44th Parl. 1st Sess.
October 5, 2023 10:00AM
- Oct/5/23 12:39:43 p.m.
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I would remind the hon. member that I cannot answer that question.
We will continue with questions and comments. The hon. member for Courtenay—Alberni.
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Madam Speaker, I cited earlier the impact of corporate greed in our country. It is about $3.90 on a $100 bag of groceries. The carbon tax, which the Conservatives try to spin as the major contributor, is 15¢ on a $100 bag of groceries.
We know corporate profits are going into the pockets of Galen Weston. In places like Tofino, Hornby Island and Ucluelet, there are co-op grocery stores that give the profits back to their members. Does my colleague agree that we should charge an excess profit tax on corporate greed to fund co-op models when it comes to the grocery business?
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Madam Speaker, I could not agree with my hon. colleague more.
I really liked what he said earlier in this debate when he referred to the Conservative Party's focus on the carbon tax as a diversion tactic. They are ultimately trying to cover up for and be these huge lobbyists for the oil and gas companies that receive those extreme profits, which we need to put excess taxes on.
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Madam Speaker, following up on that point, as the member for London—Fanshawe likely knows, the carbon tax, in the last year, added two cents a litre to the cost of gas. Excess profits of the oil and gas industry added 18¢. That is why I put forward a motion that calls for a windfall profit tax on oil and gas companies, specifically looking to work with members of all parties to do something extremely reasonable and responsible to get at the corporate greed that she is speaking about.
Could the member speak to her support for doing so?
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Madam Speaker, New Democrats have been calling for that for a long time. My entire speech was to get at the point that there is no balance. The government's responsibility is to provide a balance, and that is out of play right now. We need to ensure that people pay their fair share, and those are the kinds of ideas that need to get to them.
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Madam Speaker, I am happy to rise today to speak about Bill C-56, an act to amend the Excise Tax Act and the Competition Act, or the so-called affordable housing and groceries act. I call it a sham, a desperate attempt by this desperate government to make Canadians think it is tackling these problems by using a name that falsely labels the purpose of the act. It is pure propaganda.
Let us talk about groceries. People watching might be surprised to learn that the bill has literally nothing to do with groceries. Once it is passed, grocery prices would not suddenly drop because of anything in the bill. The bill is, in fact, about something else entirely. It would make amendments to the Competition Act.
First, it would remove the efficiencies defence, an idea Conservatives first proposed, but we never said that it was a solution to high grocery prices because that simply would not be true. However, what its removal would do is make it more difficult for major corporations to merge using economies of scale and savings as an argument. The bill would also introduce new market study powers and give the Minister of Innovation the power to order expensive market studies, which many argue would politicize the process and is financially onerous for industry. Ironically, the bill would drive up the cost for industry, making food even more expensive.
This does not sound at all like inflation-busting measures to me because they simply are not. Members need not take it just from me. They can take it from the Business Council of Canada, which released a statement saying, “As the Competition Act amendments included in today’s bill will in no way address the inflationary environment now facing Canadians – and could, conversely, worsen inflation by introducing uncertainty and instability in the free market”. This is not a ringing endorsement.
Its president, Goldy Hyder, had more to say. He said that it would “stifle” business through “bad regulation” and called it a “trojan horse”. He went on to say, “Ottawa wants Canadians to think the bill will improve affordability for families by giving consumers more choice...but that’s not its actual purpose nor what it will achieve.” He also said that the government “is acting in bad faith” and that the “amendments came as an ambush” and without proper consultation. As well, he said, “If the government is truly serious about lowering prices...lower import tariffs on certain goods...or eliminate...interprovincial trade barriers”.
However, he is not the only critic. Michael Osborne, the chair of Cozen O'Connor's Canadian competition law practice says of the bill, “Some of the amendments are good, more are bad, but most are useless.”
It is not high praise. It is useless because competition law is simply not designed to solve macro economic problems such as inflation. He pointed out what we have been saying for two years, which is that inflation is caused by expanding the money supply too quickly by loose monetary and fiscal policy.
He went on to say, “By design, competition law cannot limit increases in the money supply; that's the job of central banks...If a lack of competition is responsible for rising grocery prices, then competition law might be able to help. But the evidence doesn't support this.” He also indicated that the bill vests too much power to order market studies with the minister, reducing the bureau's independence and increasing the risk of politicizing competition law enforcement.
