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2 November <strong>17</strong>'22 HANNA/CORONATION/STETTLER, AB. <strong>ECA</strong> REVIEW<br />

OPINION<br />

The opinions expressed are not necessarily<br />

the opinions of this newspaper.<br />

<br />

GUEST EDITORIAL<br />

Competition Bureau is not doing its job<br />

by Sylvain Charlebois<br />

Canada’s Competition Bureau has<br />

decided to investigate the Canadian<br />

food industry, specifically our grocery<br />

sector. Better late than never, I<br />

suppose.<br />

For years, many called for such an<br />

investigation while recognizing that<br />

the Bureau has little authority or<br />

power over anything. Even its new<br />

director admitted to the problem of<br />

powerlessness. For instance, the<br />

Bureau can’t force any company to<br />

submit any body of evidence for the<br />

upcoming study.<br />

It’s sad that the Bureau waited until<br />

food inflation became a political hot<br />

potato to call for an investigation.<br />

But make no mistake: this study is<br />

all about the Bureau, nothing more. It<br />

needs a different approach and a new<br />

perspective on things and clearly<br />

requires more knowledge about the<br />

food industry.<br />

When evaluating<br />

“<br />

mergers and<br />

acquisitions, the<br />

food industry<br />

deserves a longitudinal<br />

analysis<br />

– observing the<br />

same participants<br />

over a period of<br />

time – to better<br />

appreciate how<br />

consolidation can<br />

impact sectors<br />

over time, as<br />

we’ve seen in groceries<br />

and<br />

processing.<br />

Limited competition<br />

can work if<br />

independents and<br />

smaller players remain somewhat<br />

sheltered from overbearing market<br />

forces. Miscalculated compromises<br />

can only lead to regulators overlooking<br />

our market’s most<br />

fundamental element, the consumer.<br />

Consumers in many cities now<br />

have only one grocer, with fewer instore<br />

choices due to the continuous<br />

pressure imposed on food processors,<br />

especially smaller operators. Many<br />

have given up. Unlike other industries,<br />

food manufacturers must pay<br />

grocers to do business with them.<br />

Listing fees, marketing costs, and the<br />

list goes on – a foreign concept for<br />

people who may not understand the<br />

economics of food distribution.<br />

Canadians should not expect significant<br />

changes to the industry coming<br />

from the study anytime soon. For<br />

years, the Bureau has rubberstamped<br />

deals and investigated<br />

accusations of collusion countless<br />

times, with limited success.<br />

Chocolate, salmon, and of course,<br />

bread are some examples. That needs<br />

to change.<br />

Consumers were insulted in 20<strong>17</strong><br />

when Canadians learned about<br />

Loblaws’ bread price-fixing scheme<br />

– an ethical blunder by our country’s<br />

number one grocer. When it offered<br />

$25 gift cards as compensation, everything<br />

seemed forgotten and forgiven.<br />

Not quite. With higher food prices, the<br />

bread price-fixing scandal rapidly<br />

became a moral issue for Canadians.<br />

The bread price-fixing investigation<br />

actually started in 2015 when Loblaws<br />

admitted its wrongdoing. For 14 years,<br />

from 2001 to 2015, it, along with<br />

Weston Bakeries, owned by Weston<br />

Companies at the time, admitted to<br />

fixing bread prices in Canada. The<br />

scheme allegedly included five more<br />

companies; all denied involvement.<br />

After seven years, we still haven’t<br />

seen anyone being accused or fined.<br />

Competition laws prohibit collusion,<br />

and companies can receive fines of up<br />

to $25 million and 14 years in prison.<br />

But without a watchdog watching, the<br />

Bureau has a lot of unfinished<br />

business.<br />

Canadians<br />

are violently<br />

voicing their<br />

frustration,<br />

singling out<br />

grocers,<br />

mainly<br />

Loblaws, as the<br />

inflation<br />

boogeymen.<br />

The evidence<br />

of profiteering<br />

is weak at best,<br />

but it doesn’t<br />

matter. Even<br />

reporters from<br />

