CALGARY — Liberal members of the House of Commons ethics committee used their majority Tuesday to shut down an investigation into Prime Minister Mark Carney’s proposed $1.45 billion plan to purchase thousands of unsold Metro Vancouver condominiums, despite objections from Conservative, Bloc Québécois and New Democrat MPs.According to Blacklock’s Reporter, the committee voted 5-4 to effectively kill a motion that would have examined the federal government’s proposed condo conversion partnership with the British Columbia government and required Housing Minister Gregor Robertson to testify before MPs.Conservative MP Aaron Gunn argued the proposal amounts to a taxpayer-funded rescue package for developers who overbuilt during the housing boom.“It creates no new units of housing while rewarding those who built and priced condos that nobody could afford,” Gunn told the committee. “It’s not only bad economic policy, it’s unethical, it’s immoral and it’s wrong.”Gunn's motion sought details on the Partnership on Condo Conversion program, which would see governments purchase approximately 2,200 unsold condominium units in Metro Vancouver and convert them into affordable housing.The Conservative MP questioned why the proposal surfaced after the federal election campaign and called for greater transparency regarding who pushed for the program and who stands to benefit.“If the Liberals didn’t campaign on this policy, why are they suddenly deciding to pursue it now?” said Gunn. “Whose idea was it? Who lobbied for it? Is this being planned for more Canadian cities? And maybe most importantly, which well-connected developers, big banks and foreign investors stand to benefit the most?”The criticism was echoed by New Democrat MP Jenny Kwan, who broke with the position of British Columbia’s NDP government and described the proposal as a bailout for the development industry.“Make no mistake, this latest announcement on condo conversion is a massive bailout for developers even though the Prime Minister wants to pass it off as affordable housing,” Kwan said. “No one is buying it.”Kwan questioned how the arrangement was developed and warned taxpayers should not be forced to absorb losses resulting from speculative investments..Carney faces ethics probe over Vancouver condo bailout questions.“Developers took risks during a period of speculation and soaring prices,” she said. “Taxpayers should not be expected to absorb those risks when the market bottoms out.”The federal government has not publicly detailed how taxpayers would recover the funds spent on the purchases, which developments would be selected or which developers would immediately benefit from the transactions.Conservative MP Gabriel Hardy also raised questions about the timing of the announcement. He noted the June 18 unveiling came just weeks after Brookfield Asset Management announced a billion-dollar joint venture with Concert Properties, a major British Columbia developer.Before entering politics, Carney served as chair of Brookfield and held millions of dollars in company shares.“Brookfield Asset Management is on the list of witnesses we’re requesting,” Hardy said. “The Prime Minister is always involved in everything.”Bloc Québécois MP Luc Thériault said the circumstances surrounding the proposal warranted closer scrutiny.“Politics and ethics go hand in hand,” Thériault said, adding that conflicting accounts from federal and provincial leaders regarding who initiated the proposal left key questions unanswered.Despite those concerns, Liberal MPs voted to adjourn debate on the motion, preventing the committee from pursuing the matter.Liberal MP Linda Lapointe defended the government's approach, accusing opposition members of seeking political advantage.“We are trying to find creative solutions,” Lapointe said. “Your priority is to play political games.”Liberal MP Wade Chang argued the proposal remains under development by the British Columbia government and said details have yet to be finalized.“The condo conversion program has not even been finalized,” Chang told the committee. “The BC government has said details will become available in the coming weeks.”
