Freeland tables 'affordable housing and groceries' bill, Trudeau calls for all-party backing
Finance Minister Chrystia Freeland has tabled new legislation to implement the promised removal of GST from new rental developments, and to revamp Canada's competition laws, framing the bill as a package that will result in more affordable housing and groceries, eventually.
Facing pressure in the polls and from within his own Liberal caucus, last week Prime Minister Justin Trudeau promised this suite of measures in an effort to address Canadians' ongoing cost-of-living concerns.
Speaking from New York City as he wrapped up his UN trip, Trudeau called on the other parties—some of which are trying to advance similar legislative proposals of their own—to get behind the government's bill.
"I urge opposition leaders back home to help us get today's real solutions passed quickly. We're focused on making life more affordable for Canadians, and we'll be continuing this work in the days and weeks to come," Trudeau said.
Bill C-56, which is being titled "The Affordable Housing and Groceries Act," is the first piece of government legislation to be introduced in the fall sitting.
"More competition will ease sticker shock at the grocery checkout line. Eliminating the GST will get more housing built faster so that more Canadians can have an affordable place to call home," Freeland said during an afternoon press conference alongside a handful of ministers, vowing the Liberals will have "more to say and to announce in the weeks to come."
GST RENTAL REBATE
Through the bill, the federal government is aiming to incentivize the construction of more apartment buildings, student housing, and senior living spaces by offering a 100 per cent rental rebate off of the GST paid on new purpose-built rental housing, up from the current 36 per cent and the existing GST rental rebate phase-out thresholds for new rental housing projects.
This reform would apply to new residential units that would meet the conditions for : buildings of at least four private apartment units that have a private kitchen, bathroom and living area, or at least 10 private rooms or suites, with at least 90 per cent of units designated for long-term rental.
This move is estimated to provide $25,000 of tax relief for a two-bedroom rental apartment valued at $500,000, according to Finance Canada, and is expected to cost $4.5 billion over the fiscal period of the program.
Declaring her plans to oversee the implementation of Bill C-56, Treasury Board President Anita Anand vowed to ensure the legislative initiatives taken "will ensure value for taxpayer dollars."
As for the timing, eligible builds are those that begin construction in the next six and a half years—specifically between Sept. 14, 2023 and Dec. 31, 2030—and that complete construction by Dec. 31, 2035, according to senior government officials who briefed reporters on the new legislation on a not-for-attribution basis.
According to the officials, Bill C-56 also allows for municipalities, universities, charities and other entities receiving the current to choose to either continue receiving that, or the new incoming GST rental rebate, allowing them to select the more preferable rate for their projects.
However, officials cautioned that "further legislative changes, including regulations" are required to fully implement the GST rebate.
Housing Minister Sean Fraser said the seven-year time frame was designed to allow for builders to "meaningfully plan ahead." He similarly restated Freeland's pledge that this is just the first of housing affordability-aimed announcements to come.
COMPETITION ACT CHANGES
As for the Competition Act changes, Bill C-56 proposes to amend the law to beef up protections for Canadians in connection to Canada's grocery sector competition, which is dominated by a handful of companies.
The government is pursuing amendments that if passed, officials said, would give more power to the Competition Bureau to investigate and take enforcement action on unfair behaviour in the sector, such as price fixing or price gouging.
The bureau would also be empowered to compel information from companies through court orders, in order to conduct market studies, and "block collaborations that stifle competition and consumer choice, particularly in situations where large grocers prevent smaller competitors from establishing operations nearby," Finance Canada said.
Noting what an official described as "increasing corporate concentration," the changes would also end "anti-competitive" mergers that exacerbate the high cost and limited choices Canadian consumers face.
Updating Canada's Competition Act follows a review and consultation held last year, and this bill's changes are only a few small tweaks, with the government vowing a more comprehensive legislative reform package "in the coming months."
"These changes were prioritized because they are the most directly related to issues identified in Canada's retail grocery sector," an official said, noting the parallel talks the government is holding with grocery giants on a plan to stabilize prices by Thanksgiving.
Reacting to the bill's competition measures, the Business Council of Canada warned that they will "create a further chill for business investment" and "negatively impact competition and ultimately harm consumers."
Responding to this, Industry Minister Francois-Philippe Champagne welcomed the comment, but said what Canadians want is "less consolidation, more competition, and lower prices."
"Our competition law has been actually about driving consolidation. And I think what we're saying today with this historic legislation, is Canada is a strong and self confident economy. We are confident enough to have legislation, to have a legal framework, that actually encourages competition in our economy. We believe our businesses are strong enough to compete," Freeland added.
As part of Trudeau's initial announcement, he also pledged to give small businesses in Canada more time to pay back emergency loans offered during the COVID-19 pandemic. Those changes are being made through regulations and won't require legislative change to implement.
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca ÐÇ¿Õ´«Ã½
BREAKING Shohei Ohtani becomes the first major league player with 50 homers, 50 stolen bases in a season
Shohei Ohtani became the first major league player to hit 50 home runs and steal 50 bases in a season, with the Los Angeles Dodgers star going deep twice to reach the half-century mark and swiping two bags to get to 51 against the Miami Marlins on Thursday.
The RCMP has lost 205 firearms since 2020, including 3 submachine-guns
The Royal Canadian Mounted Police has lost 205 firearms since 2020, including more than 120 handguns and at least five fully automatic weapons like machine-guns.
PM Trudeau names Anita Anand transport minister after Pablo Rodriguez quits cabinet
Prime Minister Justin Trudeau tapped Treasury Board President Anita Anand to take on additional duties as Canada's minister of transport on Thursday.
Tensions flare between Poilievre and Singh in the House after NDP says it will back Trudeau Liberals
Conservative Leader Pierre Poilievre and NDP Leader Jagmeet Singh got into a heated exchange in the House of Commons on Thursday, just minutes after Singh announced his party would not be supporting the Conservatives’ first non-confidence motion against Prime Minister Justin Trudeau’s government.
Canadian women among those who allege Harrods boss sexually abused them
CTV News has learned there are multiple Canadian women alleging they were victims of sexual abuse at the hands of the late Harrods boss Mohamed Al Fayed.
Shamattawa RCMP are searching for a missing six-year-old boy who hasn’t been seen since Wednesday morning.
The University of Ottawa's special advisor on antisemitism says he has resigned following posts he made on social media celebrating the pager explosions in Lebanon this week.
Quebec Premier Francois Legault is calling on the Bloc Quebecois to topple the Trudeau government next Wednesday and trigger a federal election.
Influencer couple denies leaving kids alone on cruise
For most people, dinner on a cruise ship is a time to relax. But when influencer couple Abby and Matt Howard decided to kick back with a dinner à deux, they ended up kicking up a storm.
Local Spotlight
They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.
Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.
The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.
The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.
It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.
A Good Samaritan in New Brunswick has replaced a man's stolen bottle cart so he can continue to collect cans and bottles in his Moncton neighbourhood.
David Krumholtz, known for roles like Bernard the Elf in The Santa Clause and physicist Isidor Rabi in Oppenheimer, has spent the latter part of his summer filming horror flick Altar in Winnipeg. He says Winnipeg is the most movie-savvy town he's ever been in.
Edmontonians can count themselves lucky to ever see one tiger salamander, let alone the thousands one local woman says recently descended on her childhood home.
A daytrip to the backcountry turned into a frightening experience for a Vancouver couple this weekend.