QUESTION PERIOD — Finance
Loblaws Funding Agreement
April 11, 2019
My question is for the Leader of the Government in the Senate. On Monday, Minister McKenna announced that $12 million from taxpayers’ money would go to Loblaws to help the company pay for retrofitting refrigerators at its grocery stores. According to the 2018 Annual Financial Report, Loblaws made $800 million in net earnings last year alone. The family behind this company is easily one of Canada’s wealthiest, worth in excess of $10 billion. Loblaws could certainly afford to make these changes without taxpayer help.
Senator Harder, I think it’s fair to say that many Canadians are opposed to the government’s decision to give their money to Loblaws. What do you say to these middle-class taxpayers? Why is it difficult for this government to exercise good judgment on their behalf?
I thank the honourable senator for his question. He will know that in previous budgets this Senate approved measures that allow the conversion in businesses to less carbon-intensive energy sources, including commercial enterprises, and that should they meet the criteria established through the program, they would be eligible for these conversions.
I am informed that this decision by Loblaws will have a very significant impact in terms of reduction of greenhouse gases, and that motivation on behalf of the enterprise and in conformity with the law that was passed and the regulations that are provided allow this company to take into account and participate in this measure.
I do hope that on reflection the honourable senator agrees that providing incentives for the conversion to less carbon-intensive energy sources is a good thing for Canada.
Thank you for that answer. My first reaction is I’d rather close down the sewers that are putting waste into the rivers throughout our country than necessarily give money to a major corporation. Maybe it just doesn’t send the right message.
Last year, Loblaws was involved also in an offshore tax evasion case before the Tax Court of Canada, which resulted in the company recording a charge of $367 million in taxes and penalties. I’m talking about judgment and prioritizing, Mr. Leader.
Canadians also would no doubt remember that Loblaws admitted to a bread price-fixing scheme, which cheated its customers for a period of 14 years.
Senator Harder, does your government have any unease in handing over taxpayer dollars to a company that has previously shown such little respect for middle-class families and taxpayers?
Again, I thank the honourable senator for his question. As the senator knows, Loblaws is a very large company and has many interactions with the government, not all of them pleasant for Loblaws, I should add. It has had a long experience in Canada. Its contribution to workers and to the well-being of the towns in which it operates is well noted. I hope we don’t get into beating up every company that takes advantage of provisions that this Parliament has adopted to accelerate their transition to a lower carbon economy.
