New Housing and Grocery Announcements Reflect Liberal Government’s Concerns

A recent series of announcements by the Canadian government regarding housing and grocery prices has raised questions about the Liberal Party’s re-election prospects. Prime Minister Justin Trudeau and his team unveiled plans to reduce the Goods and Services Tax (GST) on new rental builds while urging grocery executives to develop a stabilization plan for food prices.

John Manley, a former Liberal deputy prime minister and current senior advisor at Bennett Jones, believes that these moves are a reflection of the government’s concerns about its standing among Canadian voters. The Liberals have witnessed a significant decline in their polling numbers, leading to growing anxiety among their members of Parliament.

The most recent polling conducted by Nanos Research reveals that the Conservative Party is currently leading with 33.1 percent support, while the Liberals trail behind at 29.7 percent. The New Democratic Party (NDP) holds the third position with 21.7 percent. This shifting landscape has prompted Trudeau’s government to take action to address key issues.

While Manley commends the government’s focus on housing supply over boosting saving methods, he questions the decision to prioritize grocery prices at the consumer level. According to him, if the government and other political parties genuinely wanted to tackle rising food prices, they should consider exploring supply management strategies.

The government’s emphasis on housing and grocery prices reflects a growing concern among the Liberals, stemming from their declining popularity in recent polls. By addressing these issues, the government aims to regain voter confidence and secure a more favorable position ahead of the upcoming election.


Why are housing and grocery prices important?

Housing and grocery prices play a crucial role in people’s daily lives and can have a significant impact on their financial well-being. High housing costs can make it difficult for individuals to find affordable accommodation, while soaring grocery prices may strain household budgets. Addressing these issues is vital for improving the quality of life for many Canadians.

What is the Goods and Services Tax (GST)?

The Goods and Services Tax (GST) is a federal tax imposed on the supply of most goods and services in Canada. It is typically levied at a rate of 5 percent and applies to various transactions, including purchases of goods and services.

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