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Southern Alberta groups call federal grocery rebate ‘short-term fix’

Click to play video: 'Southern Alberta groups call federal grocery rebate ‘short-term fix’'
Southern Alberta groups call federal grocery rebate ‘short-term fix’
Millions of lower- and medium-income Canadians should have a deposit from the federal government in their bank accounts. The Liberals’ grocery rebate is being paid to eligible households to help cope with higher costs caused by inflation. But as Erik Bay reports, social agencies that see the impact of affordability challenges firsthand say the rebate is only a short-term fix. – Jul 5, 2023

About 11 million low-and modest-income Canadians are getting a deposit for the federal government’s grocery rebate on Wednesday.

“It is real, meaningful support and for the people who need it most, it’s going to make a difference,” said federal finance minister Chrystia Freeland at a news conference in Toronto.

But social agencies dealing with affordability in southern Alberta say it’s not a solution.

Households making $38,000 or less and individuals making $32,000 or less automatically receive the rebate.

Eligible couples with two children can get up to $467, single Canadians up to $234 and seniors get an average of $225.

Click to play video: 'Grocery rebate: Freeland admits benefit won’t ‘alleviate’ impact of inflation alone'
Grocery rebate: Freeland admits benefit won’t ‘alleviate’ impact of inflation alone

“We’re all struggling. We’re seeing all of the organizations we work with being at capacity with the clients they serve,” said Jaci Zalesak, executive director of the United Way of Lethbridge and Southwestern Alberta. “I think the grocery rebate is a short-term fix.”

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“Last month, between our food bank and Interfaith Food Bank, we served just over 1,400 households,” said Lethbridge Food Bank executive director Mac Nichol.

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“We’re pushing into record numbers here.”

Click to play video: 'Grocery rebate payments rolling out across the country'
Grocery rebate payments rolling out across the country

For local food banks, summer is usually a time to restock the shelves.

But Nichol says food banks are adding clients and he doesn’t think the rebate provides meaningful help to people already struggling to make ends meet.

“An individual receiving that, about $200, that’s going to maybe last them a month with their food if they’re extremely strict and have no unforeseen circumstances come up,” Nichol said.

Freeland calls the new measure a balance between support and fiscal responsibility.

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“I would never claim that the grocery rebate alone will alleviate the entire impact of inflation,” Freeland said.

“On the one hand, it is so important to be compassionate… to understand that these are really hard times for people and provide the people who are facing the greatest challenges with targeted support. But on the other hand, we have also understood from the very beginning the way to get through this period of elevated inflation was to take a fiscally responsible approach.”

Instead, advocates are asking the government for measures tackling the root issue: high prices.

“There’s been no addressing the grocery stores or what needs to get done to make things more affordable on a larger-scale basis,” Nichol said. “That’s what we’d really like to see is a national view on how to change this.”

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