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Decentralized Democracy

House Hansard - 212

44th Parl. 1st Sess.
June 13, 2023 10:00AM
  • Jun/13/23 12:06:54 p.m.
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Mr. Speaker, I want to start by thanking the member for Vancouver East for matching, in her ferocity, the depth of the housing crisis that we are in across the country. I also appreciate that the member spoke specifically about the deep issues with respect to the financialization of housing and the work that we have both been doing when it comes to addressing that, through getting rid of the tax exemption for one specific type of corporate landlord: real estate investment trusts. As the member referenced, this is a pretty simple, reasonable measure to redirect $300 million over the next five years to build the affordable housing we need. That report came out months ago. The member has been here longer than I have. Could she reflect on why it is that, months later, such a reasonable measure still has not been followed through on?
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  • Jun/13/23 12:07:55 p.m.
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Mr. Speaker, if I were the minister of housing, we would have taken action long ago. In fact, I would not have eliminated the national affordable housing program back in 1993, which caused the escalating problems of the housing crisis that we are faced with today. I cannot speak for the Liberals on why they would not take these measures. The only reason that I could guess at is that it is because of those very insider friends that they have. Perhaps that is what is immobilizing the Liberals from taking action. The other possibility, of course, is that, here in the House of Commons, the Minister of Housing is using housing as an investment tool. Perhaps he has a blind spot in looking at the true situation as it is and making sure that housing is not treated as a commodity.
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  • Jun/13/23 12:08:49 p.m.
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Mr. Speaker, it is a privilege for me to rise in the House to speak to the report tabled by the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities. It is also a privilege to be the Parliamentary Secretary to the Minister of Housing, because we know that the housing problem is a concern today and has also been a long-standing concern for many of us here in the House and for many Canadians across the country. It was certainly a concern for me, my family and my mother. For a long time, I lived with my disabled brother in a third-floor apartment. I often had to carry my brother on my back up three flights of stairs, set him down in the hallway of our small two-bedroom apartment, and then go back down for his wheelchair and carry it up to the third floor, in a building that was not designed for persons with disabilities who need accessible housing. I lived in low-rental housing, where the rent is set at 25% of the household income, because my working-class family could not afford to pay for housing at market prices. My story would be familiar to many Canadians, especially in my riding. The government recently invested in my riding, including in projects to help people experiencing homelessness. For example, the organization L'Anonyme has a unique and innovative program for making rooms available to people experiencing homelessness. Les Auberges du coeur is a shelter network that gets young adults off the street and into a suitable apartment, with the community support they need. There are numerous similar examples across the country, such as the project recently implemented by Sen̓áḵw in Vancouver, in the home province of my colleague who just addressed the House. It is a 6,000-unit project in which $1.7 billion was invested thanks to the national housing strategy. We have invested in recent years. Critics claim that we have not built enough housing units, but we have made sure to renovate many units to maintain affordability. We recently announced that 58,000 housing units in Vancouver would be renovated thanks to a $1.3‑billion investment. Just last year, we also announced that 4,000 units in Montreal would be renovated. These are units that are currently boarded up and inaccessible to families. To maintain affordability, it is just as important to renovate as to build. Many of us have mentioned that each order of government has a role to play in housing. It is a shared responsibility. I used to be a city councillor for one of the poorest neighbourhoods in Montreal, Saint‑Michel. The neighbourhood had one low-cost housing complex known as Habitations Saint‑Michel‑Nord. In our first two or three years in power, our government invested in the “Saint‑Michel plan” to remodel the entire complex in order to give these families a decent place to live. Responsibility for the project was shared with the municipality and the province. We cannot do it alone. The federal government does not have a magic wand. It takes leadership, and that is exactly what we provided with the national housing strategy. However, insulting the municipalities and calling them incompetent is certainly not going to get more housing built. We need to sit down with all stakeholders, including the different orders of government, community organizations and the private sector, to make sure that we are working not only on social and affordable housing, but also on the entire housing spectrum. We need to consider the most vulnerable, as well as those hoping to purchase a property. I have a 22-year-old daughter, and all I hear from her is that it is impossible for her to get on the property ladder. Right now, the generation gap between our children and the people who bought property years ago is immense. We need to make sure that people have shelter and do not have to live in the street, but also that young families can