Canada PM Trudeau seeks to address cost of living issues as poll numbers sag (updated)

Metro

14/09/2023 19:23

(Adds quote by Trudeau, background paragraphs 2-5, 8, 10)
    By David Ljunggren and Steve Scherer
       OTTAWA, Sept 14 (Reuters) - Canadian Prime Minister
Justin Trudeau on Thursday announced efforts to address the
increased cost of living as voters turn away from his Liberal
government and housing and food prices drive inflation.
    After meeting with Liberal legislators in London, Ontario,
Trudeau said the government would summon the executives of the
five largest grocery chains to Ottawa to explain how they will
stabilize prices.
        The five, including Loblaws  L.TO , Sobeys  EMPa.TO  and
Metro  MRU.TO , represent 80% of the market. They will have
until Oct. 9 to come up with a proposal that Ottawa can accept.
    "If their plan doesn't provide real relief ... we will take
further action and we are not ruling anything out, including tax
measures," said Trudeau.
    "It does not make sense in a country like Canada that our
largest grocery chains should be making record profits while
Canadians are struggling to put food on the table."
        In June, the country's competition watchdog said more
players in the grocery sector were crucial to combat soaring
prices of essential goods.
    Trudeau is also under pressure over a lack of affordable
housing and as inflation continues to run well above the central
bank's 2% target. Ottawa will remove the federal 5% sales tax on
the construction of new rental apartment buildings, he announced
on Thursday.
    "There are many developers and builders that are not moving
forward with building new apartments because the costs are
simply too high," Trudeau said. "We will see the creation of
many, many new apartment buildings."
    Opinion polls show the official opposition Conservatives,
who accuse Trudeau of driving inflation through high government
spending, would win power and end eight years of Liberal rule if
an election were held now.
    Trudeau reiterated that he had no plan to quit before the
next election, which must be held by October 2025.
    Conservative leader Pierre Poilievre on Thursday again
blamed the housing crisis on Trudeau, and said he would
introduce his own plan to get homes built to parliament when it
reconvenes next week after the summer break.

 (Reporting by David Ljunggren and Steve Scherer; editing by
Grant McCool and Alistair Bell)
 ((david.ljunggren@tr.com; +1 647 480 7891;))