(Ottawa) Justin Trudeau’s Liberals are seriously considering limiting the remaining debate time before moving to a vote in the Commons on their Bill C-56 aimed in particular at eliminating the GST on the construction of new rental housing.
They are looking for a dance partner to support them in this process, support which could come from the NDP or Bloc benches.
Two government sources and an NDP source confirmed to The Canadian Press on Wednesday that there are ongoing discussions on a possible time allocation motion at the second reading stage.
The two Liberal sources indicated that the talks involve the Bloc Québécois and the New Democratic Party (NDP), with the two opposition parties attempting to bargain over certain elements in exchange for their potential support of the motion.
All three sources requested anonymity because they were not authorized to speak publicly about the matters.
“The main problem” with the legislative proposal, sponsored by Finance Minister Chrystia Freeland, is that it “does not go far enough,” the NDP says.
According to this source, “several things” are missing from the Liberals’ housing initiatives. New Democrats would like the government to provide support to the non-profit sector and believe that the Liberals rely too much on the goodwill of the private sector.
Bill C-56, presented as a priority by Justin Trudeau’s troops, also includes several legislative changes aimed at giving more teeth to Canada’s Competition Bureau. On these aspects too, the NDP believes that improvements to the Liberal proposal are necessary.
According to a Liberal source, an element external to Bill C-56 is the subject of a request from the Bloc, namely the extension of the deadline for the repayment of loans from the Canadian Emergency Business Account (CEBA) .
The CEBA, created during the COVID-19 crisis, made it possible to “pay(er) $49 billion in the form of interest-free loans of up to $60,000, accompanied by a partial write-off of nearly 900,000 small businesses and non-profit organizations to help them pay their operating costs during the pandemic,” we read in a federal information document.
A Liberal announcement in September concerned the extension of the deadline for loan repayment from December 31 to January 18. According to a Liberal source, the Bloc would like to see more flexibility in this regard.
For several weeks, the Liberals have criticized the Conservatives for blocking the progress of the study of Bill C-56. According to them, Pierre Poilievre’s troops are resorting to obstructive maneuvers.
The office of Government House Leader Karina Gould is involved in time allocation discussions, a Liberal source said.
According to it, the adoption of such a motion, which could be seen as a gag order, is “an option”. The other option is that “the conservatives change their tune,” it was argued.
As time flies between now and the parliamentary break for the holiday season, Liberals are becoming increasingly impatient so that Bill C-56 can be adopted. “It is to the advantage of Canadians that we do this as quickly as possible,” insisted another government source behind the scenes.
Generally speaking, the spirit of the bill pleases the NDP and the Bloc Québécois, as representatives of both parties have publicly expressed.
When the time comes for the vote on second reading, the legislative stage to which the study of the bill will reach after a debate in the House, everything indicates that the New Democrats will support C-56.
At least that’s what NDP leader Jagmeet Singh suggested in a press scrum earlier this month.
Mr. Singh said he and his troops agree with certain elements of the bill, such as measures to give more powers to Canada’s Competition Bureau.
“For the second reading, we are open, but for the third reading, we must have firm sanctions to force (the) companies to do what they must do to reduce costs,” he responded to journalists .
Mr. Singh suggested that once he reaches second reading, he will have time to convince the Liberals to make amendments to C-56.
“There is a moment in (the study in) committee where we can add our amendments, but if the amendments are not accepted, if we do not have firm sanctions, it is not a bill, at third reading, which we want to support,” he said.
The NDP leader tabled his own piece of legislation proposing changes to the Competition Act.
His party generally views the Liberal suggestion of eliminating the GST on the construction of new rental units positively, even if he remains unsatisfied.
When it comes to housing and affordability, the Conservative leader also tabled his own piece of legislation. Pierre Poilievre’s team also proposes the abolition of the GST on the construction of new rental housing. However, in their case, they intend to limit the measure to those “whose rental price is lower than the market value”.
The elimination of the GST proposed by the Trudeau government revisits a 2015 election promise that the Liberals abandoned. At that time, it was anticipated that the measure would only apply to affordable housing.