44th Parl. 1st Sess.
October 5, 2023 10:00AM
Madam Speaker, I rise today to speak to Bill C‑56. It is a government bill that would amend the Excise Tax Act and the Competition Act.
Like my colleagues, I see this as an attempt by the federal government to respond to spiralling housing and grocery prices. It is true that rising interest rates are hurting many families, who are seeing mortgage payments take up more and more of their family budget. We need only imagine the situation of single-parent families, young people, students and immigrant families. I will spare the House the full list.
However, I am sure my colleagues will understand why I have doubts about the effectiveness of certain measures in Bill C‑56. When we look at the specifics of the measures put forward by this government, we see realities that are very often based on gender. Women often bear the brunt. What troubles me is the situation of the people who are paying the price for these increases. Thousands of families in each of our ridings are in that boat. Even more outrageous is the fact that seniors are once again left out in the cold, as are the most disadvantaged members of our society.
To find solutions to address this housing crisis, we must listen more to the organizations working on the ground. I want to acknowledge the contribution of my colleague from Longueuil—Saint-Hubert, who has travelled all over Quebec. During his tour, he took part in an activity in my riding of Abitibi—Témiscamingue. The activity drew over 25 people, which is a large number, and a lot of solutions were put forward. We must listen to organizations on the ground, such as the Association des groupes de ressources techniques du Québec, or AGRTQ, the Fédération des maisons d'hébergement pour femmes, and other non-profit organizations, as well as co-operatives, which are too often forgotten. The government needs to get projects off the ground and renew funding for initiatives that are working.
The YWCA, an organization that also works in Quebec with women in need of transitional housing, reminded us on Tuesday that it is important to shift public policy toward gender equality. In this crisis that affects our constituents, it is important to remember what organizations expect of us, namely better alignment and more flexibility and agility.
The housing shortage is dire. The government has to encourage the construction of rental and residential housing. It also has to renew the social housing construction program to provide more transitional housing and more affordable permanent housing.
Bill C‑56 includes provisions relating to competition that will make a difference in the longer term. What a shame the government did not act sooner. It is kind of late in the game. In 1996, there were 13 grocery chains; now there are only three.
Let us look at the three main measures in Bill C‑56.
First, it gives the commissioner of competition real investigative powers. Once Bill C‑56 is law, the commissioner will be able to compel a person to testify or produce documents. That has not been possible up to now. I was at a summit organized by the Competition Bureau this morning. I could see that people are taking action on this. They are ready and willing. There were over 700 people online. The room was full. Clearly this issue matters to people. Waiting this long for competition reform may well cost us, though. I will have more to say about that later.
The second measure prohibits agreements with non-competitors aimed at reducing competition. For example, when a grocery store signed a lease with a shopping centre, it was common practice to include clauses prohibiting the shopping centre from renting space to another grocery store. That type of practice will now be prohibited, and that is a good thing.
The final measure, which we are very pleased with, responds to requests from my colleague, the member for Terrebonne, who has been calling for an end to the efficiencies defence for mergers and acquisitions. This measure may come too late, as the five major players' powerful position in the food industry clearly shows.
I want to stress the fact that one major challenge remains. We must continue trying to find a way to enhance competition in the food industry or this bill will not meet its real objective. Once a company is in a dominant position, there is no incentive or requirement for it to make room for more competitors. Introducing new competitors is the only way to prevent pricing arrangements and to permanently entrench the concept of affordability, meaning affordably priced goods and services.
My colleagues must be accustomed to hearing me talk about the reality in Abitibi—Témiscamingue, because the government needs to understand that it often acts too late for our communities.
I want to talk about this because Abitibi—Témiscamingue has been affected by the loss of competition in the food industry. To know where we are going, we must know where we are coming from. In conversation with locals in Abitibi—Témiscamingue, and particularly in Rouyn‑Noranda, the topic of the Montemurro grocery store is bound to come up. Montemurro was the pride of the region. The business continued expanding until 1966, when it purchased the wholesaler ADL.
ADL used to buy up half the fresh vegetables grown in the region. At one point, it was supplying 25 independent markets from northern Ontario and Abitibi—Témiscamingue all the way to Saguenay—Lac-Saint-Jean. Its sales totalled $270 million. Its distribution centre and administrative headquarters were based in Rouyn‑Noranda. My colleagues can imagine how much development leverage our regional agriculture sector had through that company.
In 2006, Sobeys arrived on the scene. What was the result for people in my region? From 2006 to 2013, ADL pared back its distribution activities, becoming a mere transfer centre. Our local products and our local agricultural production gave us significant business opportunities and the ability to supply fresh local produce, but local production was greatly affected by this change.
Prior to the merger of Sobeys and ADL, vegetables from all over our region were sent to Rouyn‑Noranda. Since the merger, they have to travel further before ending up on our shelves. Unfortunately, items like tomatoes from Guyenne have to go all the way to Montreal before ending up back in La Sarre, the next town over.
