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Economy

N.W.T. budget highlights need to support, diversify economy, critics say – CBC.ca

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While the N.W.T. government has presented its 2021-22 budget as one that aims to project stability during a global pandemic, observers are saying it lacks the foresight to tackle a troubling financial future.

Finance Minister Caroline Wawzonek presented the budget Thursday. It allocates $117 million in new spending, much of it dedicated to the government’s response to the COVID-19 pandemic. 

The budget also includes a cut of the territory’s small business tax rate from four per cent down to two, a development N.W.T. Chamber of Commerce executive director Renee Comeau said was welcome news.

“This was something that the business community has been asking for, for a significant period of time,” Comeau said, adding that it puts the N.W.T. on par with some of the lowest rates in Canada in B.C., Saskatchewan and Yukon.

“For those small businesses, those reductions … give them the incentive to further invest in their businesses. It actually increases the tax revenue the GNWT will see going forward.”

However, Comeau expressed disappointment at the lack of support offered to the struggling tourism sector, facing further uncertainty due to travel restrictions that could extend into the summer and beyond.

The budget contains funding for a 2025 tourism strategy, but no additional relief for operators in the short term. 

“Not to be a negative Nelly, but you can’t put money towards a sector that might not even exist in 2025,” Comeau said. “We need to protect and save our tourism, our hotel and our hospitality sectors right now.”

The N.W.T.’s tourism industry, devastated by the COVID-19 pandemic, did not receive any increased direct support in the territory’s proposed 2021-22 budget. (Aurora Holiday/Facebook)

‘We’re just chasing dreams’

Frame Lake MLA Kevin O’Reilly offered praise for small investments in fisheries, arts and the film industry in the budget, but said that in his view, it doesn’t go far enough. 

“There is some potential to diversify our economy in those ways, but there’s also significant investment in continuing our dependence on mining, oil and gas,” he said, pointing in particular to an investment in creating a petroleum resources strategy.

“There’s just no prospect of oil and gas, I think, ever coming back here,” he said. “The sooner we realize that and redirect those resources to diversify and strengthen our economy … we’re just chasing dreams or wishes that’s never going to happen.”

O’Reilly also noted that little in the budget addresses economic recovery from the COVID-19 pandemic, something that may be addressed with supplementary appropriations during the year.

“It’s mentioned, talked about, but we still don’t have a plan from cabinet to do that,” he said. 

“I’m pleased there’s no reduction in services in this budget. I think if this was four years ago, we’d be looking at major cuts, from the previous cabinet. But there’s a lot more to be done to help diversify our economy, stabilize revenue sources, and build a more resilient economy.”

Speaking Friday morning to CBC North, Wawzonek said that there are elements of the budget that show a shift toward larger changes in the economy and spending, pointing to a department-by-department spending review, an ongoing review of procurement processes, and an upcoming red tape review.

“I don’t want to stand by and say that we’re just going to change XYZ spending without evidence,” Wawzonek said. “That’s not a prudent way to handle our government fiscal situation.”

Wawzonek pointed out that despite the pandemic bringing some issues to the fore and changing immediate priorities, the territory’s fiscal issues are not new.

“[It’s] the same challenge we had last year,” she said. “Nothing’s changed, but we’re building on it. The work’s getting done.”

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Business

A timeline of events in the bread price-fixing scandal

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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)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite up more than 250 points, U.S. stock markets also higher

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TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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