buy a home. Between the two ends of the spectrum, we must ensure that there is social and affordable housing for everyone. Offering funding to build and renovate housing is one thing, but this is the first time that a government has introduced legislation on the right to housing. We do believe that having a roof over one's head is a human right. We wrote that right into law though the act that created the position of federal housing advocate. Our government is ready to be held accountable for the actions it is taking through the national housing strategy. However, a federal housing advocate does not necessarily create a right in the provinces and municipalities. How can we work with the provinces and municipalities so that they also take measures that will protect Canadians, especially tenants? As I have said, we have put in place measures concerning the right to housing, including the federal housing advocate. However, we particularly want to work on the issue of renovictions. Speculation is making it all too easy to force people out of their homes to financialize housing. I should take this opportunity to say that I will be sharing my time with my colleague from Nepean. I want to thank my colleague for reminding me. No one should lose their home, and no one should lose an affordable home because of housing financialization. The measures we want to take and work on will require collaboration with the provinces. As we know, housing is a provincial jurisdiction. Several of my colleagues have spoken about the various programs under the national housing strategy. The committee report mentioned the housing accelerator fund for municipalities. This program aims to increase the housing supply by 100,000 new units across the country. We want to be sure to give to municipalities—which I hope will no longer be called “gate keepers,” “incompetent” and “woke”—the means to be real partners and work together with various levels of government to build more housing. What does that mean? That means that if the municipalities want to access this fund, they will need to increase housing density and ensure the sustainable development of units and their affordability. Through the CMHC, the government will give money and invest in these municipalities based on their performance. That is exactly what the opposition is asking us to do. We are already doing that. I do not understand why the opposition members are criticizing the program—actually, they are not criticizing it, they are just not voting for it—and are asking us to do things that we have already done. I would invite them to read the program information and, among other things, attend the webinar provided by the CMHC. I think that it may shed some light on the details of this program. I would also like to talk about the co-investment fund. We are talking about forcing the levels of government to work with us to build more housing. The co-investment fund does exactly that: It stimulates partnership. To access the co-investment fund, an organization must have partners from the municipal, provincial or other levels to carry out projects. At this time, the average rent for the co-investment fund is $718 in the country. The co-investment fund ensures that housing in this country is affordable. The committee report outlines several excellent recommendations. They are already part of the program that was announced. In addition, I invite all my colleagues in the House to talk with their municipalities so that they are prepared to work with the federal government and submit projects shortly. We recognize that there is a whole lot of work to be done. However, one thing is certain: Through all the programs under the national housing strategy, the federal government returned to the table with leadership that will stimulate partnership and collaboration. The government wants to ensure that, across the country, the supply of affordable housing will increase, that young families will get access to home ownership and that no one is left out on the street. The right to housing is a human right.
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  • Jun/13/23 12:18:47 p.m.
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Madam Speaker, my riding of Cowichan—Malahat—Langford has a mix of medium- to small-sized communities, and of course those communities have different resources based on their population. Langford is a big city. It has a well-staffed city council, but if I compare that with the City of Duncan or the Town of Lake Cowichan, they do not have similar resources. As such, I am pleased to see the recommendations that were in this report, and I know the housing accelerator fund is taking those in stride, but my colleague from Vancouver East raised an important point during the course of her speech. It was the fact that we have many large private corporations swooping in, buying up cheap housing stock and then forcing the residents out with a renoviction. I would just like to hear more from my colleague on how we tackle that problem because, in Canada's major cities, that is a huge problem, and the pace at which we are building affordable housing is not keeping up with how many people are being displaced by that practice.
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  • Jun/13/23 12:19:54 p.m.
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Madam Speaker, my colleague is absolutely correct. When we legislate on the right to housing, we will have to make sure that we protect tenants from renovictions. We will have to protect our housing stock to ensure that it belongs to Canadians. Actually, that is one of the reasons why we declared a moratorium on foreign investment. My colleague referred to municipalities of different sizes. That is exactly the point. The housing accelerator fund is designed to support municipalities at the level they are at, to enhance their capacity to be true partners in building more housing.
