Senator Tony Loffreda was appointed to Canada’s upper chamber in 2019 after a more than 35-year career in the financial industry. Loffreda, who lives in Montreal, sits as a member of the Independent Senators Group, a caucus that aims to take a non-partisan and collaborative approach to legislative review and debate.
Loffreda is deputy chair of the Standing Senate Committee on Banking, Commerce and the Economy, where he has studied legislation aimed at accelerating housing development.
Loffreda spoke with reporter Samuel Forster about Canada’s housing challenges and the government’s role in addressing it.
SF: A recently released study from the banking, commerce and economy committee says “uncertain, misaligned, or overly burdensome regulatory environments often stall or prevent affordable housing projects from reaching completion.” What factors have made the regulatory environment so difficult?
TL: The different levels of government have various objectives which are sometimes not aligned.
Federally, we want to increase supply. Municipally, there are zoning laws [that have impeded development].
In Canada, the dream is to have a single-family detached dwelling. And a lot of the zoning reflects that. And I’m not criticizing it. But if we’re going to allow close to a million people a year to come into this country, well, we’ve got to keep pace.
In Toronto and Vancouver, we have a huge housing shortage, so they have changed zoning regulations to allow for more so-called “gentle density.” Now, these cities allow for multiplexes to be built on land that was previously zoned for single detached housing only. Other municipalities should follow suit.
SF: What can the federal government do to promote density in large urban cities?
TL: The federal government should consider taking actions such as attaching conditions to municipal funding for public transit. It should require housing densification near those transit projects.
And we should also be waiving development charges for housing projects that involve multi-unit rental buildings. [One expert noted] that municipal development charges are as high as $148,000 for a three-bedroom apartment.
SF: In December, Parliament passed legislation introducing tax credits for new purpose-built rental housing. How do you think this legislation will alleviate some of Canada’s housing problems?
TL: Bill C-56 is the federal government’s decision to remove the GST on purpose-built rentals. I think it’s a great decision because we need more rentals. Ontario, Newfoundland and Labrador, Nova Scotia and Prince Edward Island have followed suit [by removing their own sales taxes].
The other provinces have not followed suit. Why? They should relieve the provincial taxes on these projects.
SF: The committee’s study on housing affordability offers 10 recommendations for improving affordability. Do any of these stand out to you as being particularly important?
TL: I think the shortage of labour [in the construction industry] has to be addressed. When you have inflation, it’s because you have excess liquidity and scarce resources. And the scarcity of resources contributes to inflation which contributes to increased cost. Working with the construction industry to address issues of labour is key.
We look at electricians, carpenters, plumbers, steamfitters, welders, heavy equipment operators, painters — they’re in huge demand. We have to promote these skilled trades.
SF: In Canada, a lot of people have a mindset that it is essential to get a university degree. I know you have spoken in the past about how trade jobs can be really solid jobs and are important to our economy. Is that a fair characterization?
TL: Yes. I was a first-born Canadian in an immigrant family. Most of the family lived by these skilled trades. And they made a good living.
I think all provinces should put forward aggressive [trades] programs through their CEGEPs and high schools. I remember when I was in high school, woodworking was a major concern. It was encouraged and we had a program for skilled trades, and I think this should be part of the curriculum.
We have to tell our youth, ‘[These jobs] are waiting for you to be discovered.’
SF: What are some other changes that need to happen in the construction industry?
TL: We need to think about how we can increase the use of technology to increase productivity. [If we can do that,] then the labour shortages will be less relevant, less important. Right?
We are in the digital age, and I think increasing technology in our construction industry — which is a very traditional industry — would play a big part. We’ve done it in all other industries.
SF: Is there anything about Canada’s economy that makes you optimistic about our ability to meet the country’s long-term housing needs?
TL: It’s our people … We have good people. We have an ability to attract expertise [to the construction industry].
And I believe in our government. I believe in our institutions.
Hopefully we can align the governments, and based on the recommendations from our report, bring everybody together to increase supply while keeping demand stable. This will result in more affordable housing for all Canadians.
This interview has been edited and condensed for clarity.
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