Carbon pricing rebates land in bank accounts as Liberals defend embattled policy

OTTAWA – The public safety minister is expected to testify at a federal inquiry into foreign interference just one day after announcing explosive allegations about crimes of murder, coercion and extortion in Canada linked to agents of the Indian government.

When asked Monday whether the inquiry’s mandate should be expanded to encompass some of the new allegations, Public Safety Minister Dominic LeBlanc says he doesn’t think it’s necessary.

LeBlanc says the inquiry is already seized with India’s foreign interference activities in Canada, and he has every confidence the commissioner’s report will deal with the allegations.

Prime Minister Justin Trudeau’s chief of staff Katie Telford, deputy chief of staff Brian Clow and senior global affairs advisor Patrick Travers are also scheduled to testify.

All three previously took the stand in the inquiry in spring, but this time their testimony is expected to be more broadly focused on democratic institutions, rather than specific incidents.

Trudeau will appear before the commission again on Wednesday.

After that, the inquiry moves on to a series of policy roundtables that will inform the commissioner’s final recommendations, which are due before the end of the year.

This report by The Canadian Press was first published Oct. 15, 2024.

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OTTAWA – The chances of a half-percentage point interest rate cut by the Bank of Canada became more likely Tuesday after Statistics Canada reported the annual inflation rate fell to 1.6 per cent in September.

Economist Tu Nguyen of accounting and consultancy firm RSM Canada said she had expected the inflation rate to remain close to the central bank’s two per cent target, where it was in August, for a few more months.

“This is one of the instances where I’m happy to be wrong,” she said.

Nguyen said while the Bank of Canada has favoured a slow and gradual pace of 25-basis-point cuts each time, the inflation report raises the odds of a 50-basis-point cut.

“It’s clear that we are well behind the curve when it comes to rate cuts,” she said.

The inflation report is the last major piece of economic data before the Bank of Canada’s interest rate decision on Oct. 23 when it will also update its economic forecasts in its monetary policy report.

Statistics Canada said Tuesday lower gasoline prices were the main driver of the drop in the overall inflation rate for September as drivers paid less to fill up than they did last year.

Gasoline prices in September fell 10.7 per cent compared with a year earlier. Excluding gasoline, the annual pace of inflation was 2.2 per cent in September.

Meanwhile, rent prices increased at a slower pace in the month but remained elevated as they rose 8.2 per cent compared with a year ago following a year-over-year gain of 8.9 per cent in August.

Statistics Canada said prices for food purchased from stores rose faster than headline inflation as they increased 2.4 per cent in September, the same rate as in August. Prices for fresh or frozen beef gained 9.2 per cent, while edible fats and oils rose 7.8 per cent and eggs increased five per cent.

Prices for food purchased from restaurants rose 3.5 per cent compared with 3.4 per cent in August.

The Bank of Canada, which has a target of two per cent for overall inflation, has cut its key interest rate three times so far this year to bring it to 4.25 per cent.

Governor Tiff Macklem has said it is reasonable to expect more interest rate cuts are coming, given the progress made on inflation, but the pace and timing of cuts will depend on the central bank’s evaluation of the economic data.

In September, Macklem signalled a willingness to change the pace of cuts, if circumstances warrant.

This report by The Canadian Press was first published Oct. 15, 2024.

The Canadian Press. All rights reserved.

OTTAWA – As Canada’s decision to expel New Delhi’s top envoy and five other diplomats makes front page news in India, International Trade Minister Mary Ng is trying to reassure Canadian businesses with ties to the country.

On Monday, the RCMP warned the public about a rash of crimes including murder, extortion and coercion that the force links to Indian government agents. The allegations sparked diplomatic retaliation; after Canada declared six Indian diplomats persona non grata, India ordered six Canadian envoys out of the country by Saturday.

Ng issued a statement acknowledging the “uncertainty” that Canadian businesses and investors may have as a result, and said the government will continue to support commercial and economic ties between the countries.

“However, we must consider our economic interests with the need to protect Canadians and uphold the rule of law,” she said. “We will not tolerate any foreign government threatening, extorting or harming Canadian citizens on our soil.”

Ng said the government remains “open to a dialogue” with India and looks forward to continuing a “valued relationship.”

The RCMP and other Canadian officials presented evidence to India earlier this past weekend, but they say New Delhi refused to co-operate in police investigations.

Foreign Affairs Minister Mélanie Joly said that is why Canada declared the six diplomats persona non grata, which is one of the stiffest penalties Canada can impose under the Vienna Convention.

India insists it has not been given evidence of any government involvement in crimes in Canada, and it has ordered six Canadian diplomats to leave.

Vina Nadjibulla, research vice-president for the Asia Pacific Foundation, said she’s watching to see how Canada’s peers respond to the “unprecedented, extraordinary” news.

That could mean diplomatic moves behind the scenes, and possibly public statements of support for Canada.

“The reaction from the U.S. is going to be the one that everybody will be paying attention to,” she said.

“In order for Canada, at this stage, to have any kind of co-operation from India and seek accountability for what has happened, we would need India to feel some pressure; we would need India to feel some reason to co-operate.”

Nadjibulla said it was notable that Joly accused active diplomats of involvement in criminality, and that she said violence linked to the Indian government had only increased since Canada made its concerns public last year.

In September 2023, Prime Minister Justin Trudeau announced that Canadian intelligence services were investigating “credible” information about “a potential link” between India’s government and the killing of Sikh leader Hardeep Singh Nijjar in British Columbia.

Nadjibulla said Ottawa has now “very clearly and assertively” made its case, in sending senior officials this past weekend to present evidence to Indian counterparts.

“Canada did what it thought was necessary,” she said. “We are in uncharted territory, with implications for the diplomatic relationship as well as for Canada’s public safety and national security.”

Nadjibulla also said it’s rare for diplomats to be expelled over accusations of criminality. “We’re not dealing here with a rogue state; we’re dealing here with a very important international player,” she said.

This report by The Canadian Press was first published Oct. 15, 2024.

The Canadian Press. All rights reserved.