http://cnews.canoe.ca/CNEWS/Politics/2011/09/06/18648546.html
OTTAWA - Finance Minister Jim Flaherty says he shares Canadians' "irritation" with the price discrepancies between some consumer goods in the U.S. and Canada and has asked the Senate finance committee to look into the issue, according to a letter obtained by QMI Agency.
With the Canadian dollar trading at par and even sometimes above the U.S. greenback, Flaherty wrote to the committee's chair and vice-chair Tuesday to ask them to find out why the price gaps still exist.
"A stronger dollar should benefit Canadian consumers," Flaherty wrote. "Canadians work hard to support themselves and their families. When they spend their hard-earned money they deserve to pay a price that reflects the strength of our dollar.
"Canadians are rightly irritated when they see large price discrepancies on the exact same products being sold on different sides of the border," he added. "I share their irritation."
In April, the Bank of Montreal reported Canadian consumers pay about 20% more than American shoppers on a wide variety of goods. In 2009, that price gap was around 7%.
According to the BMO report, Canadians pay an average of 20% more for magazines, 28% more for Blu-ray DVDs and 48% more for certain running shoes. A Mezzaluna chopper, a kitchen knife, costs about 34% more in Canada, Gap cargo shorts are 15% more expensive and golf balls cost 11% more, the report found.
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With the Christmas shopping season "only months away," Flaherty asked the committee to study the price discrepancies during the upcoming fall parliamentary session. He would like the committee to hear from consumer groups, economists, retail organizations, small businesses, distributors, importers, retail analysts, "and -- most importantly -- everyday Canadians."
"I strongly believe Canadian consumers would welcome such a study and its findings," the letter reads.
But even if the Senate recommends action, Flaherty could be slow to respond.
He asked the Senate finance committee to study the future of the lowly penny in the spring of 2010. Last fall, the senators recommended scrapping the one-cent coin because it costs 1.5 cents to produce and has lost 95% of its purchasing power since it was introduced in 1908.
Flaherty, though, has yet to act and officials in his office continue to say he is still reviewing the report.
OTTAWA - Finance Minister Jim Flaherty says he shares Canadians' "irritation" with the price discrepancies between some consumer goods in the U.S. and Canada and has asked the Senate finance committee to look into the issue, according to a letter obtained by QMI Agency.
With the Canadian dollar trading at par and even sometimes above the U.S. greenback, Flaherty wrote to the committee's chair and vice-chair Tuesday to ask them to find out why the price gaps still exist.
"A stronger dollar should benefit Canadian consumers," Flaherty wrote. "Canadians work hard to support themselves and their families. When they spend their hard-earned money they deserve to pay a price that reflects the strength of our dollar.
"Canadians are rightly irritated when they see large price discrepancies on the exact same products being sold on different sides of the border," he added. "I share their irritation."
In April, the Bank of Montreal reported Canadian consumers pay about 20% more than American shoppers on a wide variety of goods. In 2009, that price gap was around 7%.
According to the BMO report, Canadians pay an average of 20% more for magazines, 28% more for Blu-ray DVDs and 48% more for certain running shoes. A Mezzaluna chopper, a kitchen knife, costs about 34% more in Canada, Gap cargo shorts are 15% more expensive and golf balls cost 11% more, the report found.
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With the Christmas shopping season "only months away," Flaherty asked the committee to study the price discrepancies during the upcoming fall parliamentary session. He would like the committee to hear from consumer groups, economists, retail organizations, small businesses, distributors, importers, retail analysts, "and -- most importantly -- everyday Canadians."
"I strongly believe Canadian consumers would welcome such a study and its findings," the letter reads.
But even if the Senate recommends action, Flaherty could be slow to respond.
He asked the Senate finance committee to study the future of the lowly penny in the spring of 2010. Last fall, the senators recommended scrapping the one-cent coin because it costs 1.5 cents to produce and has lost 95% of its purchasing power since it was introduced in 1908.
Flaherty, though, has yet to act and officials in his office continue to say he is still reviewing the report.
