44th Parl. 1st Sess.
October 5, 2023 10:00AM
Madam Speaker, like other Liberals, this member just lists off in his speech a long list of new Liberal spending. It is record spending, of course, as everybody knows, not many times more than previous governments but many billions of dollars more than previous governments.
Many of them have talked about the fact that they are subsidizing, through a grocery rebate, 11 million Canadians. Does the hon. member recognize that the fact that the government needs to subsidize groceries for over a quarter of our population is a sign of an absolutely devastatingly bad Liberal economic policy?
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Madam Speaker, I appreciate my hon. colleague's raising grocery costs. Let us put some things on the record here: The day after the photo op with the five retailers, the retailers decreed to their suppliers, starting with the largest one and the second ones following suit, that they would accept no price increases from their suppliers for the next 12 months. The PBO's analysis of the carbon tax is not specific around food inflation. It is a general analysis. Food production is energy intensive.
If this hon. colleague were to convince his government partners to put a profits tax that would take the entire retail profit into the form of a tax into government coffers, that would lower the cost of groceries from a $25 set to $24, which is 4%.
With carbon tax being applied to the farmer, to the trucker and to every step of the process, with retailers saying they will not absorb it and there are no price increases, who should pay that carbon tax? Is it the farmer, the supplier to the farmer, the trucker or the distributor?
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Madam Speaker, I am glad the Conservatives are going to be voting in favour of the legislation.
The member makes reference to groceries and the need for competition. Is he aware that the last major buy-up that reduced competition was under Stephen Harper when Loblaws purchased Shoppers? It had a very profound impact on the size of one company. I think the purchase was over $12 billion.
The legislation the member says he is going to vote in will help deal with issues like that. Does he see that as positive? Does he support that particular aspect of the legislation?
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Madam Speaker, according to the 13th edition of “Canada's Food Price Report”, published in 2023, by September last year, families across Canada were paying in excess of 10% more for their groceries. This year, Canadians' grocery bills have increased by another 8% to 9% or more. Vegetables are seeing the biggest price increases, and as a result, Canadian families are cutting back on their purchases of vegetables and other healthy food choices for their children. About 20% of Canadians report skipping a meal each day, and food banks across the country are seeing record visits by Canadian families.
On this side of the House for the last few years, I have been calling attention to the practices of Canada's big grocery retailers and their lack of competition in the grocery market. For a couple of years now, I have also been asking the Competition Bureau to investigate the grocery chains and their abuse of dominance. For the past three years, I have called attention to the market concentration in the hands of big grocery retailers and to the resulting lack of competition and the consequences for producers, suppliers and Canadian consumers. Producers and suppliers are gouged by what the big grocery retailers demand of them. Canadian consumers are gouged by the prices the big grocery retailers demand at the checkout.
Now, suddenly, the Prime Minister seems to have awakened from sleeping at the wheel to what Canadian families have known as a reality every time they have bought food. Where has the Prime Minister been? Only now has he called in the grocery retailers and introduced this bill? When was the last time the Prime Minister went to a grocery store? When was the last time the Prime Minister had to buy a Thanksgiving turkey dinner with all the trimmings? Families that can afford it will be paying a minimum of $60 to $80 this year for their turkey, let alone all the trimmings. Many families that cannot afford it will just go without. My guess is that the last time the Prime Minister visited a grocery store was some time in the previous decade, maybe.
Canadians cannot afford more of what they have suffered under eight years of the Prime Minister and his irresponsible Liberal-NDP government. Canadians cannot afford this costly coalition. The reason for food inflation is not just too little competition among grocery retailers. Beginning in 2018, the Prime Minister has been gouging Canadian families with a regressive, unfair carbon tax, which we will call “carbon tax 1”, and has been inflating it year over year.
As of April Fool's Day 2023, the Prime Minister inflated carbon tax 1 to $65 a tonne, and by April Fool's Day 2030, the Prime Minister wants to inflate carbon tax 1 to $170 a tonne. However, the Prime Minister has not stopped there. He decided that one carbon tax is not enough, so as of Canada Day, the Prime Minister has added another carbon tax. Therefore, now the Prime Minister is asking Canadians to pay not one but two carbon taxes. Even worse, when the carbon tax is added at the pumps or on their home heating bill, Canadians are charged sales tax on top of the carbon tax.
