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Economy

B.C. may shuffle political priorities as it begins to reopen economy – The Globe and Mail

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A woman wearing a protective face mask walks past the boarded up shops along Robson Street in downtown Vancouver, May 4, 2020.

JONATHAN HAYWARD/The Canadian Press

B.C. Premier John Horgan will outline plans to reopen the provincial economy on Wednesday in what his government hopes is the end of the beginning of the pandemic.

His minority government has held power, against the odds, since the summer of 2017, with an agenda that focused on climate action, Indigenous reconciliation and social justice. On Wednesday he will have to pivot to an agenda designed to rebuild an economy being hammered by a domestic lockdown and a looming global recession.

In February, just as the very first cases of COVID-19 were being detected in British Columbia, the B.C. government delivered a Throne Speech that celebrated its efforts to increase affordable housing, open new child-care spaces and improve public transit.

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In March, the government declared a state of emergency and 132,000 jobs were lost because businesses were shuttered by government or physical distancing measures encouraged British Columbians to stay home.

The Business Council of B.C. forecasts the province’s economy will contract by somewhere between 7 and 12 per cent this year. The best-case scenario envisions that most businesses resume operations by the fall. In the worst-case scenario, the pandemic surges again in the fall, leading to another round of restrictions and closings. In any event, more job losses are yet to come: B.C. could lose between 180,000 and 300,000 jobs this year.

Still, British Columbia did not shut down the economy to the same extent as Quebec, Alberta and Ontario. Many B.C. businesses were declared essential, and major sectors including manufacturing and construction have continued with physical distancing measures in place. This week, the government declared that the spread of COVID-19 has been contained enough to allow for an easing of its restrictions.

Mr. Horgan’s government has set aside a $1.5-billion recovery fund, and will now have to make a choice: Will that money be spent trying to repair the economy that was, or will the government seek to lay a different foundation?

Economist Jock Finlayson, chief policy officer at the Business Council of B.C., said the recovery will require the government to find a new focus.

“Digging out from the huge crater our economy and job market have fallen into will be a Herculean challenge for the next couple of years. Among other things, it will require a different approach to priority-setting by the Horgan government,” he said.

Mr. Finlayson said B.C.’s New Democratic Party government has taken the economy and the job market for granted, while putting its energy into files such as affordability, climate change and reconciliation. “That will have to change now, as we slowly and hesitantly emerge from the worst economic slump in modern times.”

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However, Mr. Horgan’s minority government rests on the support of the B.C. Green Party caucus. Interim Green leader Adam Olsen said the government cannot put reconciliation or climate action on the back burner. “I don’t see a world in which you can set those aside,” he said.

Rather, Mr. Olsen said, the pandemic has created an opportunity to rebuild a better province based on the province’s existing climate action plan, called Clean BC.

“We’ll be judged on the decisions that are made in the next couple of months,” he said. “Clean BC outlines a needed transition in our economy. I think it would be wrong to take a step back.”

Merran Smith, executive director at environmental think tank Clean Energy Canada, agreed. “Our climate action plan is a great blueprint for shovel-worthy projects,” she said. She expects the government to use some of its pandemic recovery fund to expand Clean BC programs.

“Whether its electrifying more in our cities so that there’s less pollution or getting people back to work by accelerating housing retrofits, or building more social and affordable housing that’s energy efficient – these are all great opportunities for us to build a better-than-normal economy.”

Laird Cronk, president of the BC Federation of Labour, said the government does not need to move away from its pre-COVID-19 agenda to rebuild the economy.

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“There’s an opportunity through all the difficult times for a reset of what we want this province to look like,” he said.

Most of the job losses have been in the private sector and he said it is expected that money will flow to help rebuild those businesses.

“But it’s also an opportunity for government to play a significant role in putting people back to work and using government stimulus to restart the economy, consistent with their values and goals.”

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Economy

Mark Carney to lead Liberal economic task force ahead of next election

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NANAIMO, B.C. – Former Bank of Canada governor Mark Carney will chair a Liberal task force on economic growth, the party announced Monday as Liberal MPs meet to strategize for the upcoming election year.

