Ottawa to remove GST on new rental housing, calls on cities to end exclusionary zoning: PM
The Liberal government is dusting off a measure it promised years ago and pulling in other parties' proposals for cheaper groceries and more homes as it struggles to tackle affordability concerns that are top-of-mind for many Canadians.
"The promise of Canada is about every generation reaching even higher than the previous one," Prime Minister Justin Trudeau said Thursday.
"Our job as a government, as a team, is to secure that promise."
He spoke to reporters at the end of a three-day caucus retreat in London, Ont., with most of his party's 158 MPs standing on risers in the background and clapping throughout the announcement and as Trudeau took questions from reporters.
MPs said the retreat involved frank exchanges on why the Liberals are polling at their lowest levels since taking office eight years ago.
Those polls suggest Canadians believe the Conservatives would do a better job dealing with affordability and housing concerns, while the NDP has aggressively called out corporations for the high cost of food.
Thursday's announcements seek to address both issues.
Industry Minister Francois-Philippe Champagne said he will ask Canada's five largest grocery companies to come up with a plan by Thanksgiving to stabilize prices, and that he is not ruling out forcing them to do so through tax measures.
In a press release, the Liberals also said they will take steps to "enhance competition across the Canadian economy," giving the Competition Bureau the power to take action on corporations that work together to stifle consumer choice -- specifically citing large grocery stores that have prevented competitors from setting up shop nearby.
But most of Thursday's measures surround housing, with the federal government pledging to remove GST on construction of new rental apartment buildings -- a move Trudeau first promised in the 2015 election that brought the Liberals to power.
On Thursday, Trudeau said Liberals deliberately scrapped that promise because it didn't respond to needs at the time.
Fraser said other housing policies seemed to yield "a better return on our investment" early in the Liberals' term, but he said the GST cut is now a better tool to fix problems that emerged in the COVID-19 pandemic "that have made it more expensive to build the kinds of homes that people can actually afford."
The measure would lower the cost of labour and materials for homebuilders, and Trudeau said he hopes other provinces follow Ontario's Thursday announcement that they will remove their own sales taxes on the cost of building new rental homes too.
The Liberals have also followed Conservative Leader Pierre Poilievre in pointing the finger at municipalities for exclusionary zoning policies that prevent homes from getting built.
Housing Minister Sean Fraser sent a letter to Calgary's mayor Thursday urging city council to make it easier for homeowners to rent out their basements. The current process involves reams of paperwork and attempts at changing the policy have led to heated council meetings.
"We will never solve the housing crisis in Calgary if it is not legal to build the homes required to meet the moment," Fraser wrote in a letter to mayor Jyoti Gondek that she released on X, formerly known as Twitter.
The letter noted that cities must encourage building apartments near public transit in order to get federal funding through the housing accelerator fund.
On Wednesday, London became the first city to get its funding approved. While the $4-billion fund was announced in the 2022 budget, applications opened in July. Trudeau blamed mayors for the delay Wednesday.
Trudeau stressed that any progress on housing will require intergovernmental collaboration, and time.
"This is something that all Canadians are worried about," the prime minister said.
"We know that housing is a problem that takes decades to address."
The opposition says the Liberals are simply responding too late.
In a press conference of his own, Poilievre pledged similar measures that would reward and punish municipalities based on whether they have policies that encourage building homes.
His proposals include removing the GST from building new, affordable rental apartments, and he took a shot at Trudeau for breaking his 2015 promise.
"He's flip-flopped again and he expects you to believe it," he told reporters in Vancouver.
The NDP noted that they called for the GST to be dropped on new, affordable rental buildings six months ago, and said an entire construction season has passed since then.
They also questioned whether the measures will be targeted at affordable homes or include "luxury condos."
Meanwhile, the Liberals are pledging further, unspecified action on affordability this fall.
Champagne said he took note of moves by French supermarket chain Carrefour to wrangle lower prices out of global brands such as Nestle and Unilever.
This week, the supermarket chain started using slapping "shrinkflation" warning stickers on products that have shrunk in size but risen in cost, despite the price of raw materials stabilizing.
