44th Parl. 1st Sess.
December 11, 2023 11:00AM
Madam Speaker, housing is very important. Speaking as a former municipal councillor, I know the buck really falls with the municipalities. There is a provincial act that oversees the municipal act itself, but it does come down to the municipalities to be able to push things forward, and that is the Nimbyism I have point out.
I am going to talk about some stats that came out today, and this is after eight years of the government. The Rentals.ca December rent report confirmed that while American rents are beginning to stabilize, Canadian rents remain at record highs. The average rent increased 8.4% this year. “One-bedroom apartment annual rent growth remained strongest”, with an average of $1,943. There are people in Toronto who are renting the other side of the bed; that is how bad it has become.
We believe we need to incentivize but also reward municipalities for pushing through rental and construction as a whole. We believe that as party, and I believe that as a former municipal politician.
There are so many times when it is easy for a municipal politician to vote down a rental agreement or a plan that comes forward. We need to find ways to incentivize municipalities that are getting things done, especially around high-density transit, especially where we need housing and especially where we need rental.
230 words
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, I am going to talk about actual facts.
I have five children. Around 10 years ago, my oldest daughter bought a house for about $150,000. Seven years ago, my second daughter bought a house. It cost an additional $100,000. Three years ago, my son bought a house that cost an extra $100,000 on top of that. It cost him $350,000. My two youngest are barely able to rent a place because house prices have shot up past $450,000, $550,000 and $650,000 in the space of half a generation.
When the Conservatives were in government, young people could buy and build a home. Today, in the Liberal era, it is impossible to even rent a home. Imagine that. These are the facts and this is reality. My family has lived it. This is what every Canadian family is experiencing today.
151 words
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, I listened carefully as the member described the steps we are taking as a federal government to try and alleviate some of the pressure in the rental market. The rental market is generally under provincial jurisdiction, which I know the Bloc watches very carefully.
Removing the GST in a time of high interest rates is to try and stimulate construction, create conditions where there are more units to rent and introduce competition in the rental market and, therefore, drive down prices. That is the move we are trying to make as a federal government.
Could the hon. member comment on how creating the right conditions in the market might actually help the people of Quebec?
117 words
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, I thank my colleague for his excellent question.
The problem that we have with this provision, which seeks to eliminate the GST on the construction of rental housing, is that the government is making assumptions. The government is trusting the private sector to bring prices down. It is always a bit risky to trust the private sector to lower prices. There is nothing to guarantee that, once the rental units have been built, private builders will pass those savings on to renters in the form of lower rental costs. The government is making assumptions.
That is why we do not think that this is the answer to the problem we are facing. However, as I said in my speech, this measure could result in the construction of more rental units, which would reduce pressure on the market by increasing availability, but there is no guarantee of that. The government is hoping that is what will happen if it implements this measure, but we are not convinced that it will have such a major impact on lowering rent. In fact, we are not convinced that that will happen at all. That being said, we will not vote against Bill C‑56, because it contains good measures and nothing harmful.
211 words
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, I am pleased to rise to speak to Bill C-56 once again and maybe take a stab at addressing some of the issues that have come up in debate. I will start just by saying, first of all, that New Democrats, of course, support this legislation.
What we said at the beginning in respect to housing was that it is good to increase supply but that it is not just any increase in supply that is going to help with the housing crisis. We have to be concerned about the various kinds of housing along the way and ensure that we are increasing supply in all parts of the housing spectrum where there is need. Of course, there is a need for more market-based, purpose-built rental and eliminating the GST off purpose-built rental is a way to incent the development of more market rent apartments. This will be great for Canadians who can afford market rent, which is certainly a smaller percentage of Canadians than it was just a short time ago. Nevertheless, for those who can afford it, are looking for it and cannot find it, more market supply will certainly be helpful.
However, we cannot wash our hands of the issue and think that the work is done simply because we have brought in a measure to incent the development of more market-based housing. A lot of other Canadians out there will not be able to access that market housing; nevertheless, they need to be housed, deserve to be housed and, as far as I am concerned, should have an enforceable right to be housed in Canada. That is why, from the word go, when this bill was introduced, New Democrats said that this on its own would not be enough. We want to see the government accompany this legislation with some measures for development of non-market housing, which does not always mean affordable or social housing. Non-market housing can be provided at market rents. We see that in some co-ops that choose to offer market rent suites to those who can afford them and, at the same time, offer some affordable rents or social rents, where rent is actually geared to folks' income. Therefore, it is only ever a percentage of their income. It does not eat up the entirety of a household's budget.