It is becoming a disturbing trend with this government to hand power directly to politicians at the expense of other departmental officials. This will lessen the independence of the Competition Bureau and politicize the way that we deal with competition law.
Even if there were more room for competition in the grocery industry, Mr. Osborne opines that removing the efficiencies defence would have little effect on lowering prices given how small margins are on grocery sales. These are damning opinions from industry regarding the efficacy and forthrightness of Bill C-56.
If the Liberals really wanted to make groceries more affordable, they would drop their inflationary carbon tax to stop taxing the farmer who produces the food, the trucker who transports the food and the grocer who sells the food. It is the height of Liberal hypocrisy to claim to be lowering food prices while they are taxing food production and transportation every step of the way.
The bill before us also claims to be the affordable housing act, which is another sham. Although it would reduce the cost of a new build by the 5% GST it would eliminate, it would do nothing to bring down the price of existing housing in the near term.
After eight years of the Prime Minister, housing costs have more than doubled. Toronto now ranks as the worst housing bubble in the world. Vancouver is now the third most overpriced housing market in the world when we compare average income to housing price. It is worse than New York, London and Singapore, a tiny island with 2,000 times more people per square kilometre. All these places have more money, more people and less land, yet somehow, miraculously, their housing is more affordable.
Canada has the fewest homes per capita of any G7 country, even though we have the most land to build on. That is because we are the second lowest in being the slowest with building permits out of all 40 OECD countries. It used to take 25 years to pay off a mortgage. Now it takes 25 years just to save up for a down payment. Only in Canada has housing become so unaffordable so quickly. This is happening because the Prime Minister subsidizes government gatekeepers and the red tape that prevent builders from getting shovels in the ground and our people into homes they can afford.
In Vancouver, nearly $1.3 million of the cost of an average home is due to government gatekeepers adding unnecessary red tape. That means that over 60% of the price of a home in Vancouver is due to delays, fees, regulations, taxes and high-priced consultants. In Toronto, the added cost is $350,000.
Housing prices have doubled; mortgage payments have doubled. According to the IMF, Canada is the G7 country most at risk of a mortgage default crisis. We have the most at-risk housing market among developed economies. As low-interest mortgages come up for renewal, defaults are sure to rise.
Conservatives have a real plan to get housing built. Our leader and party's act, the building homes not bureaucracy act, would incentivize cities to speed up the rate at which they build more homes every year to meet our housing targets. Cities would have to increase the number of houses built by 15% each year and then 15% on top of the previous target every year. If targets were missed, cities would have to catch up in the following years and build even more homes, or a percentage of their federal funding, equivalent to the percentage they miss their targets by, would be withheld. Cities that exceed that target would get bonus funding; cities that miss it would have their funding reduced. Federal transit funding would be provided to certain cities only when those stations are surrounded by high-density residential buildings.
We would empower Canadians to file complaints about Nimbyism with the federal infrastructure department. When complaints are legitimate, we would withhold infrastructure and transit dollars until municipalities allow homes to be built. It would ensure that CMHC executives cannot receive bonuses unless housing targets are met and applications for new construction are approved within 60 days.
In addition, there will be a 100% GST rebate on new residential rental properties for which the average rent payable is below market rate to ensure that low-income housing gets built in this country.
This bill would also require the housing minister to report on the inventory of federal buildings and land to identify land suitable for housing construction, and to propose a plan to sell at least 15% of any federal buildings and land that would be appropriate for housing construction.
The sad reality is that, under the Prime Minister, housing costs 50% more in Canada than it does in the United States. To bring market equilibrium, we need to build 3.5 million homes by 2030. This act will not get the job done.
I find it troubling that the government that caused this affordability crisis because of its inflationary spending and taxes has now brought legislation that blames food producers and grocers. Deflecting blame from itself and using the power of the state to impose a solution on industry is a bullying tactic unbecoming of a responsible and ethical government.
It is time for the Liberals to get out of the way and let Conservatives fix what they broke. This bill is a sham, and the Prime Minister is not worth the cost.
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Madam Speaker, I am sure it will come as no surprise that I totally disagree with what the member is saying. He is making it very clear that he is in opposition to this legislation. For clarification purposes, does the member intend to vote against this legislation?
