What to know
- Lewis outlined a proposal for public grocery stores that would be partially funded by the federal government to make groceries more affordable.
- The plan estimates a startup cost of about $350 million and $300 million annually, with unionized, publicly run stores sourcing food through local and regional networks.
- Reactions are split, with critics warning of market distortions and supporters pointing to corporate grocery giants like Loblaws as examples of why intervention may be needed.
The Canadian NDP wants to cut the price of groceries by up to 40 per cent, and people in Toronto have a lot of thoughts on the party’s proposed plan.
Grocery prices have been making headlines for years in Canada, and one politician is proposing a new plan for addressing this problem. Avi Lewis, the new leader of the Canadian New Democratic Party (NDP) and son of the late Ontario NDP leader Stephen Lewis, believes that public grocery stores are part of the solution.
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During a segment of CTV’s Your Morning, Lewis shared his party’s plan to reduce the price of groceries by 30 to 40 per cent, with the cost absorbed by the Canadian government. He explained that the feds would subsidize a network of 50 stores, similar in operation to Costco.
“We’d subsidize it. It costs $350M to launch and $300M a year, which is one-half of one per cent of the current defence budget,” he continued, adding that the NDP is focused on supporting everyday Canadians through the ongoing cost-of-living crisis.
“So these are not expensive, radical proposals; these are practical solutions to the crisis of the cost of living,” Lewis shared.
This comes after last month, Toronto’s city council passed a motion to introduce a pilot project that would see city-run grocery stores.
The NDP leader’s website outlines this plan, explaining it as a low-cost public alternative to the big grocery chains. It’s part of his previously announced plan focused on public options to make life more affordable.
“By using a high volume, warehouse style model with subsidized rent and utilities, and backed up by networked local and regional food hubs to bring in local foods,” the site explains, adding that this could see grocery costs reduced by 30-40 per cent.
The plan reiterates the NDP’s belief that Canada needs public, non-profit grocery stores from coast to coast to coast.
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“A public option for groceries would reduce the cost of food and create thousands of good-paying jobs,” the plan outline explains.
According to the plan, these nationwide public grocery stores would be run by unionized workers and subject to Good Food purchasing guidelines based on key values such as local economies, health, valued workforce, animal welfare, and environmental sustainability.
“Think Costco – but run as a public service,” the document continues.
It also includes measures to help municipalities buy food-producing land from local, aging farmers and pay them to mentor the next generation of food producers. Additionally, public investments into local and regional food infrastructure hubs to grow, store, process and sell food closer to farms and outside of corporate grocery stores are also proposed.
Meanwhile, Lewis’ plan also includes a local food procurement policy to harness the billions of dollars of purchasing power of public institutions like schools, hospitals, correctional facilities, and long-term care facilities, to invest in local food providers.
Subsidized groceries? Canadians divided
Online, many people are divided by Lewis’ proposed plan to address the rising costs of food. Some feel that subsidizing groceries is not the way forward.
“Why use taxpayer money instead of addressing the root cause? Canada’s grocery market is dominated by a few large players, which limits competition,” one person questioned on X. “We need structural reform of the market, not consumer subsidies.”
“I’ll vote NDP and support Avi Lewis for his stand on world peace, but I strongly disapprove of this approach. Subsidies encourage businesses that depend on government,” another shared.
“Subsidizing with other people’s money doesn’t make anything more affordable.”
While others are on board with the idea, with some voicing that they would rather their tax dollars be directed to this initiative than things like military defence.
“This is a workable plan to reduce poverty and financial stress for many, and to increase people’s access to healthy foods, therefore to healthy lives,” one person shared on X. “Yes, of course it affects the Big Grocery corporations who are making massive profits and don’t want unionized workers. Good.”
“I am Liberal, I am game. I have been saying similar for years. Time for the government to enter the grocery market,” another Canadian shared.
While others are calling for a policy directed at large grocery corporations.
“Can’t just subsidize, need to make sure Loblaws doesn’t price gouge and up their margins,” one X user shared.
“Do it. Other countries have capped profit margins for grocery stores; we should implement the same thing,” another commented. “There is no reason Galen Weston should be worth billions.”
