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British Columbia seeks to suspend one-third of old-growth logging – The Globe and Mail

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B.C. Forests Minister Katrine Conroy says internal assessment predicts 4,500 job losses, if all the proposed logging deferrals were made permanent.JONATHAN HAYWARD/The Canadian Press

The B.C. government says it wants to suspend logging in one-third of its rare, old-growth forests that are considered at a very high risk of irreversible biodiversity loss, but first needs to sign individual agreements with the province’s 204 First Nations.

The plan released Tuesday by Canada’s biggest forestry province may slow but will not stop the loss of its highly productive, ancient forests. On the same day, world leaders at the COP26 climate summit in Glasgow, Scotland, announced an agreement to halt and reverse deforestation by 2030.

“We’ve identified 2.6 million hectares of our largest, rarest and most ancient old-growth forests,” Forests Minister Katrine Conroy told a news conference. “Deferring harvest in an area this large is unprecedented and surpasses the size of 226 cities of Vancouver.”

The province will halt its own timber sales in the proposed deferral areas, but nothing more will happen until First Nations sign off on any deferrals within their traditional territories. It means most logging operations around British Columbia are unchanged while the province’s promised reforms are discussed at individual tables.

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And while the government says those deferrals could be implemented quickly, that may not happen. The Huu-ay-aht Nation has already declared that it will not agree to the proposed deferrals in its territories until it completes its two-year-long resource-management planning process.

“We’ll take the time to make an informed decision on the deferral,” Huu-ay-aht Chief Councillor Robert J. Dennis, Sr. said in an interview. His nation has been embroiled in the conflict over old-growth logging at Fairy Creek, on Vancouver Island, where protesters continue to be arrested in one of the largest acts of civil disobedience in the country.

“It only took the immigrants that moved to Canada 150 years to wreck what we were taking care of for thousands of years. We’re stepping in to fix what was wrecked, and the best way to do that is through sustainable forestry,” he said.

Ms. Conroy said B.C.’s old-growth forests can serve as a bulwark against climate change, but she said her government is legally obliged to uphold the principles of the UN Declaration on the Rights of Indigenous Peoples, which requires free, prior and informed consent from Indigenous communities to resource development in their territories.

Meanwhile, representatives for the forest industry warn that the proposed deferrals would have devastating consequences for workers and forestry-dependent communities.

The provincial government released new technical data showing that more than half of the 25 million hectares of old-growth forests that once stood in B.C. before commercial logging is gone, and of what remains, 7.6-million hectares are made up of either the iconic, large trees that are featured in promoting the province’s natural beauty, or are otherwise identified as ancient or rare.

If approved by Indigenous nations, the province will then ask forestry companies that hold the timber-cutting rights in a proposed deferral area to voluntarily suspend logging. If the tenure-holder does not agree, then the province can issue an order to rescind approved permits and prevent new permits.

Ms. Conroy would not answer questions about the potential financial impact, but said the province’s internal assessment predicts 4,500 job losses, if all the proposed deferrals were made permanent.

The Council of Forest Industries, however, estimates that the proposed deferrals would shut down between 14 and 20 sawmills, threatening 18,000 jobs.

“If fully implemented, this move will have a profound and devastating impact on people, families and communities across the province,” Susan Yurkovich, president and chief executive of the council, said in a statement.

The deferral plan announced Tuesday stems from a commitment made two years ago by the B.C. NDP government to protect old-growth forests.

Eighteen months ago, a technical advisory panel called on the government to immediately impose deferrals. Gary Merkel, a professional forester, was one of the authors of that review. On Tuesday, he said the province has now started down the path of reforms that are needed to protect irreplaceable ecosystems that are disappearing under intensive forestry.

“Some of our ecosystems in British Columbia have remained relatively undisturbed since the last ice age more than 10,000 years ago,” he said. “They are not renewable.” The deferrals are meant to buy time to transform the way forestry is done in B.C., replacing clear-cut logging with harvesting methods that mimic natural disturbance, “which means that we would harvest in a manner more linked to the way nature would change the forest. In some coastal forests, that’s a few trees at a time.”

B.C.’s forest sector cuts 55,000 hectares of old-growth trees every year – targeting the most valuable, large old trees that grow best in rich valley bottoms on the coast. Ecologist Rachel Holt, one of experts retained by the province to help map out the endangered old-growth stands, has said that at the present rate of harvest, old-growth timber will begin to run out in as little as five years.

Environmentalists have criticized the government of stalling on the promised reforms with what they call a “talk and log” tactic.

“This government promised to defer logging in at-risk old-growth, not take over a year to determine what that means and then signal their intentions. Delaying deferral of what the technical advisory panel has identified as at-risk old-growth means accepting irreversible biodiversity loss,” said Torrance Coste, national campaign director for the Wilderness Committee. “The province of B.C. is absolutely not doing its part when it comes to managing forests in the face of the climate crisis.”

Tzeporah Berman, international program director for Stand.earth, welcomed the identification of 2.6 million hectares of at-risk old growth forests, but said the government is still delaying concrete action.

“The province must act urgently to implement logging deferrals and provide concrete funding options for [Indigenous] nations to make old-growth protection a viable economic option,” she said, adding that the province missed the opportunity to end the current dispute at Fairy Creek, where more than 1,150 people have been arrested, by keeping that area out of the proposed deferrals.

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Japan’s SoftBank returns to profit after gains at Vision Fund and other investments

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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.

Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.

Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).

SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.

The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.

WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.

SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.

SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.

SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.

The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.

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Yuri Kageyama is on X:

The Canadian Press. All rights reserved.

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Trump campaign promises unlikely to harm entrepreneurship: Shopify CFO

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Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.

“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.

“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”

Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.

On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.

If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.

These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.

If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.

However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.

He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.

“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.

Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.

The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.

Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.

Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.

Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.

Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.

Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”

In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.

“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:SHOP)

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RioCan cuts nearly 10 per cent staff in efficiency push as condo market slows

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TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.

The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.

The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.

RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.

The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.

RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:REI.UN)

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