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View Anthony Rota Profile
Lib. (ON)

Question No. 681--
Mr. Gary Vidal:
With regard to the government's statistics on graduation rates of First Nations high school students: (a) what were the graduation rates of First Nations students who attended high school on reserve, broken down by province and year for each of the past five years; and (b) what were the graduation rates of First Nations students who attended high school off reserve, broken down by province and year for each of the past five years?
Response
Ms. Pam Damoff (Parliamentary Secretary to the Minister of Indigenous Services, Lib.):
Mr. Speaker, ISC does not report on high school graduation rates of first nations students who attended high school on or off reserve, broken down by province and year.
The department does, however, report in its Departmental Results Report, DRR, on national secondary school graduation rates for first nations students ordinarily resident on reserve who are funded by ISC. Here are the links to the DRRs for 2017-18, 2018-19 and 2019-20: 2017-18 DRR: www.sac-isc.gc.ca/eng/1538147955169/1538148052804; 2018-19 DRR: www.sac-isc.gc.ca/eng/1562155507149/1562155526338; 2019-20 DRR: www.sac-isc.gc.ca/eng/1603722062425/1603722082047.

Question No. 683--
Mr. Gary Vidal:
With regard to the government’s consultation process on Bill C-15, An Act respecting the United Nations Declaration on the Rights of Indigenous Peoples: what are the details of all consultations the government conducted with individuals from First Nations, Metis Settlements, or Inuit communities prior to tabling the bill, including, for each consultation, the (i) type of meeting (in person, Zoom conference, etc.), (ii) names and titles of attendees, including who they represented, if applicable, (iii) date, (iv) location?
Response
Hon. David Lametti (Minister of Justice and Attorney General of Canada, Lib.):
Mr. Speaker, the Department of Justice, with the support of Crown-Indigenous Relations and Northern Affairs Canada, has published a “What We Learned” report that is responsive to Q-683. The report can be found at www.justice.gc.ca/eng/declaration/wwl-cna/index.html. As described in the report, a series of engagement sessions were held with first nations, Inuit and Métis leaders, modern treaty signatories, regional indigenous organizations, indigenous women’s organizations and indigenous youth. These meetings were held virtually over the Zoom conference platform, largely between September 30 and November 6, 2020. The list of indigenous partners and groups that participated is also presented in the report.

Question No. 693--
Mr. Alex Ruff:
With regard to the Universal Broadband Fund (UBF) program: (a) why was the Southwestern Integrated Fibre Technology (SWIFT) 2.0 proposed project denied funding to the UBF program; (b) which of the government’s objectives did the proposed SWIFT 2.0 fail to meet; and (c) with SWIFT projects being a solution to address competition issues in Southwestern Ontario between Internet Service Providers (ISPs), how can SWIFT be a partner in achieving the government’s goal of having 98 per cent of Canadians access high speed internet?
Response
Ms. Gudie Hutchings (Parliamentary Secretary to the Minister for Women and Gender Equality and Rural Economic Development, Lib.):
Mr. Speaker, in response to (a), since 2015, the Government of Canada has made $6.2 billion available for rural and remote Internet infrastructure to help ensure all Canadians have access to fast and reliable Internet, no matter where they live. With the proposed budget 2021, the now $2.75-billion universal broadband fund, UBF, will help the government achieve its goal of connecting 98% of Canadians to broadband by 2026 and all Canadians by 2030.
The UBF is an application-based program and therefore requires that a project application be submitted in order to receive funding. The Government of Canada cannot provide the level of detail requested on any particular applicant under the universal broadband fund without disclosing proprietary third party information provided in confidence, and treated confidentially by the applicant. The program received a number of applications for southwestern Ontario, and announcements of successful projects under the rapid response stream are already under way. These projects can be found on the universal broadband website: https://www.ic.gc.ca/eic/site/139.nsf/eng/00021.html. Innovation, Science and Economic Development Canada is still finalizing its assessment of rapid response stream applications and has begun assessing applications received under the “core” UBF. More announcements are forthcoming.
In response to (b), the Government of Canada and Southwestern Integrated Fibre Technology, SWIFT, share the same objectives of connecting rural and remote Canadians to the broadband Internet they need. Through the building Canada fund’s small communities fund, the federal and provincial governments are each contributing $63.7 million to SWIFT for a $209-million project, to install 3,095 kilometres of fibre, targeting 50,000 households and businesses by 2024. The Government of Canada recognizes the important role that SWIFT and other partners will play in closing the digital divide in Ontario.
In response to (c), connectivity is a shared responsibility. While the Government of Canada is playing a leadership role by providing funding, it is imperative that all orders of government across Canada, as well as the private sector, Internet service providers and other stakeholders, lend support and resources to close the broadband gap and achieve the targets set out in Canada's connectivity strategy. The Government of Canada recognizes that a flexible and collaborative approach is important in engaging with provinces, territories and other partners to help achieve our goal of universal connectivity. SWIFT has already been an important leader and partner in this effort.

Question No. 695--
Mrs. Stephanie Kusie:
With regard to the government’s decision to ban all pleasure craft in the Canadian Arctic Waters and cruise vessels in all Canadian waters until February 28, 2022: (a) why was the length of the ban not contingent upon vaccination levels of Canadians or related to vaccination requirements for those on-board the vessels; and (b) what role did the low level of Canadians vaccinated in January and February of 2021, due to the government’s inability to secure enough vaccines fast enough, have on the decision to extend the ban for an entire extra year?
Response
Hon. Omar Alghabra (Minister of Transport, Lib.):
Mr. Speaker, to minimize the introduction and spread of the COVID-19 virus in the marine mode, Transport Canada has chosen interim orders as the instrument of choice. In developing its interim orders, Transport Canada has worked in close collaboration with the Public Health Agency of Canada and consulted broadly with other levels of government, health officials, transportation industry stakeholders, provincial and territorial governments and indigenous and Inuit peoples. Transport Canada developed these interim orders taking into consideration the health situation throughout the country at the time and advice provided by public health experts. One of the primary reasons interim orders were used is that they enable the Minister of Transport to apply appropriate temporary measures while retaining the ability to rescind the prohibitions if it is determined that the pandemic has substantially improved and that the prohibitions are no longer needed. To inform any such decision, Transport Canada will continue to work with the Public Health Agency of Canada and local health authorities to monitor and assess the situation.

Question No. 698--
Mrs. Tamara Jansen:
With regard to the Canada-British Columbia Early Learning and Child Care Agreement and the $10 per day Child Care Prototype Site Evaluation: (a) when did the Government of British Columbia share the results of this evaluation with the Government of Canada; (b) what were the findings of the evaluation; (c) what were the recommendations; (d) how can the public access the full report, including the website address where the report may be downloaded from; and (e) what were the specific findings of the evaluation regarding the feasibility of $10 per day childcare?
Response
Mr. Adam Vaughan (Parliamentary Secretary to the Minister of Families, Children and Social Development (Housing), Lib.):
Mr. Speaker, the Government of Canada is committed to providing Canadian families with access to high-quality, affordable, flexible and inclusive child care. Budget 2021 has committed up to $30 billion over five years, with $8.3 billion every year, permanently, to build a high-quality, affordable, and accessible early learning and child care system across Canada. This funding will work towards cutting child care fees by 50% on average by the end of 2022, and achieving $10/day child care on average by 2026.
In response to (a), the B.C. Ministry of Children and Family Development contracted R.A. Malatest & Associates Ltd. to conduct an evaluation and analysis of the British Columbia universal child care prototype sites or $10-per-day child care pilot. This evaluation was funded by the provincial government. ESDC was not provided with an official copy of the report prior to its release.
In response to (b), (c), (d), and (e), the full report is publicly available on the Government of British Columbia’s website.

Question No. 703--
Mr. Alex Ruff:
With regard to the Canadian Armed Forces (CAF) Operation HONOUR Tracking and Analysis System (OPHTAS) 2020's annual incident tracking report: (a) when was this report completed; (b) why was this report not published and released on the government’s website in the summer of 2020, in a similar timeline with the previous year’s reports; (c) who made the decision not to publish the document in the summer of 2020; (d) on what date was the Minister of National Defense or his office informed that the document would not be published in the summer of 2020, in line with the schedule of the previous years; (e) if the report has since been published, on what specific website is the document located; and (f) how is the OPHTAS report data fused with other department of National Defence or CAF reports, including the annual CAF Provost Marshall report, the Judge Advocate General Annual report, the Director General Integrated Conflict and Complaint Management annual report, and the Sexual Misconduct Response Centre annual report, in order to provide a consolidated view of sexual misconduct in the CAF?
Response
Ms. Anita Vandenbeld (Parliamentary Secretary to the Minister of National Defence, Lib.):
Mr. Speaker, there is no room in the Canadian Armed Forces or the Department of National Defence for sexism, misogyny, racism, anti-Semitism, Islamophobia, discrimination, harassment, or any other conduct that prevents the institution from being a truly welcoming and inclusive organization.
National Defence understands that a culture change within the Canadian Armed Forces is required to remove a culture of toxic behaviour and to create an environment where everyone is respected and valued, and can feel safe to contribute to the best of their ability.
To this end, the Minister of National Defence has appointed the Hon. Louise Arbour to lead an independent external comprehensive review of the culture and practices of the Canadian Armed Forces and the Department of National Defence. This review will provide recommendations aimed at addressing systemic issues and creating lasting culture change within the organization.
Additionally, the acting chief of the defence staff has appointed Lieutenant-General Jennie Carignan to the newly created position of chief of professional conduct and culture, to lead efforts to promote culture change across the defence team, including the enhancement and consolidation of National Defence’s sexual misconduct tracking mechanisms. This will identify areas that require focused attention, and ensure that all reported incidents are addressed appropriately in a timely manner.
Through these actions, National Defence and the Canadian Armed Forces will move to eliminate harmful attitudes and beliefs that have enabled misconduct and will create an environment where all feel welcome.
In response to part (a), the report was not finalized.
In response to part (b), challenges and delays caused by COVID-19 forced National Defence to adjust the development, approach, and timelines to the 2020 report’s data release.
