ST. JOHN’S, N.L.: The Canadian Taxpayers Federation is calling on the Newfoundland and Labrador government to focus on making life more affordable by cutting taxes rather than spending taxpayers’ money on a government-grocery store scheme.

“The best way for the government to make life affordable is to cut taxes,” said Devin Drover, Atlantic Director and General Counsel for the Canadian Taxpayers Federation. “A government grocery store is a recipe for empty shelves and a full bill for taxpayers.

“Politicians can’t even keep the books balanced, so taxpayers shouldn’t trust them to stock the produce aisle.”

Finance Minister Craig Pardy said this week the government is open to the idea of a publicly owned grocery stores. The concept was raised in the house of assembly by New Democratic Leader Jim Dinn, after it was floated federally by New Democratic Leader Avi Lewis.

Government grocery schemes have been tried for decades and failed.

The Illinois government funded a grocery store in Cairo, Ill., in 2023 to provide affordable food, but it ran into financial trouble almost immediately and couldn’t attract enough shoppers to cover its costs.

Meanwhile, Newfoundlanders and Labradorians pay some of the highest income and sales taxes in Canada. If the Wakeham government reduced the provincial portion of the sales tax by one percentage point, the average Newfoundland and Labrador household would save $351 annually.

“The evidence is clear is that government grocery stores do not work,” said Drover. “Newfoundlanders and Labradorians don’t need the government playing grocer, they need lower taxes so they can afford to fill their carts.”