Ford tells LCBO to find Ontario paper bag supplier weeks after $11M deal inked with Quebec firm
CBC
Premier Doug Ford has told the LCBO to find an Ontario-based supplier for its soon-to-be-reintroduced paper bags, only weeks after the Crown corporation confirmed a nearly $11-million contract with a Quebec producer.
"Our government has made it a priority to champion Ontario-made products and support Ontario businesses, especially in public procurement," Ford said in a Tuesday letter addressed to Carmine Nigro, chair of the LCBO board.
"While our immediate priority is to promptly get paper bags back into stores using the selected vendor, I am directing the LCBO to also initiate a new tender process as soon as possible that will be limited to Ontario suppliers," Ford continued.
Earlier this month, the LCBO said it had inked a $10.9-million contract with Rosenbloom Inc., a Montreal-based producer, to supply its roughly 670 retail locations with paper bags. A request for quotes issued by the LCBO on April 22 said the contract term was two years.
Single-use paper bags were phased out of LCBO locations in September 2023 as part of an effort by the Crown agency to reduce its carbon footprint and divert waste from landfills.
On April 9, however, Ford ordered paper bags be reintroduced, citing affordability concerns.
"At a time when many Ontario families are already struggling to make ends meet, every additional expense counts," the premier wrote in another letter. "That includes charging customers for reusable bags instead of the free paper bags that the LCBO previously offered."
Internal communications obtained by CBC Toronto showed the letter caught LCBO executives by surprise, and they scrambled to procure new supply.
The instructions from Ford did not include any explicit direction to find an Ontario-based producer for the bags, and the LCBO's tendering process began just two weeks later.
In his Tuesday letter, Ford said the LCBO's decision to source paper bags from a company outside the province "goes against our government's direction."
Ford pointed to again another letter, sent to the LCBO by the finance minister in July — three months after the request for quotes went out — telling leadership to "emphasize the importance of timeliness for paper bag return, including sourcing from local pulp and paper sources when appropriate."
In an email on Wednesday, an LCBO spokesperson said its contract with Rosenbloom Inc. in Quebec will stay in place for now and papers will be available again in the coming weeks.
"We will initiate a new tender process that will be limited to Ontario suppliers at the soonest available opportunity," the spokesperson said.
They did not respond to questions about how much it could cost to end the existing contract prematurely, or how long it may take to find a new supplier.
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