Lowering Prices for Canadians Act

An Act to amend the Competition Act and the Competition Tribunal Act

Sponsor

Jagmeet Singh  NDP

Introduced as a private member’s bill. (These don’t often become law.)

Status

In committee (House), as of Feb. 7, 2024

Subscribe to a feed (what's a feed?) of speeches and votes in the House related to Bill C-352.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Competition Act to increase penalties for certain anti-competitive acts. It also changes aspects of the review of mergers, including how gains in efficiency and market concentration are taken into account. In addition, it requires the Competition Tribunal to make an order dissolving a completed merger or prohibiting the merger from proceeding if the merger would result in excessive combined market share. The limitation period for the review of mergers is increased from one year to three years. Finally, it amends the Competition Tribunal Act to remove the Tribunal’s ability to award costs against the Crown.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

May 2nd, 2024 / 1:35 p.m.
See context

NDP

Taylor Bachrach NDP Skeena—Bulkley Valley, BC

The NDP recently tabled Bill C-352, the lowering prices for Canadians act, which seeks to strengthen the Competition Act to avoid some of these anti-competitive behaviours. It was intended first and foremost for sectors like the grocery sector, where we're seeing some pretty extreme price gouging.

I wonder whether you're familiar with the bill and whether it would have an impact on the kind of thing you're talking about when it comes to predatory anti-competitive behaviour.

February 27th, 2024 / 12:40 p.m.
See context

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Well, Minister, I think there is also room for improvement.

Let's take the Competition Bureau, the Competition Act and indeed the Competition Tribunal. A couple of weeks ago, there was an important vote in the House of Commons on NDP leader Jagmeet Singh's bill, Bill C‑352, bolstering increased legislative muscle for both those bodies.

The only party that voted against that bill was the Liberal Party, including you. Thankfully, that bill has now gone to committee, but I guess that when Canadians are looking for increased legislative action to fully equip our agencies for looking after these issues on behalf of Canadians, they want to know why you're voting against increasing powers for the Competition Bureau and the Competition Tribunal. Why are you against those legislative measures?

February 8th, 2024 / 11:25 a.m.
See context

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

I think you're right. As a case in point, Loblaws had to climb down from its tone-deaf decision to reduce discounts from 50% to 30%. Of course, we then had the Manulife and Loblaws climbdown because of the intense scrutiny, I think, that exists at the moment.

You made mention of a couple of pieces of government legislation: Bill C-56, which has received royal assent, and Bill C-59, which is still in the works. There is another bill that received a second reading vote yesterday, which is Bill C-352 from NDP leader Jagmeet Singh. There are some similarities, but one of the interesting aspects of his bill—I know this is primarily with the Competition Tribunal—is that it would require the Competition Tribunal “to make an order dissolving a completed merger or prohibiting the merger from proceeding if the merger would result in excessive combined market share.”

I would just like to understand the Competition Bureau's understanding of that term “excessive combined market share.” How would you interpret that particular phrase in the law?

Lowering Prices for Canadians ActPrivate Members’ Business

February 7th, 2024 / 4:25 p.m.
See context

Conservative

The Deputy Speaker Conservative Chris d'Entremont

The House will now proceed to the taking of the deferred recorded division on the motion at second reading stage of Bill C-352, under Private Members' Business.

The House resumed from February 2 consideration of the motion that Bill C-352, An Act to amend the Competition Act and the Competition Tribunal Act, be read the second time and referred to a committee.

Lowering Prices for Canadians ActPrivate Members' Business

February 2nd, 2024 / 1 p.m.
See context

NDP

Blake Desjarlais NDP Edmonton Griesbach, AB

Madam Speaker, I am pleased to rise today in support of Bill C-352, which seeks to amend the Competition Act and the Competition Tribunal Act to increase competition and lower prices for Canadians.

In order to do this in a way that builds confidence for Canadians, one must understand the philosophies of the Liberal and Conservative parties. Canadians are going to be shocked to find that they are actually quite similar in their approach to the market and how the needs and wants of Canadians are met or not met, in many cases.

We know that Canadians across the country, both unionized and non-unionized labour, are falling further behind, yet they are doing everything right. Some of them have to pick up extra jobs or take a side gig while missing time with their families, not having the chance to see their kids off to bed or being able to see them in the morning. They are just working too hard.

No Canadian, no matter where they are, from coast to coast to coast, should have to work more than one full-time job in order to put a roof over their head, food on their plate and to make sure their kids have what they need. That is the promise that New Democrats have been consistent about. We know that the material wealth and the material need of Canadians is paramount to how they participate in our democracy.

Our great tradition in Canada is a democratic one that says that each and every one of us, no matter who we are, where we live, how much we make or who we love, has a chance to participate, that Canada is our home. As a matter of fact, Canadians from every corner of our country have died for this promise. Those who bravely fought overseas during World War II fought the terrible, fascist regime of the Nazis to stand up for the very basic principles that we all stand for today. Those principles say that we should be able to participate in our democracy without hindrance and without discrimination.

However, we have not done the work to ensure that the social rights of those individuals are met so that they could actually enjoy the democratic rights that they are granted. How do we fulfill the social rights of Canadians? It is particularly important to delineate the wants and needs of Canadians. It is important to ensure that we have housing, food, clean water and an environment where we can actually breathe fresh air. These are not things that Canadians should lack or have to beg for. They should not have to work four jobs for these things. They should just work one and be able to get the social supports to exercise their democratic rights.

The Conservatives and the Liberals have an interesting philosophy when it comes to the market. They say that we should just incentivize every single billionaire out there to do the government's job of helping people. We spoke, for example, to the real estate executives in our country. They have been clear that they cannot solve the housing crisis we are seeing in Canada. I wish that the Liberals and Conservatives would listen to that.

Those who are motivated to make money in the housing sector have said that they cannot create the conditions for all Canadians to have a home. When we hear that, it is up to social democrats to then say the failures of liberal policies, both the liberal policies of the Conservatives and the liberal policies of the Liberals are actually challenged, that we introduce the social democratic principles that are important to ensuring that they get the true wealth transfer that is required to exercise their democratic rights.

It has often been commented, especially today in the 21st century, particularly by my generation, that there is a lack of understanding of that in this place. We no longer debate these principles. All we hear from the Conservatives is slogans, four of them. They will not even speak about the fact that their philosophy to motivate the private market is failing here at this stage that we are in in capitalism, which is the ultimate late-stage capitalism that has billionaires and oligarchies across our country controlling the exclusive means of production.

When that happens, what we see is price fixing, price gouging and people falling behind. I wish that my Liberal and Conservative colleagues would take this seriously. Instead, what we are going to hear for many more months to come from every single Conservative on that side is four slogans. Those four slogans will be said over and over again. They will not even engage in the reality of their tradition of working with the Liberals to pat the backs of their lobbyist friends. Now they are upset because we are calling that out.

Conservatives and Liberals are upset because they will not admit that, for consecutive decades in our country, they have benefited from the immense tax breaks they have given their friends. It is very clear that the chief strategist for the Conservative Party, a lobbyist for Loblaws, is in this exact position. I am sure that the strategic advice from the Conservatives' chief strategist is to not take into account the reality that her boss, Galen Weston, is gouging Canadians and fixing the price of bread.

We need more courage in this place in order to understand these circumstances and to bring forward good ideas because Canadians are running out of hope due to not hearing solutions. They are hearing the problem. To give credit to the Conservatives, I think they have done a good job outlining the concerns and the feelings of Canadians. That is something we agree on. We agree that Canadians are falling behind. We agree that Canadians are being price gouged. We agree that housing is more unaffordable now than ever, but we disagree with the solutions.

We know that taking four cents off a $100 basket of groceries is just not going to cut it. Cutting the carbon tax is four cents off a $100 basket of groceries. GST is higher than that. New Democrats are consistent in our approach that the immense record profits of these companies that are not held accountable need to be reined in. We need to break up these oligarchies. We need to support our small and medium-sized businesses. We need to fill the social gap that exists when we allow megacorporations to continue with their never-ending and continuous appetite against working people in our country.

I invite members of both the Conservative Party and the Liberal Party to engage with New Democrats in this debate in a meaningful way beyond slogans. They need to present more solutions. This is one of them, and we hope they support it.

