Finance

The House of Commons Standing Committee on Finance met to study Bill C-4, which contains affordability measures including a middle-class tax cut and GST relief for first-time homebuyers on new homes. The Minister of Finance, François-Philippe Champagne, appeared to discuss the bill and the government's new approach to budgeting, including a shift to a fall budget cycle and a capital budgeting framework. Three witnesses from the housing sector also testified.

Jennifer Keesmaat, President and CEO of Collecdev-Markee, said that while she supports the first-time homebuyer GST rebate in Bill C-4, it is only a first step and should be extended to all buyers of primary residences, not just first-time buyers. She urged the committee to take an ecosystem approach to housing, noting that high government fees, including development charges, are hindering projects, and that the federal government should act quickly to cut development charges and make municipalities whole for shovel-ready projects. She disagreed with the idea that demand-side measures alone can solve the crisis, arguing that only increasing supply and building targeted affordable housing will work.

Geoff Cape, CEO of Assembly Corp., said the GST relief in Bill C-4 is the right idea and welcomed the companion $13-billion Build Canada Homes initiative as a necessary larger strategy. He recommended a collection of policies focused on financing, supply chain integration, and streamlining approvals, drawing on global best practices from Sweden, where over 90% of housing is produced off-site in factories. He argued that Canada has the ingredients to lead in industrialized construction, which can produce higher-quality homes more quickly and at lower cost, and that the Build Canada Homes investment is an opportunity for both affordable housing and economic development.

Richard Lyall, President of the Residential Construction Council of Ontario, said Bill C-4 is a critically important first step but more is needed, and he commended the government for following through on its commitments. He noted that the GST rebate only helps first-time buyers, not downsizers or others, and that development charges have become a runaway tax grab, with some municipalities seeing increases of up to 2,000% over a decade. He called for cutting all taxes on new housing, including the industrial carbon tax, and for the housing accelerator fund to be more disciplined in rewarding municipalities that meet targets, adding that provinces must step in when municipalities continue with "not in my backyard" policies.

The committee also heard from the minister, who defended the government's fiscal position, citing the lowest debt-to-GDP and deficit-to-GDP ratios in the G7 and a AAA credit rating. He announced a new capital budgeting framework and a shift to a fall budget cycle, which he said would provide more transparency and align with the construction season. Opposition members pressed him on when the budget would be balanced and on the government's consultation process, while the minister countered that the government had conducted extensive consultations over the summer. At the end of the meeting, the committee agreed to request that the minister provide the committee report he referenced regarding the budget cycle change, and the clerk was asked to provide a schedule of upcoming meetings.