other countries<br />

couldn’t<br />

believe the<br />

backlash<br />

against Loblaws when it opted to<br />

freeze prices last week for its No<br />

Name products. Loblaws is arguably<br />

the most hated grocer in the world.<br />

This is no accident. Canadians have<br />

an awkward relationship with grocers<br />

for one simple reason – many feel<br />

unprotected and left hanging high<br />

and dry. Because the Bureau is idle on<br />

so many fronts, Canadians have been<br />

left to take matters into their own<br />

hands, and who can blame them?<br />

It’s different in the United Sta; it can<br />

take just a few months between lawmakers<br />

accusing food companies and<br />

getting them to write cheques to consumers.<br />

This happened in the case of<br />

JBS, the meat packer, which paid<br />

US$52.5 million to settle a price-fixing<br />

lawsuit. U.S. lawmakers are also<br />

pushing back on the $24.6 billion U.S.<br />

Kroger-Albertson deal, arguing it<br />

would create a monster of a grocer<br />

with a 15 per cent market share. The<br />

new company may be forced to let go<br />

of up to 375 stores and create a rival to<br />

get regulatory approval.<br />

This would never happen in Canada<br />

under the current regime. And by the<br />

way, both Loblaws and Empire/<br />

Sobeys already have more than 15 per<br />

Consumers in<br />

many cities now have<br />

only one grocer, with<br />

fewer in-store choices<br />

due to the continuous<br />

pressure imposed on<br />

food processors.<br />

“<br />

cent of the Canadian market. The<br />

Bureau is sleepwalking through these<br />

deals.<br />

The report should be complete by<br />

June 2023. Hopefully, the Bureau will<br />

give itself a road map for fundamental<br />

changes that will provide it with more<br />

authority to apply more rigour to any<br />

case presented before it. But before<br />

<br />

MAIL BAG<br />

that, the Bureau will need to do some<br />

soul-searching.<br />

Let’s call it like it is. Canadians<br />

deserve it.<br />

Dr. Sylvain Charlebois is senior<br />

director of the agri-food analytics lab<br />

and a professor in food distribution and<br />

policy at Dalhousie University.<br />

Elder abuse? Yes.<br />

Dear Editor,<br />

In response to Oct. 19, <strong>2022</strong> Morrin<br />

council meeting).<br />

• Did council pass a resolution to<br />

check 2nd Avenue North sewer laterals?<br />

– YES<br />

• Did the check (September 2020)<br />

result in the camera not being able to<br />

get through line [Village lateral from<br />

Helton property] due to blockages?<br />

– YES<br />

• Did Village clear blockages, as per<br />

Sewer Policy, to complete mission of<br />

resolution – NO<br />

• If the Village had cleared the<br />

blockages, would Helton’s have had a<br />

sewerage backup? – NO<br />

• If the Village had cleared the<br />

blockages, would Helton’s have had to<br />

rent a portable toilet – NO<br />

• Does the Village still need to repair<br />

their 60+ year line due to the sag and<br />

20 feet of water? - YES<br />

• Did Village inform Helton’s of<br />

blockages? – NO<br />

• After numerous requests by<br />

Helton’s for camera report, did Village<br />

finally release result? – YES<br />

• Did Village clear blockages as per<br />

their responsibility under the MGA:<br />

Municipal Public Utilities-Section:<br />

35(2)? - NO<br />

• Did Village clear blockages when<br />

Helton’s expressed concern that a<br />

backup could occur? – NO<br />

• Did the Village clear blockages<br />

when a backup occurred? – NO<br />

• Did Village clear blockages when<br />

Helton’s informed council that they<br />

[Helton’s] were afraid of another<br />

backup and were hiring a portable<br />

toilet? – NO<br />

• Did Helton’s get another camera of<br />

line to confirm that there still were<br />

significant blockages? – YES<br />

• Did Village clear blockages when<br />

sent camera report showing blockages?<br />

– NO<br />

• Did CAO lie to Village counsel<br />

stating that Helton’s were not using a<br />

portable toilet? – YES<br />

Turn to Council, Pg 3<br />

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