Lowering Prices for Canadians ActPrivate Members' Business

February 2nd, 2024 / 12:50 p.m.
See context

NDP

Rachel Blaney NDP North Island—Powell River, BC

Madam Speaker, I want to thank my two colleagues who spoke before me. I really appreciated both of their interpretations of this particular bill and the meaning that it has.

I am here today to speak to our leader's bill, Bill C-352, which talks about amending the Competition Act and the Competition Tribunal Act to increase competition and lower prices for Canadians.

My husband's culture is the most northern Coast Salish in Canada. Their nation is Homalco. One of the things that they and their teachings are very clear in is that greed is actually considered a profound illness. If a member of their community shows greed in holding on to wealth, there is a lot of work done to help that person not be in that place of greed. The reason they feel this is an important issue is that the core value of their community is “together we are stronger”. If somebody is suffering, then it is a weight upon all of us to make sure that we lift that person up and support them in the way that they need to be supported.

Unfortunately, that is not the system that we currently see in Canada. I think most Canadians know the reality that the system is rigged to support the very, very wealthy, the one per cent people of Canada. We see this not just in Canada but also in many other countries. We know it is extremely unfair. What bothers me the most about how our system is rigged right now is that the wage earnings of everyday Canadians continue to be stagnant, while the very wealthy are seeing huge increases in their wage earnings and their incomes. We have seen this in a lot of statistics. This tells us that everyday Canadians are going to continue to struggle, because the greed in this country is out of control. That is where we are.

We can look at what is happening in our grocery stores right now, where people are really struggling to be able to afford the basic things they need to feed their families and to be treated with dignity. I bring this up a lot in this House, but I think there should be a bar of dignity in this country. I believe that fits in with the teachings from the Homalco people. They understand that everybody deserves dignity. If somebody has a strength or a weakness, they find a way to celebrate what is good and strong. They find ways to support and love through those weak moments. We are not seeing that right now. We are seeing a lot of people who are doing everything right. They are following the rules that they think are fair. They see themselves falling further and further behind. That makes me think of a lot of young people, who are worried about the fact that they may not be able to afford a home or to ever have a livable wage that will give them the ability to build the things in their life that they want to build.

As we look at this system and acknowledge that it is rigged, the worst thing that we can do is to say we should just not have a system to address that. I like to believe the best of people. I tend to be a fairly trusting person. I believe in the essential good in everyone. However, I also know that, if there is a system that does not keep engaging and making sure that things are fair, there are people who would turn that system to feed themselves at the expense of other people. That is what we have right now.

We are watching people like Galen Weston walk away with multimillion-dollar raises while the workers at Loblaws cannot even afford to buy groceries at the store they work in. We are seeing more people struggling to pay for basic groceries, but we are also seeing much higher outcomes and profits for these grocery stores. It is frustrating that we can see this out-of-touch Liberal Party that calls them in and says to them nicely, “Can you stop raising your prices? It's really hurting the Canadian consumer”. That is talk, but it does not actually say that it is not fair and there is going to be something put into place that makes it fair.

Then we have the corporate-controlled Conservatives. They, quite honestly, have 50% of their governing body as lobbyists for greedy CEOs. That is whom they are talking to. That is their leadership. That is who is helping them plot their own course, moving forward. This worries me, because it means that everyday people doing everything right are continuing to be marginalized because our systems do not hold those folks to account.

What would this bill do? The first thing it would do is increase penalties for price fixing. We all know about this. We know sometimes prices are fixed and consumers are paying way more than they should. When I look at this, it reminds me of the reality that Loblaws recently tried to decide that instead of selling almost-expired food at 50% off, it was going to take only 30% off. It is nickel-and-diming people who are struggling and doing their best every day to get by, and taking away every opportunity for something they can afford.

The other thing the bill would do is help smaller grocery stores by protecting them against anti-competitive tactics from bigger players. Let us be honest. We all know this, especially people in small businesses. When there is a player in town that is a really big corporation with tons of resources, it can undermine them really easily. We need something in place that keeps things on a level playing field.

We also know that businesses that are within a certain radius of a big grocery store and offer a lower price for the consumer are told they cannot do it, because it is anti-competitive. What happens is that those businesses have to raise their prices, even though they could give it to somebody at a lower price. That is wrong, and it is those big corporate giants coming for people who work hard, care about their community and try to make things affordable, and taking away their ability to do that. The bill would fix that.

The bill would also give the Competition Bureau more powers to crack down on abuse like price gouging consumers. This is a real thing. The Conservatives will tell us it is all just about the carbon tax, but when we look at the stats, which I will get to a little later, we see a huge amount of corporate profits made in the last little while. Even with taxes going up, these corporations are still drawing in way more than they did back in 2020. That worries me and tells me they are using this opportunity to mislead Canadians and tell them they need to pay more, even when they do not need to. That is because we do not have strong enough anti-competition laws in this country.

The other thing the bill would do is stop mergers that decrease competition and hurt Canadians. We have just seen this, with Rogers taking over Shaw. Rogers promised it would not raise its prices, and what did it do? It just recently raised prices.

One of the things about Canada that concerns me is that we do not ever see a government, whether it be Liberal or Conservative, take on this real issue of competition and make sure that when people are getting scammed, it does something about it. Governments are just too nice, because they know where their money comes from. That is what I will say in this House. It is shocking.

Right now, there are five companies for grocery stores: Loblaws, Sobeys, Metro, Costco and Walmart. They dominate. There are little ones every once in a while, and in B.C. we lost some of those small grocery stores, which have been picked up by Sobeys. This is shocking. It means those five just talk to each other and decide how much they want to get out of a certain area. There are no more little grocery stores on the corner, doing their best to keep the costs down. The big grocery stores can just wipe them out.

That is what is happening in this country, and the consumers are paying. The people who work the hardest are paying the most. A person who is making $250,000 a year is not going to care if the grocery store prices go up, but someone who is making only $20,000 or $30,000, and there are a lot of seniors living on that amount in this country, is certainly going to feel it. They are going to be making terrible, terrible decisions that no Canadian with any ounce of dignity here could see taken.

I want to remind everybody that margins generally increase by one to two percentage points. This is where it has been at. Now we are seeing huge increases. We know that the three largest grocery stores combined, Loblaws, Sobeys and Metro, in 2022 made more than $3.6 billion in profits. While everyday Canadians are suffering, the reality is that we do not have a system that is going to be making it fair for everyday Canadians.

I hope everybody in this House supports this bill, so we can make things fair for Canadians, because they certainly deserve it when they are doing everything right.

Lowering Prices for Canadians ActPrivate Members' Business

February 2nd, 2024 / 12:40 p.m.
See context

NDP

Lori Idlout NDP Nunavut, NU

Uqaqtittiji, I am pleased to rise on behalf of my constituents in Nunavut.

The leader of the NDP, the member for Burnaby South, has tabled a particularly important bill that can have benefits for Nunavummiut. Bill C-352, an act to amend the Competition Act and the Competition Tribunal Act, is of interest to us because it is all about lowering prices. I thank him for tabling Bill C-352, because there is too much corporate control in Ottawa.

I like the way that the leader of the NDP put it. He said, “The corporate-controlled Conservatives set up a system that continues to benefit wealthy CEOs. The big lobby Liberals continue to protect the interests of those greedy CEOs.”

The leader of the NDP clearly understands the realities experienced by my constituents, and the NDP join him in this fight to stop greedy CEOs who exploit Canadians.

As the fourth party in the House, we have fought the hardest and got the most results for Canadians. Bill C-352 is yet another example of what an NDP government would look like: It would make changes in federal systems that make it easier for Canadians to afford food, to afford the cost of living and, indeed, not be punished by corporate greed.

Competition is particularly challenging in Nunavut. The merger of First Air with Canadian North has seen the impacts of the lack of competition. If this bill had been in place during the First Air and Canadian North merger, anti-competitive rules would have been stronger. There would have been a better review of the merger, including how gains in efficiency and market concentration would be taken into account. I believe that the merger of the two airlines would have been prevented given that this merger resulted in an excessive combined market share.

