Using an Ottawa grocery store as a backdrop for Monday morning's announcement, Prime Minister Mark Carney and Finance Minister Francois Phillippe Champagne unveiled a suite of new affordability measures designed to help Canadians afford groceries and other essentials.
"Our government is taking direct action to make life more affordable for Canadians," said Champagne. "We are providing immediate relief on groceries and essentials, while strengthening domestic food production, competition, and supply chains to build a more resilient, affordable economy for the future."
The federal government is introducing a new benefit, the Canada Groceries and Essentials Benefit, which will replace the Goods and Services Tax Credit. The benefit will be boosted by 25 per cent over five years, although in June, Ottawa will provide a one-time payment equal to a 50 per cent increase.
Prime Minister Mark Carney explained that a family of four will receive up to $1,890 this year, and about $1,400 a year for the next four years. That's an increase from $1,100. For a single person, the increase adds up to $950 this year and $700 annually for the next four years.
The federal government says the benefit will provide significant support to 12 million Canadians.
Another $500-million is being set aside from the Strategic Response Fund to help businesses address the cost of supply chain disruptions without passing the cost along to customers.
"At a time when global supply chain disruptions are driving up prices, our government is stepping in," said Minister of Industry Melanie Joly. "By committing $500-million through the Strategic Response Fund to help Canadian businesses manage rising costs, and putting a renewed focus on competition in the food supply chain, we are taking decisive action to bring down grocery prices."
Also, for small and medium businesses, Ottawa is setting up a $150-million Food Security Fund under the existing Regional Tariff Response Initiative.
To lower the cost of food production, Ottawa's also introducing immediate expensing for greenhouse buildings. Producers will be able to fully write off the cost of greenhouses acquired on or after November 4, 2025, that will be operational before 2030.
"One of the best things about Canada is that you don't have to be born rich to succeed," Carney told gathered reporters. "To protect that fundamental value, we are building a stronger economy that benefits everyone."
The strategy will also include measures to implement unit price labelling and support the work of the Competition Bureau in monitoring and enforcing competition in the market.