There is no other way to put this: The Prime Minister and his costly coalition are charging Canadian families tax on tax. However, they do not stop there, with carbon tax 1 and carbon tax 2. Between these two carbon taxes, by April Fool's Day 2030, the Prime Minister wants to charge Canadian farmers and truckers 69¢ for every litre of diesel they put in their trucks. It is not rocket science; it is basic math that the NDP-Liberal government just does not seem to get. If it costs a farmer more to grow the food and costs the trucker more to ship the food, it is going to cost Canadian families more to buy the food.
The Bank of Canada governor, Tiff Macklem, says that the carbon tax announcements that have it going up increase inflation each year. The leader of “Canada's Food Price Report 2023”, Doctor Sylvain Charlebois, has pointed out that the carbon tax has made business expenses go up. He points to a “compounding effect” up and down the food chain as the supply chain is exposed to increased costs from the carbon tax. I will illustrate. Thanks to the Prime Minister's carbon tax 1 and carbon tax 2, even with agricultural exemptions, farmers are paying carbon taxes on various parts of their production chain not covered by those exemptions. There are the carbon tax costs of heating barns with natural gas or propane when there are animals being raised. Getting produce, meat, poultry and eggs to the processors with diesel-powered trucks costs more with carbon tax. There is more; there is carbon tax paid on moving that food, with more diesel-powered trucks, from the processors' warehouses to the grocery stores.
The grocery retailers have to heat their stores, many with natural gas, propane or, in some cases, heating oil, so they are paying even more carbon tax. Consumers are travelling to and from the grocery store and are paying carbon tax on the fuel they put in their vehicles. Again, if it costs a farmer more to grow the food and it costs the trucker more to ship the food, it is going to cost Canadian families more to buy the food.
How do we solve this problem of rising food prices and the Prime Minister's costly coalition? First things first, we have to axe the carbon tax. The Leader of the Opposition and members on this side of the House want to give Canadian families relief from unfair competition. We want to offer Canadian families relief from the unsustainable burden of carbon tax 1 and carbon tax 2. I have one word: enough.
As for the bill, let me make a few observations with respect to grocery retail competition. Sadly, this bill seems to be a lot of fluff and not much substance. The Prime Minister has had eight years to look into this issue and to provide legislation that would put a stop to consolidation over concentration of market share in the grocery chains. This level of coordination of grocery stores into bigger grocery retail chains is reducing competition for consumer dollars. With less competition in grocery retail, Canadian consumers will always pay more. Let me give one example. I have two grocery store flyers, one from Toronto and one from Vancouver, from the same store and with the same items. Vancouver is about 2,000 kilometres, or 1,200 miles, from Central Valley, California, where most of our produce comes from, especially during the winter months. Toronto is about 4,000 kilometres, or 2,500, miles from California's Central Valley.
However, as I compared the two prices given for the same products, the prices for produce were higher in the Vancouver flyer than in the Toronto flyer, for the exact same items, even though Vancouver is about 1,000 miles closer to the producers than Toronto is. Why is this? It is because there is more competition in the Toronto area, with many more grocery stores available for folks. There are many small, independent grocery stores.
The bill makes much of the role of the commissioner of competition, but I have to point out that Canada already has a competition commissioner. Further, Canada already has a competition tribunal. However, Canadians still face high food prices because Canada's competition watchdogs have no teeth. It is not enough to have an official whose title is Competition Commissioner. If the competition commissioner is to uphold competitive pricing in the interests of Canadian consumers, this office has to have real teeth. The competition commissioner should have real power to call into question the excessive concentration of market control.
To sum up, Canadian families are seeing unaffordable price increases year over year in the foods they buy to feed their families. Almost daily, my constituency office is hearing from Canadians, young and old, who are having difficulty getting by. Many do not have enough money to buy groceries after rent and mortgage payments are made. More and more people are visiting food banks. Too many are breaking down in tears in my office because of their inability to pay for the basic necessities of life. Hundreds of my constituents are having trouble making ends meet because of runaway inflation that the Liberal government has caused. Canadian consumers face inflation on food at 8% to 9% year over year. Again, 20% of Canadians report skipping a meal a day just to save money on groceries.
