Achi news desk-
Government House Leader Stephen McKinnon says the federal government is now doing “more than our fair share” when it comes to dealing with Canada’s housing crisis.
In an interview with CTV Question Period host Vasi Kapelos that aired Sunday, McKinnon called housing an “urgent national priority.”
“That’s why you’ve seen over the last two weeks, ministers and the prime minister going out across the country, working with cities, districts, community groups and others in terms of addressing this priority on a segment-by-segment basis.” McKinnon said.
Since March 27, the federal government has unveiled measures to be included in the April 16 federal budget, many of which are aimed at increasing housing supply.
Some of these measures include an additional $400 million to the Housing Acceleration Fund, a new $6 billion Canadian Housing Infrastructure Fund and an additional $15 billion to the Housing Loan Program.
But some prime ministers have already balked at the latest housing announcements because much of the money comes with conditions and benchmarks that provinces must meet.
“This is a significant oversight by the federal government to come in and try to nationalize housing,” said Jason Nixon, Alberta’s Minister of Seniors, Community and Social Services.
In order to access funds from the new Canada Housing Infrastructure Fund, the provinces must require municipalities to allow the development of four-unit residential apartments, commonly known as four blocks. In some cases, these buildings can reach a height of up to four stories without amending the building codes.
Ontario Premier Doug Ford has spoken out strongly against four parties recently, and on Wednesday urged all levels of government to stay within their jurisdictions.
“I’m going to leave it up to each municipality to decide because they know better than the county and the federal government,” Ford told reporters in Vaughan, ON.
Back in August, Prime Minister Justin Trudeau even said that housing was primarily under provincial jurisdiction.
“I’ll be blunt, too — housing is not a primary federal responsibility. It’s not something we have direct leadership of,” Trudeau said.
When asked by Capelos if the federal government’s recent housing announcements were in response to the Liberals’ drop in opinion polls, MacKinnon demurred.
“What the prime minister also said is that the federal government will be there with the tools, the plans, the resources to do its part. I would argue that we’re actually doing more than our fair share right now in terms of bearing the brunt of this problem,” McKinnon said.
According to Statistics Canada, housing starts have been falling since 2021, and a new Canada Mortgage and Housing Corporation (CMHC) forecast released Thursday says the trend is expected to continue this year before rebounding in 2025 and 2026. The same report also predicts a house. Prices may match the record levels seen in early 2022 by next year and even surpass those prices by 2026.
The federal government has admitted that its latest housing measures will take years to affect housing supply and affordability. When asked by Capelos whether any shorter-term levers around immigration were possible to ease demand, McKinnon said there would be no changes to Canada’s permanent immigration targets.
“In terms of our regular immigration program, no, we’re going to continue with it because that’s what demographers and others say is required in the long-term interests of paying the pensions, and the health care and the things that Canadians value,” McKinnon said.
The Liberals set goals aimed at bringing in 485,000 immigrants this year, and 500,000 in both 2025 and 2026.
The federal government faced criticism earlier this year after The Canadian Press — citing internal documents obtained through an access to information request — reported in January that the federal government had been warned by public servants two years ago that its ambitious immigration goals could jeopardize housing affordability.
Two weeks later, Immigration Minister Mark Miller announced plans to cut the number of international student permits by about 35 percent from 2023 levels. Then, in late March, Miller announced that Canada would place a “soft cap” on the number of temporary resident arrivals, with targets to be determined in September.
McKinnon was also asked how the federal government plans to pay for these latest housing initiatives while facing a $40 billion deficit in the 2023-24 fiscal year. He would not say whether Canadians can expect new taxes, such as a wealth tax, to help generate revenue.
“I’ll let the finance minister talk about her budget,” McKinnon said.
With files from CTV News’ Spencer Van Dyk and CTV News’ Mike Le Couteur
Watch the full interview with Leader of the House Stephen McKinnon at the top of this article
