Charlottetown to Host Liberal Cabinet Retreat Focused on Affordability

Members of the federal cabinet stand behind Prime Minister Justin Trudeau as he speaks at a media availability after a cabinet shuffle at Rideau Hall in Ottawa on July 26, 2023. Justin Tang/The Canadian Press

After undergoing a major shuffle in late July, the Liberal cabinet will be meeting in Prince Edward Island for a three-day retreat starting on Aug. 21.

“This summer, we continued to listen to Canadians in their communities across the country about what matters to them,” said Prime Minister Justin Trudeau in an Aug. 14 statement announcing the retreat.

“I hear people loud and clear when they tell me life is getting too expensive, we need more affordable housing, wait times to get the medical care they need are too long, and they’re concerned about the impacts of climate change in their communities—from hurricanes and floods to wildfires.”

Charlottetown will host Mr. Trudeau and his ministers for a retreat said to be focused on the economy and issues, such as inflation and housing, that are top-of-mind for many Canadians.

An Abacus Data poll from late July shows that 72 percent of Canadians rate the rising cost of living as a top-three issue, followed by health care (45 percent) and housing affordability (43 percent).

The prime minister’s July 26 cabinet shuffle was meant to give the Liberal team fresh energy with only eight ministers not changing portfolios. The two ministers with main roles in the economy, Finance Minister Chrystia Freeland and Industry Minister François-Philippe Champagne, kept their posts.

Sean Fraser was moved from immigration to housing to give a boost to the file previously steered by Ahmed Hussen.

The last cabinet retreat took place in Hamilton, Ontario, in January and was also framed around affordability. A statement from the prime minister mentioned the rising cost of living, but did not directly mention housing.

The Liberals have celebrated lower inflation figures in recent months. Inflation came down below 3 percent in June, entering the Bank of Canada’s (BoC) target range, but the price of food and lodging has kept increasing at a fast pace.

Mortgage costs have shot up due to the BoC raising its policy interest rate to tame inflation, and the cost of renting is also reaching record levels.

Statistics Canada says mortgage interest costs rose 30.1 percent year-over-year in June, whereas Rentals.ca says the average asking rent reached a record high of $2,078 in July.

Forecasters also anticipate the newest Consumer Price Index report this week will show inflation climbing again.

The Liberals have recently announced measures to help with affordability such as the First Home Savings Account, advance payments of the Canada Workers Benefit, and the “grocery rebate,” but none have been entirely fresh.

The First Home Savings Account became available in April, the Canada Workers Benefit is a regular tax credit, and the grocery rebate is an enhanced GST rebate.