Meanwhile, the government taxes to the max with carbon tax 1 and now carbon tax 2, plus the HST piled on top. It is tax on tax. Enough is enough. Canadians deserve better than a Prime Minister and a government that just seem to go through the motions. The Prime Minister can deny it all he wants, but Canadians know that inflation is real. The bill does not go far enough to address the lack of competition among grocery retailers.
Sadly, the Prime Minister is propped up by NDP supporters and Liberals who sit in the House, and they have not seen a regulation they would not support nor a carbon tax they would not impose to burden and weigh down Canadian families that are just trying to make ends meet by stretching their hard-earned dollars. Canadian families are paying at the fuel pumps and they are paying in their heating bills, and having enough money left over to get their grocery checkout line is sometimes a burden.
It is time for a real change from the inflationary, all-too-costly coalition of the NDP-Liberal government.
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Madam Speaker, I am going to do a little fact-checking here.
The member talked about the Governor of the Bank of Canada, Tiff Macklem. He said that the carbon tax, all of it combined, is contributing 0.15% to inflation. That is 15¢ on 100 dollars' worth of groceries.
What she did not talk about is corporate greed, which is costing $3.90 on 100 dollars' worth of groceries. We know why. It is because Conservatives are gatekeepers for the big grocery stores, for the Galen Westons.
They also do not want to talk about the fact that eight out of 10 Canadian families get a rebate. Why do they not want to talk about that? It is because the truth is they are really fighting for two out of 10 Canadian families, and they know it.
Will my colleague tell the truth that the Conservatives are really fighting for the two out of 10 families that are not getting a carbon tax rebate back and that they are actually just trying to distract from reality?
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Madam Speaker, I cited earlier the impact of corporate greed in our country. It is about $3.90 on a $100 bag of groceries. The carbon tax, which the Conservatives try to spin as the major contributor, is 15¢ on a $100 bag of groceries.
We know corporate profits are going into the pockets of Galen Weston. In places like Tofino, Hornby Island and Ucluelet, there are co-op grocery stores that give the profits back to their members. Does my colleague agree that we should charge an excess profit tax on corporate greed to fund co-op models when it comes to the grocery business?
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Madam Speaker, I am happy to rise today to speak about Bill C-56, an act to amend the Excise Tax Act and the Competition Act, or the so-called affordable housing and groceries act. I call it a sham, a desperate attempt by this desperate government to make Canadians think it is tackling these problems by using a name that falsely labels the purpose of the act. It is pure propaganda.
Let us talk about groceries. People watching might be surprised to learn that the bill has literally nothing to do with groceries. Once it is passed, grocery prices would not suddenly drop because of anything in the bill. The bill is, in fact, about something else entirely. It would make amendments to the Competition Act.
First, it would remove the efficiencies defence, an idea Conservatives first proposed, but we never said that it was a solution to high grocery prices because that simply would not be true. However, what its removal would do is make it more difficult for major corporations to merge using economies of scale and savings as an argument. The bill would also introduce new market study powers and give the Minister of Innovation the power to order expensive market studies, which many argue would politicize the process and is financially onerous for industry. Ironically, the bill would drive up the cost for industry, making food even more expensive.
This does not sound at all like inflation-busting measures to me because they simply are not. Members need not take it just from me. They can take it from the Business Council of Canada, which released a statement saying, “As the Competition Act amendments included in today’s bill will in no way address the inflationary environment now facing Canadians – and could, conversely, worsen inflation by introducing uncertainty and instability in the free market”. This is not a ringing endorsement.
Its president, Goldy Hyder, had more to say. He said that it would “stifle” business through “bad regulation” and called it a “trojan horse”. He went on to say, “Ottawa wants Canadians to think the bill will improve affordability for families by giving consumers more choice...but that’s not its actual purpose nor what it will achieve.” He also said that the government “is acting in bad faith” and that the “amendments came as an ambush” and without proper consultation. As well, he said, “If the government is truly serious about lowering prices...lower import tariffs on certain goods...or eliminate...interprovincial trade barriers”.