In response to part (c), the normal release schedule for the annual Operation Honour sexual misconduct incident report is in the fall, using data pulled in the late spring from the Operation Honour tracking and analysis system, OPHTAS. The impact of the COVID-19 restrictions through the spring and fall of 2020 delayed the completion and release of the report.
Due to the delays in the process, the previous approach of relying on data gathered in the spring was considered no longer sufficient to provide an up-to-date overview of sexual misconduct in the Canadian Armed Forces.
Given the unexpected challenges and delays, the acting chief of the defence staff made the decision to combine the 2020 and 2021 reports.
In response to part (d), as there is no legislative requirement to release this report, revised timelines were not communicated formally to the Minister of National Defence.
In response to part (e), National Defence remains committed to openness and transparency, and will re-establish a regular reporting cycle for sexual misconduct incident data.
National Defence anticipates the release of the 2021 report in the fall of 2021, which will provide a comprehensive overview using data from April 1, 2016 to March 31, 2021.
In response to part (f), several organizations within National Defence, such as the Canadian Forces Provost Marshal, the Judge Advocate General, the director general of integrated conflict and complaint management, and the sexual misconduct response centre, have databases that are designed to support their mandates. These databases may capture certain data related to sexual misconduct incidents, such as information on investigations, charges laid, and trials. This information is made available in these organizations’ annual reports.
The Operation Honour tracking and analysis system, OPHTAS, is the only database dedicated to tracking all sexual misconduct incidents reported through the chain of command. While there may be an intersection of sexual misconduct data in OPTHAS and other departmental databases, these databases are currently not linked, and a direct comparison of the information held within each cannot be made.
National Defence is working to integrate all databases that record data related to sexual misconduct. This project will help achieve a more consolidated picture of sexual misconduct data, while respecting the legal privacy and confidentiality requirements of the various databases.

Question No. 705--
Mr. Jasraj Singh Hallan:
With regard to the processing of parents and grandparents applications in the 2020 intake by Immigration, Refugees, and Citizenship Canada: (a) how many interest to sponsor forms were received; (b) how many of the interest to sponsor forms received were duplicates; (c) how many individuals have received invitations to apply; (d) how many applications have been (i) submitted, (ii) approved, (iii) refused, (iv) processed; and (e) what is the current processing time?
Response
Hon. Marco Mendicino (Minister of Immigration, Refugees and Citizenship, Lib.):
Mr. Speaker, in response to (a), 209,174 interest to sponsor forms were received.
In response to (b), 5,961 of the interest to sponsor forms received were duplicates.
In response to (c), IRCC can confirm that the department sent out more invitations to apply, ITAs, than the target in order to come close to receiving 10,000 complete applications for the 2020 year.
In response to (d)(i), IRCC can confirm that enough applications were submitted to reach the annual cap of 10,000 complete applications for 2020.
IRCC cannot publicly release the number of ITAs that were sent for the 2020 parents and grandparents, PGP, process, as the data figures reveal a technique, which is applicable to paragraph 16(1)(b) under the ATIP act, which could compromise future ITA PGP processes.
In response to (d)(ii), (d)(iii) and (d)(iv), zero applications have been approved, refused, or processed, as processing from the 2020 cohort has not started. IRCC cannot release the figure for how many applications have been submitted for PGP 2020, as, at this point in time, completeness checks have not been completed.
In response to (e), the current processing times for permanent residence applications for the parents and grandparents category from April 2020 to March 31, 2021 is 28 months.

Question No. 715--
Mrs. Shannon Stubbs:
With regard to the implementation of Orders in Council entitled “Minimizing the Risk of Exposure to COVID-19 in Canada Order (Prohibition of Entry into Canada from any Country Other Than the United States)” and Minimizing the Risk of Exposure to COVID-19 in Canada Order (Mandatory Isolation): (a) what specific direction was given to border agents regarding new and modified Order in Council provisions directly from the Minister of Public Safety and Emergency Preparedness or his staff; (b) what procedure was followed ensuring the Orders in Council’s proper enforcement by Canada Border Services Agency (CBSA) agents; and (c) what specific direction was given to CBSA agents regarding non-application – requirement to quarantine, specifically for persons who must enter Canada regularly to go to their normal place of employment or to return from their normal place of employment in the United States?
Response
Mr. Joël Lightbound (Parliamentary Secretary to the Minister of Public Safety and Emergency Preparedness, Lib.):
Mr. Speaker, with regard to part (a), the Canada Border Services Agency, CBSA, works in close co-operation with the Public Health Agency of Canada, PHAC, to implement and operationalize the travel restrictions and public health measures at the port of entry. The measures that have been implemented are layered, and together, aim to reduce the risk of the importation and transmission of COVID-19 and new variants of concern of the virus related to international travel.
The regulatory framework that has been developed to minimize the risk of exposure to COVID-19 at the border is complex. At time of seeking entry, the CBSA officers are required to consider various facts and make multiple decisions related to a single traveller.
While the border services officers, BSOs, are focusing on the eligibility to enter under an order, as well as their public health requirements, they are also assessing all relevant obligations under other acts or regulations including their admissibility under the Immigration and Refugee Protection Act.
The CBSA has issued a number of operational bulletins, shift briefing bullets, annexes and job aids to support officers in the decision-making process. As the orders in council, OICs have evolved over time, so has the guidance issued to frontline officers.
All guidance is point in time and is updated on an ongoing basis as more clarity is required, or where there are changes to the OICs. The CBSA and PHAC regularly consult on interpretations of restrictions and public health measures and collaborate on adjustments and improvements where issues have been identified.
With regard to part (b), every day, BSOs make over 35,000 decisions across the country and those decisions are made based on all laws and information made available to the BSO at the time of entry. To facilitate decision-making, the CBSA provides support to frontline BSOs through operational guideline bulletins, 24-7 live support access and regular case reviews. In addition, the CBSA conducts detailed technical briefings prior to the implementation of new or amended OICs to support the accurate implementation of new provisions and ensure clarity for frontline employees. The CBSA has also established a process to monitor decisions made by BSOs as they relate to the application of OICs for essential service providers and will continue to make adjustments or review the CBSA operational guidance to BSOs, as required. If the CBSA discovers that an incorrect assessment has been made at the border, it works with PHAC to rectify the situation.
With regard to part (c), the operational guidance referenced in the response to part (a) of this Order Paper question includes passages specific to cross-border workers and how specific public health requirements within the OICs may apply in these circumstances.
More specifically, in those instances, when assessing whether an exemption may apply, BSOs have been instructed to remain mindful of the following points. The traveller must be able to demonstrate that their purpose of crossing was specific to attending their normal place of employment. “Regular” is typically interpreted to mean daily or weekly, but a person able to establish a regular pattern of travel for this purpose could qualify. This exemption applies to persons who must cross the border regularly to go to their normal place of employment on either side of the Canada-U.S. border. There may be some circumstances where travel to another country could qualify, e.g., weekly or biweekly travel required. Those who are looking to establish that they must cross regularly must demonstrate to an officer that they will be crossing on a regular basis going forward when being processed. If the cross-border work involves medical care for persons over age 65, i.e., nurses, home care specialists, pharmacists etc., an individual request outlining the precautionary public health measures intended for interaction with this older age group must be submitted for determination of the Chief Public Health Officer of Canada.
Officers are trained to reach a decision on the basis of the entirety of the information made available to them over the course of an interaction with a traveller. As such, information and circumstances beyond the items listed above will be considered by BSOs when determining a traveller’s admissibility to Canada, as well as in relation to any applicable exemptions from public health requirements.
Furthermore, in an effort to assist cross-border workers who by virtue of their employment are required to enter Canada regularly, the CBSA has also published guidelines on its website.

Question No. 720--
Mr. Dan Albas:
With regard to the Greener Homes initiative that was announced in the Fall Economic Statement, but is still not available for applications and has had a message on its website to come back in the coming weeks for months: (a) when will the program launch; (b) how will the retroactivity be implemented; (c) what will happen to people who believed they were eligible, but due to the lack of application information were denied; and (d) why was there such a major delay in opening this program?
Response
Mr. Marc Serré (Parliamentary Secretary to the Minister of Natural Resources, Lib.):
Mr. Speaker, with regard to part (a), the Canada greener homes grant initiative, announced in the fall economic statement, launched on May 27, 2021.
With regard to part (b), to be eligible for retroactive payment, homeowners must document their retrofit journey and are asked to keep copies of all invoices both for the EnerGuide home evaluation and for their retrofit work. The home energy adviser will take before and after photos. Homeowners can access the online portal to register and submit this information for reimbursement, provided the retrofit measures undertaken are on the list of eligible measures.
With regard to part (c), to be eligible for reimbursement, participants in the Canada greener homes grant initiative must obtain an EnerGuide home evaluation before the retrofit and then a post-retrofit evaluation once retrofit work is completed. Call centre operators and program officers are available to help homeowners navigate the program’s eligibility requirements. Should the homeowner not be eligible for reimbursement under the Canada greener homes grant initiative, program officers can assist in identifying other federal, provincial/territorial, municipal and/or regional programs for which the homeowner may be eligible.
With regard to part (d), in the fall economic statement, the government committed to launching the Canada greener homes grant initiative during the spring of 2021. Government officials have been working in an expeditious manner since this announcement and the Canada greener homes grant initiative launched during the spring of 2021 as announced.

Question No. 721--
Mr. Dan Albas:
With regard to the $2.3 billion over five years announced in Budget 2021 for conservation: (a) when will the ‘thousands of jobs’ be created; (b) where will the 1 million square kilometers of land be located; (c) has all the land been located; (d) have lands under provincial jurisdiction been identified and have provincial governments agreed; (e) what is the cost breakdowns for funds earmarked for partnerships with indigenous peoples; and (f) what is the total cost breakdown for how exactly this money will be spent?
Response
Hon. Jonathan Wilkinson (Minister of Environment and Climate Change, Lib.):
Mr. Speaker, with regard to part (a), millions of jobs rely on nature, including those in farming, fishing, forestry and tourism. Investment in conservation, therefore, is also an economic opportunity.
Over the course of the next five years, the work announced in budget 2021 will generate jobs in nature conservation and management for Canadians. Arising out of partnerships with provincial and territorial jurisdictions and indigenous governments, organizations and/or communities, these jobs will be distributed across all regions of Canada, including in rural and remote areas and indigenous communities.
