00:02:49.220so don't think I was wearing my Guns N' Roses cut-off tee and had the hair long.
00:02:53.940No, no, no. This is as rocky as I get.
00:02:56.080But I was ready to rock out. I was at a rock concert, and I'm sitting down. I'm in the venue. The lights go off. We're about to get started, and on comes the guy who works for the venue to do the land acknowledgement, which, again, I don't get out much, so I don't know if this is a thing at, like, every live event you go to now.
00:03:15.360There was a little poster in the hallway that I thought sufficed for the land acknowledgement by saying we were in Oakville.
00:03:21.900So it's like we were on the traditional territory of the Mississaugas of the Credit First Nation and all that.
00:03:26.880And again, but it's not, here's the thing that got me is that I'm used to the regular land acknowledgement.
00:03:31.540I'm used to the, we are on the traditional territory.
00:03:34.160And then, you know, ladies and gentlemen, the concession stand is open outside.
00:05:52.080And again, I can tell you that when government is spending outside its means, it does negatively affect every other Canadian.
00:05:59.220And I think governments around the world have had a bit of cover because COVID required spending.
00:06:06.000But they've used that to justify spending far beyond what COVID necessitated and also as a bit of a shield for the fact that in this particular case,
00:06:14.320we had a government that was running up billions in deficits even before the pandemic came along when the economy was doing quite well.
00:06:20.600and their rationale was well we're doing okay as a country so we can afford it and then the
00:06:25.740rationale became well things are terrible so we need to do it and as i've often remarked you kind
00:06:30.800of look and say well hang on if good times and bad times warrant deficit spending when is the time
00:06:36.000that we don't run deficits and there doesn't appear to be to this government one of those
00:06:40.180things so let's talk about one specific aspect of this the federal government promised there would
00:06:45.360be some relief for families if you have been to a grocery store in the last year you know full well
00:06:50.960what the problem is you don't need politicians to tell you their solution for this is to give
00:06:57.220every family in canada a one-time grocery rebate oh wait it's actually not every family in canada
00:07:04.260they're going to give some families in canada a grocery rebate of sorts and they're going to run
00:07:09.340this through the existing GST rebate program. The average family could make about $467. I shouldn't
00:07:16.740say make, could receive $467 from this, but many people will get less than that. And if you are
00:07:25.300buying groceries, you'll know that for a family, $467 might well be one, or maybe if you're really
00:07:32.040lucky, two grocery bills, and then you're back to groceries that you cannot afford. So is there a
00:07:38.480solution the government could have put forward here and is this something that is at all even
00:07:43.820resembling a solution i want to talk about just this aspect of the budget alone for a little while
00:07:48.760with professor sylvain charlebois one of the brightest minds in food policy in this country
00:07:53.540from dalhousie university professor good to talk to you again thanks for coming on today
00:07:58.260nice talking to you as well andrew so let's start start off with talking about this rebate here i
00:08:04.080mean obviously it is a band-aid and i don't think it's pretending to be anything more than a band
00:08:08.340But if you look at grocery bills, it's almost laughable to think of just how little that $200 or $300 a family might get will go on this issue.
00:08:20.960I mean, when you look at what's going on with food inflation, the average family of four will likely pay about $1,100 more for their food this year.
00:08:30.620So that family would probably receive an extra $467 if they qualify.