However, he is not the only critic. Michael Osborne, the chair of Cozen O'Connor's Canadian competition law practice says of the bill, “Some of the amendments are good, more are bad, but most are useless.”
It is not high praise. It is useless because competition law is simply not designed to solve macro economic problems such as inflation. He pointed out what we have been saying for two years, which is that inflation is caused by expanding the money supply too quickly by loose monetary and fiscal policy.
He went on to say, “By design, competition law cannot limit increases in the money supply; that's the job of central banks...If a lack of competition is responsible for rising grocery prices, then competition law might be able to help. But the evidence doesn't support this.” He also indicated that the bill vests too much power to order market studies with the minister, reducing the bureau's independence and increasing the risk of politicizing competition law enforcement.
It is becoming a disturbing trend with this government to hand power directly to politicians at the expense of other departmental officials. This will lessen the independence of the Competition Bureau and politicize the way that we deal with competition law.
Even if there were more room for competition in the grocery industry, Mr. Osborne opines that removing the efficiencies defence would have little effect on lowering prices given how small margins are on grocery sales. These are damning opinions from industry regarding the efficacy and forthrightness of Bill C-56.
If the Liberals really wanted to make groceries more affordable, they would drop their inflationary carbon tax to stop taxing the farmer who produces the food, the trucker who transports the food and the grocer who sells the food. It is the height of Liberal hypocrisy to claim to be lowering food prices while they are taxing food production and transportation every step of the way.
The bill before us also claims to be the affordable housing act, which is another sham. Although it would reduce the cost of a new build by the 5% GST it would eliminate, it would do nothing to bring down the price of existing housing in the near term.
After eight years of the Prime Minister, housing costs have more than doubled. Toronto now ranks as the worst housing bubble in the world. Vancouver is now the third most overpriced housing market in the world when we compare average income to housing price. It is worse than New York, London and Singapore, a tiny island with 2,000 times more people per square kilometre. All these places have more money, more people and less land, yet somehow, miraculously, their housing is more affordable.
Canada has the fewest homes per capita of any G7 country, even though we have the most land to build on. That is because we are the second lowest in being the slowest with building permits out of all 40 OECD countries. It used to take 25 years to pay off a mortgage. Now it takes 25 years just to save up for a down payment. Only in Canada has housing become so unaffordable so quickly. This is happening because the Prime Minister subsidizes government gatekeepers and the red tape that prevent builders from getting shovels in the ground and our people into homes they can afford.
In Vancouver, nearly $1.3 million of the cost of an average home is due to government gatekeepers adding unnecessary red tape. That means that over 60% of the price of a home in Vancouver is due to delays, fees, regulations, taxes and high-priced consultants. In Toronto, the added cost is $350,000.
Housing prices have doubled; mortgage payments have doubled. According to the IMF, Canada is the G7 country most at risk of a mortgage default crisis. We have the most at-risk housing market among developed economies. As low-interest mortgages come up for renewal, defaults are sure to rise.
Conservatives have a real plan to get housing built. Our leader and party's act, the building homes not bureaucracy act, would incentivize cities to speed up the rate at which they build more homes every year to meet our housing targets. Cities would have to increase the number of houses built by 15% each year and then 15% on top of the previous target every year. If targets were missed, cities would have to catch up in the following years and build even more homes, or a percentage of their federal funding, equivalent to the percentage they miss their targets by, would be withheld. Cities that exceed that target would get bonus funding; cities that miss it would have their funding reduced. Federal transit funding would be provided to certain cities only when those stations are surrounded by high-density residential buildings.
We would empower Canadians to file complaints about Nimbyism with the federal infrastructure department. When complaints are legitimate, we would withhold infrastructure and transit dollars until municipalities allow homes to be built. It would ensure that CMHC executives cannot receive bonuses unless housing targets are met and applications for new construction are approved within 60 days.
In addition, there will be a 100% GST rebate on new residential rental properties for which the average rent payable is below market rate to ensure that low-income housing gets built in this country.