All this is to say that incenting more market supply is not enough. This bill would do that. It is one component of addressing the housing crisis. There is a lot more to do. New Democrats were certainly disappointed in the fall economic statement for not having been more ambitious on that front. There was a billion dollars announced for a replenishment of the coinvestment fund, but the fact that this replenishment does not come until 2025 is a serious issue. I think it is a sign that the government still does not understand the extent to which we need to confront the housing crisis in Canada with a serious sense of urgency.
Other housing that we need to look at, whether market or non-market, is housing to be able to address the concerns of many indigenous communities across Canada. I just want to take a moment to recognize the good work that my colleagues from Nunavut have done, both the current member for Nunavut and Mumilaaq Qaqqaq, who was the MP for Nunavut in the last Parliament. She spent a considerable amount of time travelling through her riding, the territory of Nunavut, documenting the serious housing need there: the overcrowding, the mould and the dilapidated condition of a lot of housing that has been built. I think it is important to note that taking the GST off purpose-built rental is not going to do a thing for folks in Nunavut and small remote communities, where there is not an abundance of contractors waiting to build housing. They are not looking to go there as a market.
We have talked a lot about the competition space, whether it is telecoms, grocery companies, banks, fossil fuel companies, where we have these oligopolies that have developed in Canada. Members can just name the market. We can talk about better competition policy until we are blue in the face. If we are talking about grocery prices at the one grocery store in a rural community where people have to drive hundreds of kilometres just to get to the next grocery store, the fact is that improving the competition framework is not going to do a lot in respect to pricing in a community like that. Taking the GST off purpose-built rental is not going to do a lot to incent the development of new housing in small and remote communities in Nunavut. That is why we have to go outside just thinking about the market and how to incent market players. What do we hope they will do? It is not profitable in the way that they are used to making profit in a place such as Toronto, Vancouver or even Winnipeg or Halifax.
It is not profitable to build up there, and folks certainly do not have the money to pay to make it profitable for somebody to build up there. However, we need people to do so. That is why we need good public policy that is not dependent on just trying to provide little carrots for profit-seeking companies in the market.
It is not that they are doing anything wrong. They are not bad people for not wanting to move their business from downtown Toronto, where they develop condos, to Nunavut and start building appropriate housing for people in small, remote northern communities.
We should not expect people to do that all on their own; however, one needs public policy in the context of a strategy that includes addressing workforce needs and training up local people to have skills. Such a strategy includes having the funding required, when they are done building homes in one community, to move that infrastructure and the people to the next community to do some of that building and to share those skills. It also includes having what amounts to an economic development plan that is about putting indigenous people back in charge of their own communities while ensuring that they have the resources to do something with their skills as they develop them.
The market is not going to do that. It is not meant to do that, nor is it interested in doing that.
We get up and talk a lot about these things. People say that we do not care about entrepreneurs, business or risk-taking. That is not true, but we understand the limits of it.
There is an intellectual and administrative laziness that permeates the Liberal and Conservative parties, where they would rather just pretend as though somehow, if one gives the market enough of a free hand, it will fix all these problems. It is not true.
The market is not designed to fix certain kinds of problems. Sometimes, the very problems that it is not designed to fix are some of the most important problems. The people who, not wrongly, but we all make choices, decide to live their life seeking profit in the market are not interested in solving these problems, because there is no money to be made in solving them in that way. However, they are life and death problems.
The problem of housing in Nunavut is killing people right now. It is making it impossible for them to get an education. We have heard stories about schools built in indigenous communities that were not even open for six months before they got shut down. A shoddy job was done of building the school, and they ended up having structural problems with the school right away. We were just talking about this last week.
If a child is fortunate enough to have a school, and they go to school, come back and try to do homework, but their home was built for five people and houses 15, we can be damn sure that this child is going to struggle to get their homework done. If they have to sleep in shifts because there are not enough bedrooms for people to go and lie down, the child will struggle to focus on learning.