With regard to parts (b), (c) and (d), the government is currently working to finalize a concrete and ambitious approach that would achieve protection of 25% of land and oceans by 2025, and set the stage for 30% by 2030. While not all of the specific locations are yet identified, we continue to engage with provinces and territories, indigenous organizations, foundations, the private sector and non-profit conservation organizations to get their views on how it can work together to achieve these ambitious targets. Specific efforts are ongoing and we will continue to work with provinces and territories to find mutually beneficial approaches to conserving land and addressing species at risk and biodiversity loss.
The government is aware of specific landscapes and waterscapes that have been included in provincial, territorial and municipal land use planning, and other protected areas systems plans including the Natural Areas Systems Plan in Newfoundland and Labrador, the Plan Nord in Quebec, the Peel Watershed Land Use Plan in the Yukon, the Living Legacy protected areas plan in Ontario, and Nova Scotia’s Parks and Protected Areas Plan, among others.
Parks Canada will continue work to complete negotiations with provincial and indigenous governments for the establishment of two new national park reserves in the South Okanagan-Similkameen, British Columbia, and in the coastal barrier islands of the Sandhills, Hog Island area, Prince Edward Island, and to identify and assess additional national parks with an emphasis on unrepresented regions and natural areas of importance to indigenous communities.
With regard to part (e), we are not yet in a position to share the cost breakdown for how the money will be spent until such time as program details of the funding are finalized and approved by Treasury Board, including funds earmarked for the indigenous guardians program and other indigenous partnerships.
The indigenous guardians program is a good example. Building upon the work initiated in budget 2017, which allocated $25 million over five years for an indigenous guardians program, budget 2021 provides additional resources to continue supporting indigenous peoples in opportunities to exercise responsibility in stewardship of their traditional lands, waters and ice, including preventing priority species at imminent risk of disappearing. The indigenous guardians program supports indigenous rights and responsibilities in protecting and conserving ecosystems, developing and maintaining sustainable economies, and continuing the profound connections between Canadian landscape and indigenous culture.
Once these final allocations are confirmed, ECCC and Parks Canada will work in partnership with indigenous governance bodies to allocate resources and identify particular projects moving forward.
With regard to part (f), we are not yet in a position to share the cost breakdown for how the money will be spent until such time as program details of the funding are finalized and approved by Treasury Board.

Question No. 723--
Mr. Brad Vis:
With regard to the commitment on page 305 of Budget 2021 to implement a “Tax on Unproductive Use of Canadian Housing by Foreign Non-resident Owners”: (a) how many internal memos, presentations, or other similar type of documents were created by the government or hired consultants on this proposed tax; (b) of the documents in (a), what are their titles and when were they dated; (c) in which internal documents and when was it “estimated that this measure will increase federal revenues by $700 million over four years”; (d) what methodology was used to establish the $700 million figure in (c); (d) on what date will the promised consultation paper for stakeholders be released and to which stakeholders will it be distributed; and (e) how many days is the stakeholder consultation period scheduled to take place and on what date will it (i) begin, (ii) conclude?
Response
Hon. Chrystia Freeland (Minister of Finance and Deputy Prime Minister, Lib.):
Mr. Speaker, budget 2021 announced the government’s intention to implement a national, annual 1% tax on the value of non-resident, non-Canadian owned residential real estate that is considered to be vacant or underused, effective January 1, 2022. The government indicated that it will release a consultation paper in the coming months to provide stakeholders with an opportunity to comment on the parameters of the proposed tax. The government also indicated that, moving forward, it intends to work closely with provinces, territories and municipalities.
With regard to part (a), one internal memo was prepared by the department in relation to the proposal announced in budget 2021.
With regard to part (b), the title of the memo referred to in part (a) was “Tax on Underused Housing” and was dated in 2021.
With regard to part (c), the fiscal impact of the proposal was estimated when planning for budget 2021 and was presented in internal budget documents.
With regard to part (d), the fiscal impact was calculated by applying a 1% tax on the estimated value of non-resident, non-Canadian owned residential real estate considered to be vacant or underused. The value of the proposed tax base was estimated using Statistics Canada data on foreign-owned properties and residential property values, as well as information on British Columbia’s speculation and vacancy tax.
With regard to part (e), the date of the release of a backgrounder has not yet been determined. However, budget 2021 indicated that the document would be released in the coming months.
With regard to part (f), while the length of the consultation period has not been established, it would not be uncommon for consultations on proposals such as these to be open for public comment for 60 days.
View Brad Vis Profile
CPC (BC)
moved:
That, given that,
(i) the cost of housing continues to rise out of reach of Canadians,
(ii) current government policy has failed to provide sufficient housing supply,
the House call on the government to:
(a) examine a temporary freeze on home purchases by non-resident foreign buyers who are squeezing Canadians out of the housing market;
(b) replace the government's failed First-Time Home Buyer Incentive with meaningful action to help first-time homebuyers;
(c) strengthen law enforcement tools to halt money laundering;
(d) implement tax incentives focused on increasing the supply of purpose-built market rental housing units; and
(e) overhaul its housing policy to substantively increase housing supply.
He said: Madam Speaker, I will be sharing my time today with the member for Mégantic—L'Érable.
In the Building the Future Together report, Canadians told the government that the most important outcome from the national housing strategy would be “an increase in the supply of housing that they can afford and that meets their needs.”
At a time when many expected the cost of real estate to drop, prices skyrocketed to stratospheric levels, leaving young Canadians, new immigrants and those seeking to enter the housing market with a general feeling of hopelessness as their dream of home ownership slipped away.
I table this motion today because housing is farther out of reach than ever before, and we find ourselves in an affordability crisis across the housing continuum. I will be using my time to speak to each aspect of the motion and to address the integrity measures, demand policies and supply deficit in our housing system. This crisis is multi-faceted and there are no easy solutions, but the status quo is not okay.
My first point addresses Canada's foreign buyer issue. We need to calmly, openly and comprehensively talk about the very real and at times negative role foreign buyers play in Canada's residential real estate markets. We know the actions of foreign speculators and investors are increasing home prices for regular Canadians.
Dr. Josh Gordon's report, “Reconnecting the Housing Market to the Labour Market: Foreign Ownership and Housing Affordability in Urban Canada”, has found that the decoupling of housing prices from local incomes can occur, and arguably is occurring in Vancouver and Toronto especially, when there is substantial foreign ownership in the market. This is defined as “the use of untaxed foreign income and wealth for housing purchases”.
While he makes good use of the data at hand, in my conversations with Dr. Gordon it became clear that the available data is insufficient. CMHC, StatsCan, and provinces and territories need to be collecting better data for this reason. For instance, a CMHC study found that in 2016-17, one in five new Vancouver condos was owned by non-residents, but we need more current and more comprehensive data. Housing in Canada must be for Canadians, first and foremost.
If we do not have the data, we cannot achieve this objective. The government's own parliamentary secretary for housing publicly admits that our system works better for foreign investors than for Canadians trying to find homes. However, the government's solution is a proposed 1% annual tax. It has not even begun consultations on this yet, and the exemptions are already longer than my arm.
Will the government commit to a meaningful disincentive to foreign buying of Canadian real estate? Why not a 10% tax? Better yet, the government should do what this motion calls for and freeze the flow of foreign money into our residential real estate sector until the supply deficit has been met and Canadians can afford homes in their own country.
People are losing faith in the institutions that are supposed to protect their interests. When the pandemic ends, and before foreign investors come back to our markets in force, we need to know who is purchasing homes and the sources of the funds they are using. UBC Professor Paul Kershaw of Generation Squeeze has suggested harnessing foreign investment for the types of housing Canada needs, such as co-operatives and affordable purpose-built rentals.
Point number two addresses first-time home buyers. We must ensure that there is a pathway for hard-working Canadians to achieve home ownership, but this dream is quickly moving out of reach for the middle class. Home ownership should not be based on being born to wealthy parents. It should be based on hard work and a fair system.
Habitat for Humanity recently shared that “home ownership matters for every social determinant of health”. Home ownership lifts families and helps them build bright futures for themselves.
The Liberal government, unfortunately, is absent on this issue. Its first-time homebuyer incentive program is a failure. Its original objective was to help 200,000 Canadians over three years. We are now in year two, and it has helped approximately 10,600 families. How on Earth can the government consider this program successful?
Why does it not look at extending amortization periods and mortgage terms to reduce monthly payments and provide more security for both lenders and borrowers, or help young families save for down payments through tax incentives?
What about adjusting mortgage qualification criteria in favour of first-time home buyers rather than investors, or expanding some of the initiatives from the private sector, including new shared equity programs?
The third point is money laundering in Canada. Yet another failure of Canada is our inability to address money laundering. The reason terms like the “Vancouver model” and “snow-washing” exist is because our nation is a global case study in how not to stop money laundering. Not only are our laws and regulations ineffective, but we poorly enforce the ones we have. Report after report shows that Canada largely fails to successfully convict money launderers. Almost three-quarters of people accused go free, a 2019 Global News investigation found. The Toronto Star found that 86% of charges laid for laundering the proceeds of crime were withdrawn or stayed. B.C.'s Attorney General shockingly found years ago that Ottawa had assigned precisely zero RCMP officers to fight money laundering in B.C. That only changed after January of this year.
At the finance committee, Transparency International highlighted that the 2016 release of the Panama papers showcased Canada's global reputation as a desirable place for dirty cash. Five years later it found that nothing had changed.
The government needs to implement recommendations from the numerous experts who have explored this issue. These include Peter German's “Dirty Money” reports parts 1 and 2, the Expert Panel on Combatting Money Laundering in B.C. Real Estate and the ongoing Cullen commission of inquiry into money laundering in B.C.
The fourth point is purpose-built rentals. Purpose-built rental construction has not kept pace with demand. Quite simply, there are no incentives for developers to build rental units in Canada and this needs to change. Much of Canada's current rental housing stock was built in the 1970s and 1980s through the multiple unit residential building program, or MURB. It was not a grant or a loan program, but a tax incentive program that unlocked the private capital of Canadians and directed it to rental housing. According to the Library of Parliament, MURB is estimated to have led to the construction of 195,000 units of rental housing at the lowest estimate. Studies have indicated that number could be as high as 344,000 units. It did all of this for the comparably low cost of $1.8 billion in forgone revenue, and that is in today's dollars.