The merger between Canadian North and First Air is not likely to restore competition in the airline industry in Nunavut. I challenge Nunavut Crown corporations to buy into the airline industry and to increase the market share. Canadian North, while Inuit owned, is owned by two corporations outside of Nunavut. I will admit, while I appreciate the services provided by Canadian North, it is the lack of competition that allows astronomical prices, like a person from Grise Fiord in my riding going to Ottawa at the price of over $11,000. The distance between Grise Fiord and Ottawa is only 3,461 kilometres. For a similar distance, between Ottawa and Victoria, British Columbia, the price of an airline ticket is $500. In the alternate, I challenge Air Canada and WestJet to increase the market share of the airline industry in Nunavut.

The airline industry is our lifeline. The health care system is too lacking, resulting in multiple millions of dollars spent on airline tickets for my constituents to attend everything from the most basic doctor appointments to more complicated and lengthy procedures only available south of Nunavut. A direct impact of the merger includes the cost of groceries and the cost of alleviating poverty.

Recently, the Minister of Northern Affairs showed that he will cut a portion of the nutrition north program that directly helps people to feed each other. The Minister of Northern Affairs is opting to subsidize CEOs and larger for-profit corporations by keeping that portion without review and without consideration for alleviating poverty.

When the Conservatives were in power, food prices went up by 25%. What does this mean? Here are some examples of some prices that went up: ground beef went up by 128%; coffee went up 89%; apples, and we all know that the Conservatives love apples, went up by 43%.

When the Conservatives were in power, what went down in that same period were the taxes that corporate grocery stores paid, that is, the Conservatives gave massive tax giveaways to the richest corporations, hurting Canadians and benefiting their rich friends.

It does not have to be this way. The leader for the NDP, said, in introducing this bill:

That is why we are putting forward our bill, the lowering prices for Canadians act, which would bring down prices for Canadians, take power away from those greedy CEOs and give it back to the working people.

The NDP is fighting for Canadians who are suffering the increasing cost of living allowed by the Liberal government. The Liberals and the Conservatives will show their commitment to Canadians when they vote on Bill C-352.

I ask the same questions that the NDP leader asked:

Do they stand with their rich CEO friends or will they stand with working class Canadians? Will they stand with workers, families and people who are having a hard time buying groceries?

As our leader did, I too invite the Liberals and Conservatives to stop listening to their CEO friends, start listening to working Canadians and support our bill to bring down prices for all Canadians. This NDP bill would stop mergers that end up hurting Canadians, like the merger of Rogers and Shaw, which reduces competition, increases prices and means a loss of jobs.

This NDP bill would increase penalties for consumer scams and help grocery stores by protecting them from the anti-competitive tactics used by big chains.

This NDP bill would give the Competition Bureau more power to crack down on abuses such as price gouging and would stop mergers that reduce competition and hurt Canadians.

As a result of greedy corporations making huge profits, Canadians are struggling. When we ask Canadians, they agree. They believe the number one reason driving up the cost of groceries is more money going into the pockets of rich CEOs.

The NDP leader believes, as do I, that we need more competition and not less. I believe we need more protections for consumers and not more power for CEOs. That is exactly what our bill would do.

Lowering Prices for Canadians ActPrivate Members' Business

February 2nd, 2024 / 12:30 p.m.
See context

NDP

Bonita Zarrillo NDP Port Moody—Coquitlam, BC

Madam Speaker, I am so happy to be standing up for Canadians today on Bill C-352. This is finally addressing the anti-competitive behaviour that has been going on in Canada for decades, which has been supported by the present Liberal government, and the Conservative and Liberal governments before it.

These governments have been back and forth, ping-ponging the government status in this country for decades, and they have done nothing about the fact that consumers have been getting ripped off in the market. I want to thank the member for Burnaby South for raising this important debate in the House of Commons to finally address the lack of competition in this country and the overpriced goods and services that Canadians need to survive.

Canadians woke up this week to the news that corporate control of their medication was a reality. Loblaw and Manulife have potentially colluded together to limit access to life-saving medication for people in this country. Galen Weston is involved in Loblaw. We all know that. Galen Weston has been to committee many times about the skyrocketing price of groceries. We all know that Mr. Weston made the statement that these kind of profits are fine and there is nothing wrong with taking these kind of profits. Meanwhile, Canadians, people in my riding, are struggling to put food on the table.

Galen Weston, as an individual and as an influencer in the Canadian economy, has already got a disproportionate amount of control over people's ability to eat in this country. Now, we are in a situation where Galen Weston and the Loblaw company are going to have even more control over whether or not people, their family members and their friends have the medication they need to stay alive. This is serious business.

Although the competition board oversees anti-competitive behaviour, it has not had the teeth to enforce or make changes. I have been in this House all morning, and I heard the Conservatives say that they are there to create a business climate. This is the moniker of the Conservatives, and this is how they have won elections in the past. They talk about how smart they are on the economy, how smart they are on business and how they are going to make business so great.

I can say that the Conservatives are complicit in the fact that people are paying too much for their groceries, too much for their cellphone bills and too much for their medications. I could go on. The Conservatives work for corporations, and they have no idea how to run an economy.

There is something that bothers me as a woman standing in this chamber. I am a woman who spent 25 years in the grocery industry, many of those years as a business analyst, and many of those years out in the field as a salesperson working in Europe, the United States and Canada. However, because I am a woman, my voice is not heard and they think I do not know what I am talking about. The Conservatives, on their bench, have a number of members who are men, who talk down to me and speak to me like I do not know what I am talking about, when they have never had a job outside of a fast food restaurant chain.

I do not appreciate it. Canadians do not appreciate it. The Conservatives now and in the past, and the Liberals now and in the past, have been hoarding the profits that belong to Canadians through their taxes, and those Canadians should have access to medication and dental care when they need it.

In addition, they should have a national food program, so no child in this country goes to school hungry. Conservatives like to say that kids go to school hungry because their parents cannot afford food. It is true. Families are having a hard time affording food. Do members know why? They are starved of time and wages because of the policies of five decades of Conservatives and Liberals.

I know amazing parents who do not have time to get their children a healthy meal in the morning, at lunchtime and in the afternoon, because the capitalist-driven Conservatives and Liberals made the decision that they wanted those parents to work 12 to 14 hours a day. I think about the nurses and women who are working in the care economy, in long-term care homes. I think about the immigrants who come to this country to work in families, in people's homes, and are paid the minimum; they do not get status for themselves or their family, and their work is precarious. If they dare speak up and talk about the terrible working conditions they are forced into, they might get deported. It is tragic, yet Conservatives have the gall to stand up in this House today and say they are creating a good business climate and are concerned that too many people are going to the food bank. This is legislated choice and legislated poverty that was perpetuated by the Liberals, started by the Conservatives and continues today.

I will go to the Canada disability benefit. I cannot believe that I am the only one who receives daily messages from people with a disability in this country who are living in poverty and getting displaced by these corporate Conservatives and Liberals, who have decided that the best thing we could do is to upzone every property in this country, give it all to the developers to build luxury condos and stick seniors out in tents on the street. I note that the member for Edmonton Griesbach has been talking about this for a very long time. People are living in tents in -35°C weather. I think about the member for Nunavut, who talks about no investment in housing. People in Nunavut are sleeping in shifts in a two-bedroom home where 12 people live.

It is disgusting that these governments, Liberal and Conservative, have done this for decades. As the Prime Minister walks down Sparks Street or Wellington Street, he can see that people are homeless and struggling. What does the government do? It starts to claw back people's CEBA. For low-income people, who needed CEBA and their government benefits, the government has decided to claw back the government benefits now so that they can repay their CEBA. However, the corporate CEOs who are not paying their fair share of taxes, who took the wage subsidy and gave it to their shareholders, are fine.

Members can see that I am a bit upset, because I listened in the House today to some of the debates and I even heard my Bloc colleague say that this debate did not matter. For Canadians, this debate matters. The anti-competitive law is an antiquated law. It has not been looked at. It is putting Canadians at risk.

I can tell members that it would not stand in any other country in this world that one person, someone like Galen Weston, could have so much influence over what we eat or what medications we can take and, in general, control the narrative of what Liberals and Conservatives will say in this House.

Therefore, today I am going to stand up for the NDP and say that we are there, working for Canadians. No other party in this House is.

Lowering Prices for Canadians ActPrivate Members' Business

February 2nd, 2024 / 12:10 p.m.
See context

Liberal

Patricia Lattanzio Liberal Saint-Léonard—Saint-Michel, QC

Mr. Speaker, today I rise to address the chamber with respect to Bill C-352, which would amend the Competition Act.

