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Canada housing crisis: Feds stick by immigration plan

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OTTAWA –

The alarm bells are becoming bull horns: Canada’s housing supply isn’t keeping up with the rapid rate of population growth.

Academics, commercial banks and policy thinkers have all been warning the federal government that the pace of population growth, facilitated by immigration, is making the housing crisis worse.

“The primary cause for (the) housing affordability challenge in Canada is our inability to build more housing that is in line with the increase in population,” said Murtaza Haider, a professor of data science and real estate management at Toronto Metropolitan University.

A TD report released in late July also warned that “continuing with a high-growth immigration strategy could widen the housing shortfall by about a half-million units within just two years.”

But the Liberals are doubling down on their commitment to bring more people into the country, arguing that Canada needs high immigration to support the economy and build the homes it desperately needs.

“Looking at the (immigration) levels that we have recently approved as a cabinet (and) as a government, we can’t afford currently to reduce those numbers,” Immigration Minister Marc Miller said in an interview with The Canadian Press.

That’s because Canada’s aging population risks straining public finances, he said, as health-care needs rise and the tax base shrinks.

A report by Statistics Canada published in April 2022 finds the country’s working population has never been older, with more than one in five people close to retirement.

At the same time, Canada’s fertility rate hit a record low of 1.4 children per woman in 2020.

The TD report, co-authored by the commercial bank’s chief economist Beata Caranci, notes that economists are the ones who have been warning of the economic consequences of Canada’s aging population.

“A ramp-up in skilled-based immigration offered a solution. Government policies have delivered, but now the question is whether the sudden swing in population has gone too far, too fast,” the report said.

The federal government’s latest immigration levels plan, released last fall, would see Canada welcome 500,000 immigrants annually by 2025.

In contrast, the immigration target for 2015 was under 300,000.

Although the half-million figure has caught considerable attention, it’s not just higher immigration targets that are driving the surge in population.

Canada is also experiencing a boom in the number of temporary residents who are coming to the country, which includes international students and temporary foreign workers.

In 2022, Canada’s population grew by more than one million people, a number that included 607,782 non-permanent residents and 437,180 immigrants.

Miller said in the interview that the federal government is open to reconsidering international student enrolments, particularly amid fraud concerns.

Earlier this year, hundreds of people were suspected of being caught in a fraud scheme that saw immigration agents issue fake acceptance letters to get students into Canada.

“There is fraud across the system that we are going to have to clamp down on,” Miller said.

The increased scrutiny of Canada’s immigration policies and population growth comes as the country faces a housing affordability crisis caused in large part by a shortage of homes.

Most experts agree that the root causes of this housing shortage are unrelated to immigration. Red tape and anti-development sentiment at the municipal level, for example, can lead to major delays in projects.

Federal tax incentives that helped spur purpose-built rental constructions were rolled back decades ago, leading to a massive shortage in rentals that has slowly built up over time.

Given these existing challenges, experts are concerned strong population growth will add fuel to the fire.

BMO published an analysis in May that estimated that for every one per cent of population growth, housing prices rise by three per cent.

The rebound of the Canadian real estate market this year also shows how immigration is helping to maintain demand for housing, despite decades-high interest rates.

“Strong population growth from immigration is adding both demand and supply to the economy: newcomers are helping to ease the shortage of workers while also boosting consumer spending and adding to demand for housing,” the central bank said after raising rates again in July.

Mike Moffatt, a housing expert and economist, said the federal government doesn’t necessarily need to change its immigration targets.

“But it does mean that they’re going to have to get very bold on housing,” said Moffatt, an assistant professor at the Ivey Business School at Western University in London, Ont.

For the federal Liberals, the relationship between population growth and housing prices jeopardizes public support for its immigration policies.

David Coletto, the CEO of Abacus Data, said polling shows Canadians are concerned about the impact immigration is having on the housing market.

“There’s a belief, anyways, that on the one hand, immigration is needed because we’re an aging population, because … we need people to do certain types of work that we don’t have sort of the domestic capacity for,” Coletto said.

“They also see the downside, which is putting further pressure on the housing market and pressure on health care.”