This bill would also require the housing minister to report on the inventory of federal buildings and land to identify land suitable for housing construction, and to propose a plan to sell at least 15% of any federal buildings and land that would be appropriate for housing construction.
The sad reality is that, under the Prime Minister, housing costs 50% more in Canada than it does in the United States. To bring market equilibrium, we need to build 3.5 million homes by 2030. This act will not get the job done.
I find it troubling that the government that caused this affordability crisis because of its inflationary spending and taxes has now brought legislation that blames food producers and grocers. Deflecting blame from itself and using the power of the state to impose a solution on industry is a bullying tactic unbecoming of a responsible and ethical government.
It is time for the Liberals to get out of the way and let Conservatives fix what they broke. This bill is a sham, and the Prime Minister is not worth the cost.
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Madam Speaker, I first want to congratulate the member. I know his daughter was elected to the Manitoba legislature this week as the only Liberal in a legislature of 57 seats. Nevertheless, I congratulate his daughter.
What I am against is a government bringing legislation to make Canadians believe it is doing something when it is not. This bill is called the affordable housing and groceries act, but it has nothing to do with making groceries and housing more affordable as—
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Madam Speaker, I share with my neighbour and friend concern about the impact of the cost of groceries on Canadians.
Rather than an excess profit tax on retailers, if we were to wipe out the profit entirely of the retailers for the moment, it would take the price of a bag of groceries from $25 down to $24. Is that sufficiently low for Canadian consumers if that is the only solution being proposed or, if that is not low enough for Canadians, what other solutions would he acknowledge? Higher interest rates are impacting the food value chain and the carbon tax is impacting the food chain. What other solutions would he have?
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- Oct/5/23 1:38:30 p.m.
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Madam Speaker, if we want to help the less fortunate, the people struggling to pay for their groceries or housing, our first diagnosis has to be the right diagnosis. Who in society is currently benefiting from the government's largesse and spending—
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Madam Speaker, it is great to rise today and join the debate on this very important topic. I just want to start by saying that, in Bill C-56, I am pleased to see that the Liberals finally seem to be admitting that Canadians are struggling. Over the last number of years, they have been telling us everything is fine and that the government has a great credit rating with all the agencies. However, we have been raising concerns about the housing costs, the cost of groceries and the cost of living for quite some time now, and I think that the bill being brought forward shows that the government is finally admitting that there is a housing crisis and that its inflationary policies are driving up the cost of groceries for Canadians.
It is also clear to me that it is a tired government that is out of ideas. Within the bill, of course, it is looking to remove the GST from purpose-built rentals, but that is something that has been brought forward by our current common-sense Conservative leader, the leader of the official opposition.
As well, the bill aims to help address grocery costs by removing the efficiencies defence, which currently allows anti-competitive mergers to survive challenges if corporate efficiencies offset the harm to competition, even when Canadian consumers would pay higher prices and have fewer choices. This is another Conservative idea. It was brought forward by my friend, colleague and seatmate, the member for Bay of Quinte. I want to thank him for bringing that forward. He is a very smart guy and a decent hockey player, but he brought forward this idea, and it is another one that the Liberals have now adopted.
I want to be clear that I am happy that the government is trying to take some of our Conservative ideas. I will highlight a few other ideas that I would like to offer the government to bring forward, if it is serious about addressing the housing crisis and the cost of groceries.
As we know, after eight years of the NDP-Liberal government, housing prices have doubled. Nine in 10 youth say they will never afford a home, and many families cannot even pay the interest on their mortgages. Now the government's solution is to bring forward more photo ops and, as I mentioned, plagiarize Conservative messaging. The bill takes the Leader of the Opposition's idea from his building homes not bureaucracy act: to remove the GST on purpose-built rentals. It is a good idea, of course, but it is missing a key piece.
Our leader's bill would incentivize more affordable homes, because in order to qualify for the removal of GST, the rental price must be below market value, meaning that more homes would get built and prices would come down. As new homes were built, they would continually bring those prices down in order to qualify. The Liberals' version would not do that. It would allow prices to continue to skyrocket.