I think we all agree in the chamber that a stronger competition enforcement regime would be good for all Canadians. The bill proposed by the New Democratic Party, while receptive to the need for change in competition law, and generally aligned with the government's overall direction to date, must, however, be examined in light of the vast number of changes that overlap with and have already been introduced by Bill C-56 and Bill C-59.

Bill C-56 became law in December 2023, while Bill C-59 remains under consideration by Parliament at the present time. Bill C-56 implements, and Bill C-59 would implement, an overhaul of the Competition Act following the extensive consultations undertaken in 2022 and in 2023. The government received a great deal of input throughout its consultations, bolstering the knowledge gained over the years of stewardship over this law. The amendment packages assembled in its two bills address most of the issues identified in the law that historically made it weaker than regimes of Canada's closest partners. That would no longer be the case.

Modernizing the Competition Act is a necessary step in making Canada's economy more affordable for consumers and more fair and accessible to business. The government's extensive commitment to competition law reform was led by Bill C-56, the Affordable Housing and Groceries Act, followed by Bill C-59, the fall economic statement implementation act, 2023. Both of these bills are directed at enhancing affordability and competition, and together they represent the most comprehensive reform package to the Competition Act in decades. They respond to the submissions of hundreds of very different stakeholders, including businesses, legal experts, academics, non-governmental organizations and the commissioner of competition himself.

Bill C-56 implemented a set of targeted but critical amendments, following especially from the Competitions Bureau's market study on Canada's retail grocery sector. As members already know, Bill C-56 brought much-needed changes such as allowing information to be compelled under court order in the course of a market study, helping to remove barriers when diagnosing potential competition issues.

Bill C-56 also repealed the efficiencies exceptions for anti-competitive mergers and collaborations, and in so doing eliminated what many observers consider to have been the single biggest contributor to corporate concentration in Canada. The bill further allowed for better prevention and remedy of the abuse by larger players of their dominant position by requiring only proof of anti-competitive intent or effects to prohibit certain forms of conduct. This more appropriately allocates the burden of proof, as compared to the previous test, which significantly limited the number of instances where the bureau could intervene.

Finally, Bill C-56 addressed harm from collaborations between non-competing parties that are designed to limit competition. Once this provision is in effect, the bureau would be able to review any type of collaboration whose purpose it is to restrain competition and seek a remedy, including an order to prevent the activity where competition is being substantially harmed or is likely to be. This would be especially impactful on restrictive covenants between grocers and landlords, allowing more grocers to set up shop near competitors.

Bill C-56 was, of course, amended in committee through a multi-party effort, incorporating several of the elements in Bill C-352 that now no longer require consideration.

Bill C-59 represents an even more substantial overhaul in our competition enforcement regime, addressing a large variety of aspects of the Competition Act. The amendments would give the Competition Bureau a longer period to detect and address anti-competitive mergers that are not notified in advance, helping to address “killer acquisitions” in the digital market. The bill would broaden the bureau's review of competitor collaborations to include those that harmed competition in the past, and would allow for financial penalties to be sought when necessary.

Importantly, Bill C-59 would facilitate private actions against a broader range of anti-competitive or harmful practices and empower those affected to seek financial compensation in many cases. This improvement would complement the bureau's work in protecting the marketplace. The bill would also ensure that costs awards would not be ordered against the commissioner of competition in the vast majority of circumstances, another element addressed by Bill C-352.

The bill also includes anti-reprisal provisions, which would ensure that co-operation with the bureau or participation in legal proceedings could not be punished by stronger businesses. Additionally, it is worth mentioning that Bill C-59 would strengthen the law's testament of greenwashing the false advertising of sustainability claims while also facilitating environmentally beneficial collaborations that would not harm competition. Moreover, it would ensure that a means of diagnosis for repair could not be denied in a way that would harm competition.

All in all, little remains in Bill C-352 that has not already been addressed. On the contrary, Bill C-59 includes several elements missing from this private member's bill. The government's consultation saw over 130 stakeholders raise over 100 reform proposals. All submissions made by identified groups are publicly available, and the government published a “what we heard” report synthesizing them. This public process has been a key source of input to help us develop reform proposals. We are confident that the measures included in government bills comprehensively address the needs expressed by Canadians.

In conclusion, I think it is fair to say that the ambition of Bill C-352 correctly reflects the importance Canadians place on having a strengthened competition law framework. However, all of the major issues it raises have been or are being substantially dealt with through Bill C-56 and Bill C-59. As such, I would encourage members of the House interested in advancing competition reform to prioritize the rapid passage of Bill C-59.

The House resumed from November 6, 2023, consideration of the motion that Bill C-352, An Act to amend the Competition Act and the Competition Tribunal Act, be read the second time and referred to a committee.

Motions in amendmentAffordable Housing and Groceries ActGovernment Orders

December 5th, 2023 / 1:20 p.m.
See context

NDP

Bonita Zarrillo NDP Port Moody—Coquitlam, BC

Madam Speaker, I want to thank my colleague, the member for Elmwood—Transcona, for really shining a light on the fact that this government and the governments before it, both Liberals and Conservatives, walked away from those operating agreements. We knew for 10 years that those operating agreements would expire for social housing, community by community, and the governments did nothing. Therefore, I thank the member for sharing that.

Today, we are debating what is called the housing and groceries act, but I would like to call it the “finally addressing corporate greed act”, because this is about the fact that corporate greed has been unchecked through a series of Conservative and Liberal governments. It is now at the point where it is harming people and communities to epic proportions.

No longer is every Canadian able to have the essentials of life, starting with having a roof over their heads and food to eat. It is unbelievable that in Canada not every Canadian has a roof over his or her head or food to eat. In Ottawa today, I walked along Sparks Street. We know people are living on Sparks Street and Bank Street. We know them by name. It is unacceptable that they are having to live out in the cold, in the rain, their sleeping bag covered with a tarp, yet the Liberals, who have the power to change this, walk by them every day.

I want to share a story from my community, the juxtaposition of the massive numbers of luxury condos that are going up and at the same time an increase in the number of community organizations that are trying to feed the community through food rescue and recovery.

Food rescue and recovery is a brand new area since COVID. It came out of the need during COVID-19. When shutdowns first came, a lot of food inventory was in restaurants, airline food that needed to be redistributed and all kinds of redistribution. The community groups came to help. They jumped into action. They came to redistribute that food. It is has remained because the grocery chain CEOs saw an opportunity window.

There was a conversation happening in the media that input costs, transportation costs and all kinds of other costs were increasing, so consumers were ready to accept some increases in the cost of goods. However, the grocery chain CEOs saw an opportunity to skyrocket food prices and to take advantage of consumers. In that window since COVID, food prices have become out of control and food rescue and redistribution has become a necessary staple in our community.

Just last week, I was visiting some of those food rescue and food recovery organizations in my community. One of them is operated out of the legion. People were lined up looking for a healthy meal and food for their kids. Kids, seniors and families were all looking for an opportunity to have a healthy meal. The Liberal government has put this burden on communities and community groups with no resources.

At this point in time, I want to talk about an organization in my community that feeds over 3,000 people a month,. It has over 130 volunteers. The logistics of this are very difficult, but the volunteers do it because they love the community and they know people need it.

They applied for the local food infrastructure fund. Someone from the ministry came out, saw the organization and said, yes, that these were the amounts of the grants. The local food infrastructure fund recently responded to the community group, saying that while the program received a high volume of excellent project applications, only $10 million were available for the whole country. As a result, only a portion of project applications submitted would be given consideration for funding and that the group's project application would not be considered.

These are on-the-ground community groups, feeding 3,000 people a month, and the government has a $10-million program for all these kinds of organizations across the country. This is totally unacceptable and it is totally not enough resources.

Just this week, HUMA is doing a study on volunteerism. Those volunteer community groups, including food banks, are saying they are desperately in need of infrastructure money to keep these programs growing. I say this against the backdrop of the fall economic statement and the fact that the Competition Tribunal payment alone in regard to the Rogers-Shaw merger is $13 million, more than what the small groups in our communities that are keeping people fed get.

I will go back to the corporate greed that is harming people in our community and talk about persons with disabilities.

