern Ontario Municipal Association conference. It was a great conference, and I was able to speak with mayors from across northwestern Ontario. I also had an opportunity to catch up with some colleagues, some friends of mine from university. They are just finishing their degrees at Thunder Bay and are trying to figure out where to go next. Again, the housing challenges have led many to believe they cannot come back home to Kenora or Dryden because they cannot find a place to live, and they are not sure where they will be able to lay their roots.
Another aspect of this housing crisis that faces our region is around first nations housing. The Kenora riding encompasses 42 first nations, and many of the homes in the communities are unfortunately in disrepair. There is, similar to the rest of the country, an issue of supply. There are still far too many people who do not own their homes or who are not able to own their homes on reserve.
In fact, during my last visit to Kasabonika, I was speaking with the community representatives about their difficulty in just being able to grow. The population is growing. They have a very young population. They have nowhere to build because government regulations and government bureaucracy is making it difficult for them to obtain new land to be able to build housing, new schools and all the critical infrastructure they need.
There is obviously an incredible challenge, but an incredible opportunity as well for the federal government to work with first nations to ensure there is an equity partnership in new infrastructure developments and resource projects so we can create more economic development, good jobs and really raise the economic level to hopefully raise more and more people out of poverty to a point where they can get into a position to be able to afford their home, whether they live on reserve or off of it.
Unfortunately, I am running out of time, but I would like to speak specifically to our motion that we put forward today to deal with this crisis. What our party is proposing is to tie federal infrastructure dollars for municipalities to the number of new homes built to ensure we can speed up building permits and free up more land for development.
We are also proposing to tie federal funding to major transit to ensure there are condos and apartments around those transit facilities. Granted, that is not something we will be seeing in our riding, but it is important for the larger centres. Of course, we are working to free up 15% of underused federal properties for development. That is something that would be huge in places like Ear Falls and Sioux Narrows-Nestor Falls, where there is no shortage of land but there is a shortage of ability to access that land.
That is the plan we are putting forward to help address this housing crisis, and I urge all my colleagues in this chamber to support it.
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- May/2/23 4:53:08 p.m.
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Madam Speaker, Conservatives keep going back to punishing municipalities that do not build affordable housing and taking away their infrastructure. How can they build more housing if they do not have money for the infrastructure from the federal government, as a partner in it? They are defeating the very purpose of what they are trying to do.
I came from the municipal level before I got here, and the municipality has to be involved in any home-building projects in a community, whether it is issuing permits or making sure they are inspected properly for the Canadian building code. We cannot eliminate the so-called gatekeepers that they keep referring to as municipalities. They have to be a part of it. They have to be a part of this equation.
Again, punishing them and taking away infrastructure defeats the purpose of trying to get more housing built in any community.
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- May/2/23 4:54:03 p.m.
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Madam Speaker, as I mentioned in my remarks, I had the opportunity to join the Northwestern Ontario Municipal Association last week and was able to connect with all nine mayors from my riding. I can say that they were incredibly enthusiastic about the approach that we are bringing forward because they know we need to get more development moving forward.
What I see here is an opportunity to work with the municipalities and the provincial government to ensure that we can get housing permits sped up and free up more land for development. I certainly disagree with the framing of the question by the member opposite.
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- May/2/23 4:54:47 p.m.
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Madam Speaker, my esteemed colleague from Kenora must know that on April 24, 2023, his colleague from Beauce said in this House, “It has been clear from the start that this government does not trust the provincial and territorial governments to implement the programs themselves and that the ‘Ottawa knows best’ approach is the only way to manage these projects. If only the government had more faith in the provinces and, especially, more respect for their jurisdictions, it might be surprised to see what can be done without Ottawa getting involved.”
Given that my colleague has just supported a motion that dictates conditions to municipalities and provinces and proposes to interfere directly in provincial jurisdictions, does he think that his colleague from Beauce might also be uncomfortable voting for the Conservative motion?
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- May/2/23 4:55:31 p.m.
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Madam Speaker, we need an all-hands-on-deck approach in addressing the housing crisis. I certainly see a federal role to play in terms of what I laid out, which is in our motion today, but we also have to work with the municipalities and the provinces as well. We probably could have had a 50- or 60-page opposition motion, given the extent of the housing crisis. There is a lot of work that we can do, and I would like to work with my colleague and with the provinces moving forward.
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- May/2/23 4:56:15 p.m.
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Madam Speaker, as someone who also comes from the municipal sector, like my friend across the way, one clause stood out to me, around clawing back infrastructure dollars from municipalities that delay housing construction. It feels like something that perhaps makes for good politics, but poor policy. Of course, not every housing development is created equal and municipal governments are tasked with deliberating on very complex issues, whether they are environmental, infrastructure or social issues.
When it comes to implementing this statement around clawing back money from municipalities that impose delays, how does he foresee the federal government defining delays in a way that is fair to municipalities of different sizes and that accounts for the fact that many housing developments are quite complex? We could create, in this case, a bit of the opposite effect to what we are trying to do. If we are clawing back the infrastructure dollars that are needed to fund the infrastructure that then empowers and creates the housing developments that are so needed, how do we avoid those unintended consequences of—
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- May/2/23 4:57:32 p.m.
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The hon. member for Kenora.
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