Can the government make housing, groceries more affordable? Don’t hold your breath

Patrick Gossage • September 22, 2023

Pierre Poilievre, who is always good for a catchy line, recently commented on the Liberal cabinet ministers’ meeting with grocery titans to try and persuade them to reduce prices: 

“It’s an act and what we need is action.”

I would argue that so much political crowing about attacking high costs of living like housing and groceries particularly is just that – an act that is unlikely to produce reliable results for weary cash-strapped Canadians. 


The Liberals calling grocery chain titans to shame them has been called pure political theatre. An ebullient fast-talking Minister of Industry, François-Philippe Champagne, emerged announcing the members of the group had agreed to make plans  that would “stabilize” prices by Thanksgiving. In several interviews his boss, Justin Truedeau was led to say it would be nice if they lowered prices, but clearly cheaper turkeys are not in the cards. 


The PM hinted that  tax measures could be the punishment for them not showing this minimum action on rising food price, an idea he had rejected earlier since he assumed new taxes would be passed on to consumers. He also announced measures for the Competition Burau so it could act against measures that stifled competition and consumer choice, in particular situations where large grocers prevent smaller competitors from establishing operations nearby. These may be effective but lower prices don’t necessarily follow. 


We can expect gushing full-page ads from the grocery chains explaining all they are doing to ensure customer value and the difficulty in dealing with suppliers who have been raising prices that they cannot control. In any event , “stabilizing” prices will be easier given the already lower price increases month over month announced the day after the meeting by Stats Canada.


The Liberal government was at least being seen to do something that answered the public revulsion over the over grocery chains’ $100-billion plus profits while their prices rose substantially, and many had to access overburdened food banks for the first time to keep eating. Lower prices? Unlikely. 


The Liberal government, newly found inspiration to tackle the affordability issues that are actually distressing Canadians, announced their detailed intentions in a flourishing news release on September 14 which opened as follows: 
The Prime Minister, Justin Trudeau, today announced a suite of new measures to support the middle class and people working hard to join it. This includes action to build more rental housing, …and drive down the cost of groceries.


There it is - the big promises and a seeming return to the badly defined middle-class Liberal focus. The “build more housing” promise was made the week before with a big announcement in London, Ontario. Justin Trudeau promises funding to build more than 2,000 new housing units there over the next three years. It is the first city in the country to sign a deal under the misnamed national housing accelerator fund, a $4-billion program first announced in the spring 2022 federal budget. Promises were made to negotiate similar deals with other cities – the qualification being local governments have to end exclusionary zoning and encourage building housing near public transit.


Rental housing construction will get a much lobbied for boost with the removal of the GST for purpose-built rentals. This move was applauded by the apartment building industry and should show increases in that sector. The changes to the Competition Bureau’s powers and the GST announcement were re-announced on Sept. 21st as proposed legislation. 


So for new housing, there will be a lengthy rollout for the “accelerator” fund’s benefits to be felt since cities have to have projects ready and be signed on one by one. No fast fix here. The need is challenging with major immigration numbers already straining the system. The government’s estimates the need of an additional 3.5 million more housing units over the coming decade. This will require doubling the number of homes built over that period.  The industry’s current performance is lackluster due to high interest charges and manpower problems. It is unlikely that it can meet these targets. 


Let’s remember that in politics it’s an ironclad rule that you don’t promise more than you can deliver. It appears that in grocery prices and housing the government has bitten off more than it can chew. The Leader of the Opposition will closely watch to see if there is any improvement in these two sectors and will pounce if predictably in the medium-term results are poor. They will have to show good results if the public’s attitude to the Liberals, now at an all-time low, is to improve in the next two years before an election.


More announcements are on the horizon from the young, dynamic housing Minister Sean Fraser. We can hope they have more optimistic timelines. The hard truth is that to bring housing affordability down requires prices to stabilize to allow earnings to catch up. Either this happens or the bubble owners have been enjoying really bursts. Neither is predictable. Inflation is up at four per cent indicating the possibility of more damaging interest rate hikes. Getting young people into homes and out of basements seems a long distant hope. 


There is little possibility of major new supply of affordable homes, or relief from high grocery prices. And supporters of the Conservative party await sensible plans from their leader. Canada waits and watches. Electoral success depends on real action where Canadians hurt most.   

