$12 M Given to Loblaws to buy Energy Efficient Coolers

Environment Minister Catherine McKenna announced a $12 M award to Loblaws at a Superstore in her Ottawa riding.  The money will cover one quarter of the cost of upgrading the company's coolers over the next 3 years.  Loblaws will pay $36 M.  For those that aren't familiar with the term, coolers are refrigeration units.  Once completed, this will reduce Loblaw's overall emissions by nearly a fourth and be the equivalent of taking 50,000 cars off the road.  Apparently, this money is part of a fund that all organizations could apply to help fund 25% of a project that helps cut emissions.  The total cost of the program is $450 M.  

Now, no one could be against a program designed to reduce green house gas emissions.  In the government's own press release, it called Loblaws one of the "winners" of the grant money.  Here is one of the problems with this.  The larger the corporation, the more emissions they have so any project is likely to reduce emissions by a large amount.  So, the process is already favoring large corporations and stacked against local non-profits and small organizations.  Knowing government, the grant application process is extensive and only large corporations have the staff that can be devoted exclusively to getting similar grants.  

So, it is unlikely a small business would ever get such a grant even though there projects would have a similar 25% effect, yet likely would only result in the equivalent of 10 cars off the road.  Not as attractive as the big numbers.  

The Opposition argue that Loblaws shouldn't be eligible because they made $3B in profits last year.  Loblaws scoffed at that criticism and claim they only had $800M in profits.  To those on a fixed income struggling to buy groceries each month, it is a difference without distinction.  So, they are going to spend $12 M/year for three years.  Probably less than the amount they were going to spend on equipment replacement anyway.  

To be honest, I am becoming less tolerant of rewarding corporations for doing the right thing.  They should have corporate values and a mission statement.  It seems the trendy corporate values right now are integrity, social responsibility, stewardship, and excellence.  Corporations should want to do the right thing like reduce green house gas emissions and they shouldn't need incentive to do such.  I try to do the right things every day.  I role model in an effort to get my children to do the right thing.  Doing the right thing should be its own reward.  

As a voter, I would be more comfortable if any business or non-profit automatically got a 25% rebate for replacing their cooling units with ones that reduce emissions.  That would be fair.  That wouldn't penalize the non-profits who don't have access to all the "benefits" that are out there, simply because they are struggling to keep afloat.  Much like ordinary tax-payers are struggling.  

I would have also liked to see some assurances from Loblaws that they were not going to pass down the $36 M cost to their customers.  Easy to do.  They probably got $12M in free advertising alone yesterday.  

Although it was probably the most efficient, Minister McKenna was tone-deaf in making that announcement in her own riding.  Perception is politics is important.  I perceived the message as elect a Liberal Cabinet Minister and get more perks.  

Let's also not forget that Loblaws is not the friend to the "little guy" that they claim to be.  They were found to be involved in an intentional price fixing scandal.  I wonder how bad it was if they offered $25 gift cards to anyone who asked.  The company is currently worth about $12B.  

Again, value is determined by emotional attachment and monetary cost relative to one's income.  I am sure the $25 gift card was extremely valuable to seniors and other economically challenged, but I don't know if it made a dent in Loblaws bottom line.  

I am saddened we live in a society where we need incentives to do the right thing.  However, I don't blame Loblaws for taking advantage of this.  What I think would have been the right thing for Loblaws to do is to acknowledge that they are one of the larger players in the industry and reducing emissions is good for all of Canada.  They should have accepted the grant under the caveat that the government provide 25% rebate to all businesses and non-profits who do the same thing.  That would have been doing the right thing.  That would be a win-win for us all.