- Member of Parliament
- Member of the National Security and Intelligence Committee of Parliamentarians
- NDP
- Vancouver Kingsway
- British Columbia
- Voting Attendance: 59%
- Expenses Last Quarter: $153,893.57
- Government Page
Mr. Speaker, it is a real pleasure and a privilege to stand in the House and speak to supply management. At one time, I had the honour of being the official opposition critic for international trade, so I remember well this issue and how deeply it engages so many people who live in this country.
I also recognize the threats that supply management has been under for a long time. This bill, Bill C-282, an act to amend the Department of Foreign Affairs, Trade and Development Act with regard to supply management, is introduced by my colleague from Montcalm, whom I have the pleasure of serving with on the health committee. I want to congratulate him for this bill, because I think it is a very important and necessary piece of legislation that, unfortunately, is required because supply management has been under threat by successive Liberal and Conservative governments, which have continued to push trade deals that increasingly carve away at one of the key pillars of supply management.
This bill would forbid the minister from promising to make larger percentages or amounts of imported dairy products, poultry or eggs, which are supply-managed products in this country, eligible for lowered or waived tariffs. In other words, it would forbid the minister to reduce tariffs applied to these goods when more than are eligible for lowered or waived tariffs are imported.
It is unfortunate that we even have to do this, because I have stood in the House for a number of years when successive Liberal and Conservative governments have passionately risen and stated their undying commitment to supply management and their commitment to the farmers in their ridings that they would never encroach upon this very well-thought-out and important system, and then have turned around and negotiated trade deals that increasingly give other countries increased quotas to come into our country.
Why is that a problem? I am going to start by explaining just a little bit what supply management is. It is a system that started in the 1970s and that was meant to provide farmers in key industries in this country with the ability to have a stable income and to know how much supply would be provided in any given year. This is the real strength of the system. It is a system that rests on three key pillars.
It was brought in because those farmers were suffering through very wild price fluctuations, especially on commodities: One year they might do very well, but the next year they would face ruin. Many farms experienced great difficulty in planning for the future. We know that if one wants to stay competitive and maybe even have an edge in agriculture, investments in technology and machinery are absolutely critical. Supply management provides that certainty, so that farmers can make those investments with the firm knowledge that they will be able to recoup their investment and sell their goods for a fair price.
The three pillars of supply management are production control, pricing mechanisms and import control. It has been referred to as a three-legged stool. Of course, we all know that if we affect one leg of a three-legged stool, then the whole seating structure is at risk. What has been happening in the trade deals, negotiated and signed by successive Conservative and Liberal governments, is that they have focused on the import control leg of the pillars and they continue to allow more and more goods to be imported into Canada in those supply-managed sectors, which of course threatens the entire system.
What this bill would do is remove the ability of the trade minister, when negotiating a trade deal, to put those supply-managed commodities on the table and to trade off, as it were, supply-managed sector goods for other trade benefits.
This happened in the TPP. It happened in CUSMA. It happened in CETA. Those agreements did allow, first the European Union, then the TPP countries and now the United States and Mexico, to make ever-increasing inroads into being able to get more of their goods into Canada. I will try to put that into perspective, to see why it could be so destabilizing.
It is my understanding that the entire production of milk in Wisconsin would be enough to serve the entire Canadian market. One can only think about those very large corporate farms in the northern United States that, if they were able to have untrammelled access to the Canadian market, would be able to flood Canada with products on an economy of scale that would make it impossible for Canadian farmers to compete.
The other factor that is critically important is that supply-managed sectors also give us the ability to make made-in-Canada regulations around the production of our food. For instance, there are certain growth hormones, certain ways of production and certain chemicals that are permitted in other countries that Canada would not want to have in our food system.
At the end of the day, Canadians, when given a choice, would like to source their food from local producers. Canadians want to know that they are supporting their neighbours, their small towns and rural Canada, and that we are helping those farmers and those farm families to make a decent living. We want to know that our food is produced in humane, high quality, safe and healthy manners. This means that Canada should have control over our domestic food production. Again, most Canadians support that and I know that the vast majority of farmers in supply-managed industries also support that.
I want to just touch briefly on a couple of myths. There is this myth that this artificially increases the price of these goods and the Canadian consumer is somehow being exploited or taken advantage of by the supply-managed sector. Nothing could be further from the truth because what supply management does is provide stable prices. I know that right now in this country we have a crisis in the price of food, but in regular times, generally when someone goes to the store to buy a litre of milk or a dozen eggs over the last 20, 30 or 40 years, they know that they are going to be faced with a stable price. In non-supply-managed countries, they may have extraordinarily cheap eggs and milk one year and then if there is bad production in the next year due to bad weather, blight or disease, the prices of those goods skyrocket. Therefore, what supply management does for consumers in this country is provide a stable source of high-quality, supply-managed goods, including poultry, eggs and milk, at stable prices. That ensures that everybody has access to these excellent products at all times.
I know that I speak for my New Democrat colleagues when I say that we are firm, committed and passionate believers in the supply-managed sector. We know it is a system that works well for rural Canada, for farmers and for consumers. To use the old metaphor, “if it ain't broke, don't fix it.”
