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House Hansard - 265

44th Parl. 1st Sess.
December 11, 2023 11:00AM
Context: House Hansard - 265 - Dec/11/23
Mr. Alexis Brunelle-Duceppe (Lac-Saint-Jean, BQ)
  • Dec/11/23 1:02:56 p.m.
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  • Re: Bill C-56 
Madam Speaker, on many occasions I had the fortune or the misfortune to observe that when a member of the Bloc Québécois uses the old expression “it is about time” in the House, most of the time, unfortunately, it is a euphemism. Unsurprisingly, that old saying “it is about time” applies well to the bill before us today. Currently, when the Competition Bureau studies the competitive environment in a given sector, it cannot compel anyone to testify or order the production of documents. That is not very convenient. However, with the passage of the Bill C‑56, it will be able to do so. When I say it is about time, that is because the Bloc has been calling for this measure for a good 20 years. On the other hand, I would be lying if I said that Bill C‑56 did not lack teeth. I will spoil the surprise right away: I will vote in favour of Bill C‑56 like my Bloc Québécois colleagues. Here are the reasons why. This bill contains some good measures. Most of all, it does not contain any that are outright harmful. Let us just say that I expected more. For me, this is just a drop in an ocean of needs. Now I will explain my thoughts in greater detail. Part 1 of Bill C‑56 modifies the Excise Tax Act. It extends a GST rebate, 5% of the sales tax, to builders of rental housing. The rebate will occur at the moment of sale or alleged sale if the builder becomes the owner. The rebate does not apply when the purchaser is already entirely or partially exempt. For example, this is the case for government organizations, municipalities, not-for-profit organizations or housing co-ops. That means that Bill C‑56 will have no impact on the cost of social or community housing projects because it concerns only private housing. Part 2 makes three amendments to the Competition Act. The first, as I said earlier, gives real investigative powers to the commissioner of competition. The second broadens the range of anti-competitive practices prohibited by law. At present, competitors cannot agree to push another player out of the market. Bill C‑56 will prohibit agreements even with non-market players aimed at reducing competition. For example, when a grocer rents space in a shopping centre, it is common for the lease to contain clauses prohibiting the landlord from renting to another grocer. Such practices that effectively limit competition will be prohibited under Bill C‑56. The third amendment to the Competition Act will make mergers and acquisitions more difficult. Today, when a business wants to buy a competitor, for example the Royal Bank's proposed acquisition of HSBC, the act states that the Competition Bureau should allow the merger if it can be proven that the purchase will result in a gain in efficiency, even if the merger will reduce competition. This provision, which appears to favour concentration, will be repealed by Bill C‑56. The Bloc Québécois and my colleague, the member from Terrebonne, have been asking for this measure for some time now. As I said at the start of my speech, Bill C‑56 contains a number of good measures and, more importantly, none that are outright harmful. However, I also said I believe it is but a drop in an ocean of needs. In housing, there is real urgency. However, nothing indicates Bill C‑56 will do anything to reduce rents. It would be astonishing if a landlord dropped rents just because they no longer had to pay the GST on a new property, especially since interest rates alone are driving up mortgage costs. This increase will greatly exceed the GST exemption on new rental units. When landlords renew their mortgage, who will they pass the increase on to? The question is rhetorical. We can expect prices will keep rising, with or without Bill C‑56. At best, by removing the tax on rental buildings, Bill C‑56 might entice some developers to build rentals instead of condos. It might simply become more profitable for them. Again, this is just speculation. Although Bill C‑56 will not directly affect rents, it could help alleviate the housing shortage in some small measure. If Bill C‑56 increases the percentage of new rental housing construction even a little, it will be a good thing. However, we would still be light years away from meeting needs. I repeat: There are some good things in this bill, such as the amendments to the Competition Act. The Bloc Québécois fully endorses those. On the other hand, we consider it misleading to claim that the bill will help lower the cost of groceries, as the government suggests. Giving the commissioner of competition real investigative powers when carrying out a study should enable him to get to the bottom of things when it comes to the competitive environment in a given sector. That is very true. Now, learning more about an issue is a good thing, but it does not increase competition and it certainly does not bring down grocery costs. Since 1986, the vast majority of grocery chains have disappeared, after being bought out by competitors. Steinberg disappeared. A&P disappeared. Provigo was bought by Loblaws. IGA was bought by Sobeys. Marché Adonis was bought by Metro. Of the 13 grocery chains that existed in 1986, only three remain. If we include the two American big box stores that also sell groceries, Costco and Walmart, that means that five players control 80% of the market. While it is true that a number of factors are contributing to the increase in food prices, it is important not to lose sight of the grocers' profit margins. When prices go up, profits go up. However, according to the Competition Bureau study published last June, grocers did not just maintain their profit margin, they increased it. When a merchant can raise prices at will, it is a blatant sign of a lack of competition. The amendments to the Competition Act found in Bill C‑56 will certainly prevent the situation from worsening, and they will make mergers and acquisitions harder to do in the future. However, they do not resolve the situation. The damage is done and, unfortunately, Bill C‑56 will do nothing to fix it. In short, even though Bill C‑56 does put forward some good measures, this cannot possibly be the government's one and only response to the skyrocketing cost of housing and groceries. When it comes to housing, the government needs to review and improve the national housing strategy, which, let us face it, has failed. In terms of competition, they need to review the notion of abuse to prevent the big players from endlessly profiting from their disproportionate market share. Those two initiatives must be undertaken, and we are just starting both, whether Bill C‑56 passes or not. To end my speech, I would like to say the following. The Bloc Québécois's support for Bill C‑56 is certainly not a motion to congratulate the government, quite the contrary. However, we do see it as a step in the right direction. The Bloc Québécois's support today is like a pat on the back. It is like a nod of the head, but coupled with a “what comes next?”. I suspect that I may have to wait awhile before the government actually takes any further action, but I hope I will not have to wait too long.
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Context: House Hansard - 265 - Dec/11/23
Hon. Marc Miller (Minister of Immigration, Refugees and Citizenship, Lib.)
  • Dec/11/23 2:39:42 p.m.
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Mr. Speaker, first of all, we will continue the conversation, but Bloc Québécois members will not be the first to know.
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