CEOs of corporations not paying their fair share of taxes is hurting persons with disabilities. Right now, the Liberal government is holding back on the Canada disability benefit. It is law. The whole House has said that it wants the Canada disability benefit out in our communities. The government is holding back by not taxing super-wealthy corporations efficiently so we can fund people living on disability pensions who are making less than $10,000 a year. Women with disabilities are disproportionately affected by this, with 58% living on less than $10,000 a year. This month is 16 days of activism against gender-based violence. We know that women are already at a higher risk of gender-based violence, and women with disabilities even more so. This is is totally unacceptable.

I recently sponsored a petition from a disability community. The government filed its response yesterday, and it is not going to do anything about an emergency response benefit for persons with disabilities. There was an article in the newspaper last week about a gentleman who lives on the island. His family was renovicted, demovicted, from its accessible, affordable home. The family members are living in a hotel, using 84% of their income, because it is the only place they can get right now to have a roof over their heads. Those are the choices that the Liberal government has made.

This all relates to Bill C-56. The NDP is going to support bill because it makes some small movements toward addressing corporate greed in the grocery industry and in housing, but it is definitely not enough.

I also want to take this opportunity to talk about why it is not enough and why corporate greed has really taken over the essentials and the necessities of life.

I think about the fact that the Liberal government and the Conservative governments before walked away from social housing. What did they do? They commoditized housing. They made it okay for large corporations and real estate investment trusts to buy up apartment buildings and then chop them up into shares, or units, and trade them on the stock exchange. They actually made housing a commodity, literally allowing it to be traded on the stock exchange. Those are the reasons our rents are going up in our communities. It costs $2,600 a month for a one bedroom in my community.

Again, the NDP is supporting the bill. We are happy to see movement, although it is very small. I just want to point out that Liberal and Conservative governments have, for 30 years, let corporate greed go unchecked. It is literally starving out our communities.

The member for Burnaby South has an additional bill, Bill C-352, to address this corporate greed. I hope everyone in the House takes this very seriously. People are living on the street without food.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 11:10 p.m.
See context

NDP

Bonita Zarrillo NDP Port Moody—Coquitlam, BC

Mr. Speaker, I want to follow up on the comments that my colleague from North Island—Powell River just made on how the grocery chains have made it harder for people to eat healthy food. This morning, there was a meeting of parliamentarians, senators and stakeholders on anti-poverty, and when I say “parliamentarians”, I mean all but the Conservatives. They came together to talk about the intersection of health, housing, food security and disability. The urgency that I heard in that room is not being expressed by the Liberal government in the House. This follows up on the idea that the fall economic statement was a real disappointment for many of those groups. It was certainly a disappointment for the disability community.

It was the expectation of the community, the NDP and other members in the House, that the Canada disability benefit would at least get a mention in the fall economic statement, and it did not. I am here to say that that is not acceptable. As my colleague from New Westminster—Burnaby said earlier tonight, New Democrats expect to see some movement on the Canada disability benefit right away. People are suffering, and not just at the grocery store, but also when it comes to housing, which is the next thing I want to talk about.

When we talk about the housing and grocery affordability act, we have to acknowledge that people are losing their housing every single day in this country. We are losing affordable housing at a rate of 15 to one. It was mentioned earlier that seniors are being renovicted today. As we have the debates today, seniors are getting notice of above-guideline rent increases. Their rents are going up 30%, 40% and 50%. They cannot afford it and are out on the street.

I am getting phone calls at my office from residents who have lived in the same units in my community for 20, 30 and sometimes 35 years, and they are being renovicted. They are in their seventies, and they have nowhere to go. Their safety net is their community, and they have nowhere to live because of, as one of my colleagues said earlier today, the financialization of housing. I blame the Liberals and the Conservatives before them for not protecting people's right to housing and allowing large corporations to buy up affordable housing and not replace it.

As has been said earlier today, the NDP is supporting Bill C-56. This is a move toward affordability in the areas of food and housing, but, at the same time, there is so much more to do. I think about the fact that purpose-built rentals in this country have not been invested in for decades.

I can talk specifically about what happened in Coquitlam. I was a city councillor at the time, and an application came forward for a purpose-built rental building. The Liberals at the time, in 2015, had promised a GST exemption on purpose-built rentals. A company came forward in good faith to build purpose-built rentals. It was expecting relief on the GST and was going to pass it down to renters. The company was excited to do that work in my community to make housing affordable for frontline workers, whether they were nurses, firefighters or people who worked in grocery stores. It was excited to do that work, only to be disappointed with the Liberal government not following through on its promise of a GST rebate.

The Liberals, at that point, decided to go with their corporate buddies who were asking them to please give them low-interest loans instead. The commercial loan interest rates were so low, but still the Liberal government decided to follow up with their corporate buddies and give them low-interest loans. That would contribute to the loss of 15 affordable units to every one that was built.

I cannot express my disappointment enough that the Liberal government waited eight years to bring this GST rebate forward. I am happy we have it. The Liberals have at least moved the needle a tiny bit, but they really need to start taking this seriously because, as I said, people have lost their homes today.

I want to note the infrastructure gap, which is so wide. We are talking about the small movement on groceries and the Competition Act, which we are happy about, and we are happy about housing, although there is so much more to do. I want to speak about infrastructure because mayors and councillors were in town all of this week talking about the massive infrastructure gap, and my colleague from Nunavut was talking about the exorbitant infrastructure gap in northern Canada, in Nunavut, and the housing crisis going on there. The federal government has walked away from almost $8 billion in funding for indigenous communities and infrastructure. That is totally unacceptable, and we expect to see that rectified in the spring budget, that is for sure. We cannot continue to not invest in infrastructure and we cannot continue down this path of abusing human rights in this country.

I am going to zip my speech up, but I want to make sure that I talk about transit. When we talk about affordability, we need to talk about public transit. The mayors out in my area of British Columbia have been talking about the fact that they expect the federal government to be involved in funding public transit. If we are going to make these investments in housing, which are desperately needed, if we are going to make these investments in accessibility, which are desperately needed, and if we are going to really get serious about reducing emissions in this country, we need to invest in public transit. The mayors out in British Columbia are asking for that, and I am expecting the infrastructure minister will come forward with the public transit funding that has been promised. We cannot wait until 2026 to get transit funding. We need to change behaviour now. We cannot wait.

I want to close out by talking about the member for Burnaby South, who has a bill on the floor, Bill C-352, that also addresses the Competition Act. NDP members are so proud of this bill and of the fact that we are finally in this country going to force the government to get serious about the Competition Act. We know that Canadians right now have the highest cellphone bills and the highest Internet bills. We are now looking at conglomerations of the largest banks, which already charge too much in consumer charges. We need to stop this conglomeration of the largest corporations in this country and give some power back to consumers.

I am looking forward to the passing of Bill C-56. I am also looking forward to the passing of Bill C-352.

Affordable Housing and Groceries ActGovernment Orders

November 23rd, 2023 / 10:25 p.m.
See context

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Mr. Speaker, it is disappointing to see that the House will have to once again sit until midnight to discuss this bill. Why? Because this government chose to impose a super closure motion. We think that this approach, the muzzling of parliamentarians, makes a mockery of democracy. Everyone here was elected by the people in our ridings, and this government should give more weight to our voices. This just shows how much respect the Liberals have for our democratic institutions.

An even more serious problem with this super closure motion is the short period of time allocated to study the bill in committee. Only two evenings are allocated, and that is it. Even though my party supports the principle of the bill, we think it is essential to study it in depth in committee. However, this super closure motion forces us to skip over the study in committee. It would therefore not be surprising if there are still problems with the bill after it is studied in committee, and that is really disappointing.

Let me give an example. The first part of the bill exempts rental property construction from the GST. It applies as of September 14. If the bill becomes law, construction projects undertaken on or after September 14 will be able to benefit from the measure. However, the bill does not say what constitutes the start of the project. Is it when the first shovel hits the ground? Is it when the first payment is made for the plans? Is it when the land is purchased? If the building has a dual purpose, what constitutes the beginning? We have no idea, because the bill does not define these concepts.