The government is spending $70 billion on the national housing strategy, including provincial money, for 125,000 units. At some level, the federal Liberals know this is the way to go, hence the rental construction financing initiative, but this still ties developers to the federal bureaucratic process, which is slow. The Rental Construction Financing Initiative, RCFI, has quietly become the largest single funding envelope of the national housing strategy. Now at $25.75 billion, it promises to deliver 71,000 units of housing in approximately 10 years. This is not a great comparison with MURB's 195,000 units for $2 billion.
CMHC's new CEO, Romy Bowers, shared with the HUMA committee that the private sector is the only way we will meet Canada's housing needs. I agree. There are additional tools that could unshackle contractors as well. For instance, why not waive the GST for the construction of purpose-built market rental housing, or allow those with aging rental stock to defer the capital gain when selling provided the money is reinvested in rental housing? Increasing the nationwide stock of purpose-built market rental units serves to better everyone along the housing continuum. Canadians have never had more disposable income. Why not direct that to a social policy that could do some good?
The fifth point is increasing supply. We know Canada has a housing supply shortage. According to a recent Scotiabank report, Canada has the lowest number of housing units per 1,000 residents of any G7 country. Experts have been saying this for years, and COVID illustrated it better than anything else. Now many but not all of the policy levers to increase housing supply rest with provincial and municipal governments. Yes, red tape at these levels is a problem, but the federal government should incent the removal of restrictive zoning and NIMBYist bylaws by making any infrastructure investment conditional on their removal. Of course, any infrastructure funds must be accounted for transparently, unlike the current government's haphazard approach condemned by the Auditor General in report 9—
View Luc Berthold Profile
CPC (QC)
View Luc Berthold Profile
2021-06-08 11:20 [p.8075]
Madam Speaker, I am very pleased to rise to speak to the motion moved today by my colleague from Mission—Matsqui—Fraser Canyon.
Housing is of fundamental importance to Canadians across the country. Most Canadians dream of having a house, a residence, a home, a place of their very own. Housing is also an essential need for many others who unfortunately do not have access to housing or the ability to buy a home. In other words, as the motion says, the cost of housing has increased so much that buying a house is quite simply not an option for many Canadian families right now, and especially young families. The cost of housing continues to rise as we speak. To sum up the situation we are currently facing, Canada's housing market is out of control.
Over the past two years, total housing sales in Canada increased by 75%, compared to the United States, where home prices increased by just 13%. In the past year, the average house price increased by 32%. That increase is nearly twice as high as the increase in the United States.
Available data from Canadian Real Estate Association statistics indicate that, in Quebec, housing prices have increased significantly since the start of the pandemic. In April 2020, the average cost of a house in Quebec was just under $340,000. By April 2021, the average cost of a house had climbed to nearly $450,000. That is a 32.6% increase.
Here is a brief overview of what has been happening in Quebec's regions. According to the Quebec Professional Association of Real Estate Brokers, in the first quarter of 2020, single-family home prices rose by 32% in Gatineau and 29% in Montreal. In Quebec City, prices went up by 15%; in Saguenay, 24%; in Sherbrooke, 32%; and in Trois-Rivières, 21%. The market is absolutely crazy. That is not my opinion. That is what Michel Girard said in his analysis of the real estate market, an article entitled “Un marché immobilier fou raide”, published on April 3.
Over the last year, residential construction has increased by 22%, despite the rising cost of materials, and has brought the share of housing in Canada's GDP to 9.3%. That is a record.
What are the Liberals doing about this unacceptable situation? Do they even realize the extent of the crisis?
The ministers, of course, have their canned answers and their talking points that they can repeat ad nauseam today, but they are once again unable to present a credible plan to fix the problem.
In May, the Bank of Canada reported that household debt and market instability had increased over the last year, as we have just seen. On the subject, the Bank of Canada said, “The vulnerability associated with elevated household indebtedness is significant and has increased over the past year.” It also said, “If house prices and household incomes were to fall in the future because of a shock to the economy, some households could need to cut back on spending. This would slow the economy and possibly put stress on the financial system.”
The Governor of the Bank of Canada pointed out six vulnerabilities that could lead to the collapse of Canada's financial networks if they were affected by a severe external shock, such as a recession. Two of the six vulnerabilities identified were related to housing. The first is the high level of debt that Canadians have been forced to take on in order to buy a house and the second is the ever-increasing cost of housing and accommodations.
Bank of Canada researchers believe that households whose mortgages represent over 450% of their income are particularly vulnerable to bankruptcy. There are already very telling figures with regard to bankruptcy and financial hardship. According to Government of Quebec real estate statistics, the number of acts of financial difficulty increased by 49% from April 2020 to April 2021, going from 357 to 533 acts, even though interest rates are still very low right now.
Generally speaking, when Canadians are continually forced to increase their already high levels of debt because of an imbalance between supply and demand, Canada's future growth is at risk.
Unfortunately, the government is not really doing anything when it comes to giving Canadians access to affordable, or even adequate, housing. The current policy has failed to create a sufficient supply of housing to meet the demand in Canada. As a result of this failure, young Canadian families are having more and more difficulty obtaining affordable housing. That is a reality that far too many young couples and families are facing as first-time homebuyers. Housing options are limited and out of reach. The pandemic boom, as we could call it, has resulted in a 30% increase in housing prices in many cities and towns in Canada.
One of the Liberal government's solutions in budget 2021 was to impose a 1% tax on foreign owners of vacant housing. Unfortunately, this policy is nothing but a farce. What is 1% to ultra-rich foreign business people who see their investment grow by between 20% and 40% in a single year? This is merely a minor inconvenience for wealthy foreigners. Meanwhile, the situation is a disaster for many Canadians who continue to put their dreams of owning a home on hold. The fact is that speculative foreign buyers in the Canadian real estate market distort the market and ultimately put home ownership out of reach for Canadian families and workers.
Rather than simply inconveniencing foreign buyers, the government should seriously consider a temporary freeze on home purchases by non-resident foreigners. If the government really was concerned about foreign speculation, it would have taken concrete action by now.
Why does the government refuse to do something about the fact that the Canadian housing market is secure for foreign investment but unaffordable for Canadians? Why is the government turning its back on young families while continually allowing foreigners to buy up properties on the market in order to make a quick buck and, in many cases perhaps, pursue illicit activities?
Steps should also be taken to get rid of the Liberal government's failed first-time home buyer incentive. This program, designed to provide eligible buyers with an interest-free government loan, is a huge failure. A year and a half into this three-year program and only 9,100 homebuyers have used it. That is a far cry from the 100,000 buyers the Liberals anticipated would use the program when they introduced it. Not only did Canadians reject the idea of the government having a financial stake in their home, but this program does nothing to resolve the accessibility problem currently plaguing Canada's housing market.
Housing experts note that the program's eligibility rules simply do not reflect the reality of the skyrocketing prices of homes in Canada's largest cities and, as we are now seeing, in the majority of the towns and municipalities in every province across Canada. The $1.25-billion amount that was given to the Canada Mortgage and Housing Corporation to operate this program could certainly be better used to legitimately help first-time homebuyers in Canada.
The housing supply is insufficient, so the government needs to focus on building more housing. As a result of policies introduced by Pierre Elliott Trudeau in the 1970s, Canada has not managed to build enough housing to meet the needs of our growing population, which led to the crisis we are now seeing. While low interest rates and other economic factors did contribute to this situation, the policies unfortunately did nothing to address the housing shortage plaguing our market.
In conclusion, Canadians cannot ignore this issue any longer. We need to ensure that Canadians no longer have to shoulder the cost of the Liberals' mismanagement. We need real measures to even out the housing market and provide housing for the young families and Canadians who really need it.
View Elizabeth May Profile
GP (BC)
View Elizabeth May Profile
2021-06-08 12:03 [p.8083]
Mr. Speaker, to my hon. friend, the parliamentary secretary, I know the sincerity of his deep commitment to housing.
I am looking at the budget for this new tax, which he mentioned briefly, of 1% on non-resident vacant housing. I note in the budget that there will be consultations and more details. Can the hon. parliamentary secretary tell us whether he thinks 1% is enough, and whether this might apply to the increasing use of online bookings for what is replacing bed and breakfasts now, as people book in non-resident vacant housing for their vacations instead of staying in hotels?
View Adam Vaughan Profile
Lib. (ON)
View Adam Vaughan Profile
2021-06-08 12:04 [p.8083]
Mr. Speaker, as several other members have spoken to, the federal government does not act alone in the housing sector. B.C. also has some very strong measures around foreign ownership and vacant housing, so we are adding to that. It is not the federal government alone that is trying to curb that speculative force out of the market. We are working very hard with the B.C. government to explore other options and other methods, including using FINTRAC to trace some of the questionable money-laundering techniques that are hurting housing prices in this country and pushing them away from Canadians.
We have also worked with municipalities that are bringing in regulations to limit Airbnb or ghost hotels emerging in new projects. We have worked very closely using the tax codes to track ownership, to tax it properly as income-producing property, and to make sure that we try to return much of that housing to the market so that Canadians can buy it, instead of having it rented out in a speculative manner. We are working with municipalities on that front to provide a solution.
Each one of these methods by itself may not appear to have a comprehensive approach to solving the problem overnight. I wish there were a flip of the switch that we could trigger to solve the crisis, but we have to work on all these fronts: limiting Airbnb's impact on the market, limiting foreign ownership, limiting the money laundering, limiting the way speculation is driving housing prices. All of these measures are being approached through the national housing strategy, while we also focus on social housing supply and new market rentals. It is a comprehensive, coordinated approach—
View Gabriel Ste-Marie Profile
BQ (QC)
View Gabriel Ste-Marie Profile
2021-06-08 12:06 [p.8083]
Mr. Speaker, I will be sharing my time with my friend, the hon. member for Longueuil—Saint-Hubert.
The housing issue is a major cause of concern. Like food and clothing, housing is an essential need. Any self-respecting society must at least be able to ensure that every individual has access to housing.
The cost of housing must also be reasonable. These concerns are shared by virtually every country, city and village in the world. No place in the world seems to be immune to rental and real estate market disruptions, despite the fact that we do not live like Jack London’s People of the Abyss.
