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Decentralized Democracy

House Hansard - 324

44th Parl. 1st Sess.
June 4, 2024 10:00AM
  • Jun/4/24 10:59:31 a.m.
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Madam Speaker, contrary to what the opposition member just said, the State of California does have a price on pollution. However, that is not the question I have for the member. At the end of the day, we take a look at the cost factors, inflation rates and the impact that these things have on society. We want to see food prices stabilized. Ultimately, people need to have comfort in knowing that the government is acting on their behalf. We brought in the Competition Act, which the member made reference to; this is one way in which we can ensure that we are having more stabilization of food prices. Could he just expand on why it was important to make changes to the Competition Act?
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  • Jun/4/24 11:00:25 a.m.
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Madam Speaker, it is essential to have the Competition Act in place; the motion by the NDP talks about an oligopoly, in essence, in Canada's retail sector. Just as we have in banking, we have to take some measures to protect the consumers in those endeavours. The Competition Act and the Competition Bureau enable us to assess some of the activities that are involved in regard to that system. While the supply chain is much more competitive because of its diverse nature and the many inputs that are engaged in providing food, the Competition Bureau is essential to ensure that there is fairness in the system throughout, especially when it goes to the consumer at the retail level.
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  • Jun/4/24 12:04:06 p.m.
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Mr. Speaker, I suspect the issue of caps has a lot to do with the supply end and with the end result. My question to the member is in regard to the idea of enhanced competition. We did have six large grocery companies. Shoppers was the last one that folded into Loblaw. In part, that sent a very strong message in itself, and it was one reason we had to change and to modernize the Competition Act. I am wondering if the member could provide his thoughts on the important role that the Competition Act and the commission play in ensuring that there is stability in prices.
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Mr. Speaker, I am happy to participate in this debate on the NDP motion submitted by the hon. member for Cowichan—Malahat—Langford in relation to the price of essential foods and the conduct of grocery giants, such as Loblaws, Metro and Sobeys. The proposed motion is timely, because by voting in favour of Bill C-59 last week, this House approved the latest initiative in the government's comprehensive modernization of the Competition Act. The relevant clauses were approved unanimously, showing the strong consensus here in this chamber on these issues. The truth of the matter is that the government has been extremely active in promoting competition in all sectors of the economy, including in the grocery retail industry. It begins with resourcing. In budget 2021, the government increased the Competition Bureau's budget by $96 million over five years and $27.5 million ongoing thereafter. The increase in resources was a much needed boost to the bureau's capacity, and in its own words, “These funds enhance our ability to enforce the law and advocate for more competition. They help ensure we have the right tools to deal with Canada’s competition challenges now and in the future.” Needless to say, law enforcement will not be effective if the enforcers are not able to carry out their tasks, and that is why this extraordinary increase was crucial to the bureau's functioning. The next step had to do with the legal framework under which the bureau operates, the Competition Act, which was aging and falling short compared to our international partners. Through the 2022 budget bill, Bill C-19, we took the first step in remedying this, correcting some of the obvious issues. This included criminalizing wage-fixing agreements, allowing private parties to seek an order for abuse of a dominant position and raising maximum penalty amounts to be based on the benefits of anti-competitive conduct. This ensures that sanctions would no longer be a mere slap on the wrist for today's largest economic actors. The government knew, however, that much more remained to be done. Where the solutions were less readily obvious, the minister turned to the public process, launching a comprehensive public consultation on the future of Canada's competition policy. The process ran from November 2022 through March 2023. In response to a consultation paper released by Innovation, Science and Economic Development Canada, over 500 responses were received. This consisted of over 130 from identified stakeholders like academics, businesses, practitioners and non-government organizations. While this feedback was being received, government officials also met with stakeholders in round table groups, allowing them to voice their views and to interact with each other as well. Stakeholders were not shy about sharing their opinions with us. They knew what sorts of outcomes they wanted to be delivered. There was no shortage of proposals made, some highly concrete and detailed, others more directional in nature. What we heard, however, is that Canadians wanted more competition. Across many domains, the desire to strengthen the law, to enable the bureau to act and to align with international counterparts was evident. Of course, many also expressed reservations about ensuring we get the details right and warned about overcorrection. The government took those to heart as well, taking inspiration from examples in other jurisdictions and recognizing the careful balancing that must be done when developing new legislation. All told, the results of the consultation can be seen in two pieces of government legislation. First, Bill C-56, the Affordable Housing and Groceries Act, was adopted in December 2023. It took some of the largest issues off the table. It eliminated the “efficiency exception”, which allowed anti-competition mergers to withstand challenge. It revised the law on abuse of dominant position to open up new avenues for a remedial order. It broadened the types of collaboration the bureau can examine, including those that are not formed between direct competitors. It established a framework for the bureau to conduct marketing studies, including the possibility of production orders to compel information. Work on this last amendment is already under way, as the bureau has announced an intention to launch a study into the passenger air travel industry. Bill C-59, the fall economic statement implementation act, 2023, is the second legislative effort following the consultation. As we know, it is currently before the Senate, and the government looks forward to its quick adoption. The amendments to the Competition Act that it contains are incredibly comprehensive. I will provide some of the highlights. The bill makes critical amendments to merger notification and review to ensure that the bureau is aware of the most important deals and would be able to take action before it is too late. It significantly revamps the enforcement framework to strengthen provisions dealing with anti-competitive agreements, and it broadens the private enforcement framework so that more people could bring their own cases before the Competition Tribunal for a wider variety of reasons; in some cases, they could even be eligible for a financial award. Bill C-59 also helps address important government priorities by making it harder to engage in “greenwashing”, which is the questionable or false representation of a product or a business’s environmental benefits. It facilitates useful environmental collaboration that might otherwise have been unlawful. It helps to make repair options more available for consumers by ensuring that refusals to provide the necessary means can be reviewed and remedied as needed. Finally, overall, Bill C-59 makes a number of critical but often technical updates throughout the law to remove enforcement obstacles and make sure that the entire system runs smoothly. I cannot overstate how important these measures are. The competition commissioner has referred to this as a “generational” transformation. It is by far the most significant update to the law since the amendments in 2009, following the recommendations of the competition policy review panel; arguably, it is the most comprehensive rewrite of the Competition Act since it first came into effect in 1986. Our world has changed since then, and it became clear that the law needed to keep pace to enable institutions that can oversee fast-changing markets and landscapes. After the passage of Bill C-59, we can guarantee that our competition law will work for Canadians in markets such as the one under scrutiny here, as well as the many other markets throughout our economy. I am thankful for having been given the opportunity to share a few words.
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  • Jun/4/24 3:22:52 p.m.
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Mr. Speaker, one of the most interesting things that took place yesterday on the Hill is that the NDP leader appeared at committee on Competition Act legislation he has tabled that would create greater accountability against corporate greed. He was attacked by the Conservatives, without asking him good questions, and on top of that, the Liberals seemed indifferent to it. I would ask the member if he could explain the Liberals' position with regard to increasing accountability on the Competition Act and ensuring that Canadians are not going to be gouged because of systemic problems that have been put in place and have been supported by successive Conservative governments and Liberal governments that have left Canada isolated when it comes to protecting consumers.
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