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Alberta separation an empty threat says Premier Jason Kenney

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Premier Jason Kenney on Friday warned proponents of Alberta separation that they could make the province’s situation much worse by creating investor uncertainty similar to the exodus of head offices and jobs from Quebec after the Parti Quebecois won power in 1976.

Kenney was asked about comments, made by UCP MLA Drew Barnes who sat on the Fair Deal panel, that the report doesn’t go far enough in pushing Ottawa to change Alberta’s status within Confederation.

But Kenney reminded people who want to use the threat of separation as leverage that major companies pulled out of Quebec in the late 1970s in the face of the PQ’s threat to hold a referendum on sovereignty.

“They went from Montreal mainly to Toronto. Real estate prices collapsed overnight and hundreds of thousands of Quebecers left the province,” Kenney said in response to a reporter’s question.

“So no, I don’t think this is a clever tactic. At a time when we’ve got to focus on economic growth, restoring investor confidence and creating jobs, making that kind of threat that would destabilize investor confidence would be hugely counter-productive.”

Kenney’s comments follow the release of the Fair Deal panel’s report on Wednesday.

Shortly after the report was released to the public, Barnes, who is the MLA for Cypress-Medicine Hat, broke away from the consensus expressed by his fellow Fair Deal panellists and wrote his own minority opinion.

“We should be clear with Ottawa and the other provinces, that if the people of Alberta vote for a fair deal of constitutional equality within confederation, but these proposals are rejected, that Albertans will be given the opportunity to vote on their independence,” Barnes wrote.

“A free people must be willing to at some point of injustice without rectification…draw a line and make a stand.”

Kenney said he understands why some Albertans are frustrated, but that talk of separation will not help.

“Look, you don’t make a threat that you’re not prepared to keep,” Kenney said.

“And I have not seen a single public opinion poll which indicates we’re anywhere close to a majority of Albertans voting to leave Canada. And so I regard it as an empty threat.

“The answer to a campaign to landlock Alberta energy is not for us voluntarily to landlock Alberta energy by separating from this federation.”

Barnes’s comments provoked a rebuke from his fellow panellist, former PC MLA Donna Kennedy-Glans, who called into CBC call-in show Alberta at Noon on Thursday to put a question to the UCP MLA.

Kennedy-Glans reminded him the report represented a consensus by the entire panel. The fact Barnes wrote a separate opinion after the fact raised concerns for her “about what that means for the ability of MLAs in the future to contribute to panels like this.”

Joe Ceci, the NDP MLA for Calgary-Buffalo, called musings about Alberta independence “disturbing” and “absurd.” He said Kenney needed to squash the separation talk within the UCP caucus and focus on more important issues.

“We’ve got a job to do in this province and it’s not talking about separation,” Ceci said. “It’s talking about getting people back to work, getting our economy firing again.”

Source: cbc-ca

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Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

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TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

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

The Canadian Press. All rights reserved.

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Canada’s inflation rate hits 2% target, reaches lowest level in more than three years

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OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.

The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.

Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.

The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.

The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.

“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.

Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.

“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.

The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.

The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.

A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.

Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.

Its key lending rate currently stands at 4.25 per cent.

CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.

The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.

This report by The Canadian Press was first published Sept. 17, 2024.

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Federal money and sales taxes help pump up New Brunswick budget surplus

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FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.

Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.

The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.

Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.

Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.

Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.

Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.

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