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  • Jun/13/23 12:20:39 p.m.
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Madam Speaker, I thank the parliamentary secretary. We know that she is sincere in her intent to do whatever it takes to meet needs. My colleague cited examples of organizations or groups in her community that are taking action and making a real difference for people experiencing homelessness, low-income individuals and people in the greatest housing need. There is a committee in my own riding that is working to implement this type of co-op housing to serve residents. However, we know that it can be slow going sometimes. This fund was promoted to our towns and municipalities, but we know that it is really for municipalities with a population of 10,000 or more. The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities was concerned about that. In our opinion, the fund should be for both rural areas and big cities. Should the scope of the fund not have been expanded in terms of support for municipalities?
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  • Jun/13/23 12:22:00 p.m.
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Madam Speaker, I thank my colleague and fellow member of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities. I also thank her for all her comments at committee that advance the cause of social and affordable housing. As for her question, I would like to reassure her by noting that a regional county municipality, for example, can apply to the housing accelerator fund. One of the concerns that we had was about serving the vast majority of municipalities, particularly here in Quebec. That is part of the program, and I would be pleased to discuss it with her personally as well.
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  • Jun/13/23 12:22:50 p.m.
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Madam Speaker, I want to thank my colleague, the parliamentary secretary, for her wonderful leadership on the housing file. We have come forth with many great programs and initiatives to help those looking for housing and to help solve the housing crisis we are in. Whether it is the rapid housing initiative, the co-investment fund, the housing accelerator or the housing benefit, we certainly know that the Conservative Party voted against each and every one of those initiatives. The one that puzzles me the most is the right to housing being entrenched in law, which the Conservative Party voted against. My question to the parliamentary secretary is this: Could she give some comments as to why the Conservative Party would vote against such an initiative?
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  • Jun/13/23 12:23:45 p.m.
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Madam Speaker, all I can say is that all I am hearing in the House from this opposition party is insults. They are saying that people are incompetent, particularly when they are talking about municipalities. As a former city councillor, I find that extremely disrespectful to those duly elected representatives. The members of that party often talk about buying a home. Yes, that is important. I spoke about it in my speech. However, why do they not recognize the issue of the right to housing? All they see in housing is an economic contribution. That is all.
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  • Jun/13/23 12:24:18 p.m.
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Madam Speaker, global inflation, the pandemic, the war in Ukraine and supply chain disruptions are some of the biggest issues of our times, and they are colluding to drive up the cost of living up in Canada, particularly the cost of housing. I am thankful for the opportunity to stand here today to discuss housing affordability, a crucial issue that affects everyone in this country. Our colleagues across the floor have the privilege of picking isolated issues and suggesting that solutions are simple. It is, of course, the role of the opposition in the House to find fault, question policy and hold government to account. Meanwhile, it is the role of the government to act, and we have done that. We have launched a suite of measures to address the problem of housing affordability on multiple fronts. It would take more than my allotted time to address them all, so I would like to draw the attention of members to two initiatives focused specifically on speeding up the creation of housing. One of the things that defines the problem of housing affordability is that it takes years to build a home, but the need is happening now, so we created the rapid housing initiative, which is designed to support affordable housing projects with the quickest possible turnaround times. We also developed the housing accelerator fund, which is launching this summer, to encourage systemic changes in how housing is built in this country. The rapid housing initiative is one of the most successful in our national housing strategy. It is designed to quickly yield new affordable homes for those who need them most and who need them soon. Through two rounds of funding, the rapid housing initiative has exceeded every target we set for it. Once the last bricks are laid, the two rounds are expected to produce more than 10,000 homes, which is 2,500 more than we had hoped for. That is why late last year we launched the third round of projects, which is backed by $1.5 billion in investments. It is expected to yield 4,500 additional affordable homes, bringing the total expected to 15,000. The rapid housing initiative was launched as part