We know that, even in major centres, kids in school right now are having a hard time concentrating. This happens more and more as Canadians struggle to afford food, because the kids do not have a full belly.
This is why New Democrats have been supporting the idea of a national school food program.
I am proud to say that this is a priority of the new government in Manitoba, and I look forward to it getting done. I do not think it should have to do it on its own. I think the federal government should be at the table doing that. We have heard a lot of words, but we have not seen a lot of action. We certainly have not seen any funding for that.
We need to get on with that. If we want people to succeed, if we want the “pull yourself up by your own bootstraps” language to make any sense at all, it has to be in a world where people have the resources to be able to do that.
As a starting point, they have to be housed. They have to be fed. Their parents cannot be working three jobs just to make ends meet and never be around to have any time to provide support or direction.
These are some things that the market is not going to do for us. That is not what it is there for. It is all well and good for people who are well resourced, whose children have opportunities and who are well-supported, to say, “We did it. Why can't everybody else?”
The fact of the matter is that there are so many more children who can do it and would do it if they had the right start and just a little bit of those resources that so many of us have the privilege of being able to take for granted.
I say yes to eliminating GST from purpose-built rental, but we cannot then pretend that the work is done. I think the fall economic statement betrayed that the government does think that the work is done and that it can take its sweet time getting around to the rest of it. The government thinks it can say to the territorial government in Nunavut that if it wants money for housing, it will have to apply to the indigenous government that it already gave money to, failing to recognize that they serve different populations. There is a lot of overlap, but their mandates are not the same. Indigenous governments should get money to provide housing to people in their communities, but not in lieu of territorial governments getting resources to build housing in those communities. The deficit of affordable housing is large enough that we need both of these organizations, if they are willing, to be working together to try to meet the housing need.
We need to start addressing some of these things, just as we need to address some of the larger infrastructure required in order to build the housing. I think of the Kivalliq Hydro-Fibre Link, for instance, which, if built, would deliver power to a community in Nunavut, as well as a mine. It is an important thing we could do, both to incent economic development in the region and also to make it possible to build housing. There is no point in building a house in the 21st century for somebody who does not have electricity. We need to find a way to get power to communities even as we think about building more housing in those communities.
I talked before a little about what I think is a kind of intellectual laziness and an administrative laziness, by which I mean governments that do not want to do the hard public policy work of developing an effective strategy, funding it and resourcing it. Let us be frank; I think we tend to dismiss the work of public administration. However, it is important to be able to have a plan and line up all the players, which includes market players. For instance, we are not going to have a housing strategy that does not involve talking to the people who build the homes. I am an electrician by trade. There is a lot of good information that can be gleaned from the people who actually do the work, as opposed to talking just to the engineers or the estimators.
To put together a public strategy like that, to bring all of those pieces together, takes a lot of time and a lot of work. It is also a unique set of skills that we do not necessarily see everywhere else. That is why courses in public administration are offered. For too long, there has been a prevailing attitude, in both of the parties that have governed since the mid-1990s, when they cancelled the national housing strategy, that we are here just to make it easy for the guys in the market to take care of it all, and that if cannot be taken care of by the market, it is not for us to worry about.
It is quite the contrary; that is exactly the thing that people in government should be worried about. It is exactly the job of government to take care of some of the very important things that the market will not take care of. However, first of all, we have to accept and admit that the market will not take care of every need if it is left to its own devices. Thankfully there is a lot of overlap between what one can make a lot of money at and providing services to people in good ways. We see that in many facets of our economy; small and medium-sized businesses, particularly, are very good at identifying gaps in the services in their local communities, and developing a product and selling it at a fair price. When we look at some of the larger companies, like telecom companies, oil and gas companies and banks, that is not what is going on. Even though they make a lot of money and benefit greatly from a public policy environment designed to help them make their money and defend their interests and power in the economy, they do not accept any reciprocal responsibility.
There are only three big Canadian grocery chains. Do they accept any responsibility for providing groceries at an affordable price to Canadians? No, it is very clear they do not see that as their job. Just take a look at the work that my colleague, the member for Cowichan—Malahat—Langford has done, asking difficult questions of grocery CEOs at the agriculture committee. They made it pretty clear that they accept no responsibility. They have a completely privileged position in that market. Food is something Canadians cannot decide to do without. The CEOs accept no reciprocal sense of responsibility to Canadians for that.
