PM unveils CEBA repayment changes, other affordability measures

Prime Minister Justin Trudeau made a slew of announcements Thursday aimed at helping businesses dealing with loan repayments, communities looking to build housing, and Canadians hoping to fill shopping carts.

During a media conference in London, Ont., Trudeau announced the federal government would be extending the deadline for small businesses to repay Canada Emergency Business Account (CEBA) loans by one year.

A Canadian Federation of Independent Business survey found that 19 per cent of all small businesses in Saskatchewan could close if the deadline wasn’t extended, as some 29,000 businesses took out CEBA loans.

A number of businesses in Regina have raised concerns about the approaching deadline, including the German Club.

Trudeau also announced that the federal government is removing the GST from the construction of new rental apartments.

“Every community across Canada needs to build more homes faster so we can lower the cost of housing for everyone,” he told reporters.

Trudeau also announced that the feds would be taking steps to reform the Competition Act in regards to large businesses.

Furthermore, Trudeau called on CEOs from large grocery companies to come to Ottawa in order to address high prices. He said they were to report by Thanksgiving.

“We know that there is more they can do (and more) that they must do,” he said.

When asked what would happen if grocers do not comply, Trudeau said the government will take action. The prime minister said that might include tax measures.

Trudeau was asked about the timing of these announcements, given that the governing Liberals are seeing slipping poll numbers.

The prime minister didn’t directly address the party’s polling numbers but he defended the government’s decision to unveil the GST policy now, despite it being something the Liberals initially promised during the 2015 election.

“I think what Canadians understand is that the housing crisis requires everyone to work together,” he said.

“It requires provinces to step up (and) it requires municipalities to step up. We need to draw in the private sector as important parts of building housing, which is what removing the GST from purpose-built rental housing or apartment buildings is all about.”

Trudeau said the federal government will be announcing further policies on housing.

“We are definitely going to be announcing more on housing. We know that there is no single silver bullet on fixing housing,” he said.

“We’ve done everything from bring forward the tax-free savings account in the last budget; that made a huge difference. We’re cracking down on predatory practices in the industry. We’re moving forward on increasing supply with the housing accelerator. We’ve seen three rounds already of the rapid housing strategy that has put up thousands of units right across the country.”