We also know that the forces that are constantly wanting to cut this away are not forces that care about Canadian farmers, small-town communities, rural Canada or consumers in Canada. Rather, they represent large agribusiness, usually multinational agribusiness, or right-wing economic ideologues who are just pursuing a free-market frenzy philosophy without any regard for the actual impact that this will have on our community and our country.
Therefore, we are very proud to support this bill to committee. We look forward to listening to the evidence and testimony. I want to again congratulate my colleague from Montcalm for this excellent bill. We look forward to working together to strengthen the supply-managed sector in this country so that Canadian farmers and Canadian consumers have access to high-quality products at all times.
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- Oct/6/22 3:47:06 p.m.
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Madam Speaker, I think the NDP has been the loudest, strongest and longest voice in this House on going after tax havens. We have been raising that in every election I have run in since 2008. We were doing it before that as well. In fact, this motion does talk about forcing CEOs and big corporations to pay what they owe, by closing loopholes that allowed them to avoid $30 billion in taxes in 2021 alone. That results in a corporate tax rate that is effectively lower now than when the government was elected.
Part of closing loopholes is going after that money that is parked in offshore tax havens as a means of extracting the wealth from Canada and parking that capital offshore to avoid taxes. That is immoral and should be illegal, and only the NDP has consistently called for effective action to close those loopholes.
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- Oct/6/22 3:45:25 p.m.
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Madam Speaker, it was a pleasure to serve with the member on NSICOP. The motion is, I think, very well crafted. It identifies the problem in a very pithy way, and it identifies four concrete solutions. I suppose there are always things to add, and the Conservatives could have added an amendment if they had wanted to.
In terms of inputs, what we are talking about here is plain gouging. It is my assertion that corporations, including food companies, are using the supply chain problems as a cover to gouge consumers. There is no question about that, because their increases bear no resemblance whatsoever to any of the input costs, including wages, which is usually the single largest component of any product, like a food product. They are gouging agricultural producers as well. It is certainly not our farmers who are reaping the benefits of these prices. It is the food companies themselves. That is why we are zeroing in on them.
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- Oct/6/22 3:43:35 p.m.
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Madam Speaker, I would be pleased if the Liberals voted in favour of this. I hope they do, but one vote today is not going to make up for decades of inaction and refusal to make corporations and companies pay their fair share. There absolutely is a comprehensive corporate gouging across all sectors of this country.
My colleague asked what other sectors are doing it. The oil and gas sector is doing it. In fact, some of the biggest oil companies have recorded the highest profits in the history of their companies in the last 12 months. The so-called FIRE sector, which is finance, insurance and real estate, is recording double-digit profit increases, as are other companies across this country.
This corporate gouge is not limited to the food sector, for sure. That is why we need fair corporate taxation, something the NDP has called for over a long period but both the Liberals and the Conservatives have refused to do.
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- Oct/6/22 3:32:56 p.m.
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Madam Speaker, once again I am pleased to rise in the House and bring the voice of the people of Vancouver Kingsway to this chamber, particularly as we discuss this very critical and important New Democrat motion that would make such a difference to so many Canadians' lives across this country.
I might add that I am going to be sharing my time with my hon. colleague from Timmins—James Bay, who will once again provide the powerful view of people from northern Ontario.
In short, this motion calls on the government to recognize that excessive corporate profits fuel inflation. It would force CEOs and large corporations to pay what they owe by closing tax loopholes. It would request the Competition Bureau to launch an investigation into the behaviour of chain grocery stores, and it would support the Standing Committee on Agriculture and Agri-Food in its investigation of high food prices and obscene profits in chain grocery stores.
The context in which this NDP proposal arises is very important. People in every corner of this country are frustrated and hurt that they are paying excessive, historically high prices for their food while the huge food chains are making massive, unprecedented profits and their CEOs in particular are getting huge bonuses off the backs of hard-working Canadians.
After seven years in government, the Liberals are still protecting the profits of the wealthiest in this country by refusing to toughen the Competition Act to punish corporate CEOs who are gouging consumers and, in this case, also agricultural producers.
For their part, the Conservatives played their role in the current crisis when they were in government by cutting the tax audits of the wealthiest Canadians and prioritizing excessive CEO profits over the interests of working men and women. The Conservatives refused to toughen the Competition Act when they were in government as well.
Only the NDP members are standing in this House fighting for the people who are suffering from these high prices. We will continue to pressure the Liberals to make sure that the wealthiest CEOs in the largest profitable corporations in this country pay what they owe and stop the price gouging that they are inflicting on people.
Let us review some of the basic facts. It is absolutely crystal clear that the inflation being experienced today is greedflation. It is not caused by governments or deficits. It is not caused by workers' excessive wages. It is caused by excessive prices. In particular, it has been caused by price gouging by corporations who have used the cover of the pandemic and the war to jack up prices and, in turn, their profits.