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Madam Speaker, I first want to congratulate the member. I know his daughter was elected to the Manitoba legislature this week as the only Liberal in a legislature of 57 seats. Nevertheless, I congratulate his daughter.
What I am against is a government bringing legislation to make Canadians believe it is doing something when it is not. This bill is called the affordable housing and groceries act, but it has nothing to do with making groceries and housing more affordable as—
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- Oct/5/23 12:51:44 p.m.
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We will continue with questions and comments.
The hon. member for Drummond.
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Madam Speaker, I always find it interesting to listen to my Conservative colleagues bash the Liberal government—rightly so most of the time, and I am not suggesting that they are not good at it. However, rarely do we hear anything in the Conservatives' speeches other than criticism of the government's inaction or misdeeds. Rarely do we hear them come up with concrete solutions. There is $900 million of housing money sitting in Ottawa's coffers. It is earmarked for Quebec City to address the housing shortage.
Does my Conservative colleague agree that the federal government should hurry up and release this money unconditionally so that we can find housing for people who do not have a roof over their head and build housing to alleviate the crisis that is currently raging in Quebec and elsewhere in Canada?
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Madam Speaker, I agree with my colleague that tangible and effective action needs to take place now more than ever to get housing built. This bill would not do that. An amendment to the Competition Act would not get houses built. While a 5% reduction on the GST is something that I could get my head around supporting, the reality is that it is not going to solve the housing crisis and get the millions of houses built that we need by 2030.
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Madam Speaker, I want to thank my colleague for bringing up the Manitoba election. It gives me a chance to congratulate Wab Kinew as the new premier of Manitoba. He is the first indigenous premier in our country.
My colleague talked about a sham and sheer propaganda. Let us talk about that when it comes to housing. He did not talk about the 30% corporatization of the housing market that is driving up market forces. He did not talk about the profiteering that is taking place and that the free-market approach has not worked. In fact, he did not talk about the Greenbelt scandal in Ontario.
What are the federal Conservatives going to do differently than the Doug Ford Conservatives to ensure we do not have another Greenbelt scandal? They talk about selling off public lands and public buildings. What are they going to do to ensure that it does not end up in the pockets of developers? Public lands belong in public hands.
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Madam Speaker, if that member had his way, every single house and apartment building in Canada would be owned by the government. We know that government across the country is the worst landlord of them all.
I believe in the private sector building houses. That is the way it has been done throughout our history. In the 1970s, the federal government brought in, for example, the MURB program that incentivized hundreds of thousands of homes to be built. We are not going to do it the socialist way. We are going to leverage the free market to get homes built in our country.
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Madam Speaker, I was prompted to put my hand up to ask a question when the member said that the current Liberal government was responsible for inflation. I hope the hon. member will take this question in the spirit in which it is intended, which is non-partisan.
I am plenty angry with the Liberal government and the Prime Minister for many things, but I do not think it is reasonable to say that the Prime Minister is responsible for Putin invading Ukraine, for climate crises around the world that have impacted accessibility and the cost of various food stuffs, for supply chain disruptions all around the world or for the post-pandemic impacts on food production. There are multiple reasons why we are facing rising prices and they are not exclusively within Canada.
I would like the member to reconsider—
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- Oct/5/23 12:56:09 p.m.
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I have to give the hon. member the opportunity to answer.
The hon. member for Charleswood—St. James—Assiniboia—Headingley.
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Madam Speaker, a simple Google search by her about economists and quantitative easing increasing the money supply will confirm to her what economists have been saying for a long time, which is that increasing the money supply by $600 billion has diluted the value of our currency and that is primarily driving inflation in Canada.
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Madam Speaker, I am pleased to rise today with respect to Bill C-56, an act to amend the Excise Tax Act and the Competition Act, and I will get into those two components.
It has been an interesting debate in the House, hearing various land barons talk about affordable living for other people who have to rent from them. However, the mixture of our market right now has brought us to this situation. That mixture of the market was abandoned by then Paul Martin, when we lost our housing initiatives. Since then, the recovery process has been brutal and that lack of stock has led to the problems we have right now in a free-market system.
On top of that, in communities like Windsor, Tecumseh and Essex around my riding, a lot of building has taken place, but they have been more affluent homes, more on the higher end of the market for the profit margins to be higher. That has been one of the problems. We have lost co-operative and other types of housing units that really should have been built during that time frame. Therefore, even when we have had an increase in housing stock, it has not led to the things we want.
