Business

Canada looks set for a fight over C$1 billion compensation for Huawei gear

Published

4 years ago

September 13, 2020

OTTAWA (Reuters) – Canada is signaling it might not compensate major telecommunications providers if the federal government bans equipment made by China’s Huawei from 5G networks, setting up a potential fight over a bill that could hit C$1 billion ($758 million).

FILE PHOTO: The logo of the Huawei Technologies Co. Ltd. is seen outside its headquarters in Shenzhen, Guangdong province, April 17, 2012. . REUTERS/Tyrone Siu

Canada, under pressure from the United States to ban Huawei Technologies Co Ltd gear on security grounds, is studying whether to allow the firm into the country’s next-generation 5G networks.

If Ottawa does announce a formal ban, the affected companies have made clear they want compensation for tearing out their existing Huawei gear, said two sources close to the matter.

But the Liberal government, already pressing wireless providers to cut what it says are excessively high bills, seems less convinced.

“I’m not sure there is a solid legal case that we would have to compensate for making a proper national security decision,” said a government source who requested anonymity given the sensitivity of the situation. Federal politicians, said the source, also had to worry about “the public perception of handing over a billion dollars or more to very large companies.”

Ottawa has spent almost two years studying whether to allow Huawei into 5G networks and in June, with no sign of a decision coming any time soon, impatient Canadian providers took matters into their own hands.

Bell Canada and Telus Corp said they would partner with Ericsson and Nokia Oyj, even though they use Huawei in their 4G networks.

Technical experts say it is hard to marry one company’s 5G equipment with 4G gear from another provider. This effectively means the decision to go with Ericsson would eventually force Telus and Bell to remove the Chinese firm’s 4G equipment.

Bell and Telus do not have to act immediately, since a crucial auction of spectrum needed for 5G networks will not happen until June 2021.

In a February 2019 filing, Telus said a ban without compensation could increase the cost of its 5G network deployment and make services more expensive for consumers.

Telus did not respond to a query as to whether it still felt the same way about compensation. Bell did not respond to a request for comment.

Scotiabank analysts said on June 2 it would cost Bell a total of between C$300 million and $350 million over three to five years to strip out Huawei gear. At the same time, BMO estimated Telus had roughly double the exposure than that of Bell.

In March, U.S. President Donald Trump signed a bill to provide $1 billion to help small providers replace equipment made by Huawei and Chinese firm ZTE.

Canada’s government is on track to run up the highest budget deficit since World War Two as it tackles the coronavirus outbreak and Prime Minister Justin Trudeau will on Sept 23 outline major measures to revive the economy.

“We obviously want to spend money on things we feel are going to grow the economy rather than on something like that (compensation),” said the government source.

One person directly familiar with the file took a more jaundiced view, noting that while Britain had told firms to remove their Huawei equipment, it had given them until 2027.

The person said this also happened to be the time when the gear would become obsolete and require replacement.

“I don’t think the thinking in the Canadian government is dissimilar with respect to that question,” said the person.

The office of Canada Innovation Minister Navdeep Bains – which will announce the decision on Huawei and 5G – said it would be premature to discuss future actions.

Reporting by David Ljunggren; Editing by Denny Thomas and Nick Zieminski

Source:- Reuters

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Business

Carry On Canadian Business. Carry On!

Published

7 hours ago

October 22, 2024

Steven Kaszab

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

11 hours ago

October 22, 2024

Anne Joseph

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

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Business

U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

11 hours ago

October 22, 2024

Anne Joseph

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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