Canada’s Industry Minister Francois-Philippe Champagne doubled down on the need for increased competition in Canada’s grocery sector during a press conference on Tuesday.
“Canadians want to see action in the weeks and months ahead,” he said. “But they also want a long-term solution to high food to high food prices. And that long-term solution is to have more competition. It’s really that simple.”
Champagne’s comments come after the federal government revealed its action plan to stabilize food costs earlier this month, which included establishing a Grocery Task Force, a Grocery Code of Conduct, and introducing targeted legislative amendments to the Competition Act, with Bill C-56.
“More competition means more options which leads to downward pressure on prices,” said Champagne.
“And competition is exactly what we’re working on with Bill C-56 which would give us more tools to make sure Canadians get some long-term relief at the grocery store.”
The proposed legislation of Bill C-56 has two parts.
First, it seeks to amend the Competition Act in order to increase and enhance competition, specifically in Canada’s grocery sector, which is currently commanded by several large companies.
The proposed amendments will give more power to the Competition Bureau, allowing it to investigate and enforce action when companies are involved in price fixing or price gouging. It would also work to end anti-competitive mergers that raise prices by removing the efficiencies defence.
Lastly, it would allow the Competition Bureau to stop any collaborations that prevent competition and customer choice, specifically when large grocery companies try to prevent smaller grocers from setting up shop nearby.
Champagne said that it is “unacceptable that in 2023 the [Competition] Bureau is unable to obtain complete and precise data from industry players.”
With Bill C-56, he noted that more power would be provided to the Bureau to “investigate when industries are behaving badly.”
Champagne stressed that Bill C-56 needs to be passed “as soon as possible” and called on his fellow parliamentarians to “move quickly” in order to see its impact on price stabilization and competition.
In September, Champagne and Finance Minister Chrystia Freeland met with the heads of Loblaw, Metro, Sobeys, Walmart, and Costco to discuss skyrocketing grocery prices.
The grocers agreed to work with the federal government to stabilize good prices in Canada.
The meeting was prompted by an ultimatum posed by Prime Minister Justin Trudeau on September 15, warning Canada’s big grocery chain CEOs that they needed to create a plan to steady prices or face repercussions.
In his address on Tuesday, Champagne said that the federal government is prepared to take “more action” if grocers don’t keep their word.
“Canadians must be able to put food on the table. Canadians must get competitive prices, and we must increase competition,” he said.
“And for that to happen, we need to see words into actions from the grocers. And if we don’t see that… and let me repeat, if we don’t see that we are ready to take more action, so that we can get more tools in order to have a more competitive market here in Canada.”
With files from Isabelle Docto
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