00:08:36.780if they qualify and that's a one-time payment and so just to contextualize that professor that's
00:08:43.320half of the increase so so they're still out five hundred dollars a year more yeah it's actually
00:08:49.040less than half of the increase over one year but Andrew I mean food inflation is a lingering
00:08:54.940challenge for everyone it's not just over the next six months we are we are looking at some
00:09:01.600nasty numbers for 2023 2024 as well so there's no long-term plan here this is really about
00:09:10.460politicizing food inflation really i mean we've seen it in many provinces and ottawa basically
00:09:17.440decide to do the same by setting out checks it's the easiest thing to do by just changing the name
00:09:23.340of a program gst rebate and and make it a little bit more sexy if you will and i call it a grocery
00:09:31.080rebate but it doesn't mean that people will actually use that money to spend on groceries
00:09:36.160unfortunately. Yeah and of course the blatantly obvious issue with this is that it's not dealing
00:09:41.520with the underlying causes so it's not a sustain I mean if you can even call it a solution it's
00:09:46.180certainly not a sustainable solution so let's talk about what some of those could be because I don't
00:09:52.460like oversimplifying issues here if we're looking at the the food costs and the increase that you
00:09:57.380just mentioned can we trace this back to one or two concepts or are we talking about many many
00:10:04.020inputs that are contributing this to this oh that's a tough one because you have you know 18 to 20
00:10:11.700000 skews in a grocery store and they all have a story uh of course uh or there are we we can
00:10:19.540actually identify overarching factors like supply chain weaknesses due to covid and the aftermath
00:10:29.380there's ukraine of course ukraine made everything more expensive almost overnight and and there's
00:10:35.460and there's climate change i mean right now i can tell you in six months from now beef will be more
00:10:40.740expensive because there are many parts of the u.s where there are droughts and cattle ranchers are
00:10:46.100just getting rid of their inventory so my guess in six months from now your beef at the grocery
00:10:51.140store will be more expensive and that's due to a drought california is north america's garden
00:10:58.100it ran out of water for a while now it has too much water and so they don't know exactly what's
00:11:03.460going to happen there there's been some crops ruined over 300 million dollars worth of crops
00:11:08.260a lot of that product was supposed to go to canada it won't so chances are vegetables will be more
00:11:14.180expensive in a few weeks from now so there's there's lots going on at once but i would say
00:11:18.580that those are the top three factors impacting most of the grocery store yeah and then you can
00:11:24.820look beyond that and if we are sort of analyzing this through the perspective of multiple inputs
00:11:30.020you know five percent from one thing two percent from another thing it all does add up i mean you
00:11:35.700i know i've spoken elsewhere it's the the sacred cow pardon the pun in canada but supply management
00:11:40.580is driving up dairy costs and poultry you have carbon taxes which i think are also contributing
00:11:46.580because it adds to shipping so it becomes very difficult when you start layering all of these
00:11:51.940things to find one ready-made solution does it not no absolutely so it's it's hard to uh to look
00:11:58.820at uh all of the factors and as as a government how do you tackle all these factors so i i've
00:12:05.540always advocated for measures that would be meaningful and that would change the cost
00:12:11.460structure of the entire industry right now what you're looking at Andrew uh is is a new baseline
00:12:17.8602022 was an historical year when it comes to uh management in the food sector uh there is a new
00:12:24.980baseline wages are way up packaging costs everything is costing more so when people are
00:12:30.900asking me if food prices are going to drop anytime soon i i kind of laugh because i i don't we don't
00:12:37.380see it we don't see how food prices will drop so we are hoping for a lower food inflation rate and
00:12:43.620that's probably going to happen during the second half of 2023 you know i i imagine just from what
00:12:50.020you're describing about ukraine and weather conditions and all of that that food prices
00:12:54.500can be a bit of a lagging indicator so even if some changes were put into effect now how long
00:12:59.540does it actually take to start seeing the effects of these things or does it to go back to your
00:13:04.020comment about the number of shoes depend on the product yeah it absolutely depends now when you
00:13:09.540look at uh central banks and and they're all trying to actually bring down uh the inflation
00:13:14.580rate even though canada actually has one of the lowest inflation rates in the world by the way
00:13:18.500andrew i don't know if you knew this but if you look at the g7 uh canada is number three after
00:13:23.860the u.s and japan japan is at 7.5 the u.s is at 9.4 we're at 9.7 but people in canada won't care
00:13:33.460they won't care what's going on in germany or france or the uk they care about what's going on
00:13:38.980in their own grocery stores and so you have to kind of wonder why are prices still too high
00:13:46.820given the fact that we do grow a lot of food here in canada and that's really the one thing that's
