It should go without saying that affordability issues in Canada are on the rise, leaving many Canadians struggling to just get by. Not only is it difficult to find an affordable place to live, but it is also difficult to buy groceries or go out and to eat. Meanwhile, grocery store corporations such as Loblaw Companies Ltd. and Metro Inc. have continued to enjoy a rise in profits during the third quarter of this year, with Loblaw posting a record revenue of $18.3 billion, an increase of $556 million from a year prior. The question is: How are these companies making record profits when Canadians are struggling to get by?
Just last month, a new Toronto food bank was forced to open after a large demand, and that new food bank surged in need from 50 families to 200 in a span of only three weeks. According to the Whose Hungry Report by the Daily Bread Food Bank, in 2023, one in 10 people in Toronto are now relying on food banks – twice as many as the year prior. Between April 1, 2022, and March 31, 2023, there has been 2.53 million food bank visits in Toronto, which amounts to a 51% increase year-over-year and the highest annual increase ever reported. The stress and burdens that Canadians feel have led to a pushback on the federal government to do more, which is where Bill C-56 comes into play.
Currently, the Liberal minority government is seeking establish timelines around the debate regarding Bill C-56, which aims to make housing and groceries affordable. This bill contains two parts – the first part is an amendment to the Excise Tax Act which consist of incentivizing construction of more apartment buildings, student housing and senior housing by offering a 100% rental rebate off the GST paid on new purpose-built rentals. The second part of the bill would provide the Competition Bureau powers to investigate and enforce actions on unfair behavior in the grocery sector, such as price fixing or price gouging.
In response to this bill, NDP leader Jagmeet Singh tabled a private member’s bill, Lowering Prices for Canadians Act, seeking more protection for Canadians: this bill proposes to increase the maximum penalty for bad corporate behavior to $25 million for the first infraction and $35 million for subsequent actions, among other changes. The NDP has agreed to help the Liberals advance Bill C-56 in exchange for amendments sought after by Singh. As a side note, NDP MP Daniel Blaikie stated that Conservatives were not willing to let the debate on the bill collapse, and Government House Leader Gould has mentioned that Conservative interference led to the delay in the bill’s advancement beyond the second reading. I think it’s safe to say that the Conservatives’ actions may not be driven by genuine concern for Canadians.
However, the lingering question remains: Will these efforts result in any meaningful change to the affordability crisis faced by Canadians? It’s hard to believe that even with Singh’s amendments, there will be any immediate impact on the struggles faced by Canadians today. Infrastructure, especially housing, takes years to develop, and with the growing influx of people in Canada who will continue needing homes, it will be a long time until we see changes, if at all. Even if there were an increase of supply of rental buildings, it does not address the fact that the developers will probably rent them out at the current prices or more.
In fact, many newly constructed purpose-built rental properties in Toronto are currently on the market for over $2,700 for a one bedroom. As someone who is currently in the market for a one-bedroom, the newly constructed purpose-built rentals cost just as much as a condo, which certainly is not affordable for the average person. In other words, giving builders incentives to build does not necessarily mean that they will be putting out ‘affordable’ housing units. Further, the effectiveness of giving the Minister the power to direct the Commissioner of Competition Bureau to conduct an inquiry into the state of the market in response to the grocery crisis and inflation is also highly questionable.
Despite all this, it is important to acknowledge that taking a step forward is better than stagnation – the fact that something is being done is still better than no action at all. However, it still leaves me wondering if this will truly address the issue, or simply create the illusion of progress. I cannot help but feel like it’s the latter.