Federal government to introduce grocery rebate: sources
Prime Minister Mark Carney to announce GST credit top-up, other affordability measures on Monday
Prime Minister Mark Carney is set to announce an increase to the GST credit on Monday, as part of a larger suite of affordability measures intended to offset the rising cost of groceries.
Two senior government sources speaking on the condition they not be named say that quarterly GST payments will increase by 25 per cent over the next five years, and the measure is expected to affect approximately 12 million Canadians.
It will also include a one-time top-up of 50 per cent in June. The program will be called the “Canada Groceries and Essentials Benefit."
Federal estimates suggest that the one-time top up, plus the quarterly 25 per cent top up, could mean an additional $400 this calendar year for a low-income single person and $800 this year for a couple with two children.
There will be other affordability measure announced on Monday, including steps to fix structural problems with Canada’s food supply chain, and improve competition.
The prime minister is set to make this announcement in Ottawa on Monday morning before travelling to meet with Ontario Premier Doug Ford in the afternoon.
This is what they are doing, and I'm of at best mixed views on it.
Its better than the Doug Ford pre-election cheques for everyone scheme....because that scheme gave the same to the richest and the poorest.
This will follow the HST rebate model and therefore decline after ~$50,000 income or thereabouts.
Good, as far as it goes.
I'm more interested in measures that structurally reduce grocery prices, also being promised. I have a list, of measures that were put forward, but I'm not sure which cabinet approved.
So I'll be watching keenly.
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Areas where prices are out of line w/what they should be structurally:
1) Beef
2) Chicken
3) Assorted Dairy, but particularly cheese both industrial and premium and butter.
4) Pasta.
5) Mayo
There are other items to be sure....but looking at widely purchased, and demonstrably cheaper, historically in Canada or in comparable markets, those are the most excessive.
To be clear, Coffee and Chocolate remain high, but that is dictated by global markets.
Repeating the list above with my estimate of percentage correction feasible.
1) Beef - 50%
2) Chicken - 25%
3) Asst Dairly - Butter -25%, Industrial Cheese - 33%, Premium Cheese 40-45%
4) Pasta - 25%
6) Mayo - 25%
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The measures it will take to achieve some of those reductions are significant. They includes substantial oligopoly break ups, subsides, Canadian Dairy Commission rollbacks and more.
Also required are breakups of retail oligopolies and moves to curtail structurally bad practice which adds cost and stifles competition (notably, listing fees)