of our government's response to the pandemic. It continues because we recognize the urgent need for housing has not gone away. While that initiative is getting shovels in the ground now, we have also announced the housing accelerator fund to look to the future. The fund will help municipalities cut red tape and streamline their housing processes. The fund is backed by $4 billion in federal investments and will run until 2026-27. It will begin accepting applications this summer. The target is to create at least 100,000 net new homes over the course of the initiative. By partnering with local governments, we can create long-term systemic changes to how we build housing in Canada. These changes will continue making a tangible impact on our housing supply well beyond the timeline of the fund itself. I could spend all my time today telling members why I think these are great programs, but let me tell the story of Brenda Blanchard. Brenda was on a wait-list for seniors' housing and living with her daughter. She had been struggling with housing costs for a long time until she found a home in the Bechtel modular housing development in Cambridge, Ontario. Brenda's new home is part of an innovative project to turn shipping containers into affordable housing for seniors. It is funded by the rapid housing initiative, and the project was turned around in 15 months. Most importantly, it has transformed Brenda's life for the better. Its accessibility features mean she can get around easily, and most importantly, she says that it has given her back her independence. By teaming up with partners in municipal, provincial and territorial governments, indigenous communities and the private and non-for-profit sector, we are creating many success stories such as Brenda's across this country from coast to coast to coast. As I said, the rapid housing initiative and the housing accelerator fund are just two initiatives in our $82-billion national housing strategy. They are complemented by the strategy's other activities that, together, tackle this problem from every angle that will have an impact. It is a complex issue that needs a diverse set of responses. We have built on and enhanced this strategy repeatedly since its launch in 2017 in response to feedback from partners and the public, and to the changing needs of the people of Canada. This is a long way of saying that we have listened and we have acted. We will continue to do both because there is a lot more to do. Too many people in this country are still struggling to find and keep a roof overhead, to get a home that meets their family's needs and allows them to thrive. There are too many Brenda Blanchards out there, people who are underserved by the housing market and just need a little help getting a home. Our government has made housing a priority since day one of our mandate, and we will continue to do so. In my riding of Nepean, we have funded Multifaith Housing Initiative's 98 beautiful affordable homes, which are now occupied by families who are very happy. We are also funding a new affordable housing project in the Christ Church area of Bells Corners, with 47 new units coming up. We have also announced funding for Ottawa Community Housing, which is going to start building affordable housing projects and affordable homes in the Barrhaven area of Nepean. One of the key things in housing is the starts, the new housing buildups, which have become stagnant in the last almost 45 years. In 1980, when the population of Canada was 24.5 million, the housing starts were 130,000. In 2023, the population of Canada is 38.8 million, but the housing starts are just 213,000. The ratio of housing starts to population growth has come down from 0.55 in 1980 to just 0.3 in 2023. That is the key thing we are tackling, along with partnering with the provincial and municipal governments. The housing starts have to grow, and one of the major reasons developers say that they cannot build new homes is the regulations at the city level or municipal level. We are partnering, in the same way, with the municipal governments so they can act much more quickly and do the approvals faster to get new homes built as soon as possible. I look forward to any questions that my colleagues might have.
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  • Jun/13/23 12:33:11 p.m.
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Madam Speaker, I would like to talk about the recommendations set out in that report, which was actually produced in 2022. One of the recommendations indicates that the housing accelerator fund should be largely devoted to the acquisition, renovation, and construction of off-market affordable rental housing units. Could my colleague give us an idea of where the government is at in terms of that recommendation? How many units has that been done for to date?
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  • Jun/13/23 12:34:01 p.m.
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Madam Speaker, there are two things I touched upon. One is the rapid housing initiative, which is for a quick turnaround. It has already accomplished the objectives we had and is now generating up to 15,000 homes. Second, is the housing accelerator fund, which looks much more into the future and builds up a reward system. Making it exclusive to one particular need, in my view, is not the right approach. It also has different objectives, which are very defined and provide more answers to housing affordability needs in the medium to long term.
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  • Jun/13/23 12:34:51 p.m.
