Legal practice preventing competition near existing Manitoba grocery stores might come to an end

Manitoba's government has put forward a bill barring grocery stores from preventing competitors from opening nearby — but businesses could continue to exercise existing restrictions if they register.

During his second throne speech in November, Premier Wab Kinew said his government would introduce legislation that eliminates the use of restrictive covenants for grocery stores.

More details were released Wednesday on the proposed bill that would amend three pieces of legislation to address prohibitions on the location of grocery stores and supermarkets. 

Bill 31 would scrap exclusivity clauses and restrictive covenants for grocers, legal practices that limit the kinds of stores that can open in the vicinity of a particular company's location. 

Public Service Delivery Minister Mintu Sandhu told reporters at a scrum on Wednesday the bill's focus is to open up the market for more grocers, including independent businesses — hoping it can help bring food prices down. 

"There will be more competition," Sandhu said. "We want to stabilize those grocery prices." 

Property owners would have their existing controls voided, unless they register them within six months after the amendment passes, according to a explanatory note on the bill shared by the government. 

When asked by reporters if the option for property owners to protect their existing clauses would defeat the purpose of the bill, Sandhu said the province also wants to make sure the rights of property owners are respected.

"We are giving them the chance to adjust," he said. 

Under the bill a person can begin the review of a property control, which can be referred to a municipal board if the province determines the prohibition is contrary to the public interest.

"This is in the best interest of Manitobans," Sandhu said.