Here is a summary of the House of Commons Standing Committee on Finance (FINA) meeting 39, held on May 25, 2026, as part of its pre-budget consultations in advance of the 2026 federal budget.
The committee heard from 17 witnesses across three panels, covering housing, construction, tax reform, digital sovereignty, financial services, automotive manufacturing, and climate finance.
**Tim Ross**, CEO of the Co-operative Housing Federation of Canada, recommended renewing rental assistance for co-op and non-profit housing for at least 10 years, as programs expire in 2028. He also called for continued investment in urban, rural, and northern Indigenous housing using a "for Indigenous, by Indigenous" approach, prioritizing co-op housing within Build Canada Homes, and recapitalizing federal repair programs to prevent the loss of existing affordable units.
**Alana Lavoie**, National Senior Director of Public Policy at Habitat for Humanity Canada, asked for clearer targets and outcome metrics from Build Canada Homes, a new 10-year national housing strategy co-created with the sector that includes a dedicated affordable home ownership pillar, and further tax and financial levers to reduce the cost of delivering affordable housing. She noted that projects are stalling due to uncertainty over expiring programs.
**Ken Lancastle**, COO of the Mechanical Contractors Association of Canada, proposed four measures: tax relief on overtime earnings for skilled tradespeople, expanding the productivity superdeduction to explicitly include construction, increasing the tradesperson tool deduction to $3,000 and indexing it, and amending federal prompt payment legislation to require the annual release of holdbacks on multi-year projects. He argued these would unlock existing capacity in the construction sector.
**Alexandre Laurin**, Vice-President and Director of Research at the C.D. Howe Institute, advocated for a "big bang" tax reform that is revenue-neutral, including lowering personal and corporate income tax rates, simplifying the system with a $10,000 optional credit allowance, and raising the GST or introducing a new payroll contribution to cover the shortfall. He estimated this reform could raise Canada's GDP by 2.5% and would be distributionally neutral.
**Dr. Paul Kershaw**, Policy Professor at UBC and founder of Generation Squeeze, proposed modernizing Old Age Security by slowing its growth for retirees with household incomes above $100,000, saving an estimated $9 billion by the end of the decade. He argued this money could be redirected to eliminate seniors' poverty, improve rental affordability, support post-secondary students, and expand child care, noting polling shows three-quarters of Canadians, including retirees, support the change.
**Renaud Brossard**, Vice-President of Communications at the Montreal Economic Institute, warned that without changes, the federal deficit could reach $117 billion by 2035, driven by rising debt interest costs and new spending commitments. He recommended an ambitious spending reduction plan, including an extended hiring freeze and a review of departmental mandates, and argued that the expansion of the public service has contributed to a decline in entrepreneurship.
**Kaylie Tiessen**, Chief Economist at the Canadian SHIELD Institute for Public Policy, argued that digital sovereignty is Canada's most urgent priority, as the country has ceded control of its digital infrastructure to foreign firms. She recommended six actions, including a whole-of-government digital sovereignty strategy, a national data trust, and a strategic sovereign compute entity, to ensure public expenditures build Canadian-owned capacity and capture the value of domestic innovation.
**Gabriel Giguère**, Senior Policy Analyst at the Montreal Economic Institute, elaborated on the fiscal trajectory, stating that the deficit will not fall below $50 billion by 2030 and will increase thereafter, largely due to the commitment to raise military spending to 3.5% of GDP. He emphasized the need to reduce spending, particularly on the bureaucracy, which has grown significantly since 2015.
**Alex Ciappara**, Vice-President and Head Economist at the Canadian Bankers Association, made six recommendations focused on prudential regulation, tax reform, and fighting fraud. He called for adjusting the capital framework to allow banks to lend more to businesses, reviewing sector-specific taxes on the financial sector, implementing an income-verification solution for mortgage fraud, and reducing internal trade barriers.
**Koleya Karringten**, Executive Director of the Canadian Bitcoin Consortium, urged the committee to recommend against a blanket ban on crypto ATMs, arguing that only 2.2% of fraud losses are linked to them. She proposed a mandatory national compliance standard with robust KYC, transaction limits, and licensing, warning that a ban would push activity into less transparent channels and harm Canadian small businesses.
**Morva Rohani**, Executive Director of the Canadian Web3 Council, recommended clear rules for stablecoins, defining them as payment instruments under federal law to reduce red tape and increase demand for Canadian government bonds. She also asked to allow stablecoin providers to offer reward programs to compete with foreign alternatives and to work with other countries on mutual recognition of regulations.
**Jessica Oliver**, Head of Government and Regulatory Relations at Wealthsimple, urged the government to implement a ban on investment account transfer fees without delay, noting Canadians are paying over $1 million per day in fees. She also called for the on-schedule implementation of a real-time payment rail and an open banking framework, arguing these are essential for productivity and consumer choice.
**Hartland Elcock**, Assistant General Counsel and Vice-President at the Canadian Bankers Association, supported the government's creation of a financial crimes agency but noted it is a significant legislative undertaking. He emphasized the need for a multi-sectoral approach to fighting fraud, including telecommunications and digital platforms, and supported the national anti-fraud strategy.
**Huw Williams**, Director of Public Affairs at the Canadian Automobile Dealers Association, called for the removal of the luxury tax on automobiles, a consultative process for a technology-neutral path forward on EVs, a regulatory fix to prevent a ban on selling heavy-duty trucks in model year 2027, and a pathway for temporary foreign workers in the technician sector. He argued the luxury tax is a trade irritant and that the EV mandate was pushed at an unrealistic pace.
**Helen Tooze**, Senior Policy Researcher at the Canada Climate Law Initiative, recommended amending the Canada Business Corporations Act to require large companies to include climate transition plans in their financial statements, making the sustainable investment guidelines mandatory, and requiring federally regulated pension plans to adopt transition plans. She argued these measures would improve transparency, attract capital, and align Canada with international markets.
**Brian Kingston**, President and CEO of the Canadian Vehicle Manufacturers' Association, prioritized removing U.S. tariffs and renewing CUSMA, calling it foundational to the auto industry. He recommended eliminating the Canada-China strategic partnership on EVs, reducing regulatory complexity with a single national approach, extending the clean manufacturing investment tax credit to 2040, and providing long-term funding for the EV affordability program.
**Stefania Seccia**, Executive Director of the Women's National Housing and Homelessness Network, called for a revitalized national housing strategy with clear targets for ending homelessness and an accurate definition of affordability. She asked that Build Canada Homes allocate at least 40% of deeply affordable units to women and gender-diverse people, and that the urban, rural, and northern Indigenous housing strategy be grounded in Indigenous-led solutions.
The meeting opened with a brief, non-debated point of order where members congratulated a colleague on becoming a grandfather. No procedural debate, motions, or votes occurred during the witness testimony.
AI-generated summary — may contain errors; verify against the official evidence.