When a problem arises, solutions appear to be varied and complex, and several crises have shown that, when the situation gets out of hand, it can be serious and long-lived, causing much suffering. We need to take this very seriously, we need to be concerned about the housing shortage and skyrocketing rents, and we have to take strong and concrete action right now.
It has become difficult to access not only affordable housing, but home ownership as well. People’s ability to become homeowners must be protected at all costs. On this, I would like to refer to Thomas Piketty’s Capital in the Twenty-First Century. In this book, Piketty stresses the historical importance of the emergence of the middle class. Higher income levels allowed the middle class to build up a little capital, which largely manifested in the purchase of property. It was a real revolution, and we must preserve our gains.
Preserving the ability of the working class to become homeowners is a crucial issue for anyone who wants to live in a society where wealth is not over-concentrated. Today, though, how can a person who earns $45,000 a year, the median salary in Quebec, buy a $690,000 house, the median price of a home in Montreal?
Even a $385,000 house is virtually out of reach. Still, that is the median price of a house in the most affordable area, the north shore of Montreal. Even with two salaries it is very difficult to afford buying, even a condo.
We are witnessing an alignment between income and real estate and rent prices. Prices of real estate are rising, making it a good investment for people who can afford it. However, rising real estate costs reduce home ownership opportunities for the less fortunate, which is eroding the middle class. The situation is leading us away from the type of society we want.
Skyrocketing real estate prices have led to a boom in rental costs. Individuals and families are spending far too large a percentage of their income on housing. As a general rule, housing costs should not exceed one third of income, and ideally they should account for about a quarter. Unfortunately, this is less and less the case. We are now at the point where this basic need is becoming less and less affordable.
Let me give two examples. Today, if I want to rent a small apartment in Montreal, I will have to pay $1,200 a month. This is 30% higher than in 2019, and three and a half times more than I was paying when I was in university about 20 years ago. Obviously, salaries have not increased by 30% since the beginning of the pandemic, and they have not tripled in the past 20 years. The upshot is that many individuals and families are devoting a much larger proportion of their income to housing. The corollary is that they have to cut down on other costs. First they cut out the little extras and treats, but they soon find themselves having to choose which basic needs to forgo. That is the point that regular folks have reached, and it is not acceptable.
My second example concerns Saint-Jean-de-Matha. About 15 years ago, I went to see a small house for sale on a nice lot right in the middle of town. The house was really cute. The seller, a friend of mine, was embarrassed to ask for $34,000 because he had bought the house from another friend a few years earlier for $25,000. That is how things are in Saint-Jean-de-Matha: everyone knows each other, and everyone is friends with one another. He ended up selling his house for $30,000 because he could not bring himself to price it at full market value. Today, that house or its equivalent would sell for at least $150,000. However, salaries have not increased 500% in the past 15 years. The price will probably even continue to rise, because $150,000 is well below the median house price on the north shore, never mind in Montreal proper.
In recent decades, there has been an overall increase in residential real estate prices and rents. Of course, all this has gotten worse since the beginning of the pandemic. It is not all that surprising, since people spent more on housing during the pandemic. There were fewer places to spend money, and people wanted to spend the lockdown in a bigger place with more space. However, this latest surge in prices is highlighting a problem that has existed for decades. There are several factors involved, and there is no simple solution for stabilizing the market. Low interest rates played a role. Mortgage payments are monthly. When interest rates fall, people can buy a more expensive home and keep the same monthly payment. That makes sense.
However, when interest rates begin to rise again, then they are in trouble. That is why I agree with the new measure that requires people to demonstrate their ability to pay a higher interest rate before they obtain financing. That should help bring the market to a more acceptable level.
Obviously, the issue of foreign investors is troubling. The promise to grant citizenship to a person who comes and buys a $500,000 condo has always been a bad idea. The goal was to attract capital, but it caused real estate prices to climb and reduced the number of available housing units, since these condos usually sit empty. This sucks the life out of the downtown cores, because there are not as many people living there. We need to revise this policy, and I am not certain that the 1% tax will help.
We are having the same type of problem with foreign money laundering in real estate, which is causing prices to shoot up and reducing the number of housing units available. We need to address this problem as well, since it is unacceptable and extremely detrimental.
We also have to tackle the issue of Airbnb and other sharing platforms. The prospect of renting one's home to a tourist is appealing, but it becomes problematic when many homes are rented to tourists and are no longer used to house people. That exacerbates scarcity and drives up rent. That has to change.
The government plays an essential role in the social housing supply. When it plays its role well, it supports low-income individuals and families and indirectly helps keep prices more realistic across the market. Unfortunately, Ottawa has been neglecting that role for nearly 30 years. New investments are still nowhere near historical levels, and that has consequences. When Ottawa chose to cut funding for social housing, it was well aware that its decision would lead to misery and distress, and it knew full well that its actions would contribute to the problems we are having today.
I welcome the new funding for social housing and homelessness. It is a step in the right direction, but it is not nearly enough. Actual dollar amounts may have increased, but Ottawa has in fact reduced its funding as a percentage of GDP. We need the government to keep up, not gradually fall behind. I also condemn the lack of predictability and the unjustified delays in transferring the money to Quebec.
The Front d'action populaire en réaménagement urbain, or FRAPRU, points out the importance of specifically targeting social housing.
Whether it is co-operative, non-profit or public, social housing protects tenants from exorbitant rent increases, repossessions and renovictions.
We must also remember the whole issue of housing for first nations people, especially in urban areas. That is very important.
Let us also consider that with such an increase in housing prices and rent, we should expect an increase in residential construction, because an increase in the housing stock will help rebalance market forces. We must figure out how to juggle the land shortage and the issue of urban sprawl, while bearing in mind concerns about climate change. This increase is also held back by the availability of resources. Building housing takes time, and we are currently seeing that the construction sector cannot meet demand. As a result, prices are increasing, especially for building materials.
I would like to remind my colleagues that Quebec and the provinces have exclusive jurisdiction over housing. Since housing needs vary considerably depending on the socio-demographic context, the provincial and municipal governments are in a better position to assess and identify their residents' needs, since they are closer to local issues. They are asking the federal government to increase funding for social housing and to immediately transfer the necessary funds to Quebec and the provinces, no strings attached.
In conclusion, I would like to remind members how important it is to have a healthy real estate market. The well-being of regular people and the less fortunate depends on it. That is the type of society we want to live in. We must also watch out for real estate bubbles. Think about the bubble in Tokyo in the 1990s, when the land value of downtown Tokyo surpassed the value of the entire state of California, or the subprime crisis in the U.S. When these bubbles burst, there are always terrible consequences, and we need to avoid them at all costs.
View Jenny Kwan Profile
NDP (BC)
View Jenny Kwan Profile
2021-06-08 12:53 [p.8091]
Mr. Speaker, since the federal Liberal government walked away from the national housing program in 1993, Canada's housing crisis has escalated to a feverish pitch. In 2017, the federal Liberal government announced a national housing strategy. It even declared that adequate housing is a basic human right.
Two years after the announcement of the national housing strategy, in 2019, the Parliamentary Budget Officer noted that $11.6 billion of that is cost matched by the provinces. The PBO further said that the national housing strategy basically just maintains the funding at current levels, and in fact, the funding for those with core housing needs actually reduced slightly by 14%. The report said, “CMHC’s assumptions regarding the impact of [National Housing Strategy] outputs on housing need do not reflect the likely impact of those programs on the prevalence of housing need.”
The Parliamentary Secretary to the Minister of Families, Children and Social Development (Housing) admitted on the public record that the Liberals double counted to inflate their numbers for rhetorical advantage. Even after this admission, the government shamelessly continued to use the inflated numbers in the throne speech.
We also saw that the vast majority of the funding to add new affordable housing stock was back-end loaded and in the form of loans. When eventually the trickle of money began to flow for new construction, the process was onerous, complicated and time-consuming. All the housing providers that tried to access the co-investment fund will know exactly what I am talking about. Canada is now losing more affordable housing and social housing than is being built.
Housing is a basic human right and eradicating poverty starts with ensuring that everyone has a roof over their head. Housing should not be treated like a stock market, and the current situation, where an estimated 235,000 Canadians experience homelessness every year and 1.7 million households are in core housing need, is a disgrace for a country as wealthy as ours. The Liberals' national housing strategy's goal to create between 150,000 to 160,000 units does not ensure housing is a basic human right.
The NDP shares FCM's view that the funding announced in budget 2021 does not yet meet our shared goal of ending chronic homelessness. Constantly falling short of what community housing providers are calling for is not how to treat a crisis. Resorting to double counting for rhetorical advantage might make the Liberals feel better about themselves, but it does not help the people on the ground.
Furthermore, the Parliamentary Budget Officer and housing policy expert Steve Pomeroy have repeatedly criticized the low affordability criteria of the RCFI, the largest national housing strategy program. For instance, the government announced a project in Ottawa “providing 65 units at only 21% of median income”. The government is making it sound affordable, but in reality, that was $1,907 per month, which was 48% higher than the average one- and two-bedroom apartments in the area.
Not only is this not affordable. Steve Pomeroy argues that the project in the RCFI would have been built anyway, but of course, the housing providers will not say no to financing at lower interest rates if that is offered.
We also learned that CMHC does not even track what is the rent for this program. It does not matter if the rent is well over average market rent. The Liberals then use this RCFI to pad their claims of how many Canadians they have helped find affordable housing, but we will never know this by just listening to the Liberals' talking points. We have to dig deep to expose the Liberals' doublespeak. Without the necessary resources, the Liberals' claim that they will end chronic homelessness by 2030 will be yet another broken promise.
As pointed out by many housing advocates to end chronic homelessness, we need to build at least 370,000 units of community housing. In fact, over 40 housing organizations and advocates from across Canada jointly signed a letter to the Minister of Families, Children and Social Development to call for this. They are also calling for the creation of a housing acquisition fund that would provide non-profits quick access to capital for acquiring existing rental properties at risk of being swept up by these funds. This was also supported by the recovery for all campaign and the FCM.
