Patience in Alberta is wearing thin for a promised aid package from the federal government for the oil and gas sector, Alberta Energy Minister Sonya Savage said Tuesday.
The industry doesn’t want a bailout, but instead help to cope with short-term liquidity problems caused by the plunge in global oil prices that has forced cuts in investment plans and activity levels, she said in a speech at the annual Canadian Association of Petroleum Producers symposium.
“It’s taken too long,” the minister said.
“I don’t think that means the package is not coming. I think it just means it’s complicated. But it needs to come and it needs to come soon because these companies are struggling.”
Federal Finance Minister Bill Morneau said last month aid for the oil sector was “hours, potentially days” away, but his department confirmed Tuesday there’s still no timeline for its release.
In an open letter on Monday, the Calgary-based oilfield services sector called for Ottawa to introduce a payroll relief plan and suggested it purchase their accounts receivable at a discount to give them instant cash flow to preserve jobs.
The letter signed by 13 CEOs said the federal government could collect those debts at a profit when the crisis is over.
The annual CAPP conference, held in Toronto for the past few years, is being presented as an online conference for the first time this year to help prevent the spread of the COVID-19 virus.
Global oil prices have plunged over the past month as demand has fallen because of the coronavirus at the same time that a market war between Saudi Arabia and Russia has created a flood of cheap barrels of oil.
Savage said she will participate by phone in an “OPEC-plus-plus” meeting on Thursday that could include discussion of broadening production quotas beyond OPEC and Russia to include the United States, the world’s largest producer, and Canada.
Restricting production on a global scale to lift prices makes a lot of sense, Alex Pourbaix, CEO of oilsands producer Cenovus Energy Inc., said during the conference. Cenovus has also supported the Alberta government’s ongoing oil curtailment program.
“People can club each other over the head for the next six months with massive impact to the profitability of the industry or the viability of the industry, or we can take a look at doing something collaboratively with other producing regions to temporarily reduce production and avoid a massive destruction of value,” he said.
“That strikes me as a reasonably prudent thing to do.”
Despite the current price environment, CAPP CEO Tim McMillan said there’s a great deal of optimism in the energy sector because three key export pipelines — the Trans Mountain expansion, the Line 3 replacement and Keystone XL — are in various stages of construction.
“These three projects will significantly advance Canada’s ability to meet global markets with our crude oil,” he said.
He added: “The Canadian oil and gas industry was the economic engine that pulled Canada out of the great recession of 2008 and we can do it again.”
Last week, Calgary-based TC Energy Corp. announced it would go ahead with its long-delayed US$8-billion Keystone XL Pipeline, backed by about $1.5 billion in equity investment by the Alberta government, along with a provincial loan guarantee.
The additional of new pipeline capacity won’t affect the profitability of Enbridge Inc.’s Mainline oil export pipeline system, CEO Al Monaco said at the conference.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