Let us review the facts. In August of this year, the price of the grocery basket rose 10.8% in one year, more than twice as fast as people's wages. Where did that come from? As people pay the price for the biggest increase in the grocery basket since 1981, the Sobeys' CEO has been given a total compensation package of $8.6 million in 2022. His increase is more than 15.5% over 2021. While a quarter of Canadians, which is nine million Canadians plus, are cutting back on food spending, a necessity of life, Metro's CEO boosted his company's profits to $275 million just in the last reported quarter, which is 9% higher than the same point in 2021.
I am going to stop here just for a moment. I am sure members are noticing a pattern: 9%, 15.5% and 10.8%. These are all numbers over the inflation rate of 8% today and they are all caused by CEO increases, massive compensation increases and price gouging by food producers. Do we wonder where inflation is coming from?
While Canadians pay the price for rising food prices, billionaire Galen Weston, chairman of Loblaw, has increased dividends to shareholders from $118 million to $125 million, just in 2022. Who is paying the price for this? A new survey shows that nine out of 10 Canadians are now tightening their household budgets because of continuing high prices. Another survey found that 23.6% of Canadians have had to cut back on the amount of food that they buy. Imagine that. Almost one in four Canadians is reducing their caloric intake in this country while rich, wealthy corporations make massive profits and reward their corporate masters for doing so.
Despite a slight deceleration in the rate of inflation recently, food prices continue to rise at a rate of over 10.8%, so in 2002 Canadian families are expected to pay almost $1,000 more for groceries than in 2021. This is a crisis. This is a problem. People are being hurt every day by this price gouging.
What do the Conservatives say? They say to cut the deficit and cut taxes. That is their solution, but they refuse to say a word in this chamber or outside the chamber about the cause of this problem being corporate greed. Why? It is because the Conservatives are the party that represents Bay Street and the party that represents large corporations and CEOs in this country. While they claim to support the little guy and working people, their silence on issues like this speaks volumes.
For the Liberals' part, they claim to care as well, but their policies, in truth, on these economic issues are really no different from those of the Conservatives'. While people are paying the price for the biggest increase in the grocery basket in over 40 years, we find ourselves at this juncture in history.
What is the NDP saying we should do about it? We are saying, let us take action. That is because we know it is not people's wages that are causing the cost of living crisis, but again the obscene profits being made by corporations and CEOs. Indeed, corporate profits, along with prices, have reached their highest share of Canadian GDP ever, and now I am talking about across all sectors. Corporate profits have increased by $22.9 billion this year, which is about a quarter of the increase in costs to consumers.
The contrast between these profits and people who suffer the price gouging is not new. As far back as 2018, Loblaw, run, again, by the billionaire Weston family, admitted to participating in a cartel from 2001 to 2015 with other major grocery chains to artificially inflate the price of bread. This potentially, what I would call, prima facie criminal practice is reportedly still under investigation by the commissioner of competition.
If someone stole a load of bread in this country today, the person would have been tried, convicted and punished by now, but when billionaires defraud millions of Canadians, it takes years to even investigate. That is under the legal scheme that has been devised by successive Liberal and Conservative federal governments over decades and decades. Therefore, it is no wonder that corporations are price gouging. They have been given the green light by Conservatives and Liberals for years. Where is the penalty? The Conservatives, who like to talk about being tough on crime, do not seem to be too tough on Loblaws right now.
The commissioner of competition recently called for greater enforcement of Canada's competition laws to combat rising prices, and he noted the federal government is ill-equipped compared to other countries. For example, under European competition law, companies can be heavily fined for abusing their dominant positions in the market to exploit consumers, including the imposition of unfair purchase prices.
Recent cases handled by them include pharmaceutical companies that raised their price of off-patent cancer drugs, of all things, by a percentage in the hundreds, and Gazprom, which has been accused of setting unfair prices for gas. These companies will take advantage of crises, even of cancer patients and people suffering from the Ukraine war, to gouge and pad their profits. It is time the Liberal government put an end to this.
The NDP stood in this House today and moved a motion to do exactly that. It will be interesting for Canadians to see how these two parties vote on this, because that will tell the tale. It is easy for them to say they support working people, but we will see who stands up in the House, attacks these corporate profits and stands up for working people when this motion is voted on.
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- Dec/16/21 11:34:52 a.m.
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- Re: Bill C-2
Mr. Speaker, I thank my hon. colleague for his comprehensive look a this. It was a refreshing, revisionist review of neo-conservative economics.
I am really glad to hear that he has awakened to the housing crisis in this country. Those of us in the NDP have been pointing this out for decades. I come from the Lower Mainland of B.C., and I can assure him that the housing crisis did not occur today and did not occur in the last three or four years. It has been building for the last 20 years. He was a member of the government that was in power in this country from 2006 to 2015, when the housing crisis was developing in the Lower Mainland.
There is another thing I want to mention. Of course, he has been a big proponent of free trade. However, what does free trade do, which we have been warning about for years? When all the tariffs are reduced at the borders, capital flees to wherever it is cheapest to produce. This reduces Canada's ability to compete.
Does the member now agree with the NDP that the neo-liberal free trade policy was wrong and made Canada dependent on other countries for primary goods? What responsibility does he take for the housing crisis in this country?
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