Evidence of meeting #23 for Foreign Affairs and International Development in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was accord.
A recording is available from Parliament.
5:25 p.m.
Executive Director, Fairtrade Canada
Yes, well, I would say not enough, but there are significant changes.
5:25 p.m.
Executive Director, Fairtrade Canada
Okay, but I do congratulate Loblaws. We're doing a pilot project right now with Loblaws on fair trade flowers from Ecuador. So it's those types of initiatives.
5:25 p.m.
Conservative
The Chair Conservative Dean Allison
Thank you.
Thank you, Mr. Dewar.
We're going to move it over to Ms. Brown to finish up.
5:25 p.m.
Conservative
Lois Brown Conservative Newmarket—Aurora, ON
Thank you, Mr. Chair. My question is really directed to Ms. Brisebois and Mr. Chant.
We talked about buying. Really, what it comes down to is changing a culture in North America. We used to have a very robust garment industry in Toronto. In fact, up until 30 years ago, we still had shops on Spadina Avenue downtown. I visited some of those shops. I was in a shop in Brampton 10 years ago that probably was very questionable, and probably needed some inspectors to go in there.
I would hazard a guess that if we went around this room here today, we would find that the clothes that we are wearing were not made in Canada, or very few of them were made in Canada. They were probably made in Vietnam, Cambodia, or Bangladesh. What it comes down to is a price point.
I guess my question for you, Ms. Brisebois, because you say that you represent 45,000 retailers across Canada, is this. It takes selling a whole lot, selling hundreds and hundreds of $10 T-shirts for your retailers to pay the cost of the rent in some of the malls they occupy, so where does the price point hit, that it no longer becomes viable or that we start increasing the prices to the purchasers here?
We all know our attitude. Everybody says, “Look what I got on sale”, so it becomes a very fine balancing act from the point of view of a business active in Bangladesh. You say that Bangladesh wants you to stay there, Mr. Chant. So how do we make that happen, that we hit that happy medium where we are providing the safety and security for the people in Bangladesh, and yet you are still able to operate there and we still find Canadian retailers who want to sell to Canadian purchasers who want to purchase at that price? Where is that balancing point, and how are you managing that, first of all, for the retailers, and for the producers?
5:30 p.m.
President and Chief Executive Officer, Retail Council of Canada
I was going to throw that question to Bob, but I think Bob would want me to take that.
It is a very interesting question and I wish we had more time. I can see that we have very little. It's very challenging for Canadian retailers, specifically because we are dealing in a global environment. Retailers in Canada are small in comparison to their competitors, most obviously in the United States, so price points are extremely important for retailers.
There's no question that this is one of the reasons they try to source around the world to try to get the best prices. That said, they're also aware that customers want quality and assortment, so it's a balancing act.
I think the challenge has also been for those manufacturing companies in Canada to find people who want to work in those factories for wages that are often not seen as competitive. It's a very, very challenging environment for retailers.
I believe, though, that consumers have and will, as Bob mentioned, send very clear signals about quality of product, where product is made, and also price points. Retailers have to stay very close to their customers, follow their lead, and try to respond as quickly as possible.
5:30 p.m.
Senior Vice-President, Corporate Affairs and Communication, Loblaw Companies Limited
You asked the toughest question at the very end of our discussion. Hopefully, what we have been saying and doing are in large part an answer to your question. We are taking the steps that we believe are necessary to ensure there are safe workplaces in Bangladesh. We do believe that our company offers choice first and foremost. I believe we're a country that believes we can compete on the international stage, and that means being open to buying and selling with all countries around the world.
If we truly believe that, then we should focus on the issues that we're here to talk about today, which is workplace safety and ensuring that we're not taking advantage of people. But at the same time, some countries are going to offer more price advantages than others. That's just the nature of the marketplace. We as a retailer want to take advantage of the world that's in front of us and offer our customers as much choice as possible in a responsible and ethical way.
5:35 p.m.
Conservative
The Chair Conservative Dean Allison
That's all the time we have.
Ms. Brisebois, thank you very much for being here today via video conference. Mr. Chant, and Mr. Smith, thank you for taking the time.
5:35 p.m.
NDP
Paul Dewar NDP Ottawa Centre, ON
Chair, not to put you on the spot, but just before we go, I am wondering if the government would consider looking at just a couple of recommendations following the testimony, and if we could discuss that at another time.
5:35 p.m.
Conservative
The Chair Conservative Dean Allison
We could probably talk about that on Wednesday.
The meeting is adjourned.