Today, at least we are trying to do something with respect to it. It is not a great bill, but it is something coming forward on which we have some unanimity in the House of Commons. The GST is something that even the Conservatives think the they could agree with, which is ironic, because the Conservatives, going back in history, brought in the GST under Brian Mulroney and brought in the HST under Stephen Harper. In fact, we are still paying for that. When the HST was brought in, the government had to grease a couple of provinces to come on board and we had to borrow billions of dollars, on which we are still paying interest.
I have an updated Parliamentary Budget Office paper and also a House of Commons Library of Parliament paper, which is updated every year to show how much interest we are paying from Harper bringing in the HST, and borrowing billions of dollars. We borrowed billions of dollars to bring in a new tax on Canadians.
Therefore, when the Conservatives talk about taxation, they need to keep their history in check. It is good that they are owning up to the GST issue and these regressive taxes that have been put on Canadians. We even had an election at one point in time when the Liberals and Conservatives talked about getting rid of the GST. We can see it still has not happened in the fullness of time, but at least in this instance we are going to support the waiving of the GST tax for new builds. There is a problem, though, that we have to monitor. Are those savings going to be passed on to consumers who are renters and to other people in the market purchasing those homes.
There need to be real incentives to build those homes. To this day, many people enjoy what is called “wartime housing”. After the Second World War, smaller units, with two to three bedrooms, were built and these were affordable for veterans. Those units now have had additional components built on to them or they have stayed the same. They are still very much part of a good market for many people, including in my riding where we have had a lot of veterans, some who served most recently in Afghanistan and other theatres. Windsor, Ontario has always done its part, going back to the War of 1812. We even contributed support for all kinds of different wars and conflicts, and for peace. We still have housing stock from World War II that has never been followed up on, which is a real issue with regard to our veterans, but thank goodness those housing units are there.
I would point out the new residential rebate, which is important. It is probably going to have to get through the Senate, so we are looking at more delays. When we are looking at an opportunity to get something done, we are probably looking at the new year for this. We have a housing crisis right now, so the response of this chamber is at least a modest improvement. However, not everybody in this chamber is willing to support this bill and get it done as quickly as possible. Therefore, we are going to continue to inflate the problem because the bill is going to take some time to get through.
The other component in the bill is the amendment to the Competition Act, which is really important. As I mentioned in a previous debate, the Competition Act needs massive updating. I am really pleased that my leader, the member for Burnaby South, has tabled legislation to fix the Competition Act in some respects.
This bill is going to have a few components too. It would “establish a framework for the Minister of Industry to direct the Commissioner of Competition to conduct an inquiry into the state of competition in a market”, which is important; “permit the Competition Tribunal to make certain orders...to an agreement or arrangement...to prevent or lessen competition; and repeal the exception in section 96 of the Act involving efficiency gains brought about by mergers.” The last one is a bit more technical, but basically the “efficiency gains” argument is really outdated in Canada.
We can prove that it would be less competition if there were a merger, and the Competition Bureau can prove that as well, but at the same time the merger can go ahead at the expense of people just because there would be a better profit margin. Therefore, we need to get rid of that altogether.
One thing that is really interesting about the situation we have right now is that both Conservative and Liberal governments have constantly allowed mergers to take place, resulting in the loss of Canadian jobs. We had the Lowe's takeover of Rona. We have seen where that has backfired. Some of the Rona stores are now being reopened.
Target took over Zellers, and then Target closed all its stores. By the way, at the time of the takeover, Zellers was the only department store making money and had benefits for its workers. The workers were paid about 12% more than other department stores. It was a Canadian-owned operation. The Liberal government allowed the takeover to take place. We lost all those stores. Target closed in Canada and moved back, south of the border. It was a complete and utter disaster.
There have been others. We watched Future Shop be taken over by Best Buy. Now there is a lack of competition now in the electronics sector. Future Shop was a Canadian icon store, gone. Now we have the Best Buy option and Amazon online, and very little competition.
I could go on and on about some of the different things that have been allowed to be taken over, basically leading to a lack of competition.
I want to highlight a couple of things with regard to the grocery store retail industry, which is another part of what are fighting for. This is going to help in that situation as well.