Long touted as a possible leadership successor to Prime Minister Justin Trudeau, Carney was already scheduled to address caucus as part of the retreat in Nanaimo, B.C., this week.

The Liberals say he will help shape the party’s policies for the next election, and will report to Trudeau and the Liberal platform committee.

“As chair of the Leader’s Task Force on Economic Growth, Mark’s unique ideas and perspectives will play a vital role in shaping the next steps in our plan to continue to grow our economy and strengthen the middle class, and to urgently seize new opportunities for Canadian jobs and prosperity in a fast-changing world,” Trudeau said in a statement Monday.

Trudeau is expected to address Liberal members of Parliament later this week. It will be the first time he faces them as a group since MPs left Ottawa in the spring.

Still stinging from a devastating byelection loss earlier this summer, the caucus is now also reeling from news that its national campaign director has resigned and the party can no longer count on the NDP to stave off an early election.

Last week, NDP Leader Jagmeet Singh ended his agreement with Trudeau to have the New Democrats support the government on key votes in exchange for movement on priorities such as dental care.

All of this comes as the Liberals remain well behind the Conservatives in the polls despite efforts to refocus on issues like housing and affordability.

Some Liberal MPs hope to hear more about how Trudeau plans to win Canadians back when he addresses his team this week.

Carney appears to be part of that plan, attempting to bring some economic heft to a government that has struggled to resonate with voters who are struggling with inflation and soaring housing costs.

Trudeau said several weeks ago that he has long tried to coax Carney to join his government. The economist and former investment banker spent five years as the governor of the Bank of Canada during the last Conservative government before hopping across the pond to head up the Bank of England for seven years.

Carney is just one of a host of names suggested as possible successors to Trudeau, who has insisted he will lead the party into the next election despite simmering calls for him to step aside.

Those calls reached a new intensity earlier this summer when the Conservatives won a longtime Liberal stronghold in a major byelection upset in Toronto—St. Paul’s.

But Trudeau held fast to his decision to stay and rejected calls to convene his entire caucus over the summer to respond to their concerns about their collective prospects.

The prime minister has spoken with Liberal MPs one-on-one over the last few months and attended several regional meetings ahead of the Nanaimo retreat, including Ontario and Quebec, which together account for 70 per cent of the caucus.

While several Liberals who don’t feel comfortable speaking publicly say the meetings were positive, the party leader has mainly held to his message that he is simply focused on “delivering for Canadians.”

Conservative House leader Andrew Scheer was in Nanaimo ahead of the meeting to express his scorn for the Liberal strategy session, and for Carney’s involvement.

“It doesn’t matter what happens in this retreat, doesn’t matter what kinds of (communications) exercise they go through, or what kind of speculation they all entertain about who might lead them in the next election,” said Scheer, who called a small press conference on the Nanaimo harbourfront Monday.

“It’s the same failed Liberal policies causing the same hardships for Canadians.”

He said Carney and Trudeau are “basically the same people,” and that Carney has supported Liberal policies, including the carbon tax.

The three-day retreat is expected to include breakout meetings for the Indigenous, rural and women’s caucuses before the full group convenes later this week.

This report by The Canadian Press was first published Sept. 9, 2024.

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

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TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

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

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Economy

Here’s a quick glance at unemployment rates for August, by province

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OTTAWA – Canada’s national unemployment rate was 6.6 per cent in August. Here are the jobless rates last month by province (numbers from the previous month in brackets):

_ Newfoundland and Labrador 10.4 per cent (9.6)

_ Prince Edward Island 8.2 per cent (8.9)

_ Nova Scotia 6.7 per cent (7.0)

_ New Brunswick 6.5 per cent (7.2)

_ Quebec 5.7 per cent (5.7)

_ Ontario 7.1 per cent (6.7)

_ Manitoba 5.8 per cent (5.7)

_ Saskatchewan 5.4 per cent (5.4)

_ Alberta 7.7 per cent (7.1)

_ British Columbia 5.8 per cent (5.5)

This report by The Canadian Press was first published Sept. 6, 2024.

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