Remarks by the Deputy Prime Minister at the Senate Committee of the Whole regarding Bill C-56, the Affordable Housing and Groceries Act

At a time when there is so much division in so many countries in the world, I am pleased to report to Senators that Bill C-56 passed unanimously in the House on Monday, and I really hope that it will have the same support here.

Ottawa, Ontario — December 13, 2023

It's a pleasure for me to be here with Minister Champagne to discuss Bill C-56, which is an important part of our economic plan.

Through the Affordable Housing and Groceries Act, our government is taking new, concrete action to build more homes, faster, and make life more affordable for Canadians.

I'd like to outline why it is so important that the Senate support this legislation.

First, we are removing the GST on new purpose-built rental housing, which will help build more homes, faster, across Canada.

This is about making the math work for builders, by making it more affordable to build more homes that would otherwise not move forward due to construction costs.

For example: in the case of a two-bedroom rental unit, valued at $500,000, a builder will benefit from $25,000 in federal tax relief, which will make it more cost effective for them to build.

And our plan is already delivering results.

To give you one example, a Toronto-based developer announced, after we announced this measure, that they would build 5,000 new rental units across the country. These were units that were otherwise on hold. That's just one developer.

Today, about a third of all Canadians rent their homes—and whether they are students, families, young professionals, seniors, or new Canadians, it's essential that we build more rental homes, and we build them faster.

I believe that's a goal that all of us share.

Second, Bill C-56 will also increase competition across our economy, particularly in the grocery sector.

More competition means lower prices and more choice—and by increasing competition and cracking down on unfair and anti-competitive practices, we will help to stabilize prices for Canadians.

We are seeking to amend the Competition Act to give the Competition Bureau a real ability to investigate and crack down on price fixing.

We are also removing the "efficiencies defence" to end anti-competitive mergers that raise prices and limit choices for Canadians.

And we are empowering the Competition Bureau to put a stop to situations where large grocers prevent smaller competitors from establishing operations nearby.

Through our economic plan, our government will continue to do everything we can to build an economy that works for everyone—and that is exactly what this legislation will help to do.

At a time when there is so much division in so many countries in the world, I am pleased to report to Senators that Bill C-56 passed unanimously in the House on Monday, and I really hope that it will have the same support here.

Thank you very much.