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Madam Speaker, as a federal government, it is important that we acknowledge that, yes, we have a lot of work to do and we need to make a difference in housing nationally. We have come forth with wonderful programs, whether it is the co-investment fund, the rapid housing initiative, the housing accelerator fund, the Canada housing benefit and the right to housing, which the Conservative Party voted against. My question for my colleague is this. Which one of those federal programs is having the most impact in his riding?
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  • Jun/13/23 12:35:25 p.m.
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Madam Speaker, the beauty of the various programs under our national housing strategy is that each one of them is making an impact. I am from Ottawa, as Nepean is part of Ottawa, and almost every single program of the federal government is making a major impact on providing affordable housing and affordable rental units to the people in Ottawa. As I said, we also have to focus on how we can improve housing starts.
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  • Jun/13/23 12:36:03 p.m.
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Madam Speaker, I always appreciate hearing my colleague speak. However, as he realizes, the seeds of this housing crisis started with Paul Martin's elimination of a national housing program. The fertilizer was the dismal decade of the Harper regime where there was simply no funding for affordable housing. The government has been pressed by the NDP, by members for Vancouver East and Burnaby South, to build more affordable housing, but it has chosen to prioritize things like a $750-billion liquidity support package for banks, $30 billion going every year to overseas tax havens, and it is a crisis. Would the member admit that the government has to act immediately and has to treat the crisis with the scale and scope required, which means immediate investments to build housing across the country?
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  • Jun/13/23 12:36:58 p.m.
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Madam Speaker, the fact of the matter is, without anybody suggesting it, that the moment we came to power in 2015, from day one, we have focused on housing. Our national housing strategy is a very defined strategy with various excellent programs. We have partnered with provincial authorities and governments, which have the major responsibility on housing, but we have not stopped telling them that it is their exclusive responsibility. We have stepped up with real money in the national housing strategy and various programs on the affordability crisis for Canadians.
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  • Jun/13/23 12:37:46 p.m.
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Madam Speaker, the member talks about the beauty of all the government programs, but it has a lot problems actually delivering on them. For example, on the incentive for new homebuyers, almost nobody has taken it up because it does not work. I think of the Canada Infrastructure Bank and all the money it says it has for projects, but nothing is happening. Will the member not recognize that it is fine to say the words, but things are not getting done on the ground?
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  • Jun/13/23 12:38:12 p.m.
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Madam Speaker, one thing I can agree with member on is that the funds are available. As I said, the problem is the supply, as the money is available for developers. The problem is that we are not seeing new houses getting built by developers. That core issue has to be dealt with first.
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  • Jun/13/23 12:38:36 p.m.
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Madam Speaker, I am always pleased to rise in the House of Commons and share, hopefully, some insightful words. Before I begin, yesterday you informed me, Madam Speaker, that you were born in Portugal. Yesterday was national day in Portugal. I know there are some celebrations going on in Ottawa, so to all Canadians of Portuguese descent, happy national day, even if I am a day late, and have a great time this evening. Turning to housing, this morning when I found out we were going to have a concurrence motion and debate on housing, I gave my mortgage broker in Fraser Valley a call. In April 2023, the average cost of a home in British Columbia was $995,000 and change. The average detached home in the Fraser Valley or Greater Vancouver region costs northward of $1.2 million. I talked to my mortgage broker, Vic, and asked him what it would take for a young person to get into housing today. We can go on the assumption that a very modest home in Abbotsford is probably northward of $1.2 or $1.3 million. The member from Langley is pointing his finger up, so it is probably $1.4 million in Langley. It is a bit cheaper in Abbotsford. For a $1.2-million single-detached home in Abbotsford, which would be the cheapest house on the market, one would need a down payment of $240,000. Before I go on any further, Madam Speaker, I will be splitting my time with the member for Wellington—Halton Hills. If people were to purchase that home, not only would they need that $240,000, they would also have to account for a property transfer tax bill of $22,000 and legal fees between $1,000 and $2,000 to complete the transaction. That does not even account for any real estate fees to be paid to the listing and selling agent. Therefore, to buy a home today, a starter home in the Fraser Valley, a person is looking at $275,000 and change needed