Let us use a concrete example to illustrate the uncertainty this creates for businesses. A company is planning to build a rental property. The ground floor will be occupied by commercial premises, so not part of the project, but all the upper floors will be used for rental housing. On September 14, work had not yet started on any of the rental housing floors, but work had begun on the ground floor. I repeat, the ground floor will be used for commercial purposes, so it is not a part of the rental project. The company does not know whether it will be entitled to benefit from the measure for the upper floors because of the date and the lack of definition in the bill. We also know that with skyrocketing construction costs, high interest rates and a shortage of skilled labour, developing a housing project is complex, and not having clear information from the government about its bill does nothing to help the company in its current choices. The fog caused by this bill, which was drafted too quickly, is creating uncertainty for businesses.

Will we be able to clarify the situation in committee in just two evenings? There are no guarantees. We will work on it, but I would like to remind the House that it would have been really important not to shut down the committee's work in this way.

As members know, Bill C‑56 has two parts. The first part provides a GST rebate to the builder of a rental housing building. The rebate will be given during the sale or pending sale if the builder becomes an owner.

The rebate does not apply when the buyer is already totally exempt, as in the case of a government agency or a municipality, or partially exempt, as in the case of a not‑for‑profit organization or a housing co‑operative. Bill C‑56 will have no impact on the cost of social or community housing projects. It only pertains to private housing.

In practice, the rental housing builder will bill the GST to the government instead of to the buyer at the time of sale. To qualify for the rebate, the building will have had to have been under construction between September 14, 2023, and December 31, 2030, and the project will have to be completed before December 31, 2035.

However, the bill does not include any details on the type of building or housing nor does it specify any affordability requirements to qualify for the rebate. Instead, the bill gives the government the power to clarify these issues through regulations. We are seeing the government gloss over its bills by giving too much power to the minister, who will be able to complete the bill with his own regulations once it has been implemented. That is not an approach that we appreciate.

It would be hard to impose affordability criteria on builders because they do not own buildings once they are built. However, it is possible to make the buyer pay the GST after the fact if the units are rented at exorbitant prices. These are the kinds of amendments and clarifications the committee should look at, but will it have time?

I would also point out that, in our view, it would have been possible to do more to promote the construction of housing, particularly social housing, by allocating the same amount, but implementing other measures. Obviously, we are debating what the government is proposing, and that is what we will be voting on, but we will continue to make suggestions, just in case it decides to listen.

The second part of the bill makes three amendments to the Competition Act.

The first amendment gives the commissioner of competition real power. Right now, when the Competition Bureau examines the competitive environment of a given sector, it cannot compel anyone to testify or order the production of documents. It will be able to do so under Bill C-56. The Bloc Québécois has been calling for that change for 20-odd years.

The second amendment broadens the scope of anti-competitive practices prohibited by the act. Right now, the act prohibits agreements between competitors to remove a player from the market. With this bill, it will also be prohibited to reach an agreement with someone who is not a competitor in order to reduce competition. Let me give an example. When a grocery store rents a space in a mall, it is standard practice for the contract to contain clauses prohibiting the landlord from renting a space to another grocery store. This type of practice, which limits competition, will now be prohibited under Bill C-56. We applaud that measure.

The third amendment will make mergers and acquisitions more difficult. Currently, when a company wants to buy a competitor, the Competition Act states that the Competition Bureau will allow it if it can be demonstrated that the takeover will result in efficiency gains, even if the merger shrinks competition. This provision, which favours concentration and is unique in the industrialized world, is repealed in Bill C-56. We have also been calling for this change for a long time, and the member for Terrebonne has been particularly keen to see it.

We strongly support the principle of this second part and even feel it is long overdue. We have been asking for these changes for years, decades even.

We understand that, thanks to the government's super closure motion, Bill C-56 is going to be amended. Government Business No. 30 authorizes the Standing Committee on Finance to broaden the scope of the bill to make three amendments.

The first change is an increase in fines. It is taken directly from Bill C-352, which was introduced by the leader of the NDP and amends the Competition Act. Many of its provisions would become obsolete because of Bill C‑56. The other two changes have to do with abuse of dominance and investigating powers when the Competition Bureau conducts a market study. Subject to the wording of the amendments to be submitted in committee, these changes have no real effect. They were probably added to the motion to please the party that is supporting the closure motion, but the changes will have no real effect.

Let us come back to the first change, which is to “increase the maximum fixed penalty amounts for abuse of dominance to $25 million in the first instance, and $35 million for subsequent orders, for situations where this amount is higher than three times the value of the benefit derived (or the alternative variable maximum)”. As I was saying, that is taken from Bill C‑352.

Currently, in addition to imprisonment for a term not exceeding 14 years for executives who commit an offence under the Act, the bureau and the tribunal can impose a maximum fine of $5 million on the offending company. The motion proposes increasing the maximum fine to $25 million, and to $35 million for repeat offenders. In the case of a large company, the maximum penalty could be even higher, up to three times the value of the benefit derived from the practice.

We know that the NDP bill went even further and specified the following: “if that amount cannot be reasonably determined, 10% of the person's annual worldwide gross revenues”. Clearly, the government was not prepared to go that far. It is a good change. The maximum fine of $5 million could be seen as the cost of doing business. The revised amounts are designed to have a real deterrent effect. That makes the Canadian legislation comparable to the U.S. and European laws.

The second amendment is “allow the Competition Bureau to conduct market study inquiries if it is either directed by the Minister responsible for the Act or recommended by the Commissioner of Competition, and require consultation between the two officials prior to the study being commenced”. The Competition Bureau has significant power. It can compel witnesses to appear, demand documents and request searches if necessary. However, these powers are available to the bureau only when it is investigating a clear infringement following a formal disclosure. The investigation then becomes quasi-criminal.

However, when the bureau is conducting a study to determine whether competition is working properly in a given field or market, it has no such powers. For example, in its report on the state of competition in the grocery sector, published in June 2023, the bureau noted that the grocery chains did not really co-operate with its study. They refused to hand over the documents it had requested and refused to answer some of its questions. Bill C-56 solves that problem and gives the Competition Bureau investigative powers when it is conducting a market study.

The NDP's Bill C-352 did basically the same thing. Government Business No. 30 proposes a technical amendment to the manner in which the bureau can initiate a market study, but it does not really do much to change the current practice. This aspect was likely only added to the motion to please the NDP, but it really does not do anything.

It is the same thing for the third amendment, which proposes to “revise the legal test for abuse of a dominant position prohibition order to be sufficiently met if the Tribunal finds that a dominant player has engaged in either a practice of anti-competitive acts or conduct other than superior competitive performance that had, is having or is likely to have the effect of preventing or lessening competition substantially in a relevant market”.

Currently, a company that monopolizes a significant share of the market cannot take advantage of its dominant position to limit competition, for example, by preventing a supplier from working with a competitor. The existing act prohibits several of these kinds of practices, which effectively limit competition, prevent it from working properly or make it virtually impossible for a new player to enter the market. On the other hand, there is nothing stopping a company from taking advantage of a lack of competition to sell products at excessive prices. If, for example, a grocer enjoys a monopoly in a given region, there is nothing to stop that grocer from taking advantage of the monopoly to gouge consumers by charging exorbitant prices.

Bill C‑352 addressed this loophole. A whole range of anti-competitive practices were already prohibited, and it added a new one: “directly or indirectly imposing excessive and unfair selling prices”. It was a good measure, but clearly the government did not want to move in that direction. To please the NDP and hide the fact that it has given up on defending consumers against the major players, the government's motion adds a procedural amendment to Bill C‑56 to give the tribunal the power to prevent an anti-competitive practice that the current law already prohibits anyway. Again, it is nothing but hot air.

The day before yesterday, the Minister of Finance tabled the fall economic statement. As we all know, an economic statement is not quite as big a deal as a budget. It usually includes measures the government intends to take to deal with emergencies that have arisen since the budget was tabled.

There are emergencies aplenty, including the housing crisis, homelessness, the media, the rising cost of living, the small business emergency account deadline, seniors' buying power and scandalous oil industry subsidies, not to mention EI reform, the plight of seasonal forestry workers following the summer's forest fires, support for culture, support for the market garden and horticulture sectors following the summer's floods, and the funding that was promised for school breakfasts but has not yet been delivered, to name but a few.