I look forward to sharing some more ideas on this after question period.
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- Oct/5/23 2:19:26 p.m.
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Mr. Speaker, I want to talk about shrinkage.
This Thanksgiving, prices up 30%. Let us talk about corn, turkey, gravy, stuffing and all of the fixings Canadians have. Under the Liberal-NDP government, we are also seeing decreases in products. We are seeing all of these items decreased. We are seeing less corn, less turkey and less chicken, even though we are paying more.
Not only do we have shrinkage, the government is starting to apply more hidden taxes at the grocery store. HST and GST are being added to everyday items and often hidden at the bottom of the grocery receipt. I encourage Canadians listening at home to pull their grocery receipts out this Thanksgiving and look at the hidden GST and HST taxes on the bottom. Groceries are supposed to be tax-free, but this Thanksgiving we are seeing turkey, corn, potatoes and other foods being taxed.
This Thanksgiving, Canadians are paying more and paying a hidden tax on shrinking grocery items. The Prime Minister and the NPD-Liberal government are simply not worth the cost.
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- Oct/5/23 2:36:05 p.m.
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Mr. Speaker, the government does not have the courage to take on corporate greed when it comes to the price of groceries or it when it comes to the privatization of our health care system.
Shoppers Drug Mart, owned by Galen Weston, is rapidly expanding American-style for-profit health care delivery in our country, and the government is nowhere to be seen. In the last election, the Prime Minister said he would defend public universal health care and now he calls privatization “innovation”.
Therefore, what is the plan? Is it to wait another two years and then nicely ask Galen Weston to stop?
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- Oct/5/23 2:44:09 p.m.
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Mr. Speaker, the Conservatives like to cherry-pick the facts they want to cling to, even when their facts are not facts.
Something they never talk about is the fact that climate change is also increasing the cost of groceries. This year saw the worst harvests in almost every region of Quebec and Canada. More than anyone, our farmers across the country know how important it is to keep putting a price on pollution and fighting climate change.
If the Conservatives really want to help farmers and Canadians, they should support our efforts to fight climate change.
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Mr. Speaker, I think today's debate calls for a little more gravitas from the Conservatives.
We are talking about the challenges facing Quebeckers and Canadians. The cost of living has been rising. Today, we presented measures to help Canadians, stabilize grocery costs and fight climate change at the same time. The Conservatives are still voting against these measures.
If they really want to help Canadians, they should vote in favour of Bill C-56 so that we can move forward and stabilize the cost of groceries.
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- Oct/5/23 2:58:29 p.m.
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Mr. Speaker, after eight years of the NDP-Liberal government, the price of everything is skyrocketing. “Canada's Food Price Report 2023” states that 64% of Canadians are altering their food-buying habits, moving to dollar stores for groceries and buying less nutritious food. Three per cent of people are eating less. The report blames energy and input costs for this food crisis. The Prime Minister is not worth the cost.
Will the Prime Minister lower food prices by Thanksgiving, or will he break his promise to Canadians?
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Mr. Speaker, I find it curious that my hon. colleague is standing up only now to defend the interests of low-income families that might need the services that food banks provide, when his party, over the course of my time in the chamber, has consistently voted against the measures that would make life more affordable for them.
I look back to when we first formed government. We raised taxes on the wealthiest 1% and cut them for the middle class, and the Conservatives voted against it. When we changed the Canada child benefit and stopped sending cheques to millionaires so we could put more money into the pockets of nine out of 10 Canadian families, the member voted against it. Every step of the way, including support for food banks during the pandemic, the Conservatives could not get behind it.
Will the member now vote for the measures that could have a direct impact on the price of groceries, and support Bill C-56?
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- Oct/5/23 3:16:12 p.m.
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Mr. Speaker, every week Canadians are having to spend more and more on groceries just to feed their families. They are having to put off savings and even other essentials in order to keep putting food on the table. We recognize the global supply chain challenges and global inflation, but we need to acknowledge Canadian families are having a hard time right now.
Could the Minister of Innovation, Science and Industry tell us about his meeting with the grocery executives and what we are doing to address affordability at the grocery stores?
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