44th Parl. 1st Sess.
October 5, 2023 10:00AM
Madam Speaker, I would like to share a story. There are are four grocery stores just a block away from where I live. One of them is a major chain store, like the oligopolies my colleague is talking about. Another one is a small independent grocery store owned by a Portuguese family. All their children work there. Strangely enough, the prices at the small independent store are sometimes half of what the chain store charges. Inflation, however, supposedly affects everyone equally. There has to be something wrong with the logic of the major grocery chains.
I would like to know what my colleague thinks when the Liberals, half-heartedly and almost on bended knee, beg these huge oligopolies to stabilize prices. What is the use of stabilizing prices when prices are already too high and people are going without food?
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Madam Speaker, I would like to welcome my hon. colleague to the House, and congratulate him.
I am really positive about Bill C-56 and how it would strengthen the Competition Act. I wonder if the member could comment on this approach and on whether he thinks it would have positive impacts in lowering grocery prices across the country.
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Madam Speaker, first, I want to congratulate my colleague on his election.
One thing I did not hear in his speech was about corporate profits when it came to grocery prices. We know that corporate profits are contributing over 25 times the impact than the carbon tax, according to the Governor of the Bank of Canada. He cites that the carbon tax is 0.15% in terms of its contributions to the overall impact of inflation.
I would like to hear whether my colleague believes there should be an excess profit tax on the big grocery stores like Sobeys, Metro and Loblaws, which had a $3.6-billion profit just last year alone. We saw grocery prices skyrocket. I hope my colleague can talk about the corporate greed and the impact that is having on inflation.
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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, 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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Mr. Speaker, if the Conservative member wants to see grocery prices lowered, I hope that she asks her leader why it is that the Conservatives continue to delay the legislation that is before the House.
Just this morning, I was so pleased to see the member for Mission—Matsqui—Fraser Canyon say that he supports Bill C-56. I wonder if other Conservatives can convince their leader to support this bill because Canadians are counting on all of us in the House to help stabilize grocery prices.
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- Oct/5/23 2:38:59 p.m.
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Mr. Speaker, Canadians are counting on immediate relief before Thanksgiving. People are rationing food across the country. According to Food Banks Canada, people are making impossible choices between paying their rent or putting food on the table for their families. The Liberal-NDP government continues its inflationary spending, which has caused grocery prices to increase by 94%, as is the case with lettuce.
Canadians are realizing that the Prime Minister is just not worth the cost. Will the Prime Minister keep his promise and reverse his punishing food price hikes by Thanksgiving?
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- Oct/5/23 2:50:25 p.m.
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Mr. Speaker, after eight years of the Prime Minister, it is clear that he is not worth the cost. He promised Canadians an affordable Thanksgiving, but all they are seeing are longer lines at the food bank. The NDP-Liberal government is throwing off more crumbs than a stale loaf of bread. This half-baked loaf of higher deficits and carbon taxes is making it harder for Canadians to afford Thanksgiving.
Will the Prime Minister deliver lower grocery prices or admit he made a turkey of a promise, one that is empty on the inside?
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- Oct/5/23 2:59:10 p.m.
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Mr. Speaker, there are a number of measures that we have put on the table that will stabilize grocery prices and that will build more homes in this country. Consistently, what we have seen from the Conservatives are delay tactics.
Thankfully, this morning, we had a Conservative member stand up in the House and say that he was supportive of the government's legislation and that he would be voting for it. I wonder if there are other Conservatives on their bench who are also of that view. Perhaps they could get together and speak to the Conservative leader, because I believe it is actually the Conservative leader who wants to delay help to Canadians.
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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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- Oct/5/23 3:16:53 p.m.
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Mr. Speaker, my voice was used to express the frustration of millions of Canadians when I met the CEOs of the grocery stores.
The good news is that today we presented a five-point action plan. First of all, we have a commitment from the grocery stores. We are going to create an office of consumer affairs to help consumers. We are going to make sure the grocery code of conduct is going forward. We are going to collect more data on food prices in Canada. We are also going to fight for more competition.
Every day is a good day to fight for Canadians. The Conservatives should join us to make sure we bring stabilization to prices in Canada for the benefit of all.
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