However, the only emergency mentioned in the economic statement has to do with housing. Ottawa does need to do a lot more for housing, especially social housing. Unfortunately, the government's response is nothing more than what has already been announced in Bill C‑56. In fact, the rest will not be delivered until after the next election, and only if the Liberals are re-elected. Responding to the urgency of the housing crisis with election promises that are two years or more away is simply unacceptable, especially when we know that once the money is available, it takes two to three years before it is actually flows. It is like the $900 million that was finally announced for Quebec this fall, but that had been budgeted two years earlier.

We in the Bloc Québécois had proposed an acquisition fund for non-profit organizations, as well as an interest-free or very low-interest loan program, to stimulate the construction of affordable social rental housing, while waiting for a comprehensive policy in the next budget.

Still on the subject of housing, I would like to point out that the minister brought forward a good measure concerning Airbnbs, which will have to comply with municipal rules, or else the people and businesses that manage them will no longer have access to federal tax deductions for their operations. It remains to be seen whether the Canada Revenue Agency will be able to properly apply this new constraint.

One not so good measure is the creation of a new department that specializes in interference: the department of housing, infrastructure and communities. The purpose of that department is to impose its conditions on Quebec, the provinces and the municipalities. If they do not abide by the interference, Ottawa will cut their transfers. The Liberals come here to steal the only bill that the Conservatives introduced, their plan to build more housing, by threatening the provinces and municipalities with cutting their infrastructure funding. I should note that it was the Conservative leader himself who introduced Bill C‑356 in the House.

With this bill, Ottawa would impose an obligation to increase housing starts by 15% compared to the previous year on all municipalities where the cost of housing is high, and that list is growing longer and longer. If the housing starts in municipalities do not increase as required by Ottawa, the Conservative leader would cut their gas tax and public transit transfers by by 1% for each percentage point shortfall under the target that he unilaterally set.

For example, housing starts in Quebec dropped by 60% this year rather than increasing by 15%, largely because of rising interest rates. If the Conservatives' bill were already in force, this would mean a roughly 75% reduction in transfer payments to the Quebec government. This is a really dangerous and unfair bill that centralizes power in Ottawa. The fact that the Minister of Finance is making use of the principle of that bill is a major offensive action in terms of centralization of power. We will have detailed numbers shortly.

I would like to say a few more words about the new department of housing, infrastructure and communities. This announcement essentially creates a federal department of municipal affairs. Since municipal affairs fall under provincial jurisdiction, this is nothing less than a department of interference, which is threatening to cut transfers, exactly as the Conservatives are hoping for and proposing in their bill.

Here are a few more details about this new department. It is worth noting that Trudeau senior's government tried to do much the same thing. In 1971, it created the Ministry of State for Urban Affairs. A Library of Parliament research document states that, “[g]iven the inescapable constitutional limitations, the ministry had no program responsibilities”. Faced with a lack of co-operation from the provinces, this attempt from Trudeau senior's government to interfere in municipal affairs ended in failure. The research document also states that “[i]n view of the Ministry's lack of credibility and the government's desire to cut expenditures, the [Ministry of State for Urban Affairs] was abolished on 31 March 1979”.

In the coming years, we will see whether Quebec and the provinces will once again be capable of defending their jurisdiction against this new department. This is the same story a generation later, so I would like to quote a philosopher: “All great world-historic facts and personages appear, so to speak, twice...the first time as tragedy, the second time as farce”. I believe that is what we are witnessing now.

In closing, let me reiterate that the Bloc Québécois will vote in favour of Bill C‑56 because it contains a few good measures and nothing that is downright harmful. However, Bill C‑56 is but a drop in an ocean of need. On housing, there is no indication that the bill will help lower the cost of rent. If nothing is done to correct this problem, we are headed for a major national tragedy. We need three times more rental housing in new construction to stop the housing crisis from getting worse. If Bill C‑56 did even a little to increase the proportion of rental units in new construction developments, that would be something, but we are light years away from meeting those needs.

The changes to the Competition Act are good, and the Bloc Québécois wholeheartedly supports them. Still, the government's claim that these changes will help lower grocery bills seems like misrepresentation. Removing from the act the section that called for mergers and acquisitions to be allowed if the company could demonstrate efficiencies is a good thing. This section of the Competition Act encourages concentration, which often leads to higher prices.

Since 1996, the vast majority of grocery chains have disappeared and been bought up by competitors. I am talking about companies like Steinberg, A&P and Provigo. IGA was bought by Sobey's, and Adonis by Metro. The same is true in Canada. Think of Woodward's, Commisso's, Safeway, Whole Foods, T&T, Longo's, Farm Boy and so on. Of the 13 chains we used to have, now there are only three, or five if we include Costco and Walmart. They control 80% of the market. It is an oligopoly.

While Bill C‑56 proposes some good measures, it is inconceivable that this is the government's only response to skyrocketing housing and food prices. When it comes to housing, we need to review and improve the failed Canada housing strategy.

Regarding competition, we need to review the concept of abuse of dominance to prevent the big players from taking advantage of their disproportionate share of the market to increase prices will, for lack of competition, or to abuse farmers and processors, whom they are holding hostage. These two things need to be done, whether or not Bill C‑56 is passed.

Government Business No. 30—Proceedings on Bill C-56Government Orders

November 23rd, 2023 / 5:10 p.m.
See context

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Madam Speaker, I want to say what a privilege it is for me to be able to speak in what is an important debate for all parliamentarians and to again speak on behalf of the good people of Cowichan—Malahat—Langford. For their benefit, I will explain that we are debating essentially two things today. Nominally, this is about Motion No. 30, the programming motion, but it is also about Bill C-56, the actual bill that the motion is seeking to get through the House to committee, where important work has to be done.

I will start with Motion No. 30, because it has to be put in the context of what the NDP, with our 25 members, has been able to do in this Parliament. I want to give particular thanks to my leader, the NDP leader and member for Burnaby South. We have to make mention in this place of his private member's bill, Bill C-352, because important elements of that bill were adopted in Motion No. 30. I will highlight some of the relevant parts of Motion No. 30 for the benefit of constituents back home.

Essentially, the really important part of Motion No. 30 centres on a number of things that would include some of the elements of the private member's bill from the member for Burnaby South in Bill C-56. I think this would strengthen the bill through a number of measures, such as increasing maximum penalty amounts for the abuse of dominance so that whenever we have market concentration and some corporate entities are abusing their dominance, we would have increased fines to make sure they are brought into compliance. Another measure is allowing the Competition Bureau to conduct market studies and inquiries if it is either directed by the minister responsible for the act or recommended by the Commissioner of the Competition Bureau. Another is to revise the legal test for abuse of a dominant position prohibition order to be sufficiently met if the tribunal finds that a dominant player has engaged either in a practice of anti-competitive acts or in conduct other than superior competitive performance.

In other words, these are three important measures in the motion that are basically lifted out of the PMB from the member for Burnaby South, showing once again that, as New Democrats, we are here to strengthen government bills, respond to the needs of our constituents and make sure we are passing laws that would address the serious issues of today.

I will now move to Bill C-56, which is not a very big government bill in the scale of things but one that essentially seeks to do two things: remove the GST from construction costs on new rental units and enable the Competition Bureau to better conduct investigations, while removing efficiency exemptions during mergers to improve competition. That is the specific section of the bill we would be improving through Motion No. 30.

Before I go on, I think we need to place the conversation around Bill C-56 in a larger context. I want to go back to when this Parliament started. Canadians are very familiar with the fact that in both the 2019 and the 2021 elections, Canadians, in their wisdom, decided to return minority Parliaments. I think that was the voice of the Canadian people saying that they did not trust all of the power in this place to any one party. It was a resounding message that parties had to come here and find ways to work together.

At the start of this Parliament in 2021, we as New Democrats essentially had two choices. We could have chosen to stay on the sidelines, like my Conservative friends, and just complain while achieving nothing, or we could have realized that Canadians expected us to roll up our sleeves, put our heads down and get to work. We chose the latter option, and that is why, thanks to New Democrats, we are achieving some incredibly concrete things for Canadians.

Dental care is a massive program that is going to really help so many Canadians. We know that millions of Canadians are unable to afford to go to the dentist. Thanks to New Democrats, we are pushing that forward so the most disadvantaged people from coast to coast to coast are going to be able to afford and get proper dental care.