Miller said the federal government needs to carefully examine reports on housing and population growth, but he also raised concerns that some of the critiques are motivated by bigotry.

“The wave of populist, opportunist sentiment that does at times want to put all of society’s woes on the backs of immigrants — I think we need to call that out when we see it,” he said.

Immigration is also part of the solution to the housing crunch, Miller added. Construction is one of the industries where the labour shortage is most critical, and Miller argued that the people who are coming in can help build the new homes that are required to alleviate the crisis.

The federal government recently announced changes to the express entry system that would prioritize tradespeople for permanent residency.

Housing Minister Sean Fraser, who held the immigration portfolio before this summer’s cabinet shuffle, said the government is aware of the need to better align its housing and immigration policies.

“The things that we were working towards, that I expect will continue to be advanced under Mr. Miller’s watch, is the need to better tie our immigration policies to our housing and infrastructure strategies,” Fraser said in an interview.

“It certainly does require some deep thinking to figure out how and where we’re going to build the homes and grow the communities in a way that will mirror where people are moving to.”

This report by The Canadian Press was first published Aug. 16, 2023.

 

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B.C. to scrap consumer carbon tax if federal government drops legal requirement: Eby

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VANCOUVER – A re-elected NDP government would scrap British Columbia’s long-standing carbon tax and shift the burden to “big polluters” if the federal government dropped its requirement for the law, Premier David Eby said Thursday.

At a campaign event in Vancouver, Eby said his government would end the provincial carbon tax on consumers if the federal “legal backstop” requiring the province to keep the tax in place is removed.

“Two things will happen. One is we’ll remove the carbon tax for everyday British Columbians, for the farmers, for the truckers, for the average British Columbian,” Eby said Thursday.

“The second thing is we believe that climate change is a real and present threat, unlike (B.C. Conservative Leader) John Rustad who thinks it’s a hoax. “And so we will continue to ensure … that the big polluters are paying their fair share.”

He said the federal Liberal government’s approach to the carbon tax has “badly damaged” what was a political consensus on the issue in the province, which goes to the polls on Oct. 19.

Federal Conservative Leader Pierre Poilievre has meanwhile vowed to end the carbon tax if elected.

British Columbia’s provincial carbon tax has been in place since 2008, when it became the first jurisdiction in North America to put a price on carbon emissions, but Eby said the carbon tax issue has since been “politicized,” something he called “incredibly unfortunate.”

“It’s had an impact right across the country in terms of peoples’ support for this kind of approach,” he said.

“Combine that with rising interest rates, high global inflation, and we need to make sure that we’re supporting British Columbians however we can right now.”

He said the federal government’s “unsustainable hikes” on how much people have to pay, coupled with differential treatment given to certain products and provinces had squeezed consumers at a time they need “support.”

“I believed and still believe that a price on carbon is and can be an effective tool, which is why I think that big polluters need to pay in this province,” he said.

Eby was flanked by Manitoba NDP Premier Wab Kinew at the campaign event.

Kinew said climate change needed action but the politicization of the issue had alienated blue-collar workers and a “generation of Canadians,” something he said the NDP couldn’t afford.

He said there had to be “flexibility” in the face of the affordability crisis.

“Of course, we’re going to be doing all those things to reduce emissions and to incentivize a low carbon economy, but we’ve got to keep a critical mass of Canadians on side with solving the climate crisis,” Kinew said.

B.C. Conservative leader John Rustad said Eby’s “reversal” on the tax was a “desperate attempt to salvage his sinking political ship.”

“Eby has spent years championing this disastrous tax that punishes families and businesses. Now, faced with growing opposition, he’s pretending to care. It’s nothing more than a cynical ploy,” Rustad said in a written statement sent minutes after Eby’s comments.

BC Green Party Leader Sonia Furstenau, called Eby’s pledge a “carbon tax flip-flop.”

“It is obvious that the B.C. NDP is making up climate policy on the fly. He now says big emitters should pay for climate change — but his government is giving billions in subsidies to the fossil fuel industry to increase fracking,” she said in a written statement.

“B.C. deserves a clear, coherent plan for climate change and the clean economy, not confusing contradictions.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.