Patrick Gossage Insider Political Views

By Patrick Gossage July 7, 2025
When I was at university in the sixties, it was easy to love being Canadian. Patriotism was easy in the era of Pearson, peacekeeping and his Nobel Prize. He introduced defining landmark social programs like the Canada Pension Plan and universal health care. He also was crucial in launching the new Canadian flag, promoting bilingualism, and fostering a more inclusive immigration policy. His government got into the business of Canadian cultural promotion with the establishment of Telefilm Canada in 1967 to fund Canadian filmmakers. (The crown corporation, the National Film Board, was established in 1939.) The Pearson era went out with a proud Canadian bang at Expo67. Canada was prosperous, our identities, either largely British and French, were secure. The writer and philosopher George Grant, put it this way: “English speaking Canadians have been called a dull and costive lot. In these dynamic days, such qualities are particularly unattractive to the chic. Yet our stodginess has made us a society of greater simplicity, formality, and perhaps even innocence than the people to the south.” This is the society in which most anglo seniors today grew up. Not chic, looking with some envy at the glamour of Hollywood and Broadway, but modest and content. But the seeds of change were there. In Toronto. Italian and Portuguese laborers were being brought in to build subways and suburbs. Canada was about to add to the core French and English culture, and value assumptions far more diverse, and multicultural influences. Multiculturalism became official government policy in 1988. In his speech to the House of Commons, Trudeau stated that no singular culture could define Canada, and that the government accepted “the contention of other cultural communities that they, too, are essential elements in Canada.” A policy of multiculturalism was implemented to promote and respect cultural diversity, and to in fact fund ethnic efforts to preserve and develop their cultures within Canadian society, the opposite of the US “melting pot” objective. Section 27 of the Canadian Charter of Rights and Freedoms officially recognizes multiculturalism as a Canadian value. In a 1971 speech in Winnipeg to a Ukrainian audience, Trudeau said: “What could be more absurd than the concept of an “all Canadian boy or girl! “ Trudeau greatly enlarged the makeup of the body of immigrants by expanding the ‘family class’. In 1978 immigration act changes allowed new Canadians to sponsor their parents of any age. Those from less-developed nations found this particularly appealing. Trudeau senior’s major accomplishment which ensured the protection of all minority rights was the repatriation of our constitution woth the Charter of Rights and Freedoms Now In Canada, approximately 23.0% of the population are first-generation immigrants, meaning they were born outside of Canada. This figure represents the highest proportion of immigrants in Canada in 150 years and is the highest among G7 countries. Over half of our population are either of English or French heritage. The torch of openness to refugees and immigrants and “diversity is our strength” has been taken up by Justin Trudeau in a big way. He told the New York Times Magazine in October 2014 that Canada could be the “first post national state”. He added: “There is no core identity, no mainstream in Canada.” Many would argue that, yes, there is a core set of Canadian values. Often not recognized, they are regularly reflected in government policies. They set us apart from the United States, form part of our identity, and enrich our life experiences. Pearson and the Trudeaus have been instrumental in implementing Liberal values, ensuring equality of opportunity across the country and that no minority is trampled on. Foremost is universal publicly funded health care, whatever its problems. His son will be remembered for the Canadian Child benefit which today grants parents up to over $6,000 per child, which greatly reduced child poverty and $10 a day daycare. Justin Trudeau also launched publicly funded denticare and started a pharmacare program. Recipients of these programs obviously see them as essential parts of being Canadian. The generally shared values of Canadians include the importance of collective wellbeing, co-operation and social equality and a belief that active governments can improve our lives. Justin Trudeau’s self-declared “feminism” and his making cabinet one half women showed a dedication to equal rights for women which he tirelessly promoted. He was forever promoting the value of “diversity is our strength”. We genuinely welcome immigrants and show a high degree of tolerance for differences. Perhaps the best indication of this is the late seventies welcoming of over 60,000 Vietnamese boat people. As well, after 2015, over 44,000 government and privately sponsored Syrian refugees were settled and helped to establish themselves in Canada. Prime Minister Trudeau personally welcomed the first arrival in Toronto. While seemingly uncontrolled immigration of foreign students and refugees has become more controversial recently, it is accepted that we need immigrants, and the flow is now more rationally controlled. His father also ruled over a Canada that was very pro-Canadian and even anti American – not hard when the United States was immersed in the nightmare of Vietnam. He was well aware of the dangers signaled by George Grant in Lament for a Nation, which predicted the virtual integration of the Canadian and US economies. He established the Foreign Investment Review Agency to break the wholesale takeover of Canadian businesses by US firms. He established Petro Canada to get a window into the largely foreign owned oil and gas sector. And his government was very active in supporting and encouraging Canadian culture. The CRTC mandated Canadian content on our airwaves, spawning a healthy music industry. His son substantially increased funding for the public broadcaster CBC. Then in 1988 came a major shift in our identity and sovereignty. Prime Minister Mulroney wanted a free trade deal with the US and John Turner, the defeated Liberal leader, finally found his voice: “I will not let Brian Mulroney sell out our sovereignty. I will not let this great nation surrender its birthright. I will not let Brian Mulroney destroy a 120-year-old dream called Canada, and neither will Canadians”. But Turner lost, and a new deal sealed the situation we are in today with over 70% of our exports going stateside and Trump determined to wage economic warfare with a country he feels does not have a right to exist and should be the 51 st state: “Economically we have such power over Canada.” In fact, we have inadvertently given him “all the cards” as Trump likes to say. Turner might well say from the grave, “I told you so!” Sovereignty means more than building our own economy more independent of the United States. It means rebuilding the pride we have as Canadians and actually knowing and cherishing its values so different from those south of us. And this seems to be happening ironically, thanks to Trump’s trumpeting us as a 51 st state. Flags are everywhere and as we celebrate our 158 th birthday there is a new patriotism bursting out across the nation. The national anthem is being enthusiastically sung by audiences at all sorts of gatherings and performances. And worry as we may about the diverse cultures and beliefs of the hundreds and thousands of immigrant adults from every corner of the Globe, we know their children going to public schools will become knowledgeable, committed Canadians. There is a Canadian soul which will not be destroyed.
Doug Ford in a suit and tie is talking into a microphone
By Patrick Gossage June 11, 2025
Who is the is the real Doug Ford? Is it the smiling man walking beside Premier of Alberta Danielle Smith into the meeting of the Premiers with the PM intoning “love is in the air”(!) or the inept initiator of the Green Belt scandal which sold protected land to his developer friends – for which he apologized while reversing the order?
More Posts