00:13:51.380bothering a lot of people and the answer to that question is pretty simple i don't think there's
00:13:56.500been any greedflation going on we actually did look at financial statements of grocers there's
00:14:02.500no evidence margins have been pretty stable however margins are double of what they are in
00:14:07.780the u.s if you look at operational margins if you look at metro loblaws and sobeys for example empire
00:14:14.580and you look at uh say kroger's and albertson they're they're double so it's been cozy for them
00:14:19.780in Canada really we need more competition but here's the thing Andrew and this is what I was
00:14:25.420expecting in the budget yesterday Canada's not all that interesting to invest in Canada doesn't
00:14:32.400attract investors Aldi and Little for 20 years they've been in the U.S. well Aldi actually
00:14:39.080entered in 2017 but Aldi has been around for a long time they've looked at Canada they've never
00:14:46.180invested because they saw companies like Target leave in a nanosecond. They saw Sears leave,
00:14:52.880Lowe's leave, Nordstrom is leaving in a couple of months. It's a hard market to service because of
00:14:59.680inter-provincial barriers. Our fiscal regime is incredibly cumbersome. And I was expecting
00:15:07.360yesterday in the budget to see some really meaningful measures to make our market more
00:15:13.040competitive but I didn't see anything unfortunately. Yeah and I mean one example that I recall coming
00:15:18.980up and I don't know if it was overstated as to how influential it was but when Target came to
00:15:24.120Canada however many years ago bilingualism on packaging so it's they had to in many ways
00:15:30.660recreate their supply chain they couldn't just take the products that were on the shelf
00:15:34.120in the United States and plop them on the shelf in Canada so it it does I think for a lot of
00:15:39.420companies bring up this question of is it worth the hassle to do all this extra work for a country
00:15:43.340a tenth the size. And a lot of people a lot of companies I do look at the the supply chain
00:15:49.880economics of Canada and it's it's hard it's really really hard in the U.S. de facto the number one
00:15:58.280grocer is Walmart okay Walmart's market share in the U.S. is about 20 percent which is not a whole
00:16:06.400lot but it's 20 in canada the number one grocer is lobla they own 32 of the market so that's
00:16:14.080market dominance along with uh sobe's and metro so there there is there is some coziness that needs
00:16:21.360to be broken up and so that's why i've been advocating for a code of conduct for example
00:16:26.400to protect independent grocers because independent grocers are disappearing i mean they're just
00:16:31.840gone they're disappearing everywhere in the country and we need to protect them a little
00:16:35.200but they have no chance against Walmart and Loblaw negotiating with processors,
00:16:40.480and they are fewer than in the United States, so it's hard to get a good price.
00:16:45.440The stop sell last year, I don't know if you remember with Frito-Lay and Loblaw,
00:16:50.160do you remember when Frito-Lay, Pepsi actually just left the table and decided not to sell to
00:16:55.920Loblaw? That's what I'm talking about, the code of conduct. Pepsi was big enough to basically just
00:17:01.840walk away for a month many sme companies like many small companies family-sized companies out there
00:17:08.800can't afford to do that and that's due to the fact that lobla and walmart have too much power
00:17:15.520so we're agreed professor that the one-time grocery rebate is essentially meaningless for
00:17:21.440for a lot of people at least in the long term past the the first couple of months of receiving
00:17:26.160the check if there were one actually i would say one thing i think it's actually can be a problem
00:17:33.200when you see when you see a government invest in the economy it's only 2.5 billion but still
00:17:39.760you do not want to see a state a government uh pour more money uh more fuel onto the inflation
00:17:48.400fire because you may end up raising prices for everyone so they're trying to help 11 million
00:17:56.000people but at this time they could actually hurt potentially well 39 million people no that that's
00:18:03.940a very very fair point i'm glad you raised that i guess just in closing i'd say you know if there
00:18:08.860were one singular policy that would make in your view a difference if such a thing exists in the
00:18:14.780budget what would that be right right away yeah if you were if you had the misfortune of being
00:18:21.360canada's finance minister and you had you had one policy you could put forward that would make a
00:18:26.500tangible difference what would it be i would eliminate all sales stacks on food immediately
00:18:31.900retail right now because of shrinkflation a lot of packages were groceries are now snacks and if
00:18:39.000you're a snack, like for example, granola bars, if you bought a box of five bars of granola bars
00:18:45.160instead of six, that's a snack. You pay tax on that. Okay. If you're buying a container of ice
00:18:50.380cream like Ben and Jerry's and Agandaz, if it's below 500 mil, you're paying tax on that. It's
00:18:56.400five to 15% depending on where you live in this country. That's more money. That's a lot of money
00:19:02.120and families would appreciate a discount there. The same products in different sizes. I got to
00:19:07.640of science and evidence in policy making.
