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Competition concerns keep bubbling up in federal politics

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OTTAWA –

As Canadians grow more concerned about rising inflation, competition across different sectors of the economy has become a “kitchen-table issue” at a time when the federal government is reviewing its competition law.

The country’s two largest newspaper chains, Postmedia and the owners of the Toronto Star, recently confirmed talks about a potential merger, signalling more consolidation in an industry that already has a limited number of players.

In a highly anticipated report about food inflation last week, the Competition Bureau called for more competition in the grocery sector, tying the higher prices to the limited options for consumers.

All of that builds on the mounting scrutiny of several sectors, with the telecommunications industry being the prime example.

The head of the competition watchdog recently said that scrutiny is creating a window of opportunity for action, as the federal government undertakes a review of the Competition Act.

“Competition issues are grabbing headlines across the country,” competition commissioner Matthew Boswell said during a speech last month in Ottawa.

And as Canadians struggle with high inflation, Boswell said it’s easy to see how competition policy “has gone from being a podium topic to a kitchen table issue across the country.”

Keldon Bester, co-founder of the Canadian Anti-Monopoly Project, said inflation and a global conversation about corporate power have made people more aware of the role competition plays in their day-to-day lives.

“When Canadians are pushed and their budgets are stressed, they work harder to find alternatives to make ends meet. I think that brings forward a lack of options that we have in a lot of areas of our lives that we can kind of afford to ignore in the good times,” Bester said.

“(And) internationally, we’re seeing a real change in how governments and citizens interact with the corporations that make up our daily lives.”

The rapid rise of grocery prices alongside growing profits in the industry have some to argue that firms were profiteering off of inflation.

The Competition Bureau’s report last week found grocery margins have grown modestly yet meaningfully over the last five years, though the trend predates the current bout of high inflation.

“The fact that Canada’s largest grocers have generally been able to increase these margins — however modestly — is a sign that there is room for more competition in Canada’s grocery industry,” the report said.

The bureau laid out the history of consolidation in the industry, arguing that has hurt consumers.

When the Competition Act came into place in 1986, there were at least eight major grocers in Canada. Fast-forward to 2023, and that number has dwindled to just five.

The bureau made a set of recommendations in its report, urging governments to make it easier for more players to enter the market.

A spokesperson for Industry Minister Francois-Philippe Champagne called the report a good first step, and said the federal government would be reviewing the recommendations to see how it can make Canadians’ lives more affordable.

The dangers of poor competition go beyond prices, experts warn. A study published in the fall by researchers at the HEC Montreal Centre for Productivity and Prosperity found a lack of competition is hurting productivity, too.

The Competition Bureau acknowledged in its report that it hasn’t done enough to protect and promote competition, noting the Competition Act needs to be reformed.

The federal government launched a review of the act last fall and finished public consultations on the changes earlier this year, with the findings set to be released in the near future.

Bester is a loud critic of the law, and wants to see reforms that make it harder for mergers that would hurt consumers to be approved.

The Competition Bureau also needs to be better quipped to handle collusion and cartel conduct, he said, noting it has taken it years to investigate the bread price-fixing scandal.

Bester warned that reform will require politicians to stand up to major companies that aren’t interested in such changes.

“It’s going to take a lot of courage to make the right decision for Canadians,” Bester said.

This report by The Canadian Press was first published July 3, 2023.

 

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New Brunswick election candidate profile: Green Party Leader David Coon

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FREDERICTON – A look at David Coon, leader of the Green Party of New Brunswick:

Born: Oct. 28, 1956.

Early years: Born in Toronto and raised in Montreal, he spent about three decades as an environmental advocate.

Education: A trained biologist, he graduated with a bachelor of science from McGill University in Montreal in 1978.

Family: He and his wife Janice Harvey have two daughters, Caroline and Laura.

Before politics: Worked as an environmental educator, organizer, activist and manager for 33 years, mainly with the Conservation Council of New Brunswick.

Politics: Joined the Green Party of Canada in May 2006 and was elected leader of the New Brunswick Green Party in September 2012. Won a seat in the legislature in 2014 — a first for the province’s Greens.

Quote: “It was despicable. He’s clearly decided to take the low road in this campaign, to adopt some Trump-lite fearmongering.” — David Coon on Sept. 12, 2024, reacting to Blaine Higgs’s claim that the federal government had decided to send 4,600 asylum seekers to New Brunswick.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.

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New Brunswick election profile: Progressive Conservative Leader Blaine Higgs

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FREDERICTON – A look at Blaine Higgs, leader of the Progressive Conservative Party of New Brunswick.

Born: March 1, 1954.

Early years: The son of a customs officer, he grew up in Forest City, N.B., near the Canada-U.S. border.

Education: Graduated from the University of New Brunswick with a degree in mechanical engineering in 1977.

Family: Married his high-school sweetheart, Marcia, and settled in Saint John, N.B., where they had four daughters: Lindsey, Laura, Sarah and Rachel.

Before politics: Hired by Irving Oil a week after he graduated from university and was eventually promoted to director of distribution. Worked for 33 years at the company.

Politics: Elected to the legislature in 2010 and later served as finance minister under former Progressive Conservative Premier David Alward. Elected Tory leader in 2016 and has been premier since 2018.

Quote: “I’ve always felt parents should play the main role in raising children. No one is denying gender diversity is real. But we need to figure out how to manage it.” — Blaine Higgs in a year-end interview in 2023, explaining changes to school policies about gender identity.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.

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Climate, food security, Arctic among Canada’s intelligence priorities, Ottawa says

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OTTAWA – The pressing issues of climate change and food security join more familiar ones like violent extremism and espionage on a new list of Canada’s intelligence priorities.

The federal government says publishing the list of priorities for the first time is an important step toward greater transparency.

The government revises the priorities every two years, based on recommendations from the national security adviser and the intelligence community.

Once the priorities are reviewed and approved by the federal cabinet, key ministers issue directives to federal agencies that produce intelligence.

Among the priorities are the security of global health, food, water and biodiversity, as well as the issues of climate change and global sustainability.

The new list also includes foreign interference and malign influence, cyberthreats, infrastructure security, Arctic sovereignty, border integrity and transnational organized crime.

This report by The Canadian Press was first published Sept. 19, 2024.

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