Over the last year or so I have twice (February 2017 and October 2017) introduced a bill to protect agricultural from continuing to be subject to speculative investment activity.

Today during budget estimates for the Ministry of Finance I asked the Minister why her government had neither applied the foreign buyers tax nor the speculation tax to land in the ALR. In particular, I sought answers to why her government is not stepping in to stop prime farmland being carved up and converted into mega mansions.

Below I reproduce the video and text of our exchange.

Video of Exchange

Text of Exchange

A. Weaver: I just have a couple of questions in two areas to finish my estimates questions to the Finance Minister. The first is in the area of ALR protection. The ALR was left unprotected from the measures announced in the budget to cool the market for the residential real estate sector, which has encouraged speculation in ALR. My first question is: why didn’t the foreign buyer tax and the speculation tax apply to the ALR? And why was, for example, foreign ownership not restricted to the ALR, like has been done in areas across Canada, including Alberta, Saskatchewan, Manitoba, Quebec and PEI?

Hon. C. James: Thank you to the member for the question. I think there are two pieces I just want to focus on.

I think the first one is…. As the member will know, there’s a comprehensive policy review going on with the Minister of Agriculture right now in looking at a whole range of issues related to agricultural land. We’re doing our policy work — side by side, I guess, is the best way to describe it — along with the work that’s being done in the Agriculture Ministry. So we don’t want to either get ahead or be duplicating work that’s going on.

As the member will know, there was a large consultation done, and so people were giving their feedback. To look at further work that needs to be done around the agricultural land, we’re doing that policy review, as I said, along with the Agriculture Minister.

But I think it’s important to note that both the foreign buyers tax and the speculation tax do apply to houses, to the residential property that’s on agricultural land. I know the member’s speaking about a broader base when it comes to the agricultural land, but in fact, those taxes do apply to the class 1 residential housing that is on agricultural land if they’re in the areas that are covered by those taxes.

A. Weaver: Yes indeed, I was concerned about the broad, bare land of agricultural land that can be purchased that does not have a foreign buyers tax. Then Richmond council can be approached, and that land could then have a mega-mansion put on it, which was the subject of the concern being expressed here.

In the budget, the minister stated that she’d be changing the tax treatment of residential property in the ALR in order to close property tax loopholes. My question is then: how are you changing property tax treatment, and when can we expect to see this done?

Hon. C. James: We’re looking at the changes. These are draft changes to the School Act to exclude ALR properties that are in the residential property class from the 50 percent land exemption. We’re going through that process right now, again, as I said, in tandem with the work that’s going on in the Agriculture Ministry. This would require changes, so we certainly hope it’ll come by the fall.

A. Weaver: Again, the review. We’ve been talking about the review, and the Minister of Agriculture is indeed undertaking such a review. But in fact, we’re not waiting for the results of the review before changing the tax treatment on residential property.

We know what’s happening in an ongoing fashion in Richmond is that the speculation and mega-mansions are devouring ALR there. For example, last year, Richmond lost 50 farms due to mega-mansions. We can’t, frankly, afford to wait a year to see more action.

Why are we not taking immediate steps now to impose the foreign buyers tax and the speculation tax on the ALR land? What is stopping the minister from doing that?

Hon. C. James: I certainly appreciate the urgency of this issue. I appreciate the examples that have come forward, particularly in Richmond, as the member mentions. They are issues right now and challenges right now. But there is, as I said, the comprehensive review going on. We need to make sure that…. Many of these changes have to happen through different acts, not through one act.

For example, the changes to the school tax related to the school tax on agricultural land also have to be changes to the Assessment Act. Again, we don’t want to piecemeal it. We want to make sure that the changes that we make are really going to make a difference. That’s why we’re working together with the Agriculture Ministry.

There is an opportunity, hopefully, in the fall to bring forward those changes, to have coordinated with the feedback that people gave and to be able to make a comprehensive change that will prevent the kinds of examples that the member has raised.