The federal industry minister says he has begun calling the heads of foreign companies to promote investing in Canada, a move aimed at creating more competition and driving down prices — including in the grocery sector.
In an interview with Mercedes Stephenson that aired Sunday on The West Block, Francois-Philippe Champagne was asked if he was “open to allowing foreign firms… to come into Canada, whether it’s grocery, telecom or airlines, to reduce some of these prices and create competition.” The minister replied he was trying to get that to happen.
“It’s interesting you ask me as you almost read my mind,” he said. “I’ve been talking to some in the grocery sector — let me be specific — I’m starting to make calls to some CEOs around the world and say, ‘Hey, have you looked at Canada lately?’
“For the long term, this is what is really going to help. And we’ve seen it in other sectors and we have examples in other countries. So, yes, I’m doing that. And it’s part of the number of things that I’m trying to do.”
The move comes amid a push for more competition in Canada’s grocery sector — and other consumer goods — as inflation continues to impact Canadians’ wallets.
In August, the Competition Bureau released a study saying Canada’s grocery industry needs more competition to keep food prices down.
The study was one of several undertaken by government and regulators as the rise in food prices continues to outpace overall inflation.
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Statistics Canada reported last month that prices for food purchased from stores rose 6.9 per cent in August, down from an 8.5 per cent increase in July but still well above the month’s headline inflation rate of four per cent.
Currently, five major corporations — Loblaw, Empire, Metro, Walmart and Costco — make up roughly 80 per cent of Canada’s grocery market. The latter two companies are subsidiaries of American food and retail giants.
Last month, Champagne summoned the CEOs of those five grocers to Ottawa to discuss ways they can help lower food costs for Canadians. He also hosted talks on supply chain solutions with major food suppliers and manufacturers, who grocers say are truly responsible for food inflation.
The minister announced last week the government had secured initial commitments from the major grocers to provide “aggressive” discounts across a basket of key food products, price freezes and price-matching campaigns.
Those commitments are part of a five-point plan that Champagne says will lead to food price stability “soon.” The other actions include a Grocery Task Force that will study issues like “shrinkflation,” a Grocery Code of Conduct aimed at establishing consistency and transparency in the sector, better data sharing and modernizing the Competition Act.
“There’s no silver bullet” to stabilizing and lowering food prices, Champagne told Stephenson. “If it was easy, it would have been done before.
“Ultimately, what’s going to bring a stabilization in prices in Canada? It’s competition. You want a more competitive environment because in the short, medium and long term, that’s really the answer.”
Champagne said it will take some time for Canadians to see results — “It’s not like a switch you turn on and off and suddenly everything happens,” he said — and acknowledged that the commitments agreed to by major grocers are “accelerating or expanding” steps the companies may already be undertaking to lower prices.
He wouldn’t say whether those grocers are facing specific targets or deadlines to bring prices down, only that CEOs are now facing additional scrutiny from consumers and politicians to act.
The minister also declined to answer specifically if he was looking at other actions to affect prices that the government has more direct control over, including reducing or eliminating GST for some consumer items or exempting farmers from carbon pricing.
Those moves have been frequently called for by opposition MPs.
“Is (there) more to come? We’ll look for sure,” Champagne said. “This is just the beginning of a long process to help Canadians.”
Champagne has introduced legislation to strengthen and modernize the Competition Act, including more safeguards against monopolies and anti-competitive business practices.
The industry, science and innovation ministry has said the bill will affect other industries, including e-commerce.
“I’m fighting the good fight for Canadians,” Champagne told Stephenson.
—With files from Global’s Naomi Barghiel and the Canadian Press