Cost of living, inflation, housing key issues on P.E.I. campaign trail

The rising cost of living — from basic necessities to skyrocketing inflation and rising interest rates — has hit P.E.I. particularly hard, and it's become a key issue in the current provincial election.

P.E.I. has faced the highest inflation rate in the country in recent years with rent, groceries and gas in particular driving rates above the national average. Islanders are also grappling with substantial increases in the cost of home heating fuel.

Meghan Stewart and Sidharth Dhar, who both work in the restaurant industry in Charlottetown, say it's getting harder just to get by.

"It's hard living paycheque to paycheque. Some days I have to choose if I want to go out with my friends or if I have to buy groceries or if I have to buy a full tank of gas. It's hard to manage my budget," Stewart said.

"I'm at a place now where I would love to buy a house, I would love to start a family, but it's not a reasonable thing to do at this time because we don't have the money."

Dhar, who came to P.E.I. to complete a master's degree in business, can't vote in this election but he believes policymakers can — and should — do more to help Islanders.

"Recently I have noticed skyrocketing prices at grocery stores … and the salaries of course are not rising at the same rate inflation is rising, so a lot of changes need to be done to reduce the cost for people," Dhar said.

"The only way to really survive nowadays — and I'm not even talking about getting something really luxurious, just survival — is to scout out for deals … and basically plan your household menus based on the deals from the grocery stores.… Otherwise the price is just not affordable anymore."

They'd both like to see measures introduced to control the price of food and other necessities, plus rent controls and subsidies aimed at creating housing that's truly affordable.

What the parties are promising

Politicians from the four major parties have made it clear on the campaign trail that addressing the Island's housing crisis and introducing measures to help offset the rising cost of living is a priority.

The parties have outlined a variety of solutions and subsidies aimed at making life more affordable for Islanders, from increasing minimum wage to rolling back property tax assessment rates.

Here's a look at a few of the commitments rolled out so far.

The Green Party is promising to commit at least $385 million over the next five years to build new public housing and repair existing housing, including seniors' housing. The party says it would increase the minimum wage to $15.20 and make sure it keeps pace with inflation, increasing it by $1 per year until it reaches a living wage, and create a basic income pilot.

The Liberal Party's platform includes a subsidy for first-time homebuyers who make less than $95,000 a year and a promise to increase how much income those on social assistance can earn while still remaining eligible.

The New Democratic Party has committed to legislating the definition of housing affordability using a formula based on minimum wage, increasing the minimum wage to $17 per hour and bringing in a gas tax exemption.

The Progressive Conservative Party has pledged a rent-to-own program that would allow renters to purchase after 24 months, reduce building permit wait times to no more than 30 days by the end of the year, roll back property taxes to 2020 rates and expand the free heat pump program to those making as much as $100,000 per year by 2024.

'A sad state of our society'

Lt. John Burton with the Salvation Army's Community Church in Charlottetown sees first-hand how hard it's gotten just to stay afloat, and says it's left more people turning to the Salvation Army for help.

"We have seen in our operations here in Charlottetown an increase in people coming to our breakfast program, an increase in people coming to our food bank, and an increase of people coming to the home heating program," he said.

"The biggest concern that people have is being able to afford just the basics in life. We're talking about food and housing costs, like home heating and clothing. People are struggling to be able to afford all of those basic needs."

And that means the Salvation Army is no longer serving only the most vulnerable Islanders.

"It's a bit of a sad state of our society right now where someone who, say for example, was making $60,000 a year and they can't afford to live," Burton said. 

"The minimum wage anywhere in Canada is not a livable wage at all ... so I think that people are finding out that two parents have to work just to make ends meet, but they're still coming to us for help."

Brandy MacLellan Stewart and her husband both work full time in what have historically been considered well-paying jobs — she's a registered nurse and her husband is an educator. But the couple, who have three kids ranging in age from four to nine, say those wages just don't go as far as they used to.

The biggest concern that people have is being able to afford just the basics in life. We're talking about food and housing costs, like home heating and clothing. People are struggling to be able to afford all of those basic needs.- Lt. John Burton, Salvation Army

"We've looked at our oil bills for the last three years, and they've increased significantly," she said.

"We stick to a budget way more than we may have in the past. We look for more sales when we're targeting specific items that would be more costly and we never buy in bulk."

MacLellan Stewart says her family is getting by, but she worries about the broader cycle of poverty that's being exacerbated by the rising cost of living.

"I do worry because I've been a front-line nurse for 10 years, I do see people from the Island who might not be able to manage that, all the spikes in all the costs of gas, groceries, insurance, whatever it be — mortgages, even just rent cost," she said.

"With the rising costs comes anxiety, comes homelessness, comes poor diets, inability to take ownership of your own life and be successful in it. And so when you're not able to do that you rely on the system, and even that is failing us."