Grocers called back to Parliament to testify about plans to stabilize prices

The heads of Canada's major grocery chains are coming back to Ottawa to speak to MPs after the agriculture committee voted unanimously to have them return and explain their plans to stabilize food prices.

"We're 22 months into food prices being unaffordable — and they show no sign of coming back down. Canadians can't keep sacrificing so that these CEOs can rake in billions," NDP MP Alistair MacGregor, who introduced the motion, said in a statement. 

The text of the motion, which passed Thursday during an in-camera meeting, said that if the presidents and CEOs refuse to accept the invitation they will be summoned to appear. If a person fails to respond to a summons the committee reports it to the House of Commons, which can then take action. 

The CEOs invited include: Galen Weston, Loblaw Cos. Ltd.; Eric La Flèche, Metro Inc.; Michael Medline, Empire Company Limited; Gonzalo Gebara, Walmart Canada Corp.; and Pierre Riel, Costco Wholesale Canada Ltd.

"[Prime Minister] Justin Trudeau and [Conservative Leader] Pierre Poilievre have shown Canadians repeatedly that, despite all their words, they're not interested in standing up to CEOs who are getting even richer off the backs of Canadians," MacGregor said. "They're letting Canadians down — but New Democrats won't."

The motion requires the CEOs to "answer questions and explain measures that are being taken" to "stabilize and lower food prices."

The committee also invited Industry Minister François-Philippe Champagne, Agriculture Minister Lawrence MacAulay and Deputy Prime Minister and Finance Minister Chrystia Freeland. 

The motion also calls on the CEOs to prepare and submit "a comprehensive report" to the committee by Nov. 2 detailing "further actions aimed at the stabilization of grocery prices in Canada."

Liberal efforts an 'abysmal failure': NDP

Last month Champagne invited the grocery CEOs to Ottawa where he and Freeland met them to discuss high and rising grocery prices. 

After the two-hour meeting, Champagne said each company pledged to work with the Liberal government to deliver a plan on grocery prices specific to their operations by Thanksgiving.

Trudeau said that if the chains fail to share their plans with the federal government by Thanksgiving, Ottawa will take action.

"And let me be very clear," Trudeau said Sept. 18. "If their plan doesn't provide real relief ... then we will take further action and we are not ruling anything out, including tax measures."

The NDP statement said they introduced the motion to recall the CEOs after Champagne's "abysmal failure to bring down food prices for Canadians."

More competition needed: committee

A parliamentary committee investigating high food prices said in March that if Canada's Competition Bureau finds the grocery store giants are profiting excessively from food inflation, Ottawa should consider hitting the companies with a windfall tax on excess profits.

The Competition Bureau concluded in June that Canada's grocery business doesn't have enough competition and is dominated by three domestic giants. It called on the government to encourage new market entrants to bring down prices.

The government said it plans on changing the Competition Act to give the bureau more power to take action. The legislative changes would include allowing the bureau to "compel the production of information to conduct effective and complete market studies," a government news release said.

The release said the bureau also would be given the authority to take action against "collaboration that stifles competition and consumer choice, in particular situations where large grocers prevent smaller competitors from establishing operations nearby."