There is a great need to limit the ability of REITs and large capital funds in fuelling the rising costs of housing and rent, but to date no action has been taken to address this urgent issue. I know the Liberals will say they announced the rapid housing initiative and its astounding success, and that they just announced phase two of the rapid housing initiative. Let me say that it still falls short of what was called for by the FCM and many other housing advocates.
A significant expansion of the RHI is needed, and the NDP will continue to push for a $7-billion investment for no less than 24,000 units over the next two to three years. The NDP is also renewing its call for 500,000 units of new affordable social housing units to be built. The federal government must also step up to partner with all levels of government and non-profit housing providers to ensure operating costs and supportive wraparound services are provided. This is an essential component to a federal-provincial-territorial partnership.
Turning to the issue of home ownership, many young professionals and couples, especially those from big cities, often find themselves in a situation where home ownership is a remote dream. The 1% tax on vacant homes owned by people who are both non-residents and non-citizens is largely symbolic, when the average cost of housing has increased 31% in 2020 alone, a rate that is simply unsustainable. In B.C., vacancy in foreign ownerships stack independently up to 2.5% combined with a 20% foreign buyers tax in metro Vancouver. The federal government should at least match B.C.'s initiative for affected housing markets to curb foreign market speculators.
The parliamentary secretary for housing also admitted that Canada is a very safe market for foreign investment, but it is not a great market for Canadians looking for choices around housing. The NDP will continue to push the government to strengthen these measures, as well as for more stringent housing ownership reporting requirements to ensure more transparency on ownership, and to make it more difficult to launder money and evade capital gains taxes on secondary residents.
Let me turn to another glaring omission in this motion and in budget 2021. Both fail to address the critical and urgent need of a “for indigenous, by indigenous” urban, rural and northern housing strategy. Despite the Liberals saying that they are committed to a “for indigenous, by indigenous” urban indigenous housing strategy, we have yet to see one materialize. In budget after budget, the Liberals fail to deliver.
To quote Robert Byers, former chair of the CHRA indigenous caucus:
For years, government officials have told us that an urban, rural and northern Indigenous housing strategy was a priority. The absence of such a strategy in today’s Budget will mean that urban and rural Indigenous peoples will continue to face inequality and lack of access to safe and affordable housing, and that is a disgrace.
Indigenous peoples are 11 times more likely to use a homeless shelter. Who here has not heard the excuses, over and over again, that the government is working on it, it is doing a study, and it has targets for indigenous housing? If the study was a priority, why did the Prime Minister prorogue the House last year, shutting down Parliament, including the work of committees?
If the government wanted an indigenous-led consultation process, why did it not establish a “for indigenous, by indigenous” national housing centre? The Liberals could have done that as part of the 2019 budget, the fall economic update in 2020 or in budget 2021, yet they did not. The reality is that the core housing need for indigenous households is the highest in Canada.
The Parliamentary Budget Officer most recently reported that 124,000 indigenous households are in core need, including 37,500 being homeless in a given year. The annual affordability gap is at $636 million. Winnipeg has the highest number of indigenous households in housing need, estimated at 9,000. Vancouver is second at 6,000.
Indigenous, Métis and Inuit people should not have to be told, time and again, that their housing needs can wait. The time has come for the government to act. I am therefore proposing the following amendment, and I hope that the member for Mission—Matsqui—Fraser Canyon will accept it.
I move that the motion be amended by adding the following at the end of paragraph (e): “by renewing efforts to build affordable and social housing not seen since post-World War II, including a commitment to 500,000 new units in a “for indigenous, by indigenous” urban, rural and northern housing strategy.”
It is absolutely critical that this action be taken. I hope that the member will support this amendment so we can send a clear message about what needs to be done, clearly defining the action that is required.
View Dan Albas Profile
CPC (BC)
Mr. Speaker, the member has worked on these issues for a long time and has done a lot for Canadians, particularly his constituents.
One thing mentioned in the motion is a freeze on non-resident purchases. That would do much more than the 1% tax the Liberals have put in place. What does the member think? Does he think this is a much more substantive policy that can actually cool the market from these activities, or does he think that foreign buyers are simply going to pay the 1% tax as the price of doing business, and this just gives the government a gimmick?
View Tom Kmiec Profile
CPC (AB)
View Tom Kmiec Profile
2021-06-08 13:40 [p.8098]
Mr. Speaker, the member is absolutely correct: The 1% foreign buyer's tax will do nothing. Every time the Liberals have a public policy problem, they find a new tax, new fee or new levy. That is the way they do things.
The underlying issue is bid competitions in large markets, such as the greater Vancouver area. There are other regions too, because this is spreading outward. People are competing against foreign buyers, for whom this is an investment.
A pause is a much wiser choice. We have to look at it and study it some more to see the broader impacts it would have on the market, but a 1% foreign buyer's tax is the price of doing business for many of these people.
View Kevin Lamoureux Profile
Lib. (MB)
View Kevin Lamoureux Profile
2021-06-08 15:16 [p.8114]
Mr. Speaker, I want to emphasize that since 2015, the Government of Canada has made historic investments to increase supply, make housing more affordable and ensure that Canadians have places to call home. That is why there is so much irony in the Conservatives being the ones to bring forward this motion.
The Government of Canada has committed and invested over $70 billion in the national housing strategy launched in 2017, as members will recall. The first-time home buyer incentive reduces a first-time buyer's mortgage payments to make buying a home more affordable. One of my favourites is the rapid housing initiative to address urgent housing needs for vulnerable Canadians in all regions of our country.
In January of this year, our government introduced Canada's first national tax on vacant property owned by non-residents and non-Canadians. Houses should not be passive investment vehicles for offshore money: They should be homes for Canadian families. We have invested an unprecedented $300 million through the rental construction housing initiative. This is a government that genuinely understands and appreciates the need for a national government to be involved in housing.
As I mentioned at the beginning of my comments, we recognize that Ottawa, the provinces and territories, indigenous governments and non-profit organizations all have roles to play. As I did earlier today, I would challenge any member of the House to name a prime minister or government to have done more, in terms of investing in housing, than we have in the last five years. Members will be challenged to do so because one does not exist. Members would probably have to go back 50 or 60 years, or even farther than that. It might even be that we have never seen these kinds of dollars invested by a government. We do not need to take any lessons from the Conservatives on the housing issue.
In the most recent budget, we introduced the Canada greener homes grant. For people like me and the constituents I represent, this is a good, solid program that is going to help people stay in their homes. It will provide financial support for many necessary renovations. It is also better for the environment. This is an area of policy not only on which has the government been progressive, but in which we have seen tangible results in a relatively short time. This is a government that cares about our national housing stock and expanding, where we can—
View Leona Alleslev Profile
CPC (ON)
Madam Speaker, I will be sharing my time with the member for Edmonton Manning.
I am honoured to have the opportunity to speak to this very important opposition motion on housing. Canada does have a housing crisis. Every day, citizens from my riding and across Canada come to me with heartbreaking stories on the challenges they face in putting a roof over their head. Many tell me they can no longer afford to stay in their homes, others share that they cannot find anywhere at all to live. I hear from young families who are forced to live far from their places of work, because it is all they can find and young people who are losing hope that they will ever be able to own a house of their own.
Nearly one in 10 Canadians experience hidden homelessness. One in seven Canadian households cannot find decent housing without spending 30%, or more, of their income. In my riding, in the greater Toronto area that number is drastically worse. The average Toronto household costs over $850,000 where Canada’s average is $562,000, with many Toronto buyers taking nearly 75% of their household income to cover home ownership costs.
The blatant truth is that there is not enough housing available and the housing that is available is simply too expensive. The critical shortage of housing and the corresponding skyrocketing of housing prices is a serious problem that is getting worse, and not one that will fix itself.
Economists at the big banks have been increasingly sounding the alarm over Canada’s housing market. Big bank economists do not typically use strong language on any topic, so when they do, we must take note and treat it with the severity that it deserves. In February, economists at the National Bank highlighted the warning signs of widespread price surges, vulnerable borrowers with high debt and uninsured mortgages.
A Royal Bank economist in late March stated that a policy response was required to address a housing market that has not had an “overheating of this scope since the late 1980s.” This position was further reinforced by Bank of Montreal economists who stated that “policy-makers need to act immediately” to respond to the “housing fire” that Canada is currently living through.
Canada’s national housing affordability crisis requires a comprehensive federal government approach combined with a sense of urgency that takes concrete action to implement it. Today’s opposition day motion calls on the government to do just that.
This crisis in Canada is a complex issue, but today I would like to focus on the three main areas that I think should be considered in any federal government approach: tax structure changes, including addressing vacant and non-resident foreign ownership, rampant housing speculation and money laundering; employment and the quality, not just quantity, of jobs; and longer-term thinking around the total cost of ownership of housing, and how targeted initiatives could make housing more affordable while also achieving our national goals around environment and climate change.
What is taxed, how it is taxed, and the information and documentation that is provided in support of those taxes are important tools that a federal government could use to influence the foundations of our economy, including the housing market.
Many of the housing market issues are associated with shortages in supply, with renters being disproportionately affected. Renter households are four and a half times more likely to be in housing need, largely due to a severe shortage in rental properties. However, often the shortage is because properties are being left vacant rather than there not being enough properties. One such example is the explosion in the use of properties for short-term rentals such as Airbnbs. There are significant tax advantages that currently, perhaps inadvertently, incentivize owners of vacant properties to use them as for this purpose rather than as housing for longer-term renters.
While tourism is certainly a key component of our economy, the ability for families to secure long-term rentals for housing must also be prioritized. Perhaps if the tax structures were altered to, as a minimum, level the playing field between the two usage types, more property owners would choose to offer their properties for long-term rentals increasing the available supply.
What is also affecting the supply of shelter is the extent to which owned properties are simply being left vacant. Many of these properties are non-resident, foreign-owned. A temporary freeze on this type of ownership would be a substantive measure toward increasing the supply. Furthermore, a review of the tax conditions on properties that remain vacant for extended periods of time would also be important to look into.
The real estate market has been extensively exploited by money laundering, further compounding the problem of both the supply and the cost of housing. It is estimated that $47 billion is laundered annually across Canada with a significant portion, with some estimates as high as 68% of that being in the real estate market.
