After talks to address a matter that is hurting the ruling Liberals, Canada five major grocery chains have agreed to help the government stabilize soaring prices, a senior minister said on Monday.
After two hours of difficult discussions with the chains, Innovation Minister Francois-Philippe Champagne announced the decision.
According to Champagne, if the Canada grocery chain executives do not come up with a plan to help address budget-busting price increases, the government could impose new taxes.
As part of our efforts to stabilize prices in Canada, they have agreed to support the government of Canada,” Champagne told reporters.
“We’ll keep pushing them,” he said. “This is just the beginning.”
As a result of the high cost of living and lack of affordable housing, the Liberals are trailing in the polls.
Metro CEO Eric La Fleche, one of the five executives at the meeting, said the chains wanted to do everything they could, but rejected the notion that they were solely responsible.
“We are all committed to stabilizing prices. Any discussion must include manufacturers, producers, farmers and everyone,” the CEO said. It’s not just about the retailers, the minister understands that well.”
Along with Metro, Loblaws (L.TO), Sobeys (EMPa.TO), Walmart (WMT.N) and Costco (COST.O) attended the meeting. Together, these chains represent 80% of the Canadian market.
Last week, Prime Minister Justin Trudeau announced a tax break designed to spur the construction of new rental apartment buildings and relieve pressure on the Canadian housing market.
Gould, the minister in charge of pushing the government’s agenda through the House of Commons, said she would introduce wide-ranging draft legislation soon.
It appears that if an election were held now, the official opposition Conservatives, who blame high inflation on Trudeau for excessive government spending, would win, ending eight years of Liberal rule.
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