The Liberals finally came out yesterday with a suite of policy announcements at the end of their caucus retreat, with a bunch of measures that some have been calling on for a while. Removing the GST on purpose-built rentals was actually an idea they ran on in 2015 then didn’t implement after further study (credit to Rachel Aiello for finding that), but have now gone ahead with in light of all of the calls to do so. As well, a number of people were treating the warnings to municipalities about not getting Housing Accelerator Fund dollars if they continued exclusionary zoning as though it were new, when it was part of the policy design in the 2021 platform all along.
Long-defunct Liberal mandate letter tracker:
"The government concluded, based on research and evidence, that there were more effective ways than GST rebates to encourage the construction of affordable rental housing."https://t.co/c3wDa3klgJ https://t.co/UpAdQ5U3T1 pic.twitter.com/siLHUcKLSN
— Rachel Aiello (@rachaiello) September 14, 2023
No.
The Housing Accelerator Fund as originally conceived of in the 2021 Liberal Platform specifically cited densification and NIMBYism as the problem it was meant to solve.
You can credit Pierre for poetry and emotion and marketing.
But not this policy.#cdnpoli https://t.co/HCXLAPjMr5 pic.twitter.com/bSzvovfM77
— Tyler Meredith (@tylermeredith) September 14, 2023
Housing Minister @SeanFraserMP says since news broke of removal of GST from rental construction, Ontario, BC and N.L. have all said they would remove the provincial HST as well – so no sales taxes in those jurisdiction on rental construction #cdnpoli #cdnecon
— Marco Vigliotti (@Marco_Vigliotti) September 14, 2023
One of the more interesting announcements was around upcoming changes to the Competition Act, but while Jagmeet Singh will take credit for it, the government has been consulting on this for over a year. The big news is the proposed elimination of the “efficiencies defence,” which would be a sea change in Canadian competition law.
Pretty huge. Government is killing the efficiencies defense, giving the Bureau proper market study powers, and beefing up ability to go after agreements that kill competition. Material improvements to our competition law.https://t.co/lzSGXohDrB
— Keldon Bester (@KeldonB) September 14, 2023
Efficiencies is major but wouldn't sleep on full market study powers and agreements that hurt competition, especially in light of the Dollarama bread story
— Keldon Bester (@KeldonB) September 14, 2023
There were also warnings to the grocery oligopolies that they have until Thanksgiving to stabilise prices (meaning return them to the headline rate of inflation), but I have a hard time seeing how this is going to work considering that the bulk of price increases are because of supply issue, such as yields being reduced for climate-related droughts or floods. Margins have been consistent throughout, so this policy is going to need a lot more finessing, and the price issues related to a lack of competition in the sector is going to be as difficult to fix as the supply issues. They also said they would extend the loan repayment period for CEBA loans after an outcry, btu extending the deadline for most means forgoing the partial forgiveness portion, meaning they will have more to repay.
Ukraine Dispatch:
Russian shelling killed a six-year-old boy in the village of Novodmytrivka in the southern Kherson region. Ukrainian forces have retaken the village of Andriivka in the east, as they continue to press on toward Bakhmut.
⚡Evacuations ordered for children near Kherson Oblast front lines.
The Kherson Oblast Defense Council has ordered the mandatory evacuation of families with children from 31 settlements, Governor Oleksandr Prokudin announced via Telegram on Sept. 14.https://t.co/oQqJLz1fYB
— The Kyiv Independent (@KyivIndependent) September 14, 2023