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House Hansard - 254

44th Parl. 1st Sess.
November 23, 2023 10:00AM
Context: House Hansard - 254 - Nov/23/23
Mr. Simon-Pierre Savard-Tremblay (Saint-Hyacinthe—Bagot, BQ)
Madam Speaker, I will no doubt pick up roughly where my colleague from Mirabel left off. He painted a good picture of the political context. He concluded by speaking to the bill. I will go a bit deeper into the bill. The government proposal grants the Standing Committee on Finance the power to expand the scope of the bill by incorporating three substantial changes. First, there is the amendment seeking to increase the penalty amounts. This increase is right out of Bill C-352, introduced by the leader of the NDP. The amendment changes the Competition Act and will render several of its elements obsolete once Bill C-56 is passed. The two other amendments, which deal with abuse of a dominant position and the Competition Bureau's powers of inquiry when conducting market studies, although subject to the wording of amendments to come, appear to have limited scope. Their inclusion seems to be rather intended to give the New Democrats a symbolic victory in order to paper over a major concession on their part. Let us review these three amendments. The first aims to increase penalties for abuse of a dominant position to $25 million for a first offence and $35 million for subsequent offences. This is taken directly from Bill C-352, introduced by the leader of the NDP. Currently, the maximum penalty that can be levied by the bureau and the tribunal is $5 million for an offending company, along with prison sentences of 14 years for directors who breach the act. This proposed revision is therefore significant, dispelling the idea that penalties are just an inherent cost of doing business. They could now have a deterrent effect comparable to that of European or American legislation. Again, as my colleague asked, if it is already in force elsewhere, why has it taken so long for Canada to wake up? I believe the explanations in the last speech were very powerful. The second amendment, which gives the Competition Bureau the option of conducting market study inquiries at the direction of the minister or on the recommendation of the commissioner of competition, while requiring prior consultation between these two officials, is quite significant. Currently, the bureau has strict investigative powers, but only if there is a clearly defined infringement. This adopts a quasi-criminal approach. The amendment proposed seeks to address this shortcoming when market studies are conducted in order to ensure greater effectiveness in assessing the dynamics of competition. The third amendment, which reviews the legal grounds prohibiting abuse of dominance, aims to prevent anti-competitive practices that impede or significantly decrease competition in a relevant market. Even though the current legislation prohibits various restrictive practices, it does not address predatory pricing by businesses in a dominant market position. The NDP's Bill C‑352 sought to fill this gap by specifically prohibiting the imposition of excessive prices. Despite the provision's obvious value, the government still seems resistant to passing it, offering instead a procedural amendment to the existing legislation through Bill C‑56, without really reinforcing consumers' defences against such practices. Although it makes positive changes to the Competition Act, Bill C‑56 hardly seems an appropriate response to the housing crisis and soaring food prices. An in-depth review of the national housing strategy remains essential, as does redefining abuse of dominance to prevent price increases resulting from a lack of competition. These critical areas persist, independently of whether Bill C‑56 is passed. The Bloc Québécois will vote in favour of the motion and the bill, recognizing certain positive measures and the absence of any downright harmful elements. However, we should point out that it is only a drop in the bucket in terms of current needs. With respect to housing, there is no reason to believe that Bill C‑56 will help reduce rental costs. At the briefing offered to members on September 21, officials were specifically asked to provide the studies on which the Minister of Finance based her claim that Bill C‑56 would impact rents. To give credit where credit is due, the question was asked by my colleague from Joliette. Their response to my colleague's question was evasive, suggesting they did not have these studies. That suggests an uncertain future as to the supposed effectiveness of the measures. It is not very likely that landlords will decide to lower their rents simply because they did not pay GST on the purchase of a new building. Furthermore, the increase in interest rates, affecting all real estate and leading to higher mortgage rates, is a major factor influencing future costs. With or without Bill C‑56, tenants might very well have to live with them. In the best case scenario, eliminating taxes on rental buildings could encourage some builders to choose that type of construction over condominiums, potentially providing a glimmer of hope in this growing housing crisis. However, though it will not have a direct impact on prices, Bill C‑56 could still help alleviate the housing shortage, which may get worse in the years to come. Right now, the Société québécoise des infrastructures says that only 14% of new housing units built by 2030 will be rentals, despite the fact that almost 40% of Quebec households are renting. This growing imbalance foreshadows a terrible national tragedy, and three times as many new constructions will need to be rental units if we want to resolve the housing crisis. If Bill C‑56 manages to increase the proportion of rental housing, even slightly, it would be a modest step forward, but that will not be enough to meet the crying need. However, we note the lack of specifics regarding the types of dwellings or buildings, and the absence of accessibility requirements to be eligible for reimbursement, which hands the government the power to regulate those factors. During the information sessions for parliamentarians, which my colleague from Joliette attended, we asked officials why the act contained no eligibility criteria, which is an unusual exception in tax matters. Their answer clearly conveyed a sense of urgency and poor preparation, which definitely suggests an off-the-cuff approach. We can all agree that it would be difficult to impose affordability criteria on builders. They are not the future owners of the buildings under construction. However, the GST could be imposed on buyers if the housing units were rented out at sky-high prices; this is a measure that could be examined in committee to improve the bill's effectiveness, which so far is pretty limited. That might be a good idea. While amendments to the Competition Act deserve the Bloc Québécois's support, to suggest that they will have any impact on grocery bills is wishful thinking and a misrepresentation of reality. We support the bill, but we have no pats on the back for Ottawa.
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