Nearly half of all real estate companies are not complying with key aspects of the FINTRAC anti-money laundering regime and Canadian authorities are failing to prosecute these financial crimes. Compliance and enforcement of Canada’s anti-money laundering must be a priority. Additionally, the introduction of beneficial ownership to increase transparency would be a significant measure that would increase the availability of housing supply and in turn reduce housing prices.
Finally, tax changes that would temper the rampant speculation in the housing market should also be explored. The purchase of properties for the sole purpose of “flipping” is contributing to the rapid price increases. Perhaps, the practice of “flipping” should be viewed in the context of a business operation and not as a principal residence.
Clearer residential requirements, including rules that disallow multiple principal residences within a certain period or time frame without supporting justification, such as a move for work, could all be important tax changes that should be considered, again to increase the housing supply and cool the drastic pricing increases.
While cost of housing may be a critical piece in the accessibility to a place Canadians can call home, it is not the only one. A steady and reliable income is as important on the path to home ownership. With over 30% of the Canadians precariously employed, addressing the housing crisis must include measures to increase not only the quantity, but also the quality, of jobs.
The last area that must be considered in addressing housing affordability is the standard and quality of available housing. The cost of a home is more than just the purchase price. It is also the annual recurring cost of heating, cooling, maintaining the house and much more. Significant technological advances offer much greater energy efficiency, lower carbon footprints and greater resilience against climate change events.
However, building codes lag far behind and government housing investments do not demand compliance with these higher standards. While a tax incentive to retrofit existing properties may be beneficial, the advantages of all-new builds meeting the highest possible standards and the corresponding contribution to home affordability should not be overlooked.
The national housing crisis must be urgently addressed. It requires real action to review detrimental tax treatments, address money laundering and rampant speculation, and support long-term environmental and sustainable thinking. Today’s opposition motion puts forward important actions that will give more people a real chance at securing a decent and affordable roof over their head, and in turn, secure Canada’s future. I urge everyone in this House to support this critical motion.
View Francesco Sorbara Profile
Lib. (ON)
Madam Speaker, I will be splitting my time with the distinguished member for Kingston and the Islands.
Before I begin my speech, I would like to pay my respects to the four Canadians who were taken from their family and friends. This absolutely breaks my heart. I know all Canadians have their thoughts with this family and with the nine-year-old boy for whom we all wish a full recovery. May light overcome such darkness, and, yes, we must root out all forms of discrimination, including Islamophobia. It needs to be called out. It needs to be condemned. At this time, we all stand shoulder to shoulder with Muslim Canadians across this country.
I am pleased to contribute to this very important debate that we are having, as this issue impacts all Canadians from coast to coast. I would like to thank the hon. member for raising the issue of housing. It is a frustrating period for many Canadians who are trying to purchase their first home. High housing costs, especially in urban centres, continue to put financial pressure on many middle-class and low-income Canadians. COVID-19 has exacerbated existing housing affordability and homelessness issues and the public health risks of substandard and crowded living quarters.
This government knows that a long-term plan for a faster-growing Canadian economy must include housing that is affordable for Canadians, especially young families. Stable housing is critical for communities and for a strong middle class. Affordable housing is also essential for economic fairness and growth.
Investments to make housing more affordable for the most vulnerable, coupled with measures to limit foreign speculation in the housing market, will help ensure that our economic recovery is an inclusive one that helps more people join the middle class.
That is why the government has a plan as part of budget 2021 to invest $2.5 billion and reallocate $1.3 billion in existing funding to speed up the construction, repair or support of 35,000 affordable housing units.
Since 2015, this government has made historic investments to increase supply and make housing more affordable. For example, under Canada's first national housing strategy, we are on track to deliver over $70 billion in investments by 2027-28 that will support the construction of up to 160,000 affordable homes and increase Canada's housing supply.
We also introduced the rapid housing initiative to address urgent housing needs for vulnerable Canadians in all regions of Canada. The $1-billion program will be expanded with an additional $1.5-billion allocation from budget 2021.
At least 25% of that money will go towards women-focused housing projects. Overall, this new funding will add a minimum of 4,500 new affordable units to Canada's housing supply, building on the 4,700 units already funded.
The funding is available to municipalities, provinces and territories, indigenous governing bodies and organizations, and non-profit organizations. Funding will be used for the construction of modular housing as well as for the acquisition of land and for converting existing buildings into affordable housing units. Most recently, the federal government announced it is aligning the minimum qualifying rate for insured mortgages with that for uninsured mortgages, subject to review and periodic adjustment, that being the greater of the borrower's mortgage contract rate plus 2%, or 5.25%. This will apply to insured mortgages approved as of June 1, 2021.
The government also recently expanded access to the first-time home buyer incentive to make sure more middle-class Canadians in Toronto, Vancouver and Victoria and cities of the like can benefit from this support. The program reduces a first-time home buyer's mortgage payments to make buying a home more affordable.
Another factor contributing to unaffordable housing prices for many Canadians in some of our biggest cities is speculative demand from foreign non-resident investors. That is why on January 1, 2022, the government will introduce Canada's first national tax on vacant and under-used residential property owned by non-resident non-Canadians. Houses should not be a passive investment vehicle for offshore money. They should be homes for Canadian families, many of whom reside in my riding of Vaughan—Woodbridge.
The tax will require owners other than Canadian citizens or permanent residents of Canada to file a declaration as to the current use of the property, with significant penalties for failure to file. Revenues generated through this tax will help support the government's significant investments in making housing more affordable for all Canadians.
I would like to turn back to some of the other housing measures contained in the budget. Budget 2021 proposes $600 million over seven years to renew and expand the affordable housing innovation fund. To date, this program has committed funding to support the creation of over 17,600 units, including more than 16,300 affordable housing units and units for persons with accessibility challenges. This new funding would support the creation of up to 12,700 more units.
This is an investment of $315.4 million over seven years through the Canada housing benefit to increase direct financial assistance for low-income women and children fleeing violence to help with their rent payments.
The budget also proposes $118.2 million over seven years through the federal community housing initiative, to support community housing providers that deliver long-term housing to many of our most vulnerable.
Of the $1.3 billion of previously announced funding that has been reallocated, $750 million under the national housing co-investment fund will accelerate the creation of 3,400 units and the repair of 13,700 units. Some $250 million under this program will support the construction, repair and operating costs of an estimated 560 units of transitional housing and shelter spaces for women and children fleeing violence.
We are providing $300 million through the rental construction financing initiative, which will be allocated to support the conversion of vacant commercial property into housing. This funding will target the conversion of excess commercial property space into 800 units of market-based rental housing.
View Mark Gerretsen Profile
Lib. (ON)
Madam Speaker, it is an honour to rise today to speak to affordable housing, which is such an important topic, and the impacts, and what various levels of government can do to contribute to affordable housing throughout Canada.
It is most important to identify at the outset that, in my opinion, affordable housing is so much more than just social housing. I heard NDP members today talk about social housing as being a need and a requirement, and indeed to some degree it is. However, quite frankly, affordable housing spans the spectrum from helping people with home ownership right to rent geared to income, and basically everything in between. When we look at affordable housing, we need to make sure that policies we bring forward and what we do have an impact throughout that spectrum. If we try to focus on just one end of the spectrum, we are not going to have an impact. If we try to focus on just home ownership, as this motion appears to do, I do not think we are going to have a decent impact on what it means to Canadians, and in particular to those who are struggling right now, to find housing.
I really enjoy discussions on affordable housing. It is near and dear to me personally. My introduction to politics, long before I was even on city council or mayor of Kingston, was being a representative on the affordable housing development committee that the City of Kingston set up to distribute funds to various affordable housing projects throughout Kingston back in, I believe, 2004-05. That initiative was brought forward by the Liberal Government of Ontario at that time. It wanted and saw the need to build affordable housing.
One thing we discovered early on is that when it comes to affordable housing, the best type of housing one can build is mixed integrated housing. There is always the temptation when building affordable housing to build as much as possible to house as many people as possible. This was a very popular way of doing things in the sixties, seventies and even into the eighties for that matter, when the federal government and provincial governments were involved in building housing complexes. However, the unfortunate reality, as we discovered, is that quite often when we do this, we do not end up with good housing. We end up with, unfortunately, the stigmatization of ghettoized housing. We are not helping those living in this situation, and certainly are not helping the stereotypes associated with low-income renters, when everybody is put together in one area. When we start to integrate people into various settings, we expose those who are on affordable housing assistance to those who are not, and we get a certain degree of appreciation and respect for the situation people might be in.
The model we really enjoyed deploying in Kingston said that if a developer was going to build an 80-unit apartment building, why do we not move in and fund 20% of the units in it? We used the provincial government's money at the time. As a requirement for assisting in the development of a certain number of those units, the rent had to be capped to a certain percentage of the CMHC rent for Kingston at the time. The more money someone received, the lower the rent had to be. If someone received $20,000 per unit, perhaps they were capped at 80% of market rent, or if someone received $50,000 per unit, perhaps they were capped at 50% of CMHC market rent. Then, of course, the developer had to commit to that for a certain period of time.
This removed the taxpayer's burden of being responsible for the physical infrastructure and put that on the developer. It also ensured that rent geared to income was available, so that by going through the various housing lists that exist in Ontario, people were allocated spots. What was the most important part about it? By ensuring that only 20 units scattered throughout an 80-unit building were affordable housing units, we did not create the ghettos, so to speak, that were very popular for previous governments back in the sixties and seventies to build, as I indicated. I have always said that the best type of affordable housing is housing that people do not know is affordable, because it blends into the community so well that people do not realize their neighbours might be the recipients of housing initiative funding, in particular for affordable housing.
I know we have been bringing up commitments from the previous Conservative government a lot. The minister certainly did in question period. There have been some discussions and arguments about how they do not really matter because they were from six or seven years ago. However, I think this is important because it gives a pretty good indication, at least in my opinion, of where we would go if we returned to a day when a Conservative government is in power. We would revert to a lot of those previous policies.
An hon. member: Oh, oh!
Mr. Mark Gerretsen: Madam Speaker, I see the member for Renfrew—Nipissing—Pembroke is applauding that idea, but I do not like those policies. I do not think they are effective; nor do they genuinely improve the affordable housing situation in Canada.
