Government Withholds Research Confirming GST Holiday for Builders Will Reduce Rental Prices
Finance Minister Chrystia Freeland stated that all data related to the research is confidential and will not be released. She referred to federal research that justifies the claim that a GST holiday for builders will lower rents as confidential documents.
The Department of Finance calculated that a GST holiday on “purpose-built rental housing” constructed by 2036 will cost $4.6 billion over five years. The information was highlighted by the Department of Finance. Bloc Québécois MP Gabriel Ste-Marie asked the Ministry for access to studies and the source of documents that led to the conclusion that removing the GST would lower housing costs, to which the deputy prime minister replied that all data was classified as confidential.
According to Ms. Freeland, the department applies the principles set out in the Access To Information Act, and certain information has been withheld on the grounds that it constitutes cabinet confidences. Mr. Ste-Marie expressed his concern about the lack of respect for elected officials and the parliamentarians’ inability to perform their duties due to a lack of information. There was criticism about the lack of information justifying the expense, which was called unacceptable. There was dissatisfaction with the fact that cabinet has not given an estimate of the expected number of new rental apartments to be built as a result of the GST holiday. Prime Minister Justin Trudeau mentioned that the measure would lead to millions of people getting into new apartments. Housing Minister Sean Fraser mentioned estimates of 200,000 to 300,000 new homes for Canadians over the next 10 years.
Canada Mortgage and Housing Corporation (CMHC) managers testified that they had no data on the impact of the GST cut, and they hadn’t had the opportunity to assess the potential impact due to the difficult environment at the time. Despite this, there is a need for additional information and transparency regarding the documents and the fiscal impact of the proposed bill.
