Ottawa – Deputy prime Minister Chrystia Freeland has said: “Mr. Chair, it is my pleasure to appear before you and Members of the committee to discuss Bill C-56, the Affordable Housing and Groceries Act. This legislation is part of our government’s economic plan, which is about building an economy that works for everyone—with good jobs that people can count on. And our plan is working.
“In the first half of this year, Canada received the third-most foreign direct investment in the entire world, and more investment per capita than any of our G7 allies: more investment than the United States, the United Kingdom, Germany, Italy, France, or Japan. Canada has the lowest deficit and the lowest net debt-to-GDP ratio in the G7. And the IMF projects Canada to likewise see the strongest economic growth in the G7 next year. All of this means that our economy is creating great jobs for Canadians from coast to coast to coast—and, indeed, compared to before the pandemic, over a million more Canadians are employed today.
“Building on this important progress, through the Affordable Housing and Groceries Act, our government is taking new, concrete action to address two of the most pressing challenges facing Canadians today: access to housing and affordability. I’d like to outline why it is so important that we work together to pass this legislation. First, we are removing the GST on new purpose-built rental housing, which we all know will help build more homes, faster, across Canada. This is about making the math work for builders, giving them an incentive to build more homes that would otherwise not move forward due to construction costs.
“For example: in the case of a two-bedroom rental unit, valued at $500,000, a builder will benefit from $25,000 in tax relief—that makes it more cost effective for them to build. It’s going to build more rental homes, faster. We know Canadians need that. Our plan is already delivering results. To give you one example, a Toronto-based developer said, after we announced this measure, that this developer will now build 5,000 new rental units across the country. These are units that were otherwise on hold. Provinces including Ontario, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador have followed our lead by eliminating provincial taxes on new rentals, and that is getting even more new rental housing built across Canada.
“In the Fall Economic Statement that I tabled last week, the federal government is also proposing to eliminate the GST on the construction of new co-op purpose-built rental housing—something that members of this committee have been advocating for, and that we have been having very good, constructive conversations about. Today, about a third of all Canadians rent their homes—and whether they are students, families, seniors, or new Canadians, it’s essential that we build more rental homes, and build them faster. I really believe that is a goal that all members of this committee share—and by passing the Affordable Housing and Groceries Act, we can help to do just that.
“Bill C-56 will also increase competition across our economy—particularly in the grocery sector. More competition means lower prices and more choice—and by increasing competition and cracking down on unfair and anti-competitive practices, we are helping to stabilize prices for Canadians. That includes by amending the Competition Act to give more power to the Competition Bureau to help the Bureau investigate and crack down on price fixing. We are also removing the “efficiencies defence” to end anti-competitive mergers that raise prices and limit choices for Canadians. And we are empowering the Competition Bureau to put a stop to situations where large grocers prevent smaller competitors from establishing operations nearby. Through our economic plan, our government will continue to do everything we can to build an economy that works for everyone—and that is exactly what this legislation will help to do. Thank you.“