This report by The Canadian Press was first published Sept. 14, 2023.
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 Top Stories
Canadian family stuck in Lebanon anxiously awaits flight options amid Israeli strikes
A Canadian man who is trapped in Lebanon with his family says they are anxiously waiting for seats on a flight out of the country, as a barrage of Israeli airstrikes continues.
Suspect in shooting of Toronto cop was out on bail
A 21-year-old man who was charged with attempted murder in the shooting of a Toronto police officer this week was out on bail at the time of the alleged offence, court documents obtained by CTV News Toronto show.
Scientists looked at images from space to see how fast Antarctica is turning green. Here's what they found
Parts of icy Antarctica are turning green with plant life at an alarming rate as the region is gripped by extreme heat events, according to new research, sparking concerns about the changing landscape on this vast continent.
DEVELOPING 2 dead after fire rips through historic building in Old Montreal
At least two people are dead and others are injured after a fire ripped through a century-old building near Montreal's City Hall, sources told Noovo Info.
Yazidi woman captured by ISIS rescued in Gaza after more than a decade in captivity
A 21-year-old Yazidi woman has been rescued from Gaza where she had been held captive by Hamas for years after being trafficked by ISIS.
A 6-year-old girl was kidnapped in Arkansas in 1995. Almost 30 years later, a suspect was identified
Nearly 30 years after a six-year-old girl disappeared in Western Arkansas, authorities have identified a suspect in her abduction through DNA evidence.
Dolphins 'smile' at each other when they play and to avoid misunderstanding, study finds
For humans, flashing a smile is an easy way to avoid misunderstanding. And, according to a new study, bottlenose dolphins may use a similar tactic while playing with each other.
Pit bulls in B.C. pet mauling tested positive for meth, cocaine, says city
Three pit bulls involved in a deadly attack on another dog last month in Kamloops, B.C., tested positive for methamphetamine and cocaine, and the city is going to court to have them put down.
Tax rebate: Canadians with low to modest incomes to receive payment on Friday
Canadians who are eligible for a GST/HST tax credit can expect their final payment of the year on Friday.
Local Spotlight
'Very special to be home': Chantal Kreviazuk to play anniversary concert in Winnipeg
Chantal Kreviazuk is set to return to Winnipeg to mark a major milestone in her illustrious musical career.
'Too good to be true': Guy Maddin on whirlwind release of apocalyptic comedy starring Cate Blanchett
From the beaches of Cannes to the bustling streets of New York City, a new film by a trio of Manitoba directors has toured the international film festival circuit to much pomp and circumstance.
Husband and wife on road trip of a lifetime stop in Sask. for winter
A husband and wife have been on the road trip of a lifetime and have decided to stop in Saskatchewan for the winter.
Unknown Canadian soldier from First World War identified as Manitoba man
The grave of a previously unknown Canadian soldier has been identified as a man from Hayfield, Man. who fought in the First World War.
N.S. classic cars club donates hundreds of blankets to nursing homes
A group of classic car enthusiasts donated hundreds of blankets to nursing homes in Nova Scotia.
Canada's October temperatures set to teeter-totter due to record-breaking U.S. heat
Moving into the second week of October, the eastern half of Canada can expect some brisker fall air to break down from the north
New Westminster, B.C., aquatic facility named alongside Paris Olympic venue as world's most beautiful
What does New Westminster's təməsew̓txʷ Aquatic and Community Centre have in common with a historic 68,000-seat stadium in Beijing, an NFL stadium and the aquatics venue for the Paris Olympics? They've all been named among the world's most beautiful sports venues for 2024.
'Thank you Kaye San': Last surviving member of Vancouver Asahi baseball team dies at 102
The last living member of the legendary Vancouver Asahi baseball team, Kaye Kaminishi, died on Saturday, Sept. 28, surrounded by family. He was 102 years old.
'Like going to a buffet with no one else in line': Housing sales stall in Metro Vancouver, Fraser Valley
New data from Greater Vancouver and the Fraser Valley shows a surge in supply and drop in demand in the region's historically hot real estate market.