As inflation continues to effect grocery bills, the federal government has summoned the chiefs of Canada’s biggest grocery chains to Ottawa this fall to begin discussions on a strategy to decrease food costs for Canadians.
The corporations have been entrusted with developing a plan to stabilize rates by Thanksgiving, Prime Minister Justin Trudeau said on Thursday as he celebrated the end of the Liberal cabinet retreat in London, Ont., ahead of the return of Parliament next week.
If the grocers do not come up with a plan that delivers “real relief” for middle- and lower-income Canadians, Trudeau warned the government will take further action to push them to do so.
He cautioned that this could involve tax increases.
The prime minister stated that the leaders of Canada’s five largest grocers — Loblaw, Empire Co., Metro, Walmart, and Costco — will have the finest overall view of their business and what can be done to reduce prices. These five businesses control nearly 80% of the Canadian grocery sector.
He cautioned that this could involve tax measures imposed on the major grocery chains.
Food price inflation has consistently outperformed general inflation, which was 3.3% in July. Food inflation, on the other hand, was 8.5 percent in the same month, indicating a minor slowing of price growth compared to earlier this year.
Simultaneously, Loblaw, Empire, and Metro have all reported strong profit growth in their most recent quarters. Trudeau’s declaration came only hours after Empire said that profits were up nearly 40% year over year, or $73.5 million. Profits at Walmart and Costco, both American firms with Canadian subsidiaries, have also increased.
Of course, throw a tax at it, all is well. And the NDP back this. Wedge/Divide/Stigmatize the liberal way.
If he does that we are screwed. Now inflation will never stop we are the ones who are going to pay the price not these rich companies. This will fall on us again. Trudeau must GO!!!!
I would like to hear the view of our very quiet Terry Sheehan on Trudeau’s plan. It is ok to speak Terry between election cycles.
Its kind of funny how Trudeau thinks he can control private enterprise like that. Government has no control over setting a private businesses pricing, and to add another tax will just be passed onto the consumer, not absorbed by the companies. Or they will simply say “F-U” and shut down if he thinks hes going to start controlling private enterprise. This is a slippery slope they are starting here for all private business. One thing to regulate the products, etc. another to try and regulate pricing and profit. its a BUSINESS! If they want to lower pricing, then its time the government operates grocery stores like they operate LCBO! BTW compare LCBO pricing to the US, and you’ll see how profitable that business is operated by government, and the price gouging! So not even government operated things will reduce costs!
Brainless is as brainless does. ANOTHER bad idea like allowing landlords to raise everyone’s rent by 2.5%. The Canadian people need to kick this loser to the curb.
“ANOTHER bad idea like allowing landlords to raise everyone’s rent by 2.5%.”
I suggest you peruse the Canadian Constitution. If you do, you’ll see that powers are divided between the federal and provincial governments and that landlord and tenants are part of provincial powers. This is why Doug Ford as premier of Ontario is responsible for the rent increase.