New measures to ensure Canada doesn’t export sensitive technology to foreign adversaries are among the changes being eyed by Ottawa to bolster the country’s economic security.
Other possibilities include making it easier to fine companies that fail to comply with investment screening rules and mapping supply chains to identify critical vulnerabilities, according to a federal consultation paper.
The paper, released through the Access to Information Act, was circulated to key parties in industry, academia and civil society last spring to canvass views on better protecting Canada from hostile players out to exploit the country’s technologically advanced sectors.
Public Safety Canada is expected to publish a summary of the feedback shortly.
The paper says Canada benefits from the vast majority of the foreign investment in the country, trade in Canadian goods and technology, and research partnerships between foreign organizations and Canadian universities and research institutions.
However, it adds, some foreign states and non-state actors try to acquire technologies or forge commercial partnerships that can potentially jeopardize Canada’s national security and long-term economic prosperity.
“Canadian companies, in almost all sectors of our economy, have been targeted.”
The frequency and sophistication of state-sponsored threat activity is increasing, the consultation paper adds.
Threats come in the form of espionage, theft and cyberattacks.
But the government warns they can also be waged covertly in otherwise legal transactions such as foreign investments in sectors and industries integral to Canada’s security, or the purchase or transfer of sensitive goods, technology and know-how that are currently not subject to export controls.
Other threats involve the purchase of controlled goods and intellectual property through front companies, brokers or others that misrepresent the end use, as well as foreign-funded partnerships between Canadian researchers and entities linked to adversaries.
The consultation paper does not mention specific countries of concern. However, Canadian security officials have long warned that Russia and China, in particular, target Canada’s classified information and advanced technology.
Even so, the exercise is intended to ensure Canada’s approach is effective in responding to threats, no matter the source.
Among the federal suggestions:
— Creation of a continuously updated list of businesses, research institutions, governments and people subject to specific export permit requirements to help Canadian businesses feel more secure in knowing their goods are not being shipped to a buyer of concern;
— more flexible or even stiffer penalties for breaching investment screening rules intended to protect Canada from national security threats;
— government help to companies to better understand vulnerabilities in their global supply networks for procuring goods;
— and providing federal venture capital to sensitive technology firms to get around the need for foreign investment from potentially risky sources.
The government has spearheaded the creation of national security guidelines to help protect federally funded research.
The recent federal budget included almost $160 million over five years, starting in 2022-23, and $33 million ongoing, to implement the guidelines fully, largely through work with colleges and universities.
The consultation paper also asks how various levels of government can better co-operate to safeguard sensitive and emerging goods and technologies, critical infrastructure and personal data.
Cybersecurity is a vitally important issue that affects businesses large and small since breaches can mean losses to customer privacy as well as operational productivity, said Mark Agnew, senior vice-president for policy and government relations at the Canadian Chamber of Commerce.
“So that one really stands out to me as such an important part of the conversation around the threats to national security.”
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
VICTORIA – British Columbia is forecasting a record budget deficit and a rising debt of almost $129 billion less than two weeks before the start of a provincial election campaign where economic stability and future progress are expected to be major issues.
Finance Minister Katrine Conroy, who has announced her retirement and will not seek re-election in the Oct. 19 vote, said Tuesday her final budget update as minister predicts a deficit of $8.9 billion, up $1.1 billion from a forecast she made earlier this year.
Conroy said she acknowledges “challenges” facing B.C., including three consecutive deficit budgets, but expected improved economic growth where the province will start to “turn a corner.”
The $8.9 billion deficit forecast for 2024-2025 is followed by annual deficit projections of $6.7 billion and $6.1 billion in 2026-2027, Conroy said at a news conference outlining the government’s first quarterly financial update.
Conroy said lower corporate income tax and natural resource revenues and the increased cost of fighting wildfires have had some of the largest impacts on the budget.
“I want to acknowledge the economic uncertainties,” she said. “While global inflation is showing signs of easing and we’ve seen cuts to the Bank of Canada interest rates, we know that the challenges are not over.”
Conroy said wildfire response costs are expected to total $886 million this year, more than $650 million higher than originally forecast.
Corporate income tax revenue is forecast to be $638 million lower as a result of federal government updates and natural resource revenues are down $299 million due to lower prices for natural gas, lumber and electricity, she said.
Debt-servicing costs are also forecast to be $344 million higher due to the larger debt balance, the current interest rate and accelerated borrowing to ensure services and capital projects are maintained through the province’s election period, said Conroy.
B.C.’s economic growth is expected to strengthen over the next three years, but the timing of a return to a balanced budget will fall to another minister, said Conroy, who was addressing what likely would be her last news conference as Minister of Finance.
The election is expected to be called on Sept. 21, with the vote set for Oct. 19.
“While we are a strong province, people are facing challenges,” she said. “We have never shied away from taking those challenges head on, because we want to keep British Columbians secure and help them build good lives now and for the long term. With the investments we’re making and the actions we’re taking to support people and build a stronger economy, we’ve started to turn a corner.”
Premier David Eby said before the fiscal forecast was released Tuesday that the New Democrat government remains committed to providing services and supports for people in British Columbia and cuts are not on his agenda.
Eby said people have been hurt by high interest costs and the province is facing budget pressures connected to low resource prices, high wildfire costs and struggling global economies.
The premier said that now is not the time to reduce supports and services for people.
Last month’s year-end report for the 2023-2024 budget saw the province post a budget deficit of $5.035 billion, down from the previous forecast of $5.9 billion.
Eby said he expects government financial priorities to become a major issue during the upcoming election, with the NDP pledging to continue to fund services and the B.C. Conservatives looking to make cuts.
This report by The Canadian Press was first published Sept. 10, 2024.
Note to readers: This is a corrected story. A previous version said the debt would be going up to more than $129 billion. In fact, it will be almost $129 billion.
NANAIMO, B.C. – Former Bank of Canada governor Mark Carney says he’ll be advising the Liberal party to flip some the challenges posed by an increasingly divided and dangerous world into an economic opportunity for Canada.
But he won’t say what his specific advice will be on economic issues that are politically divisive in Canada, like the carbon tax.
He presented his vision for the Liberals’ economic policy at the party’s caucus retreat in Nanaimo, B.C. today, after he agreed to help the party prepare for the next election as chair of a Liberal task force on economic growth.
Carney has been touted as a possible leadership contender to replace Justin Trudeau, who has said he has tried to coax Carney into politics for years.
Carney says if the prime minister asks him to do something he will do it to the best of his ability, but won’t elaborate on whether the new adviser role could lead to him adding his name to a ballot in the next election.
Finance Minister Chrystia Freeland says she has been taking advice from Carney for years, and that his new position won’t infringe on her role.
This report by The Canadian Press was first published Sept. 10, 2024.