We forced the government to double the GST credit. Of course, something I am personally very proud of having done, both here in the House and at the Standing Committee on Agriculture and Agri-food, which does specifically relate to the conversation we are having today, is that we also started an investigation into food price inflation. I think it was the public and political pressure of that moment that led us to where we are today, talking about Bill C-56. Not only did I get a unanimous vote in the House of Commons, so I believe that all parties unanimously recommended that this was an issue of great concern to their constituents, but we also got a unanimous vote at the Standing Committee on Agriculture and Agri-food to really put the issue of food price inflation under the microscope and to do a deep dive into the real causes. I will be happy to talk about that a little bit later in my speech.

We also forced the government to come up with a grocery rebate and anti-scab legislation that is going to help unions realize the collective bargaining power they have. When we are talking in this place about helping the working class, we need to make sure we are actually standing up for legislation that would do just that. For far too long in our country's history, working men and women who belong to the trade union movement have been at a disadvantage when it comes to the relationship with their employers. Employers have considerable financial resources. They have been able to wait out workers. They have been able to use replacement workers. In some cases, they have just waited for Liberal and Conservative governments to come to their rescue with back-to-work legislation. It is time, thanks to the NDP, that someone in this place truly stood up for the working class, not just with words, like the Conservatives are fond of doing, but with real action, actually changing our laws so an employer, with all of their resources, would no longer be able to undermine working-class men and women with replacement workers. One of the most powerful things the working class has at its disposal is the guaranteed freedom to withhold its labour in order to fight for a better deal.

Thanks to the NDP, we are going to change federal laws so we have the backs of workers in federally regulated industries, whether they work in the train system, in shipping, in the banking industry, etc. We are going to make sure the legislation before us gets over the finish line and serves as an example right across the country for all provincial jurisdictions. I am also very proud that, thanks to the NDP, we are leading the way in developing a sustainable jobs act. It was thanks to the NDP that we got labour at the table with the government and brought in those changes to the law before it was finally introduced. Again, this demonstrates that when it comes to defending working people in Canada, the NDP is the party that is pushing the ball here, not just with words but also with sincere action.

Something I am incredibly proud of, as we work toward the end of the 2023 year, is that we are actively working with the government on bringing in pharmacare legislation. Again, the cost of living crisis is something that Bill C-56 is inherently trying to deal with. We have to make sure we deal with the economic shortfall that so many working-class Canadians are experiencing. In addition to lack of dental care, one of the biggest challenges for families is their inability to pay for expensive medication because they do not have the benefit of a workplace plan. Often, I have spoken to constituents who are skipping their medications altogether or are cutting them in half, and that can lead to extremely poor health outcomes later on. Yes, it might seem like a significant investment, but we have to put it in the context of the billions of dollars of savings that would result, not only for working families' budgets as we are trying to help them get by, but also for our health care system as a whole. When we look after people and establish methods whereby they can seek preventative health measures, this is how we save our health care system money, and it is how we look after families' budgets.

I am proud to be a member of a caucus that is standing up for all of those measures. I think there are days when my Conservative friends must be incredibly frustrated that they are being outworked and outdelivered by a party with a quarter of the number of their seats. I want to highlight a few examples because I listen to Conservatives talk every single day about the cost of living crisis, and I want to highlight a few of the hypocrisies we hear in this place from that particular party.

Number one is the carbon tax. I do not think that the oil and gas industry actually needs to spend all of that money on lobbying the federal government, because it already has a political party that does it for free. The Conservative Party's members stand in this place and, at every single opportunity, rail on the carbon tax while completely ignoring the oil and gas profiteering that has been happening over the last three years. It is a real disservice to the substance of the debate.

We only need to look at the evidence. We have seen this at committee, not only when we were dealing with food price inflation but also in a whole host of other committees. The evidence is there for everyone to see. If someone wants to see the real driver of inflation, they only need to look at some key industries and how much their profits have increased over the last three years. The most notable example is oil and gas. Since 2019, the industry's net profits have increased by over 1,000%. The Conservatives want to concoct a fairy tale that the carbon tax is the root of all evil, when we know that the wild price fluctuations we see on the cost of fuel are the result of market pressures and of corporations' gouging our constituents. However, there is not a word from my Conservative friends.

I have to single out the member for Carleton, the Conservative leader, because he has the temerity to stand in this place and vote against dental care for his constituents, for my constituents and for people from coast to coast to coast while having enjoyed taxpayer-funded dental benefits for the last 19 years as a member of Parliament. I guess the Conservative motto is “It is okay for me but not for thee.” That is essentially the message I am getting from him.

Of course, there was a vote earlier this week on the Ukrainian free trade agreement. The Conservatives were absolutely grasping at straws to find a way to vote against it. At a time when Ukraine needs solidarity from the people of Canada, it would have sent a strong message if we could have had a unanimous vote in the House of Commons to show the Ukrainian people that we stand firmly with them. That is something President Zelenskyy wanted, yet one party decided to vote against the free trade agreement, and that was the Conservative Party. The shocking thing is that a vote at second reading is a vote for the principle of a bill. The principle of the bill is free trade with Ukraine. Someone may have problems with the bill, and that is fine, but do they agree with the principle of the bill? I do not always agree with bills that I vote for at second reading, but I do it under the condition of getting better results at committee. It is a strong message. Does one agree with the principle of the bill? Unfortunately, I think the Conservatives scored on their own net with that vote.

Let us talk about the housing crisis, because a significant part of Bill C-56 would be the removal of the GST for new rental units. There is a fairy tale being concocted in this place by my Conservative friends. They want people to magically believe that the housing crisis started just in the last few years, or eight years ago in 2015. That is absolutely false. The housing crisis we are seeing today is the natural conclusion of over 40 years of neo-liberal economic policy that has been pursued with glee by both Liberals and Conservatives. It did not start just with the current government and the current Prime Minister. It was happening over Stephen Harper's time, Paul Martin's time, Jean Chrétien's time and Brian Mulroney's time. We could not get to the shortfall we have in affordable housing just overnight. It is the result of a systematic abandoning of the federal government's role in building affordable housing, and the chickens are coming home to roost right now.

Again, we do need serious action, and Bill C-56 would be a small measure, removing the GST to spur on more housing development. If we look at the recent fall economic statement and at some of the spending items in the next few years for affordable housing, the Liberals have decided to delay spending on critical areas until the 2025 fiscal year. It is a totally shameful response and extremely inadequate to the crisis moment so many Canadians are facing right now.

With food price inflation, I think Canadians are sick and tired of both parties taking potshots at each other when, for 20 months now, we have seen food prices rise at such a high rate, a rate far higher than the general rate of inflation. The Minister of Innovation, Science and Industry made that grand announcement in October, when he said he was going to summon the grocery CEOs to Ottawa for what amounted to a stern talking to. What did we learn today? We learned from Metro's CEO that discussion had zero impact on food price inflation.

This is why the agriculture committee is again examining this issue. It wants to hear from the minister and the grocery CEOs. It was my motion that sent for the corporate documents, which are now under lock and key at 131 Queen Street, so we can see what the corporations have agreed to and what their plan is. We also want to hold the government to account to see exactly what promises the minister tried to extract.

We are facing a situation where Canadians have been playing by the rules and doing everything right. However, there is corporate gouging in multiple sectors. In the housing market there are increased rents and renovictions and the buying-up of affordable housing stock. Grocery and fuel prices are constantly going up. It is all a result of corporate profits driving inflation, and there is only one party in this place that is daring to call it out.

I think back to the old tale, Mouseland. Canadians are being asked to pick between the black cats and the white cats, but they are both cats. They are both going to pursue the same economic policies. I think, at their heart, Liberals and Conservatives believe in the same thing. They believe in market-based solutions, which is what have gotten us into the mess we are in. They like to show the differences between the two, but I fundamentally believe those two parties are but two different sides of the same coin. If we want something different, we cannot keep doing the same thing. Trading Liberals for Conservatives is simply going to continue us down the path that we have been on for the last 40 years.

Canadians deserve a break. I am proud to say that through New Democrats' efforts on Bill C-56 and Government Business No. 30, we are delivering concrete results. We have rolled up our sleeves to get to work to improve this bill and insert some language that I believe is going to make the bill stronger and finally give the Competition Bureau the muscle, resources and legislative flex it needs to tackle the extreme marketplace concentration that we see in so many sectors, whether it is the grocery sector, telecommunications, oil and gas, name it, it is time.

I believe, Madam Speaker, I am getting a signal from you that—