B.C. Conservatives expected to release costs of promises days before election

OTTAWA – Canadians are set to receive carbon pricing rebates Tuesday, as the Liberals defend one of their most embattled policies.

The government says this is the first time all banks will label the payment as the Canada Carbon Rebate, after years of inconsistent and vague phrasing on bank statements.

The quarterly rebate will go to Canadians who filed their income tax while living in Alberta, Saskatchewan, Manitoba, Ontario, and all four Atlantic provinces.

The payments vary by household size and province, while those in rural areas get a top-up.

On Tuesday, rural residents will get a boost in their quarterly rebate, with a 20-per-cent top-up along with a retroactive 10-per-cent payment for April and July.

Economists are widely in favour of carbon pricing, arguing it is the most cost-effective way to reduce emissions, but the Liberals’ policy is facing pushback at the provincial and federal levels, with the Conservatives calling for a “carbon-tax election” to bring down the cost of living.

The federal NDP and some of their provincial counterparts have distanced themselves from the policy which they previously supported.

Ottawa sends the rebates to offset what people pay in carbon pricing when they buy fuel so they’re not less worse off as a result.

People who do things to lower their fuel use are even better off, because they still get the same rebate but pay less in carbon pricing.

British Columbia, Quebec and Northwest Territories have their own carbon pricing system for consumers so residents there don’t receive the federal payment. Yukon and Nunavut use the federal system but have an agreement to distribute the proceeds themselves.

The parliamentary budget officer says most Canadians get back more from the rebates than they pay.

He also says, though, that the economic impact of carbon pricing could lower wages over time, erasing that benefit for some Canadians. The government argues that climate change itself can cause economic harm if it is left unchecked.

Ottawa has been battling with banks about how the deposits are labelled since they moved to quarterly payments for the rebates in 2022.

Many Canadians were confused — or didn’t even realize they were getting a rebate — when payments showed up with vague labels like “EFT deposit from Canada,” “EFT Credit Canada” or just “federal payment.”

Some banks previously argued the term “Canada Carbon Rebate” went beyond their 15-character limit on deposit descriptions.

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

The Canadian Press. All rights reserved.

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.

The Canadian Press. All rights reserved.

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.