44th Parl. 1st Sess.
June 3, 2024 11:00AM
- Jun/3/24 2:57:00 p.m.
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Mr. Speaker, I would like the hon. member to talk to representatives of the hundreds upon hundreds of Canadian companies that have come with me to many markets around the world where we have excellent trade agreements. They are taking their services, they are taking their goods, they are taking their innovations, they are taking their creations, and they are selling. Canadian companies are selling Canada around the world. Does the member know what they are doing by doing that? They are creating jobs from coast to coast to coast. We need to keep talking up the Canadian economy and Canadian businesses. We are doing that on this side of the House, and I want to know why you are not.
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- Jun/3/24 7:28:41 p.m.
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Madam Speaker, what a curious land Canada is, where a handful of grocery moguls control all the food supply. In 2022, the three most affluent grocers in the land—Loblaws, Sobeys and Metro—reported over $100 billion in sales and drew in profits exceeding $3.6 billion.
Unfortunately, small operators and local shops find it very hard to get a foothold in this vast land. Financial and logistical constraints make it nearly impossible to open new businesses. In the meanwhile, the grocery store giants, firmly rooted in Canadian customs and traditions, thrive as they operate thousands of stores.
We watch with a mixture of amazement and dismay as the growing concentration of this sector makes it even more complicated for new players to enter the arena and grow, rendering competition almost non-existent. Food prices are going through the roof. Of course, fingers point at the rising cost of raw materials, the upheaval caused by the war in Ukraine and supply chain disruptions. That is true.
However, the profit margins of these grocery titans keep growing, and the phenomenon is nothing new. It is becoming critical for Canada to find ways to stem the tide of skyrocketing grocery prices. More competition seems essential to make this positive outcome a reality.
In June 2023, a Competition Bureau report on the retail grocery sector was made public, revealing the underbelly of the sector. Canada is at a turning point and needs to develop an innovative strategy to encourage the creation of new businesses in the grocery sector in order to diversify the supply for consumers. Some ambitious companies are looking to revolutionize the sector by offering online groceries. It is crucial that the different levels of government work together to encourage these bold initiatives, which are ready to shake up the established order.
Ottawa should support the grocery sector by encouraging the growth of independent retailers and welcoming international grocers to the Canadian market. While there are already several renowned independent grocers in Canada capable of standing up to the industry giants, their modest scale prevents them from competing on a national level. It is critically important that Ottawa embrace informed policies that encourage the growth of independent grocers and facilitate the entry of foreign grocers and discount stores. The addition of new competitors and the growth of existing independent retailers will bring in a healthy breath of fresh air, thereby strengthening consumer purchasing power. This healthy rivalry will encourage our retailers to lower their prices, improve the quality of their products and do more to innovate.
Ottawa should also consider introducing clear, harmonized requirements for the display of unit price. It is often time consuming to compare prices, even just for a few items at different grocery stores. People need tools to help them compare prices at the grocery store and make informed choices. This information is essential in helping people make wiser, smarter choices and in promoting competition in our industry.
To meet these noble objectives, our governments will have to work together to develop and implement accessible, harmonized standards for the display of unit price. When I say “work together”, I mean that we, of course, do not want Ottawa to interfere again. This work needs to be done with other levels of government. Measures must also be taken to limit or even ban property controls in the grocery sector. Such controls restrict the use of real estate by grocery competitors and make opening new grocery stores difficult, if not impossible. They also reduce competition in our communities.
Why is competition so important? Basically, competition is a critical economic lever.
When the economy becomes more competitive, both businesses and consumers—Canadians and Quebeckers in this case—benefit substantially. Competition encourages companies to innovate, to perfect the products and services they offer and to increase operational efficiency. As a result, consumers benefit from greater choice, higher quality goods and services and inevitably lower prices. Competition is crucial in all industries and sectors of our economy.
The reason it is so important here is that the Canadian grocery sector, as has been said before, is concentrated. This can make it much harder for small and medium-sized businesses to really compete with the Canadian grocery giants. It is difficult for new companies to successfully penetrate this market. Without a change in this competitive landscape, Canadians and Quebeckers will not be able to fully enjoy competitive prices and a wide range of products.
In its report, the Competition Bureau recommended more competition in Canada's grocery sector. That is the way forward. We need to adopt measures that are going to encourage and support more competition in this sector. Accordingly, we must also avoid simplistic solutions. Through its amendment, the Conservative Party of Canada is trying once again to replay its opposition day. It feels like Groundhog Day. The opposition day motion was defeated just a few hours ago. It does not hold water for all the reasons that were outlined last week during the debate on that ridiculous proposal.
On that, I would be pleased to engage with all of my colleagues.