to buy that home. The average condo in B.C. costs about $500,000. To buy a condo today, people would need approximately a down payment of $25,000. They would probably pay a transfer tax of $8,000 and similar legal fees of $1,000 to $2,000. Members may ask why someone cannot just start off with a condo. Why do they need a single-family detached home? When a home is valued or listed under $1 million, it is subject to the stress test. If it is over $1 million, people basically need a 20% down payment to purchase that home. At today's interest rate of approximately 5%, people would need to qualify at the CMHC level of 7.5% interest rate to buy that condo for $500,000. My mortgage broker, Vic, explained to me that in order to buy a condo in Abbotsford, people would need a household income of approximately $125,000 to qualify. I will note that the average income where I live is about $75,000 to $80,000. For people to get into the housing market today, they either need a really high-paying job, or they need to get help from their parents or receive some type of inheritance. Indeed, my mortgage broker has told me that he rarely, if ever, sees people doing it on their own today. That is a really important point to make. People cannot do it on their own today. Some people have parents who won the real estate lottery and they are able to help their children. Some people seeking to enter the housing market may have some inheritance from a grandparent, but a lot of people do not have those things. They have to do it themselves. The cost of doing it on one's own today is astronomical. In fact, it is such an astronomical amount of money that most people are giving up hope. Being Canadian, our entire financial well-being in our country, and this is what we are told by our educational institutions, from the Government of Canada and from financial advisers, is that to get ahead in Canadian society, we have to purchase property. That social contract we have had with the government and civil society is eroding before us at a very alarming rate. When young people graduating from university no longer see a pathway to home ownership, when that seems out of the reach of possibilities, they lose hope. What happens when we lose hope? People turn to extremism, on the left or the right. We are in a dangerous position in Canada where there is going to be an entire generation left out of the housing market. That is partially to do with the government's policies of today. In 2016, the Liberals promised Canadians that they were going to make housing more affordable, that they were going to put in billions of dollars to help people get ahead, to help them get a home. They have had program after program that was to solve the housing crisis. In fact, the only thing that has happened under any government policy is that things have become more expensive and more out of reach. It is simply not fair. During the pandemic, when we saw one of the biggest increases in housing prices across Canada, the government urged many Canadians to borrow more. The Prime Minister talked about lower interest rates, that they were here for the long term. In fact, the Liberals predicated the country's finances on the assumption that long-term, low interest rates were here to stay. As a result of that, Canada's household debt is now 170% of our GDP compared to 95% in 2010. It gets worse. Many of the people who did get into the housing market are now in a position to be subject to a variable rate mortgage. My mortgage broker, Vic, mentioned someone on his street, and this is anecdotal, in a Surrey neighbourhood, who had to foreclose on last week because the interest he was paying increased so much that he could not handle his monthly bills anymore. If we do not start building more homes, if we do not give young Canadians a form of hope and a pathway to home ownership, we are in for disastrous policy outcomes and a dangerous societal position where young people do not feel they will have a future in our country anymore. The message I am bringing forward today is that governments need to get out of the way. Before I finish up, I want to mention one policy that is really good. The NDP government in British Columbia is mandating 10 cities in the province to build houses at an accelerated rate. The premier of British Columbia, David Eby, recognizes, and has the same position as the Conservative Party of Canada, that the only way we will maybe tackle this crisis is to compel municipalities to push more housing starts at an incredible rate. That is one of the key things that we can do to give young people hope again. Under the interest rates today, under a government policy and under the stress test, let alone the incomes that do not match the ability to pay for a home and inability of young people to save, we will be in a very dangerous position in our country in the decades to come if people believe that the social contract they signed up for when they came to Canada, or were born here, is going to be taken away from them.
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  • Jun/13/23 12:48:21 p.m.
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Madam Speaker, my almost neighbour and I share a piece of territory that has many of the same concerns. That is why I would be very interested in his reflection on the issue I brought up with the NDP. I would like to hear the Conservatives' thoughts on it. It is about development cost charges, which are really heavily laden on new construction because municipal governments are scared to death of raising property taxes on existing homes. Obviously, that is distorting the price of new units. What are his thoughts on that?
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