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B.C. to ensure fruit growers impacted by co-op closure are paid for past harvests

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VICTORIA – The British Columbia government says it is taking steps to ensure tree fruit growers are compensated for past harvests after the closure of a co-operative that had served farmers for almost 90 years.

It says the Investment Agriculture Foundation of BC is “redirecting” about $4 million in provincial funding that will be used to ensure co-op members receive money they are owed.

The province says the foundation will pay growers in the coming weeks and then recoup the funds at the end of the court process involving the BC Tree Fruits Cooperative that filed for creditor protection last month.

In July, the co-op, which processed, stored, packaged and sold fruit for 230 member farms, announced it was shutting down after 88 years of operation.

It says it has more than $58 million in liabilities.

The agriculture ministry says it is has also provided $100,000 to the BC Fruit Growers Association that will go toward food-safety certification that was previously done by the co-op.

This report by The Canadian Press was first published Sept. 12, 2024.

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Ceiling high for Vancouver Whitecaps midfielder Ahmed: Canada coach

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VANCOUVER – Jesse Marsch issued Canada’s men’s soccer squad a challenge — get physical.

The edict came after the Canadians surprised many at this summer’s Copa America tournament, making it through to the semifinals. As his players departed for their professional clubs, the head coach wanted them thinking about continued growth.

“I challenged them to be more physically present in the matches that they played in,” Marsch said. “I’ve tried to encourage all the players to sprint more, to win more duels, to win more balls, to be more dynamic in matches.”

When Canada reconvened for a pair of friendlies last week, the coach saw some players had already heeded his call, including Vancouver Whitecaps product Ali Ahmed.

The 23-year-old midfielder started in both Canada’s 2-1 victory over the United States on Saturday and Tuesday’s 0-0 draw against Mexico.

“I’m really happy for him,” Marsch said. “I think he’s still young and still has a lot of room and potential to continue to grow.”

Playing under Marsch — who took over as head coach in May — has been a boon for the young athlete, currently in his second full season with Major League Soccer’s Whitecaps.

“Jesse has a very clear way of playing,” Ahmed said. “And I think the way we’ve been training and the way we’ve been growing as a group, it’s been helpful for me.”

The reward of getting minutes for a national team can spur a player’s growth, including Ahmed, said Whitecaps head coach Vanni Sartini.

“Of course that fuels him inside to say ‘Hey, I want to be a better player. I want to get to that stage,'” said Sartini.

Vancouver had six players — including Ahmed — away on international duty during its 0-0 draw against Dallas FC on Saturday. The absences are a good problem to have, Sartini said.

“Because we have players that are close to the national team, we have a lot of players that development is faster, better, bigger than it would have been if they hadn’t been called,” he said.

Born in Toronto, Ahmed came up through the Whitecaps’ academy system and played for Vancouver’s MLS Next Pro side before cementing his spot on the first team in 2023. He put up two goals and two assists across 22 regular-season games, and added another goal and another helper in 19 appearances this year.

Taking the next step will require the five-foot-11, 154-pound Ahmed to push himself physically, Marsch said.

“Tactically, he’s technically gifted,” the coach said. “I’ve told him he’s got to get in the gym more.

“There’s a lot of these little things where too many guys, they still look like kids and we need to help them look like men and play like men. And that’s what the high standards of the game are about.”

Marsch has quickly adjusted to recalibrating standards in his short time with Team Canada. Since taking over the squad in May, the coach said he’s learned the players are smarter and more capable than he originally thought, which forces the coach to constantly recalibrate his standards.

“That’s my job right now, to keep raising the level of the demands,” he said.

The way 40th-ranked Canada is viewed on the international stage is evolving, too.

“I think we’re changing the perception on the way we’re playing now,” he said. “I think beating the U.S. — it would have been nice to beat Mexico as well — the way we did, the way that we performed at Copa, I think teams are starting to look at us differently.

“Right now, I think we’re focused on ourselves. We’re definitely trying to be the best in CONCACAF and we have higher goals as well.”

This report by The Canadian Press was first published Sept. 12, 2024.



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