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- Jun/3/24 9:14:05 p.m.
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Mr. Speaker, on May 9, I rose in this chamber to ask the Minister of Finance when the Liberal government would stop sitting on the $2.5 billion in promised carbon tax rebates while business insolvencies skyrocket and small businesses suffer under higher taxes and inflation. Indeed, this promise was originally made in 2019.
In the budget, I will admit, the government did announce that carbon tax rebates would be forthcoming. However, it did take five years and this is a tax that 80% of small businesses want eliminated. This spring, however, the Liberals announced that they will reduce the amount of financial relief businesses will receive from carbon tax revenue in 2024 from 9% to 5%. Small businesses, as a result of the government's economic failure and incompetence, are drowning in debt and are struggling to stay afloat. Skyrocketing commercial rent, payroll and carbon tax increases, and Liberal red tape have created an impossible economic situation for many businesses across Canada. The latest report from the superintendent of bankruptcy revealed a 58.6% increase, year-over-year, in business insolvencies across Canada for the period ending April 30, 2024.
Statistics Canada reported that in February, more businesses closed their doors than opened. The largest declines were seen in transportation and warehousing, construction, so we think of home building, accommodation and food services. The labour force survey each month continues to highlight the massive gap in public sector job growth and private sector job growth. The growth in size of the public service is greatly outpacing private sector job growth. Quality of life is also continuing to decline in our country and our economy is underperforming the American economy by the widest margin since 1965. Among our G7 peers, only Italy has seen a greater decline in labour productivity compared to the United States.
In 1984, Canada produced 88% of the value generated by the U.S. economy per hour. By 2022, that figure had fallen to 71%. Again, only Italy performed worse over the same period. If the government truly had the back of small businesses, as I have heard in this House during QP, the situation would, in fact, look very different.
Rather than taxing Canadians into oblivion and offering a woefully insufficient rebate, far less than was originally promised, the government could start controlling its spending and stop driving up inflation and create a competitive economy for our small businesses to thrive. Indeed, the statistics I outlined do not lie.
If this government truly “urgently” wants to return the proceeds from the carbon tax, then I will ask: why did it take five years for this government to make an announcement? On what day will small businesses start receiving this rebate?
Secondly, why did the government reduce the amount given to small businesses from 9% to 5%?
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- Jun/3/24 9:17:22 p.m.
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Mr. Speaker, it is always nice to be in the House in the evening with my colleague from Mission—Matsqui—Fraser Canyon. I thank him for the opportunity for an adjournment debate on this important issue.
Small and medium-sized businesses are the backbone of the Canadian economy, and over the last four or five years, business owners have had a really challenging environment to operate in. Depending on what sector and where they are located, the pandemic has had an outsized impact on a lot of small businesses. However, throughout that tumultuous period, our government was there for small business owners. We paid much of their salaries, and we paid a lot of that rent. We kicked in wherever we could. We provided CEBA loans, and we kept the Canadian economy afloat.
We took on some debt so that the business owners would not have to and the result is that, over the last two years, the recession that so many economists, pundits and op-ed writers indicated was on the horizon in Canada has been avoided. It is really worth pointing out that, despite all the gloomy talk of the Conservative Party of Canada, Canada's economy is doing very well compared to our colleagues in the G7 or our partner countries. It is always easy to find a statistic to point out that it is bad here or it is bad there, but overall, Canada's wage growth has caught up to inflation, which is excellent news for workers. We have seen more than one million, the last figure being 1.3 million, new jobs compared to before the pandemic.
The member was talking about inflation and accusing this government of contributing to that inflation. He does not really give our government or the institution across the road, the Bank of Canada, too much credit for that inflation coming down. In the last 20 months consecutively, it has come down to a more reasonable rate of somewhere between 2.3% and 2.7%, which is getting really close to the Bank of Canada's target rate of 2%. We are getting there as a country.
I am not taking credit, as a member of this side. I want to give credit to Canadian workers, to Canadian innovators, to Canadian small business owners and to people who worked so hard during the pandemic and who took advantage of some of those government programs, which they were entitled to. They have continued to fight through the headwinds. The reason we are not in a recession now, in June 2024, is because of their hard work and ingenuity. As the member rightly pointed out, budget 2024 proposes to invest $2.5 billion to support 600,000 businesses across Canada. For context, the CEBA loans supported Canadian businesses with upward of $45 billion or $50 billion.
Our government has been there for small and medium-sized businesses. As we fight climate change and innovate to lower our emissions together, we will continue to serve Canadians, employ Canadians and make sure that Canadians have all of the opportunities they deserve. In the future, we will be there. We will have their backs, and we know that they will continue to do their great work in driving our economy forward to a green future.
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