Mr. Speaker, it is nice to join the debate this evening on an issue that is affecting so many Canadians, I would say every Canadian, because everybody needs to eat. Our groceries just cost too much these days. Everybody is frustrated, and I understand why.
Food is an essential item. It is not as though people can just decide to take a couple of weeks off. Groceries are probably the third or fourth-most expensive thing that a household has to purchase every month, after paying rent or a mortgage and after paying for a vehicle. Food is expensive, and there are a lot of reasons for the fact that food is expensive. This evening, I was hoping I could unpack a few of those root causes a little and could get to some questions. With some colleagues, the art of thoughtful conversation and a little debate sometimes feels like it has lost its touch around here.
What can we do as a government? People ask us all the time. We knock on their doors or we answer the phone at the office, and people say, “Lettuce is $3.50 again. What the heck?” I do not blame people for being frustrated. I am frustrated too. One of the chief complaints I hear is that people are frustrated because they hear that grocery executives are being paid millions of dollars and that the people who work in those stores are still earning minimum wage. It does not seem fair, and it is not, quite frankly.
However, it is clear to me that regardless of who works for lobbying firms, and I will not argue about who works where; everybody deserves honest work. The reality is that these big companies can afford lobbyists and that they can afford lobbyists because they make a lot of money. Whether we are talking about private utility companies, oil and gas companies, grocery chains or big banks, for that matter, those companies can afford to spend a lot of that money on government relations and on PR.
Those who cannot are Food Banks Canada, teachers, nurses, parents and people who are struggling to pay their bills. There is no public lobbyist who says that their neighbours are really struggling. In fact, that is us. We need to have our ears to the ground. We need to be there for our neighbours. We need to listen to their issues, and then do a little bit of research.
I often talk, probably not enough in this place, about the Library of Parliament, which is such a wonderful resource that we all have access to. They do great work. They do excellent research. It is completely non-partisan, and it is extraordinary. The people who work over there, the researchers, the clerks and the librarians, are amazing.
I am going to commit to work with the Library of Parliament for the remainder of this session to try to dive into precisely why some grocery prices are so high. I have done a little research, which was very preliminary. I will say it is not research because when we Google something, that is not research. Research is actually meant to have some rigour, and a Google search does not. It is just a little reading.
I have done some light reading on why grocery prices are expensive. Climate change is the number one reason. Disruptions, extreme weather, floods and droughts, all of those things are costing food production and farmers a lot of money. That needs to be addressed, and we know that we cannot just switch climate change on or off like a light switch, despite the Conservatives talking about carbon pricing. They ask if we pay a carbon price, will it stop a hurricane or will it stop a wildfire? It is absurd.
It is an absolutely absurd question or statement, but it does not stop the Conservatives from making that sort of comparison; if we pay the price on pollution, then it will just stop the crazy weather. That is not the way it works. The crazy weather that we are experiencing is a result of an excessive amount of greenhouse gases in our environment and in our atmosphere. Just like a greenhouse that has a lot of CO2 inside because there are a lot of plants in there, it heats up. Our planet has been heating up, not in a uniform way, but one that contributes to a lot of extreme weather, and it disrupts agriculture.
Another significant cause of disruption of the agriculture sector is conflict. We know that around the world, there is a lot of fighting. Some of those countries that are fighting produce a heck of a lot of food. When they are at war, they are not able to ship their raw goods, and that increases the cost of food.
Then there are some more localized issues here at home. I remember, probably a decade ago, getting a weird little $25 gift card in the mail, which was unmarked. It was because the price of bread was fixed by some of the largest grocery chains. They were colluding with each other. It was due to unfair practices and really bad corporate behaviour. They settled out of court, and asked if they sent $25 to everybody who asked for it, would that be enough? Somebody, in their infinite wisdom, said that it ought to do.
I do not think any laws were changed. An ombudsman was not put in place to make sure that grocery prices did not just fly off the shelf, literally. That continues to happen. There has to be a way, with a little more scrutiny.
My community members, over the month of May, decided not to shop at Loblaws stores, and there was a big boycott. I do not know if it was across Ontario or Canada, but I saw a lot of people online talking about how they were not shopping at Loblaws. One does not need to do research, but just a cursory Google search on all the stores that the Loblaw company owns, to see that it is a lot of places. It is actually hard in many communities to avoid shopping at Loblaws.
Something I have noticed is that Loblaws owns Shoppers Drug Mart and, not that recently, Shoppers Drug Mart started to sell more and more produce and fresh food in addition to shelved items, like cereal and canned soups. My example is about canned soup, because when I go to that aisle in Shoppers Drug Mart, I can find a can of tomato soup priced at $2.49, $2.69, $2.79, but if I go to No Frills, which is owned by the exact same company, I will see exactly the same soup in a can for 99¢ or $1.29. The issue I have with that is not so much that we can say that Shoppers is maybe a little more of a convenience store, but that people who live close to a Shoppers oftentimes do not have a car. The stores are in strip malls, and the one on Main Street in Milton is right next to a bunch of apartment buildings where people do not all have vehicles, which means they cannot drive to No Frills. It means that there is an environmental barrier to shopping at lower prices.
That is an unfair practice that I strongly believe an excess profits tax on grocery stores would penalize, but not necessarily fix. I will say that I am in favour of an excess profits tax on groceries, because I think the behaviour is bad. We are seeing inflated grocery prices between stores where there ought not to be. However, I also think that there needs to be some scrutiny, and an ombudsperson in the grocery sector could achieve that. I would like to address the issue of excess profits, not just tax the people who are applying them on customers.
The other thing that I think could achieve that is a grocery code of conduct. We have seen it spoken about a lot since last September. I will not say that it was a coincidence, but the same month that Loblaws was being boycotted by so many members of my community, Loblaws said it was willing to sign the grocery code of conduct, as long as some of its competition did, and I think they said Metro and Walmart.
The other issue is that there are only five or six big grocery companies in Canada, just like there are only four or five big oil and gas companies, and there are also only four or five banks in Canada, which means that the market is kind of closed. There is a little bit of an oligopoly, not quite a monopoly but something similar to that, and it is also clear that a lot of these companies kind of keep an eye on each other's prices, whether it is a service fee or a can of tomato soup. They like making money and, hey, we live in a capitalist environment, where everybody wants to make money, whether one is a lobbyist for a grocery store or the CEO of a big multinational company. Their job is to make money.
However, in this House, our job is to promote fairness, and I believe that budget 2024 does find fairness in the market, and it does demand better from big grocery and big oil and gas. It does ask those companies to find a way to have fairer practices so that they do not get caught up in a situation like they did 10 years ago when they had to mail hundreds of thousands of Canadian households a funny little blank $25 gift card to make up for the fact that they cheated them.
I will say it again: Food is an essential item. It is not as though Canadians can just choose not to go to the grocery store. Certainly, they can choose to go to a less expensive one, or they can choose to shop local or at the farmers' market, but that does not fix the problem. Fixing the problem is going to take a combination of solutions.
I am in support of an excess profit tax on grocery stores, and also oil and gas, I would add, but that does not necessarily address the issue that they are allowed to get away with it. I would like to see fairness built into the system and an ombudsperson who oversees a lot of these prices so that we can see more fairness, and I know that competition will also achieve that.