Unfortunately, for reasons of efficiency, these acquisitions are approved as a formality. The government did not oppose these mergers and acquisitions. Today, Sobeys, Loblaws, Metro, Costco and Walmart control 80% of the food market. That is the situation I am referring to when I say that the measure set out in Bill C-56 will close a loophole, but it comes much too late for food markets. ADL was the last major wholesaler in Quebec, and maybe even in Canada.
A few people in Quebec still managed to make their mark in the market. The people in Amos are very lucky because they can still count on a wholesaler, Ben Deshaies, who is based in Amos. This business model of buying local is incredibly important to us. The Deshaies family deserve a lot of credit for being able to succeed, thanks to the entrepreneurial qualities passed down from generation to generation, despite a near total lack of competition in this sector.
It is time to act on the many demands that the Bloc Québécois has put forward in the House and at the Standing Committee on Industry and Technology. Thanks to the lack of competition and the encouragement of oligopolies, the major players are taking advantage of their market share to raise prices.
In my opinion, it is essential that the minister avoid making cuts to processors and farmers. Quebec's food processing companies are economic drivers that help support many families and create jobs across Quebec. They have already made their contribution and are facing considerable pressure, particularly in communities close to those resources.
It is striking to see that farmers and processors are no longer making money but that consumers are paying twice as much. Between the two, someone is making a profit. That is the trouble. That is where the problem lies. It is often the same company concentrating resources and distributing them.
It has also been striking to see the headlines in the news over the last two weeks about the federal government pressuring the major supermarket chains to take significant steps to stabilize or even lower food costs. I recently read one farmer's opinion in La Tribune. He noted the importance of short supply chains for our food security. That is what the member for Berthier—Maskinongé always says, and he can never say it enough.
That same point has been raised by many farmers in Témiscamingue. The public markets in our regions now offer a variety of high-quality products. It is time to support them by buying our produce there, but it is also time to encourage permanent, year-round measures. I would also encourage my colleagues to pursue our discussions in greater depth. It is essential for us to delve deeper to find solutions. Although Competition Bureau studies are useful, we need to react thoughtfully to red flags.
The proposed amendments to the Competition Act in Bill C-56 can help prevent the situation from getting worse in the future by tightening up the rules governing business mergers and acquisitions. However, they will not fix the existing problems. The damage has already been done, and Bill C‑56 does not present any forward-looking solutions for fixing it.
1657 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, the current situation is that Canada has let oligopolies take over. That is true in the food industry, and it is also true in the banking sector. Taking action to fix that may require more courage, but it will have an impact on people's wallets. This situation also exists in the gas industry. It would take more courage for the House to address these issues. It is also true in telecommunications.
As with the reform of the Competition Act, I applaud the progress that has been made by the Minister of Innovation, Science and Industry. I was there for his presentation this morning at Canada's competition summit. There is now a willingness to act that I believe was needed. For several years, I have also been urging the Standing Committee on Industry Technology to take action on competition reform, which is an important solution.
However, at this time, no action is being taken about the oligopolies. I look forward to seeing what splashy measures the government proposes when Parliament returns.
Will they have any impact? How can the government take a coercive approach with the large chains without raising prices and passing the cost on to consumers? I am very worried, so I look forward to getting some answers.
213 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, my colleague from Rosemont—La Petite-Patrie is in no position to lecture anyone about going down on bended knee and demanding things from the government, but that is another debate.
However, the question remains. Where are the profits going? They are certainly not going to our farmers, who are on the verge of bankruptcy. Things are really tough right now. My region has had a drought, and that is on top of rising input and fuel costs. The challenges are enormous. It is important to strengthen local distribution channels and ensure direct access to farmers. The growing number of intermediaries means that, if everyone takes a share, consumers end up paying more.
Right now consumers have very little direct access to farmers. The major players who control the distribution market are taking so much money that processors are no longer making any money and consumers are paying twice as much.
Local distribution channels must be strengthened. We need to invest in our regions and create public markets and permanent structures that will encourage consumers to visit. That way, we can improve our agricultural industry and our economy.
191 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, there are no abattoirs in Abitibi—Témiscamingue. It is a serious problem for our agriculture. Our farmers have to get their beef slaughtered more than 500 kilometres away. How is it that are we able to get programs to compensate the transportation of livestock, but we cannot get programs that should be fully funded by the governments? Obviously, it is hard to make abattoirs profitable. Having programs, however, would help us create economic diversity.
There is a cost to the quality of meat, the transportation, the environment and others. We need to invest in regional abattoirs.
101 words
- Hear!
- Rabble!
- add
- star_border
- share
- Oct/5/23 10:55:52 a.m.
- Watch
Madam Speaker, the interpreters are signalling that there is feedback. I am not sure whether it is from an electronic source close to the microphones, but the interpreters are hearing a thud.
32 words
- Hear!
- Rabble!
- add
- star_border
- share
- menumenu
- notificationsnotifications
- home
- mailmail
- searchsearch