We can look at oil and gas companies that have been making money hand over first lately, even while laying off more employees. Do the Canadian oil and gas companies think that they need to do anything to try to reduce the cost at the pump? Absolutely they do not. They see an opportunity. They see that they have a captive market. To the extent that they can push prices up, they certainly have been doing so.
Between 2019 and 2022, oil and gas profits in Canada rose by 1000%. This is not an industry that accepts any responsibility for the privileged position it occupies and the power that comes with it in the Canadian economy. The idea that we are going to leave it all to the market is, I think, a false idea, but unfortunately it has been the predominant idea for at least 30 years in Canada. We can trace it back at least to the original free trade agreement debate in 1988 and the years leading up to that. This is relevant to the point of competition, I would say. My Conservative and Liberal colleagues usually argue about who is the greatest supporter of corporate free trade.
It is interesting to watch, after the Conservatives voted against the Canada-Ukraine free trade agreement most recently, how the argument goes. We see that the Conservatives voted against the trade agreement for no good reason I can identify except to make everything about the carbon tax. That includes things that are not about it, like a conflict half a world away that has everything to do with the preservation of democracy. Instead of taking that seriously on its own terms, they would rather make it about the carbon tax for their own domestic political needs. That is a sign of a government that does not have our back. It has been interesting to watch Conservatives try to defend their position as the greatest defenders of corporate free trade while voting against that trade agreement.
It has been interesting to watch the Liberals not just zero in on the Ukraine issue but also see this as their opportunity to establish themselves as the biggest champion of corporate free trade in the Canadian political space. That has been fascinating, because the thing about free trade is that it was supposed to bring us lower prices. I just heard a Conservative member talk about how there are only five big grocery companies in Canada, three Canadian ones and two American ones. He talked about how he wants more Canadian companies. That was the argument New Democrats were making in the free trade debate: that if we opened up the economy, what we would end up with is Americans coming over and taking over essential industries. Just watch.
There are Conservatives who believe we should deregulate the air industry and invite American airlines into Canadian spaces as a way to lower prices and improve service. Just wait until it happens; they are going to be singing the same crocodile tears song 20 years after it happens that they are singing now about grocery companies, as if anyone should believe them. Either we are of the point of view that we can take a strategic approach to certain pillars of our economy and believe that we need the tools at our disposal to protect those things and conduct business in a certain way, or we believe that we should open it up completely to competition and free trade agreements and even give foreign companies the right to sue the Canadian government, which is what Conservative and Liberal governments have done when they have tried to have a strategic economic approach.
Conservatives get up and cry foul, not just on groceries but also on the battery plant jobs and on workers coming in. Do they know how they are coming in? They are not coming in through the temporary foreign worker program, for the most part, although we would not know that when listening to the Conservatives. What is interesting on that point too is that the TFW program blew up under the Conservatives' watch and then had to be fixed because it had become such an exploitation of foreign workers. The workers are coming in under international labour mobility provisions negotiated in free trade agreements by the Conservatives. At the time, when we asked them if they knew that would mean that multinational companies were going to import foreign workforces when there is a big investment in Canada, they said that it would not happen, that they would just bring in supervisors who were going to help share some specific expertise and then move along. The jury is out on whether that is what is happening in the battery plants. The government owes Canadians a better answer and more guarantees for what it is doing for their tax dollars. The fact of the matter is that it is just egregious for Conservatives to get up and pretend they do not know how those international labour mobility provisions work or that they did not negotiate them.
I look forward to talking more about these things in the Q and A.
3434 words
- Hear!
- Rabble!
- add
- star_border
- share
- Dec/11/23 2:45:03 p.m.
- Watch
Mr. Speaker, right here in Ottawa, the average rent for a one-bedroom has hit a record high of $2,100 a month. It is close to $3,000 in Vancouver and Toronto. It is unacceptable that the out-of-touch Liberals are delaying housing funding for another two years; people cannot afford rent now.
Then there are the Conservatives, who do not even believe in community housing and would rather give handouts to luxury condo developers. Will the Liberals stop delaying and get the money out the door now to build much-needed affordable housing?
96 words
- Hear!
- Rabble!
- add
- star_border
- share
