Toronto/CMEDIA: A suite of affordability measures were reportedly announced Mon by Canada PM Mark Carney to help Canadian families struggling to cope with the rising cost of living.
“Many Canadians have been feeling the pressure of rising costs for far too long…focused on delivering support where it’s needed most…By taking action now, we’re helping families manage essential costs, improving food affordability, and strengthening a more resilient food system,” Heath MacDonald, Minister of Agriculture and Agri-Food said
The Canada Groceries and Essentials Benefit announced, said Carney, will boost what families and individuals receive through their GST rebate over the next five years.
“Canada’s new government is acting today to provide a boost to those Canadian families who most need one, while creating a bridge to longer-term food security and affordability,” Carney said in Nepean, Ont., on Monday.
“One of the best things about Canada is that you don’t have to be born rich to succeed…we are building a stronger economy that benefits everyone…also bringing in new measures to lower costs and make sure Canadians have the support they need now. We’re building Canada strong, because we’re strongest when …we ensure everyone has the chance to get ahead,” Carney said.
Canada is using the GST rebate, said Carney, designed for Canadians with low and modest incomes, because groceries and other essentials make up a larger share of their family budgets.
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In its first year, the benefit will give low- and modest-income.
Canadians eligible for the GST rebate would get a one-time boost that raises the $1,100 a family of four receives annually to $1,890 and increases to $540, an individual gets to $950.
Being increased by 25 percent, the GST rebate is starting next year and running for the next four years, which means a family of four will get up to $1,400 annually, while an individual will get about $700 a year.
“The rise in food prices means that a lot of those Canadians need more support right now,” Carney said.
Tackling food inflation
Carney said his government would facilitate in bringing down the cost of groceries, which have been rising faster than inflation, by directing $500 million from the government’s Strategic Response Fund to help food suppliers “expand capacity and increase productivity.”
“At a time when global supply chain disruptions are driving up prices, our government is stepping in. By committing $500 million through the Strategic Response Fund…Strengthening supply chains and restoring real competition means more fairness at the checkout and real relief for Canadian families,” Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions said.
It means food businesses looking to make capital investments to help strengthen their supply chains can apply to have some of those costs covered by the fund.
To help help small- and medium-sized businesses to expand greenhouses and abattoirs, and strengthen food supply chains. Carney announced a $150-million Food Security Fund.
An immediate measure to help producers has been introduced by a change that allows companies to fully write off greenhouses acquired on or after Nov. 4, 2025. that start being used before 2030.
“This measure supports increased domestic supply and investment in food production over the medium term,” a government statement said.
Carney also announced that his government will direct $20 million in funding to the Local Food Infrastructure Fund to ease the pressure on food banks.
“This will help boost community food programs, helping them to deliver more nutritious food for families in need,” he said.
Besides these measures, Carney said his government is developing a National Food Security Strategy to strengthen food production and improve access to affordable, healthy food.
“This strategy will include measures to implement unit price labelling so Canada can compare easily in this era of ‘shrinkflation,’ as well as support for the work of the Competition Bureau in monitoring and enforcing competition in our market,” he said.
Included in the strategy are measures to help reduce food insecurity in Canada’s North.