We can highlight what was going on back then. When I was on that affordable housing development committee, a fraction of the money came from the federal government. The vast majority of it came from the provincial government in Ontario. As has been referenced here several times, the previous Conservative government was only giving $250 million per year for affordable housing throughout the entire country.
Let us say we used one of the models I previously referenced, and we encouraged a developer to build affordable units in a building that it is currently building. Let us say we gave $40,000 per unit. That would equate to only just over 6,000 affordable housing units in the entire country. That is the entire program, never mind all the other parts of the affordable housing strategy that I previously mentioned about affordable mortgages and rent geared to income. All of these components are part of it.
That is why I am extremely proud to be part of a government that has taken seriously the challenge of affordable housing since day one. We have looked at the challenge not just as an individual problem like the NDP does, primarily with people who need their rent to be geared to their income, but also from an incentive perspective to get people into home ownership.
Certainly we are having struggles now. The situation has indeed changed over the last year or so, and in particular when it comes to properties that are purchased and stay vacant, which are a place for people to park their money. Quite often it is foreign investors who are parking their money in properties and keeping the properties vacant. That is a real issue, and I can see the absolute need to address it. That is why it was great to see the Minister of Finance propose, in the budget, a tax on vacant land, which will start in 2022. It will be interesting to see if the Conservatives are going to support that, as they certainly have not supported the budget to this point.
This is just the tip of the iceberg of trying to control and address the issue. The national housing strategy, on its own, is worth $70 billion over 10 years. It started in 2017. We have been working in collaboration with CMHC to deliver funds to specific projects throughout the entire country to make sure that resources are there. There is the rapid housing initiative, or the strategy intended for incentives for construction. I think there is $300 million to incentivize construction to turn over vacant commercial properties, and various other properties that could be turned over in a very quick manner, to utilize the space for affordable housing.
I have no doubt that there will always be more we can do. This is not a very easy issue. It is not an issue that one particular action is going to completely resolve. This is something that is going to take a lot of time. However, I am very proud of the work that has been done by this government over the last six years. I lived through, as I previously indicated, the previous government's programs.
I will leave it there. I look forward to questions from my colleagues.
View Judy A. Sgro Profile
Lib. (ON)
Madam Speaker, before I commence my remarks on the file we are discussing tonight, I want to express my condolences to everyone in the Muslim community, to the family in question and to everyone in London and Canada. That terrible tragedy has saddened all of us. We certainly have to commit to move forward and find a way to eliminate these kinds of terrible tragedies. I extend condolences on behalf of everybody in Humber River—Black Creek.
I am pleased to join this debate on the motion by the member for Mission—Matsqui—Fraser Canyon. I want to focus on his call for our government to examine a temporary freeze on home purchases by non-resident foreign buyers. I know this is an issue that the hon. member cares very much about, as we all do. It is an issue across all ridings, as well as mine, Humber River—Black Creek.
The issue of foreign ownership of housing in Canada is a complicated one, and our understanding of the problem has been hindered to some degree by a lack of hard data. That is why, in budget 2017, our government committed almost $40 million over five years for Statistics Canada to develop a new Canadian housing statistics program. This program was created in part to investigate the role of foreign homebuyers in the Canadian housing market, something that all of us, when we are in our ridings, have been witness to, when we see houses sitting empty just long enough for the owners to flip them.
It also aims to improve our understanding of the characteristics of residential properties and their owners that impact affordability. This program will provide a complete database of all residential properties in Canada, including whether property owners are residents of Canada. This information will be invaluable to all levels of government in developing future housing policies.
Recent reports by both Statistics Canada and CMHC indicate that the share of non-resident-owned condominium apartment units in most of Canada's major cities so far remains relatively low, but while groundbreaking research by CMHC a few years ago confirmed that foreign investment was clearly a factor driving house price acceleration in cities like Vancouver and Toronto, it is not the only factor driving the prices up. The same report identified inadequate supply as the main driver of high house prices in major centres.
As we all know, our government is working with the provinces, territories and many other partners and stakeholders to address the supply challenge through the national housing strategy. I have to say how happy I am that our government reintroduced the national housing strategy. For many years, we did not have any kind of housing strategy in the House at the federal level. I am thrilled that we introduced it, and we have already made significant accomplishments. This 10-year, $70-billion-plus plan has already added or repaired tens of thousands of affordable housing units in communities across the country. Many of those units were unlivable, but people did not have an alternative. There was nowhere else to go.
The national housing strategy has had a positive impact on my riding, where residents have been in dire need of additional units. We must ensure that these units are available to those who are on Canadian soil. The issue of foreign ownership and, perhaps more specifically, the issue of unoccupied units owned by non-residents of Canada is the real crux of this problem. The fact is that units are being purchased by speculators, whether foreign or domestic, and left empty while the owners wait for prices to rise and while many are still left without a place to call home.
Many of the streets in Humber River—Black Creek have homes where the grass does not get cut until the end of the season, completely abandoned. Owners are waiting for the chance to sell their properties and make money. This is unacceptable, especially in communities like Toronto where housing is already in short supply. The government recognizes the problem, and we are taking serious steps to address it.
The member will recall that last fall's economic statement acknowledged that speculative demand from foreign non-resident investors contributes to unaffordable housing prices for many Canadians. At the same time, we committed to help make housing markets more secure and affordable for Canadians by ensuring that these individuals pay their fair share, at a minimum.
I was therefore delighted, as I am sure all of my colleagues were, even on the other side, when the Minister of Finance confirmed in budget 2021 that the federal government would be implementing a national 1% tax on the value of non-resident, non-Canadian owned residential real estate that is considered to be vacant or underused. I would have liked to see it higher than 1%, personally, but it is a beginning.
This new tax, which will come into effect on January 1 of next year, will require all owners, other than Canadian citizens or permanent residents of Canada, to file a declaration as to the current use of the property, with significant penalties for failure to file. As we stated in the budget, the government believes that homes are meant to live in. This measure is one way to ensure that houses in Canada are first and foremost a place for Canadians to live, to raise their families and to build their futures.
Some time will be needed to ensure that the tax is designed and implemented fairly and effectively. In the coming months, we will release a consultation paper to give stakeholders an opportunity to comment on the parameters of the proposed tax, including whether special rules should be established for small tourism and resort communities.
We will, of course, work closely with the provinces, territories and municipalities in implementing this new tax, which is expected to increase federal revenues by about $700 million over four years, starting in 2022-23. These revenues will help to support the significant investments in budget 2021 to make housing more affordable for all Canadians. These investments include $2.5 billion in new funding and a reallocation of $1.3 billion in existing funding to help build, repair and support 35,000 existing housing units. Budget 2021 will also support the conversion to housing of the empty office space that has appeared in many of our downtowns by reallocating $300 million from the rental construction financing initiative.
Budget 2021 not only fulfills our commitment to implement a tax on vacant or underused residential property owned by foreign non-residents. It also builds on our legacy of investing heavily in housing affordability. The combination of massive investments to make housing more affordable for the most vulnerable, to end homelessness and to limit foreign speculation in the housing market will help ensure that Canada's economic recovery is an inclusive one that helps more people join the middle class.
I know that the member who put the motion forward shares this goal. He has frequently brought the matter of affordability to the attention of the House, and I commend him for that. However, his motion suggests that we need to begin by tearing down all the progress we have made, and that is not something I can agree with him on. Tens of thousands of Canadian families have benefited from our investments to date through the national housing strategy, including constituents in the riding represented by the member.
Our government is confident that the path we are on with the national housing strategy is the right one for Canada, and we will not stop making progress until everyone has a safe and affordable place to call home.
View Jenny Kwan Profile
NDP (BC)
View Jenny Kwan Profile
2021-06-07 18:56 [p.8061]
Madam Speaker, a 2019 report from CMHC shows that 11% of metro condos are owned, at least in part, by people living outside of Canada. According to Andy Yan, director of the SFU city program, who did a further analysis into the numbers, of the 965 billion dollars' worth of residential real estate in the Vancouver census metropolitan area, $75 billion is tied to at least one non-resident owner. Out of that 75 billion dollars' worth of residential real estate, at least 34 billion dollars' worth is owned by non-residents in Vancouver. Since Vancouver's residential real estate is estimated to be in the range of $341 billion, this means that about 10% of the residential real estate in the city involves non-residents.
Andy Yan also indicated that foreign ownership is particularly high in the condo market. In the case of Richmond, one in four recently built condos has a non-residential owner. Yan's analysis shows that one in five of our new condos is being purchased by those who do not even live in the country. He notes that it has taken 10 years to get this information, and he rightfully asks this: Now that we have the data, what are we going to do about the fact that one in five of our new condos is being purchased by those who don't even live in the country?
The government, in the first budget that has been tabled in two years, responded with a 1% tax on vacant homes owned by non-Canadians living outside of Canada. The idea is to target people who are solely interested in contributing to and profiting from the unsustainable increases in Canada's housing market. While it is a step in the right direction, it is merely a passing nod to the uncontrollable cost of housing. Given that the cost of housing in Canada increased in 2020 by 31% alone, does the minister believe that a 1% tax on vacant homes owned by non-Canadians living outside of Canada will deter foreign investors from fuelling and benefiting from the housing market?
The NDP believes the tax should be much stronger and that we can do better. We are concerned that 1% will not be much of a deterrent given that the cost of housing increased 31% on average in 2020 alone. Even the parliamentary secretary to the minister of housing recently admitted that things are not working for Canadians. He said that Canada is “a very safe market for foreign investment but we’re not a great market for Canadians looking for choices around housing.” Meaningful action needs to be taken to address this growing concern.
For comparison, in B.C. the tax on foreign-owned properties, combined with the speculation vacancy tax, amounts to 2.5% annually, plus a 20% foreign buyers tax in metro Vancouver. The government's proposal is very narrow and must be increased. The government should, at the very least, expand the initiatives in B.C. nationally.
This must also be combined with other measures to address the housing crisis. The government needs to step up in supporting the provinces and FINTRAC with resources for combatting money laundering; must introduce other measures, such as a beneficial ownership registry, to increase transparency about who owns real properties; and should make tax avoidance of capital gains on secondary residences more difficult. The government should also take action to stop tax evasion on the capital gains tax for secondary homes.
Urgent action is needed. We need a comprehensive package to address the out-of-control costs for housing, including home ownership. The time to act is long overdue.
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