00:19:51.940In any case, one thing I will say before we get on to the climate war waged against, I'd say,
00:19:58.900well, pretty much everyone in this world by governments and the global elites.
00:20:02.900I just want to talk about the NDP here.
00:20:05.080And I said last week when we were doing the show live from the Canada Strong and Free Networking Conference that you should never make the mistake of ascribing relevance to Jagmeet Singh.
00:20:17.540I mean, even when I was covering the election debates in 2021 and I had a question that I was able to ask to Jagmeet Singh, I'm like, why do I care?
00:21:54.540And I think I go back to Stephen Harper's line when he was on stage with Preston Manning on, I guess it was a week ago today, yeah, in Ottawa.
00:22:02.160And he was saying, you know, only Jagmeet Singh could walk into a negotiating room with Justin Trudeau and come out with absolutely nothing.
00:22:08.940Like that takes a particular level of incompetence.
00:22:12.200But you look at, again, Jagmeet Singh on Twitter throughout the year and he's saying, oh, the Liberals have failed Canadians.
00:22:17.160Grocery store CEOs are getting rich and it's all happened on Justin Trudeau's watch.
00:22:21.580And then budget time comes along and he's like, I vote yay, I vote yay, I don't want to have an election, I'm going to lose everything else and then I'm going to be ousted as leader.
00:22:32.220So here we have it continuing along and indefinitely, of course, the Conservatives voting against it and the Bloc Québécois, the Green Party, again, no one really cares.
00:22:42.220But the one thing I will say, that's not true.
00:26:49.280I thought it was important to be open-minded and to be fair and to look very carefully at what they were doing.
00:26:56.660But I have come to the conclusion that it's the UN.
00:27:00.580And because it's the UN, we need to just close the door and say, thank you very much. You're not legitimate. We don't recognize your authority. Because the problem with the UN is that it is not accountable to anyone. And it is not democratic.
00:27:16.460If we have a concern about how a UN body is behaving, we have no ability whatsoever as members of the public to vote those people out, to get rid of them, to tell them to change course or pull up their socks.
00:34:30.600They behave much closer to political activists
00:34:33.400because in fact that's what they are. So explain to me the danger of this because you know there
00:34:40.060are lots of agencies and organizations that publish reports and they get you know acknowledged they
00:34:45.560get received into a library they plopped on a shelf and they're never seen before but
00:34:49.140the IPCC's reports are not that. No in fact the whole purpose of the IPCC reports is to facilitate
00:34:57.620the UN treaty on climate change. So without that treaty, the IPCC wouldn't exist. And it makes a
00:35:07.140certain amount of sense that if you're trying to get 185 countries who belong to the UN to be all
00:35:14.020on the same page and to start some negotiations, it's good to have a base document, sort of an
00:35:20.120agreed statement of facts is what the lawyers would say. This is what we think is the state
00:35:25.580of of climate so um so that's the that's the purpose of those reports they're not scientific
00:35:32.940they are they're they're a document intended to facilitate un negotiations you know we're talking
00:35:41.180high test international politics here that that's the whole purpose of the sign of the ipcc report
00:35:48.380So the process is such that the governments of the world participate in helping the reports to be written, and then they're sort of held to them.
00:36:01.120And so we have governments all over Canada at the municipal level, at the provincial level, at the federal level, who point to the IPCC report and say, well, this is what's happening.