The CEOs of the grocery stores came before the industry committee and we questioned them. Unbelievably, on the same day, all three of the major chains cut their hero pay, which was paid during the pandemic, on the very same day. There are still issues out there.
Right now in the retail sector, several different things are taking place. In fact, we can look at some of the media stories coming out. Global and Mike Drolet did a good piece on theft in the retail market, how it was changing, how some stores were closing, not only in the United States but in other places, also potentially here, and the way that stores looked at and handled some things.
I bring this up because it is not a victimless crime. It raises the price of all groceries, with respect to theft and the types of behaviour taking place. Also, the same workers, who were the heroes during the pandemic, have to face increased and complicated situations at the workplace, either defending the products, feeling that they are compromised or having confrontations with customers. What is taking place is very important; it is a culture change.
We can look at the obvious things these grocery store chains have done in the past, such as fixing the price of bread, an important staple for children going to school and for families to survive. They colluded, like the robber barons of the past, to fix the price of bread. There was not only a lack of competition, but there was a coordinated approach on one of the basic human staples, increasing prices for Canadians. What happened? The grocery store chains got a slap on the wrist because of current competition issues.
The government responded by saying that it brought the CEOs in and asked them to at least hold the prices, to hold the line. What a garbage stance that is from the government.
Let us go back in history and look at some of the things that have taken place. Even the Liberal government had issues with its own in calling for corporate tax cut reductions until recently. In fact, some of the former Liberal leadership said that it did not cut taxes fast enough. That was their competition.
These grocery store icons, which enjoy monopolies in Canada, had a reduction of corporate tax at that time. At the same time, these CEOs with big pays were fixing the price of bread. There are other types of malfeasance going on with regard to their operations. They have also been known, as I mentioned, to actually push their workers the hardest and, frankly, in some of the most despicable ways possible.
All three of the grocery store chains cancelled hero pay at the same time. Not only does that stink to high heaven, it tells us the disdain they have for their workers. They had no shame in this whatsoever. There was no shame whatsoever when they were in front of the committee, saying that this was just the way they did business, that it was okay.
This bill is a modest improvement. As members in the House, we have the control to get something done on the GST with regard to housing, as well as on increased competition in Canada. Between the grocery retailers, the telcos and others, we need competition and we need it now.
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Madam Speaker, I really appreciate the comments and advocacy for additional affordable housing resources. I served for several decades as a municipal councillor and looked to higher levels of government for increased spending. It did not come from the province for two decades, it certainly did not come from the federal government for the 26 years that I was a member of city council. It was not until this government arrived and created a national housing strategy that we have seen record investment.
While I take the criticism that we can always do more, it is important to emphasize that we have made investments in municipalities across the country. We have invested a lot in Windsor-Essex through the co-investment fund. That was a $90-million investment. The rapid housing initiative was a $20-million investment.
Everyone gets up and bemoans the fact that we need to do more for housing. I completely get it, but there needs to be some recognition of what the government has done with regard to making historic investments, investments we have not seen since the 1980s. I want to make sure that member is aware of the investments that we have made in Windsor-Essex and other mid- to large-sized municipalities, including rural areas across the country.
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Madam Speaker, absolutely. This is my eighth Parliament and every government has done some good work on different things. There is no doubt about it. I could run off a list, whether they have been Conservative majority or minority governments or Liberal majority or minority governments. Good things have taken place in every budget, so there are some good things happening.
I appreciate the member's work on city council. I served for one and a half terms on city council. What we have to recognize, though, right now, is that the Paul Martin administration at the time basically broke down the process where we had regular, routine funding for the not-for-profit and housing markets. That has led to systemic problems. That is what New Democrats are going for.
I do appreciate that there things happening, and that is why we support this legislation.
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Madam Speaker, I share with my neighbour and friend concern about the impact of the cost of groceries on Canadians.
Rather than an excess profit tax on retailers, if we were to wipe out the profit entirely of the retailers for the moment, it would take the price of a bag of groceries from $25 down to $24. Is that sufficiently low for Canadian consumers if that is the only solution being proposed or, if that is not low enough for Canadians, what other solutions would he acknowledge? Higher interest rates are impacting the food value chain and the carbon tax is impacting the food chain. What other solutions would he have?
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